CAPEX and OPEX optimization using digital solutions

Transcription

1 CAPEX and OPEX optimization using digital solutions May 2018

2 5 Major Trends in Utilities and Chemicals and What They Mean for Procurement Category Expertise Capture and leverage industry- and domain-specific knowledge and align talent requirements with global growth strategies. Performance & Cost Deliver recurrent savings and contribute to group operational performance and set a benchmark for synergy creation. End-to-end alignment Business Networks Deal with multi-dimensional relations as supplier, customer and competitor. Transparency launch early warning systems for supplier health and increase supply chain transparency Risk management Ensure supply chain stability through a solid platform of strategic suppliers and develop early warning troubled supplier identification systems. Supplier Engagement Develop strategic partnerships with vital suppliers and establish joint improvement programs. 2

3 SAP Ariba Footprint in Chemicals 109 Customers in Chemicals Customers across industries With improved procurement methods, we now have visibility into spending and cost-reduction opportunities. A centralized service group manages spending across the business, and proactive analysis is in place to ensure that business needs are forecasted and addressed. Rachean Chanthaweekul, Vice President of Procurement, PTT Global Chemical Public Group Limited 3

4 SAP Ariba Footprint in Utilities 128 Customers in Utilities Customers across industries We wanted a simple, scalable procurement platform that would be easy to roll out across new acquisitions. SAP Ariba solutions offered us just that, enabling us to get off premise and into the cloud, and to start building a straightforward, user-friendly procurement platform for the future. Mark Paparelli, Director of Procurement, National Grid plc. 4

5 Moving Towards Best-in-class Across Multiple Buying Channels Spend profile and top spend categories within the chemical industry* Direct categories 65% Services categories 18% Indirect and MRO categories 16% Travel 1% Different Buying Channels SAP Ariba differentiates between multiple buying channel to cover the right buying processes To achieve zero-touch processing and invoicing, the purchase order must be as accurate as possible We focus on the following buying channels, which are fully supported by our solutions: Electrical comp. Food stuff Packaging supplies Lab svcs. Temp labor Chemicals and gases HR, benefits Logistics Manufacturing inputs Office Industrial machinery and equipment Consulting Marketing, print, advertising MRO Travel Catalogue Spot Tactical Recurring Service/ Contract Fuel and utilities Facilities, construction IT Complex Service Legal Waste **Indirect and services categories drawn to scale, direct materials not scaled. Logistics included as part of labor and services 5

6 Moving Towards Best-in-class Across Multiple Buying Channels Top spend categories within the utilities industry* Most utilities companies have tight controls over fuel and energy spend but lack sophistication in the areas of complex services and indirect materials Spend areas such as construction services, MRO/components, and facilities present a challenge to ensure effective collaboration with suppliers Different Buying Channels SAP Ariba differentiates between multiple buying channel to cover the right buying processes To achieve zero-touch processing and invoicing, the purchase order must be as accurate as possible We focus on the following buying channels, which are fully supported by our solutions: Facilities Equipment Spot Temp Log. Catalogue Tactical Construction Technical services Mktg. IT/ telecom Professional services MRO/ components Complex Service Recurring Service/ Contract *Excluding fuel and energy 6

7 SPEND CATEGORIES BUYERS SUPPLIERS The SAP Framework for Digital Business Market Buyer Management Fulfill Settle Customer Experience Supplier Collaboration Ariba Network Source Procure Supplier Management Settle Direct Indirect and MRO Flexible workforce Workforce Engagement Assets & Supply Chain Travel Integration to SAP and Non-SAP Solutions Secure, Open platform 7

8 SAP Ariba Business Value 20M In contract leakage prevented per 1B of spend 4x Increase in process efficiency for PO and Invoice processing functions 1-3 days Improvement of Days in Inventory 1-4 days Improvement of Days Payable Outstanding 10-15% Improvement of Spend under discount 2.9x Increase in invoice processing time 45% Greater product catalog usage 17M Savings per 1B spend achieved with 39% higher cost reduction savings for Ariba customers 17% Higher spend under management (% of addressable spend) for Ariba customers Source: SAP Performance Benchmarking 8

9 SAP Ariba Solutions SUPPLIERS SELL TO SETTLE Ariba Network SAP CLOUD PLATFORM SUPPLIER MANAGEMENT STRATEGIC SOURCING SUPPLY CHAIN PROCUREMENT FINANCIAL SUPPLY CHAIN CUSTOMER VALUE SERVICES BUYERS SOURCE TO SETTLE SAP Ariba Supplier Lifecycle & Performance SAP Ariba Sourcing SAP Ariba Supply Chain Collaboration SAP Ariba Buying SAP Ariba Payables Indirect access to SAP ERP Supplier Enablement SAP Ariba Supplier Risk SAP Ariba Contract SAP Ariba Commerce Automation SAP Ariba Invoice Management Catalog Enablement End User/ Supplier Support SAP Ariba Spend Analysis Sourcing Support Desk eauction Support Note: SAP Ariba Procurement Analytics included in all solutions Products Services Ariba Network 9

