The J.M. Smucker Company Supplier Summit

Transcription

1 The J.M. Smucker Company Supplier Summit The Benefits of Collaborative Business Commerce with The J.M. Smucker Company March 2017 Audio is available through your computer speakers or headphones

2 Agenda Welcome and Introductions Overview of The J.M. Smucker Company Initiative Impact and Benefits Ariba Network Solutions for Suppliers Supplier Fees Tools & Resources Next steps Q&A 2016 SAP SE or an SAP affiliate company. All rights reserved. 2

3 Welcome and Introductions The J.M. Smucker Co. Tanya Tierney Jennifer Smith Seka Masters Megan Greives Supplier Communication Specialist SAP Ariba Eugene Mack Network Enablement Lead SAP Ariba 2016 SAP SE or an SAP affiliate company. All rights reserved. 3

4 Agenda Welcome and Introductions Overview of The J.M. Smucker Company Initiative Impact and Benefits Ariba Network Solutions for Suppliers Supplier Fees Tools & Resources Next steps Q&A 2016 SAP SE or an SAP affiliate company. All rights reserved. 4

5 The J.M. Smucker Company Goals To transform our Procure-to-Pay business process to deliver joint value to our employees and suppliers. Ariba will transform how we do business. This enhanced process will strengthen internal controls, mitigate payment and vendor risk, assist in managing company spend, and provide tools to develop analytics in support of the business needs. By joining the Ariba Network, we are able to provide a shared cost reduction, through efficiencies in all procurement activities SAP SE or an SAP affiliate company. All rights reserved. 5

6 The J.M. Smucker Company Goals 2016 SAP SE or an SAP affiliate company. All rights reserved. 6

7 The J.M. Smucker Company Expectations This is the manner in which The J.M. Smucker Company will transact with suppliers going forward. Suppliers selected and approved by J.M. Smucker Company to transition to the new process are expected to comply with this change within the timeline set by JMS. J.M. Smucker Company will plan to move all suppliers over to the network. Supplier Selection for Enablement Suppliers are chosen based on the business need It must make sense for both J.M. Smucker Company and the supplier 2016 SAP SE or an SAP affiliate company. All rights reserved. 7

8 Agenda Welcome and Introductions Overview of The J.M. Smucker Co. Initiative Impact and Benefits Ariba Network Solutions for Suppliers Supplier Fees Tools & Resources Next steps Q&A 2016 SAP SE or an SAP affiliate company. All rights reserved. 8

9 The Landscape is Changing 85.3% of buyers go online to research purchases 42% of all B2B spend is electronic Online payments for e-commerce to reach $31.4B, growing at 20% per year Leading companies place 60% of their orders electronically through supplier networks There are more devices connected to the Internet than there are people on Earth $40 billion in marketing spend is migrating from print to online *sources available in appendix 2016 SAP SE or an SAP affiliate company. All rights reserved. 9

10 Where Do I Start? Customers demand. We only have time to react. It hit so fast that everyone wants to know what do we do now. How do we approach this? We are forced to support many platforms, many standards We spend hours chasing invoices and still don t know when we ll get paid 2016 SAP SE or an SAP affiliate company. All rights reserved. 10

11 What If you could get your products and services in front of active buyers you could streamline communications and interactions with customers you could track invoice and payment status in real time and accelerate receivables 2016 SAP SE or an SAP affiliate company. All rights reserved. 11

12 Ariba Network connects people, systems, and processes between companies to simplify business commerce for collaborative innovation in the digital economy fueling operations, connections and collaborations in a highly scalable, global and secure environment 2016 SAP SE or an SAP affiliate company. All rights reserved. 12

13 Networked Economy Fueled by Hyperconnectivity 2.5 billion Connected people on social networks by billion Connected devices by $65 trillion Global business trade by emarketer Report: "Worldwide Social Network Users: 2013 Forecast and Comparative Estimates 2. Morgan Stanley: 75 Billion Devices Will Be Connected To The Internet Of Things By Source: Catalyst Strategies Analysis 2016 SAP SE or an SAP affiliate company. All rights reserved. 13

14 Ariba Network The World s Business Commerce Network Buyer Participants Global enterprises Supplier Participants Direct materials Midmarket companies Indirect materials Individual buyers Services 2016 SAP SE or an SAP affiliate company. All rights reserved. 14

