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The SIG Webinar will begin shortly.
Once the webinar begins, the sound will come from your computer
speakers.
In the meantime, please take a look at the upcoming SIG networking events listed on the right side of your screen
and plan to join us if you are in one of these cities this fall.
NETWORKING EVENTS
GLOBAL SUMMITS Mar 10-12 2015 – Amelia Island
SYMPOSIUMS
March 25 – Minneapolis, MN
REGIONAL ROUNDTABLES
Feb 4 – Seattle, WA
For more information and to register for all SIG events:
www.sig.org
Become a SIG Champion and earn points in the process by…
•Attending an event
•Dialing into a webinar •Speaking at a Summit
•Submitting content to our blog or SRC
•Referring a new member •And more
For more information and to register for all SIG events:
www.sig.org
RECENT POSTINGS
The SIG Career Network is
bursting with opportunities.
New jobs are posted daily by some of the best known global
companies in the world for those seeking careers in sourcing,
outsourcing, procurement and related functions.
For more information go to: www.sig/career-center.org
NEW to the Career Network!
• Pacific Electric & Gas – posted December 3
• Expert Category Lead
• Zions Bancorp. – posted December 2:
• Information Technology Analyst
• Senior Information Technology Analyst
• GAP Inc. – posted December 1:
• Sourcing Manager – Outsourcing
• Sourcing Manager – GAPTech Software
• Warner Bros. – posted November 25:
• Sourcing Manager - Marketing
• LogicSource – posted November 19:
• Vice President, Sourcing – Facilities
• Vice President, Sourcing – Technology
• Vice President, Sourcing – Logistics
• Vice President, Sourcing – Travel
• BJC Healthcare – posted November 18:
• Sourcing Manager
bit.ly/SIGLinkedIn @SIGinsights bit.ly/SIGfacebook bit.ly/SIGYouTube
Join the discussion in SIG’s Peer2Peer Resource program too!
Stay connected with other SIG members through various social media channels
SOCIAL MEDIA
bit.ly/SIGBlog
New Topic Each Week 2:00 pm Eastern
(11:00 am Pacific)
Upcoming Free SIG Webinars:
December 9, 2014 The Art and Science of Implementations and Expansions Presented by IQNavigator December 11, 2014 Capital Program Management: Objective Prioritization and Strategic Sourcing Presented by JLL January 15, 2015 A Case Study:How Effective Risk Management Drives Global Supply Chain Optimization Presented by Hiperos
Register at www.sig.org
For more information and to register for all SIG events:
www.sig.org
Upcoming Town Hall Teleconference:
December 10th
Self-Funding Your Transformation
Presented by:
Linda Behan
Senior Vice President
Iron Mountain Incorporated
SIG Town Hall Teleconferences
bring a small group of buy-side ONLY attendees together for a facilitated
discussion on top-of-mind issues in an open-mic, private conversation. Town Hall Teleconferences are NOT recorded.
Calendar of Town Hall
Teleconferences
Taking place at 1:00 pm Eastern on
the following dates:
March 12 August 13
April 9 September 10
May 14 October 8
June 11 November 12
July 9 December 10
For more information and to register for all SIG events:
www.sig.org
SIG Symposiums and Regional Roundtables provide education and local networking for members and invited non-member corporate users
Symposiums 2015:
Minneapolis – March 25
Toronto, Canada – May 20 Columbus – Sep 16
New York– Oct 15 San Francisco Bay Area – Nov 13
Regional Roundtables 2015: Seattle – Feb 4
Hartford – Feb 25 Sydney AU – April 15
Chicago – April 29
Houston – May 6
For more information and to register for all SIG events:
www.sig.org
A SIG Global Summit is…
• Non-commercialized
• Almost 70% buy-side
• Global brands
• 3 days of networking
• Executive Roundtables
• Multiple keynote sessions
• Nearly 50 breakout sessions
69% at director level or above, of which 43% are VP/C-level
www.sig.org/summits.php
Managing Non-Contracted Spend
With Business Networks
December 4, 2014 Public
© 2014 Ariba - an SAP company. All rights reserved. 10
Presenters
• Sundar Kamak, Vice President, Procurement and
Business Network Solutions, Ariba, an SAP Company
• Florian Boehme, Partner, source:net GmbH
• Brian Bender, Senior Director, Global Purchasing,
JM Huber Corporation
© 2014 Ariba - an SAP company. All rights reserved. 11
Agenda
Introduction
Ariba Spot Quote Overview
Customer Case Study Discussion
Solution Demo
Q&A