10 Start Digital Collaboration Now 3.1 Million Companies 1.5 Trillion in annual Commerce 270+ Million Documents annually processed 14 Million Users 21 Languages available 37 Countries einvoicing ready SAP Ariba has the Largest Business Network In The World 10

11 SAP Ariba Supplier Management SUPPLIER MANAGEMENT Benefits Issue Management Self-service network supplier profile Supplier 360 Two-way sync with ERP Supplier 360 Vendor master in the cloud Flexible matrix Comprehensive Supplier 360 Reporting - Centralized dashboard of supplier information, qualification, segmentation, performance and risk data Risk Intelligence - Data syndication from 500,000+ sources including news sites, government data, disaster system, public and private data sources, over 130 risk incidents tracked and delivered as risk alerts to users, intelligent risk assessment triggers based on policy, controls and risk exposure to drive compliance and flexible and extensible risk scoring and KRI model powered by data science and big data. Vendor Master in the cloud - Unified supplier master in the cloud as an extension to the ERP with more fields pertinent to Direct & Indirect spend, two-way supplier information synchronization between SAP Ariba and SAP systems, near real-time updates for supplier creation, updates, and inactivation between systems and automatically detect potential duplicate supplier records and correct them to maintain a cleansed supplier master Compliance Checks Risk intelligence Flexible Matrix - Ability to customize segmentation, qualification and performance based on category and location dimensions for more granular management (e.g. preferred suppliers with variance by category and location) Real-time dashboards 11

12 SAP Ariba Strategic Sourcing STRATEGIC SOURCING Contract Solution Capabilities Source Manage Create process efficiency across all spend categories Capture more savings by increasing spend under management in one solution PLM Integration End-to-End Process Management Product Lifecycle Sourcing Advanced Direct Materials Sourcing ERP Integration Achieve contract compliance and stop contract leakage through ERP integration Advanced Negotiation & Supplier Selection Multi-level BOMs Sourcing & Casting Source and contract faster by integrating master data across systems Better manage complex bills of material with PLM integration Design >500 Manufacture RFx events will be conducted by SAP Ariba customers in the next 24 hours Achieve greater pricing and forecasting visibility Improve supplier selection to minimize risks 12

13 SAP Ariba Supply Chain SUPPLY CHAIN Contract EPP & Planning Integration Solution Capabilities Source Planning Collaboration Collaborate efficiently with all supply chain partners through a single global solution Improve visibility into supply with continuous monitoring, benchmarking, and enhancement of supplier performance PLM Integration Execution Collaboration Easily manage all direct materials procurement and typical retail and manufacturing collaborative processes including consigned inventory, rolling delivery schedules, and contract manufacturing all in one place Respond intelligently to changes in supply and demand with real-time visibility into supply chain metrics Design Manufacture Rapidly connect to thousands of suppliers with minimal IT costs Collaborative Sourcing Pro Manage Collaborative Supply Chain Instantly identify errors through configurable business rules with automated validation and reconciliation 13

14 SAP Ariba Procurement PROCUREMENT Solution Capabilities Buyer s Process A simple, smart and elegant buying experience to increase end user adoption across all spend categories Smart guidance to buy the right item In context collaboration between end users, procurement experts and suppliers Approval workflow Purchasing Workbench PO Lifecycle Receiving 3-way match Enforce corporate policies to ensure end user compliance Requester logs in to the Guided Buying application ARIBA NETWORK Natural and powerful search experience Amazon like 3-Click and buy option Catalog Management Requisition collaboration Document Supplier collaboration Cockpit Discount management One click review and approval Supplier s Process Custom forms for complex purchases Create sourcing event directly from the requisition 14

15 Upcoming Innovations Intelligent Procurement Sourcing User Experience Procurement Desk Advanced Procurement Analytics Embedding cognitive technologies across the entire source-to-settle process Technologies effectively meld large amounts of data across internal demand, spend, and supplier and network data with social, mobile, and cloud technologies New capabilities deliver cost-effective, highly personalized, and contextspecific information Enhanced Optimization Experience New Operational Sourcing UX Operational Procurement Desk Sourcing BOM Items directly in Sourcing Events Improved Data Visibility for Suppliers The procurement dashboard for Shared Services Guidance for effective procurement execution based on category strategy In-context collaboration with the users End to end visibility on the status Digital Boardroom for Procurement Cross solution, cross system analytical dashboards (e.g. SAP Ariba, S/4HANA Procurement) Relevant KPI s in one place Flexible adaption and creation leveraging SAP s Analytics cloud platform 15