15 SAP Ariba Delivers Solutions to Suppliers FIND buyers ready to buy ACCELERATE the sales cycle IMPROVE customer retention PREDICT and APPLY cash Ariba Discovery Ariba Network (via catalogs) Ariba Sourcing and Contracts Ariba Network Supplier Integration Ariba Network Ariba Supplier Mobile App Ariba Network (via invoicing and early payment discounts) AribaPay 2016 SAP SE or an SAP affiliate company. All rights reserved. 15

16 Procure-to-Pay Cycle via Ariba Network Supplier 2016 SAP SE or an SAP affiliate company. All rights reserved. 16

17 PO Flip - Your Way to Invoice Access your PO via your Ariba Network account. Pre-populate PO data into the invoice. Adjust tax and shipping information when appropriate Review final invoice and send Monitor the real time invoice status >> supplier.ariba.com << 2016 SAP SE or an SAP affiliate company. All rights reserved. 17

18 Subscription Offerings for Ariba Network Suppliers Differentiate Grow Automate Subscription Offerings Standard Continues our see-value-first model providing a no-cost service for occasional transactors and suppliers just getting started Bronze Helps suppliers differentiate and build stronger customer relationships with catalog-driven collaborative commerce Silver Offers expanded technical support to encourage suppliers to embrace automation Gold Platinum Delivers complete collaborative commerce optimization bundles of tools, services, and support for suppliers utilizing Ariba Network as a multi-million dollar channel Optimizes collaborative commerce for suppliers utilizing Ariba Network as a $10M+ channel 2016 SAP SE or an SAP affiliate company. All rights reserved. 18

19 Supplier Fees 5 and more documents? More than $50K? Usage NO NO FREE YES NO FREE NO YES FREE Transaction Fees Billed every quarter 0.155% of transaction volume Capped at $20,000/year (per Relationship) YES YES CHARGEABLE FREE for all suppliers to join and begin transacting No surcharges for suppliers with multiple divisions or business units Documents are considered Purchase Orders, Invoices, Service Entry Sheets, and Service Entry Sheet Responses Chargeable suppliers transacting less than 250,000 USD in annual financial volume will be assigned to the Bronze level irrespective of annual document count Subscription Fees Billed once a year Annual Document Count Subscription Across All Customer Relationships Annual Fees Examples Volume Subscription Transaction Total Annual 60 documents $35K Standard - $0 $0 $0 4 documents $500K Standard - $0 $0 $0 60 documents $500K Silver - $750 $775 $ to 24 documents Bronze $50 25 to 99 documents Silver $ to 499 documents Gold $2, and more documents Platinum $5, SAP SE or an SAP affiliate company. All rights reserved. 19

20 SAP Ariba Supplier Community & Resources Account Managers for Strategic Suppliers Exchange User Community Seller Commerce Consulting Team 24x5 Global Support Product Investment Service & Training Resources 2016 SAP SE or an SAP affiliate company. All rights reserved. 20

21 Catalog Management Improve Purchase Order Accuracy Accelerate Responsiveness to Customers Encourage Compliance to Procurement Processes Enhance Cash Flow 2016 SAP SE or an SAP affiliate company. All rights reserved. 21

22 Introducing Ariba Discovery TM : Matching suppliers to buyers that are ready to buy I m looking for... I can offer that! Perfect match! US$3 billion+ in postings 20,000+ categories 4,000+ buying organizations 1,000,000+ suppliers 2016 SAP SE or an SAP affiliate company. All rights reserved. 22

23 Seller Integration Dell Boomi cxml Pre-built adapters for supported accounting systems (QuickBooks, Sage 50, Microsoft Dynamics) Gold Level Most commonly used; Ariba s native format; direct connection with automatic validation ( >100 invoices/month) Silver Level According to the Hackett Group, 3.5% of invoices contain errors; this can be reduced to 1% through B2B process automation or up to 2.3% via use of e- invoicing through a portal EDI (VAN or AS2) SAP Business One SAP SD Add-On CSV Interface with Ariba through your VAN or using EDI over the internet (>500 invoices/year) Silver Level Adapter for sellers using SAP Business One Silver Level Free seller add-on for SAP sellers using the Sales and Distribution Module Silver Level PO/INV/OC/ASN (>20 invoices/month) Paystream Advisors and the Aberdeen Group approximates the typical paper invoice processing cost at $10.54; the costs for best in class organizations drops 50% to $5.29 per invoice, driven by e-invoicing and electronic disbursements Staples and HP see 99.9% customer retention when they integrate 2016 SAP SE or an SAP affiliate company. All rights reserved. 23

24 SAP Ariba Supplier App Network Access On-The-Go! Confirm Orders Track Existing Orders Access User Community Available in the Apple itunes App Store or Google Play 2016 SAP SE or an SAP affiliate company. All rights reserved. 24