Introduction Sundar Kamak, Vice President, Procurement and Business Network Solutions,
Ariba, an SAP Company
© 2014 Ariba - an SAP company. All rights reserved. 13
Changing business environment increases pressure on
companies
Increasing
Globalization • Expansion into new markets
• Global process
standardization
• International supply chains
• Increased off/near shoring
Economic Volatility • Volatility in markets
• Decreased stock valuation
• Slow economic growth
• High expense ratio
More Competition • Pricing pressures
• New sources of competition
• Decreased budgets and
spending
Greater Risk • Supply chain disruption
• Financial risk and fraud
• Commodity risk
Accelerating
Technological Change • Changing business models
• Faster innovation cycles
• Expanding partnerships and
channels
• Leveraging big data for decisions
Regulatory Changes • Increasing disclosure
requirements
• Country-specific regulations
• Industry-specific disclosures
© 2014 Ariba - an SAP company. All rights reserved. 14
Discover Connect Collaborate Gain Insights
Your
Company
YOUR
COMPANY
YOUR SYSTEMS
YOUR TRADING PARTNERS
Business Networks connect people, systems, processes
between companies to simplify business commerce
© 2014 Ariba - an SAP company. All rights reserved. 15
Supplier
Relationship
Management
Supplier
Performance &
Risk
Management
Supplier
Development
Supplier
Collaboration
Supplier
Qualification &
Accreditation
Category
Management
Supplier
Discovery
Contract
Management
Content
Management
Sourcing
&
Tendering Transactional
processing
Order
Management
Claims
Management
Discounts &
Supply Chain
Finance
Collaborative
Planning &
Forecasting
Invoice &
Payment
Processing
Logistics &
Traceability
Supplier Networks
Source: "Supplier Portals & Networks Research", Accenture 2013
Supplier Networks are key for running efficient and
effective Operational Sourcing and Spot Buy processes
© 2014 Ariba - an SAP company. All rights reserved. 16
Spot Buys – a huge opportunity for additional savings and
efficiency improvements . . .
Tactical Sourcing Spend is a significant operating cost driver, but
often neglected or placed on auto-pilot . . .
Source: The Hackett Group.
© 2014 Ariba - an SAP company. All rights reserved. 17
One-time Buy
Emergency Buy
Low Spend Amount/ Low Complexity
Buy
Large percentage (42%)
of indirect spend is
tactical in nature and not well managed*
. . . yet there are many challenges with Tactical Sourcing
(Spot Buy) processes . . .
• Low spend amount
($5K - $20K per project)
• Short cycle time
• Rush Orders
• Typically under-managed,
under-served categories
• Item/service is not available
in a catalog
Unmanaged Categories
*Source: Using Technology to Streamline Tactical Sourcing. Patrick Connaughton and Kurt Albertson The Hackett Group. 4/29/2013.
Challenges
© 2014 Ariba - an SAP company. All rights reserved. 18
Introducing: Ariba® Spot Quote
Suppliers Buyer
RFQ in ERP
creates Spot
Quote event in AN
1
Create PO out of
awarded supplier
response
4
2 Spot Quote
notification
send
3 Supplier
creates and
submits bid
“Other”
For easier supplier identification and bid execution
• ERP system generates automated RFQ and publishes it in Ariba Sourcing
• Suppliers (invited/matched by Ariba Discovery) provide responses through Ariba Sourcing
• Responses are sent back automatically to the source system
© 2014 Ariba - an SAP company. All rights reserved. 19
Key benefits of Ariba Spot Quote
*Source: Using Technology to Streamline Tactical Sourcing. Patrick Connaughton and Kurt Albertson The Hackett Group. 4/29/2013.
FAST & EASY
AUTOMATED
EFFECTIVE TRUSTED
Quick ROI due to
limited configuration
and end user training
Increased saving
potentials of up to 2-5%*
Reduction in processing
time through highly
automated process
Discover potential new
suppliers via Ariba
Network / Discovery
INTEGRATED Robust out of the box
integration with SAP ERP and
Oracle E-Business Suite
COMPLIANT Complete visibility and
control improves
compliance
© 2014 Ariba - an SAP company. All rights reserved. 20
Ariba Spot Quote
source:net Florian Boehme, Partner
© 2014 Ariba - an SAP company. All rights reserved. 22
Using Ariba for all Buying Needs
Started using Ariba in 2009 to conduct sourcing events, find suppliers, and
compare quotes. Adoption has increased over the years and covered broad
range of categories and geographies.