16 10 Characteristics of SAP s Procurement Reference IT-Landscape SAP S/4HANA ready! End-to-end integrated processes between SAP S/4HANA and SAP Ariba Spot Buy 3 rd party catalog content from selected providers like Mercateo or ebay Sourcing and Contracts Sourcing and Contract authoring with SAP Ariba; distribution into SAP outline agreements for operational use in SAP backend systems Supplier Master Data SAP Ariba SLP for supplier-self service; SAP MDG-S ensuring data distribution into SAP backend-systems Guided Buying Central landing page integrated in SAP S/4HANA covering all buying channels and categories Integrated Business Planning Forecast collaboration between buyers and suppliers derived from SAP IBP & Ariba Network One single, digital connection between buying organizations and their suppliers for direct and indirect materials plus services Financial Institutions Integration with financial institutions for offering supply chain finance Risk Management Integrated Supplier Risk Management leveraging trusted external data sources and Machine Learning Multi-backend SAP S/4HANA for extended procurement serves as Central Procurement Hub consolidating Purchase Requisitions and going forward further objects 16

17 SAP Ariba Services Business Commerce Enablement Services Cloud Enablement Services Technical Integration Services Best Practice Center Supplier Enablement Services Training and Education Catalog Enablement Services Application Management Premium Support Before and after deployment, SAP Ariba will be there for you. You might need support with change management, adoption, connectivity, or ongoing process improvements. When you do, you can access our know-how, technology, and market intelligence to help drive fast ROI. Business Transformation Services Change Management SAP Enterprise Support, Cloud Edition Success Planning Customer Engagement Organization Value Realization 17

18 We Create Value Companies have different maturity levels, while some already have done some digital initiatives others are far behind their peers. By implementing SAP Ariba solutions we see companies realize significant benefits, when optimizing their end-to-end processes. In an typical and across industries case, we see the following are likely. Incremental Savings Based on The Adressable Spend Laggard 4-7% Average 3-5% Best-in-Class 0.5-2% Mainly manual procure-to-pay processes Low degree of esourcing and eauctions Low number of catalogues/ punch-out < 50 Every second/third requisition is free-text High maverick buying - low spend under mgmt. High number of invoices without PO-reference Supplier collaboration is performed through mail or fax Invoice management is mainly paper-based and scanned Fair degree of automation in procure-to-pay processes, only few processes are manual esourcing and eauctions are used up to 50% of all events Average number of catalogues/ punch-out Every third/fourth requisition is free-text High spend under mgmt % Fair number of direct 3-way invoice matching Invoice management is automated 10-50% of invoices fully electronic and non-pdf (EDI, Portals) High level of automation in procure-to-pay processes esourcing and eauctions are used as state of the art and regular High number of catalogues/ punch-out >500 Low degree auf free text purchase requisitions High spend under mgmt. 80%+ High number of direct 3-way invoice matching Supplier collaboration is primarily digital Invoice management is highly automated 50%+ of invoices fully electronic and non-pdf (EDI, Portals) 19% Average Sourcing Savings SAP Performance Benchmarking Top Performers 94% Spend under Management 20K POs per Operational Procurement FTE 1 day Average Invoice Approval Cycle Time 49K Invoices per AP FTE 18

19 Why SAP Ariba? Truly Global Network Strategic Partnership One end-to-end platform Power of Innovations SAP Ariba operates the only global supplier 3.1 million companies integrated and 1.5 trillion $ in commerce 50+ data formats ready for suppliers with own support Strong partnership and co-innovation Innovation partnerships with Apple or IBM or with customers such as Nestlé, Merck or BASF Fully horizontally integrated from source-topay Modular, open and one platform Enhance with IBP/Ariba supply chain or dynamic discounting Innovation and transparent innovation pipeline Strong visionary roadmap for cognitive intelligence with IBM or with SAP Leonardo Or even blockchain scenarios Real vertical integration S4/HANA ready Global Support Compliance Bi-directional Native integration into ECC and S4/HANA with over 180 integration points SAP naming 4,000+ fields Full vertical integration for Source-topay with ECC Ariba is a central cornerstone with our S4/HANA roadmap in line with SAP s digital core strategy Direct integration SAP operates in 190+ countries with local and strong consulting workforce We even operate a Seller Organization for our suppliers Higher compliance in prices, budgets or contracts within an integrated solutions Invoice compliance in multiple countries real data exchange - PDF is optional Fiori-based user experience API ready SAP Cloud Platform Data Center Common design across SAP solutions Better user experience and native user guidance within the applications Open network with strong partner ecosystem, e.g. Thomson Reuters for tax integrated with Ariba Develop your own API or dynamic forms to drive adoption SAP Ariba can be enhanced with SAP Cloud Platform Personalize your existing applications or choose from prebuilt applications from SAP partners that integrate seamlessly with SAP applications Solutions run within the SAP Platform Security through SAP owned data center 19

20 Thank you. Contact information: Mohammad Zakarni Director Business Development