25 SAP Ariba Strategic Payables Your one stop solution housing all of your receivables needs. Control Cash Flow Predict Payment Arrival Apply Cash Access accelerated payments and on demand cash flow Improve your Days Sales Outstanding (DSO) Control when you will be paid Gain visibility into invoice approval Track and trace payment status Predict when payments will be received Apply your cash faster and more efficiently with rich remittance advice Enhance your receivables reporting 2016 SAP SE or an SAP affiliate company. All rights reserved. 25

26 Supplier Information Portal and Exchange User Community 2016 SAP SE or an SAP affiliate company. All rights reserved. 26

27 Additional Resources Customer Support: (8:00 pm ET Sunday - 8:00 pm ET Friday) Enablement Help Desk: (M-F, 8A-5P ET) Seller Commerce Consulting Team: CommerceAssistance@ariba.com Live Demos: SAP SE or an SAP affiliate company. All rights reserved. 27

28 Agenda Welcome and Introductions Overview of The J.M. Smucker Co. Initiative Impact and Benefits Ariba Network Solutions for Suppliers Supplier Fees Tools & Resources Next steps Q&A 2016 SAP SE or an SAP affiliate company. All rights reserved. 28

29 Next Steps Only 2 simple steps to start transacting online Project Notification Letter Attend Supplier Summit Accept Trading Relationship Request Configure Account Go-Live 2016 SAP SE or an SAP affiliate company. All rights reserved. 29

30 3 Accept Trading Relationship Request Letter This Week Currently, you can use Ariba's on-demand solutions with the following certified browser versions: Apple Safari 4-9 (Apple Mac OS) Microsoft Internet Explorer 9, 10, and 11 (32 bit) Google Chrome 47 Mozilla Firefox SAP SE or an SAP affiliate company. All rights reserved. 30

31 4 Configure Your Account Enter your Tax ID Number Set up Notifications for: Orders (Order Routing) Invoices (Invoice Routing) Configure your Remit To ID 2016 SAP SE or an SAP affiliate company. All rights reserved. 31

32 Trading Relationship Request Letter Trading Relationship Request letters will start going out: This Week The J.M. Smucker Company will send an with your Remit-To ID to be configured on your account After trading relationship is established SAP Ariba will follow up with sellers to aid in completing essential tasks Visit The J.M. Smucker Company Supplier Information Portal to find details on transacting with The J.M. Smucker Company 2016 SAP SE or an SAP affiliate company. All rights reserved. 32

33 5 Configure Your Remit To ID Prior to Go Live Notification from The JM Smucker Company with new Remit To ID to configure in your Ariba Network Account 2016 SAP SE or an SAP affiliate company. All rights reserved. 33

34 5 Configure Your Remit To ID 2016 SAP SE or an SAP affiliate company. All rights reserved. 34

35 5 Go Live The J.M. Smucker Co. will communicate Go Live date 2016 SAP SE or an SAP affiliate company. All rights reserved. 35

36 Q&A Please submit your questions using the Q&A Widget Business-related questions? System-related questions? Requests for integration? Check out our website and our YouTube channel for more information!

37 Thank you

38 Appendix

39 Benefits sellers gain FIND BUYERS READY TO BUY ACCELERATE THE SALES CYCLE IMPROVE CUSTOMER RETENTION PREDICT AND APPLY CASH 30% growth in existing accounts 75% faster deal closure 15% increase in customer retention 64% reduction in manual intervention 35% growth in new business 75% order processing productivity gains via cxml 80% increase in order accuracy through PunchOut Up to 99% renewal rates 62% decrease in late payments 68% improvement in reconciling payments SAP SAP SE SE or or an an SAP SAP affiliate company. All All rights reserved

40 Here s what suppliers say FIND buyers ready to buy ACCELERATE the sales cycle Grew existing account 300% Won new 500K deals Accelerated deal cycle by 75% 50% higher conversion rate with 11% increase in lines per order IMPROVE customer retention PREDICT and APPLY cash 15% increase in customer retention 99% average fill rate with 98% on-time delivery rate Invoices paid as quickly as 4 days Real-time visibility and improved cash flow 2016 SAP SE or an SAP affiliate company. All rights reserved. 40