Projects on Ariba Scope of Usage
Procurement Categories
• Indirect Materials & Services
• Transportation & Logistics
• IT Hardware & IT Services
• Energy
• Direct Materials and Services
Procurement Geographies
• Germany, Austria, Switzerland (majority)
• Europe
• USA
• Asia 2009 2010 2011 2012 2013 2014
© 2014 Ariba - an SAP company. All rights reserved. 23
Using Ariba for Spot Quotes
A total spend volume of about € 220 Million has been published on Ariba,
yielding an average of 4 supplier responses/posting (trending up). Spot Quote
requests have increased and now total 25% of all buying needs.
Bids/Posting Scope of Usage
© 2014 Ariba - an SAP company. All rights reserved. 24
Using Ariba for Spot Quotes
Using Ariba to receive Spot Quotes is really simple. It brings technology and
suppliers together and enables us to be more efficient and effective.
The Ariba Network facilitates access to the market.
Solid Description of needs and especially Requirements (K.O. citeria, etc.)
Granular and precise Classification of your product/service
Locations may even be classified down to “Bundesland” / State level
Hide participating supplier list
Logistical requirements and PO/order size, along with Incoterms (if applicable)
Tender / Business Languages
JM Huber Corp. Brian Bender, Senior Director, Global Purchasing
© 2014 Ariba - an SAP company. All rights reserved. 26
Purchasing Challenges
Enhance the performance of multiple process manufacturing businesses with
support across a variety of industries, markets and geographies
• Complicated sourcing process across a broad range of products: 7 businesses,
24 manufacturing plants, 5 R&D centers, 7 admin centers
• Managing >$750M in spend across 5 continents in direct & indirect categories
• Maintaining SG&A benchmarks; doing more with less
• Managing capital goods & services ($105M) and MRO/plant services ($45M)
Center-led with decentralized execution at the plant level:
• Multiple ERP applications
• Plant buys focused on local sellers with little competition to drive down costs
• Finding enough qualified sellers in remote plant locations often the challenge
© 2014 Ariba - an SAP company. All rights reserved. 27
Using Ariba for Spot Quotes
Started using Ariba in 2007 to run sourcing events, discover new suppliers,
and compare quotes for strategic and non-contracted spend (spot buys).
• Can quickly and easily find sellers for wide range of spend – across the world
and in remote locations
• Ideal for buyers with limited non-catalog item market intelligence
• Submit requests, gather multiple quotes, and compare offers all on one site
• Provides for record tracking of activities and support for sourcing decisions
• Obtain responses from pre-qualified sellers vetted by other Ariba buyers
• Easy access and ease of use alleviates capacity issues, improves sourcing
productivity, and cuts sourcing lead time down to a couple of days
© 2014 Ariba - an SAP company. All rights reserved. 28
Organizational KPIs for Purchasing –
Global Sourcing Efforts
© 2014 Ariba - an SAP company. All rights reserved. 29
Challenges & Opportunities securing Spot Quotes
• Being able to provide good scope or specification documentation in submitting
RFP’s to supply base
• Spot buys generally lack good specifications or are based on a particular manufacturer’s
specification or product sheet
• The element of timing is very often critical as plant outages or machine
stoppage’s affect production capability
• Gaining consistency in using the tools for Spot Buys and the experience the
technical buyers achieve helps considerably over time
• Speeds the process
• Allows for easy clarification of proposals in an electronic format
• Additional benefit is that it provides a range of prices for purchases that
historically are made with very little competitive environment
Solution Demo
© 2014 Ariba - an SAP company. All rights reserved. 31
Questions?
Thank you
For more information about Ariba Spot Quote, visit: ari.ba/for-spot-quotes
Contact information:
Sundar Kamak
Vice President, Procurement and Business Network Solutions
Ariba, an SAP Company
sundar.kamak@sap.com
© 2014 SAP AG. All rights reserved. 33 This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
© 2014 SAP AG. All rights reserved.
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