41 Compare Subscription Packages Standard Select Premier Enterprise Enterprise Plus Free $50.00 USD/year $ USD/year $2, USD/year $7, USD/year Plus NTS fees* Plus NTS fees* Plus NTS fees* Plus NTS fees* Qualifying Annual Transaction Volume Under $50, USD $50, USD $250, USD $1,000, USD $10,000, USD Collaborate with customers on orders, invoices, and payments Access Ariba Global Customer Support for functional and navigational assistance Expand your organization's collaborative commerce capabilities by attending cxml and catalog e-learning courses Gain exclusive access to program management services and expert advice to transform your collaborative commerce capabilities Provide a superior shopping experience with CIF or Ariba PunchOut catalog technologies Enhance your catalog with Ariba's introductory data cleansing and enrichment services Ability to showcase your collaborative commerce capabilities with Ariba Ready certification Network with customers and prospects at Ariba LIVE Gain visibility into customer processes Basic document routing & Enhanced document reporting routing & reporting Enhanced document routing & reporting Enhanced document routing & reporting Enhanced document routing & reporting Included Included Included Included Included Included Included Included Included Priority Access VIP access Grow wallet share and find new customers Included Included Included Included Included 100 items per year 500 items per year Ariba Ready Bronze Ariba Ready Silver 1 pass per year Reduce cost of sales and get paid faster by eliminating manual processes Automate the submission and receipt of orders and invoices with use of Included Included Included cxml and/or EDI integration standards Access Ariba Seller Technical Support for configuration and integration Included Included Included assistance Use the Ariba Integration Connector, Powered by Dell Boomi* to enable connectivity to your back-end system, helping you to reduce manual work and serve customers more efficiently Basic integration Extended integration * Network Transaction Service (NTS) fees are calculated as a small percentage (0.155%) of your total transaction volume across all customer relationships if you transact five or more documents and 50,000 USD or higher with at least one customer annually. The NTS fee for any customer relationship with an annual transaction volume exceeding 12.9M USD is capped at 20,000 USD per year SAP SE or an SAP affiliate company. All rights reserved. 41

42 Supplier Fee Schedule 5 and more documents? More than ? Usage NO NO FREE YES NO FREE NO YES FREE Transaction Fees Billed every quarter 0.155% of transaction volume Capped at /year (per Relationship) YES YES CHARGEABLE FREE for all suppliers to join and begin transacting No surcharges for suppliers with multiple divisions or business units Documents are considered Purchase Orders and Invoices Examples Volume Subscription Transaction Total Annual 60 documents 35K Standard documents 500K Standard documents 500K Silver Subscription Fees Billed once a year Annual Document Count Subscription Annual Fees Across All Customer Relationships 5 to 24 documents Bronze to 99 documents Silver to 499 documents Gold and more documents Platinum SAP SE or an SAP affiliate company. All rights reserved. 42

43 Supplier Fee Schedule 5 and more documents? More than 34,250? Usage NO NO FREE YES NO FREE NO YES FREE Transaction Fees Billed every quarter 0.155% of transaction volume Capped at /year (per Relationship) YES YES CHARGEABLE FREE for all suppliers to join and begin transacting No surcharges for suppliers with multiple divisions or business units Documents are considered Purchase Orders and Invoices Examples Volume Subscription Transaction Total Annual 60 documents 30K Standard documents 500K Standard documents 500K Silver Subscription Fees Billed once a year Annual Document Count Subscription Annual Fees Across All Customer Relationships 5 to 24 documents Bronze to 99 documents Silver to 499 documents Gold 1, and more documents Platinum 3, SAP SE or an SAP affiliate company. All rights reserved. 43

44 Subscriptions Overview Subscription Level Standard Bronze Silver Gold Platinum Description The no-cost Standard subscription level provides the tools you need to manage your key order-to-cash documents on the Ariba Network. It includes reporting functionality, document repository and status, account administration, PunchOut and CIF catalogs, and toll-free webform access to Ariba customer support. This subscription level offers unlimited proposals and one free response to a buyer RFI/RFQ posting through Ariba Discovery. Personalized guidance from our supplier commerce consulting team helps you optimize your account for better collaboration with multiple customers. You get access to collaborative commerce training courses and can showcase your expertise by displaying digital badges that denote your specific e-commerce capabilities. You receive two free sales opportunity responses on Ariba Discovery, unlimited use of EDI and cxml-based integration protocols, and unlimited post-deployment technical support, enabling you to automate the submission and receipt of order-to-cash documents between your systems and your customers via the Ariba Network. You receive unlimited free sales opportunity responses through Ariba Discovery. You can reap the benefits of automated touchless transacting with integration adaptors to connect supported accounting systems to Ariba Network for automated document exchange. Priority access to the supplier commerce consulting team gives you personalized, expert advice and resources to make the most of your Ariba Network subscription. Make collaborative commerce a competitive advantage with extensive connectivity solutions, support, and validation services that help you provide a fully automated and seamless collaboration. A pass to SAP Ariba Live gives you access to in-depth e-commerce insights plus exceptional opportunities to network with key prospects and customers SAP SE or an SAP affiliate company. All rights reserved. 44

45 FAQ Q: Why is my buyer asking suppliers to transact with them electronically? A: Your buyer wishes to move away from conducting commerce via hard copy and manually transmitted purchase orders, change orders, advance ship notices, invoices and more. Your buyer has selected the Ariba Network as the preferred platform for sending documents such as these. Q: What infrastructure do I need to use the Ariba Network? A: A regular Internet connection and a web browser are the only requirements. Q: How do I register on the Ariba Network? A: Ariba and your buyer are contacting suppliers in phases during the rollout and will send you a Trading Relationship Request Letter when is it time to convert to the new process. This letter will explain how to register on the Ariba Network and the steps to take to create your account SAP SE or an SAP affiliate company. All rights reserved. 45

46 FAQ Q: What do I need to know when transacting with my buyer through the Ariba Network? A: It is important to review the information, training materials, and reference documents provided on your buyer s Supplier Information Portal. To access the Supplier Information Portal: Log into your Ariba Network account at From the Administrator drop-down menu, select Customer Relationships Locate your buyer and click the Supplier Information Portal link next to their name Q: What if I don t want to participate? A: Your buyer is committed to the success of this initiative and is working hard to make the transition as seamless for suppliers as possible. Suppliers that are asked to participate are considered strategic for ongoing business and are thus expected to comply with this process change as a requirement for continuing the relationship SAP SE or an SAP affiliate company. All rights reserved. 46

47 FAQ Q: How secure is the Ariba Network? A: The Ariba Network uses Secure Hypertex Transfer Protocol (HTTPS) for all communication between procurement applications, suppliers, and the Ariba Network. HTTPS is the standard for secure Internet communication and uses Secure Socket Layer (SSL) with RSA Labs encryption. Additionally, accounts on the Ariba Network are password protected. Q: What do I do with paper invoices that have already been printed or sent to the buyer? A: Until any testing is complete and you have been notified to begin sending live invoices through your Ariba Network production account, you will continue to submit invoices the same way you have done so previously. Q: What if I have more questions about registration, account navigation or how to use Ariba solutions and services? A: Simply contact Ariba Customer Support. Support is available in multiple languages via live chat, webform and phone. In your account, click on Help/Help Center, click Support Center in the right-hand column and then follow directions to reach support resources or personnel SAP SE or an SAP affiliate company. All rights reserved. 47

48 Welcome letter from your customer Trading Relationship Request Letter Sent to Your Open the Invitation Letter that you received at your address from and scroll to the section Action Required and click on the link Click here to proceed. You will be redirected to the landing page In case you did not receive the letter, please check your spam folder and enable as a trusted resource Landing Page 2 Two Possibilities: 1 First Time User select Register Now to start the registration and create a new Ariba Network Account 1 2 Existing User log in using you current Ariba username and password in order to accept the relationship 2016 SAP SE or an SAP affiliate company. All rights reserved. 48

49 Registration: Basic Company Information Please fill in all fields marked required with an asterisk. Once this section is complete, please scroll to the bottom of the page to the next section 2016 SAP SE or an SAP affiliate company. All rights reserved. 49

50 2016 SAP SE or an SAP affiliate company. All rights reserved. 50

51 Configure your account 2016 SAP SE or an SAP affiliate company. All rights reserved. 51

52 Configure Order Routing On your Order Routing Screen, select how you would like to receive your Purchase Orders from your Customers 2016 SAP SE or an SAP affiliate company. All rights reserved. 52

53 Configure Invoice Routing 2016 SAP SE or an SAP affiliate company. All rights reserved. 53

54 Logging In SAP SE or an SAP affiliate company. All rights reserved. 54

55 Landscape is Changing Sources % of buyers go online to research purchases. - Enquiro B2B survey 2. There are more devices connected to the Internet than there are people on Earth - The Social Skinny 3. Online payments for ecommerce to reach $31.4B, growing at 20% per year - -World Payments Report 2012 from Capgemini, RBS and Efma 4. Leading companies place 60% of their orders electronically through supplier networks - Aberdeen Research Supplier Networks v.2.0 A Look At Commerce In the Cloud $40 Billion in marketing spend is migrating from print to online - emarketer 2016 SAP SE or an SAP affiliate company. All rights reserved. 55