OpenSAP Bnar1 Week2 All Slides

Week 2 Unit 1: Ariba Sourcing
Professional
Ariba Sourcing Professional

Table of contents
Unit 1
Unit 2
Ariba Contracts
Unit 3
Ariba Procure-to-Pay Part 1
Unit 4
2015 SAP SE or an SAP affiliate company. All rights reserved.
Public

Overview
Analyze
Source & Track
PLAN
BUY
PAY
1: Ariba Sourcing Professional
Negotiate
Contract
Request
Order & Receive
Reconcile
From a savings pipeline, plan

your RFPs or other types of
sourcing event and award them.
Send & Track Orders

Control Invoices
Optimize Payment
Public

Instant expert
Sourcing
It all boils down to a good template and many prospects.
Problem: too many details to handle

It takes lots of energy for a human mind to analyze
Transparency cannot be achieved from file folders
Typically, 30% of the savings are not executed
This means:
Too many shortcuts: to speed things up, fewer suppliers are
invited, analysis only focuses on prices, risks are taken
Slow and limited scopes: projects restart from start each time
Lost savings: savings are not broadcast to procurement; they
remain on paper but are not enforced
What needs to be done

Use technology to deploy templates and
enforce usage
Adopt an aggressive sourcing pipeline tracked
in the tool
Dare to be aggressive: invite more suppliers,

use reverse auctions, track what happens in
procurement
Public

What is top class eSourcing?
What is top class
eSourcing?
Scenarios
Reviewer
Scores
Formulas
Extra Costs
Prices
Analyze price against score and assign

25% incumbent and minimum 3
suppliers
John to review technical drawing and
provide score from 1 to 10
0 points for I month
5 points for 6 months
10 points for 1 year
If delivered in more than 5 days, add

1% inventory costs
Delivery cost
Price per item
Public

Reporting
Structured Processes
What do you get with

Ariba Sourcing?
Templating
Tools
Ariba
Sourcing
Workflows
RFx
Quotes & Tenders
Auctions
Scoring
Suppliers
Services
Full Support
Ongoing Support
In the tool Check my Event
Public

eSourcing screenshot cascade
Reporting & Dashboards
RFP Questionnaire
Auto-Scoring
eSourcing
Awarding Scenarios
Integrated Messaging
View in Presentation Mode

Find New Suppliers
Auctions
Project Management
Approval Workflows
Template Driven
Public

Summary
1. Technology opens the door to more competition
and more complex analysis
2. The system will cater to simple and strategic
events with different levels of sophistication
Analyze
Source & Track
PLAN
3. You receive support from Ariba on the content

and for the suppliers
BUY
PAY
Negotiate
Contract
Request
Order & Receive
Reconcile
Send & Track Orders

Control Invoices
Optimize Payment
Public
Week 2 Unit 2: Ariba Contracts
Ariba Contracts
Table of contents
Unit 1
Unit 2
Ariba Contracts
Unit 3
Unit 4
Public
Ariba Contracts
Overview
Analyze
Source & Track
Negotiate
PLAN
BUY
PAY
Contract
Request
Order & Receive
Reconcile
Send & Track Orders

Control Invoices
Optimize Payment
4: Ariba Contracts
Auto-generate contracts with
clauses and tracking for
renewals. Prices can also be
published automatically to
procurement.
Public
Ariba Contracts
Instant expert
Contract Management
I would have written a shorter letter, but I did not have the time. Blaise Pascal
Problem: prepare faster, execute better

Its not only about the legal agreement;
the process, the data, and the renewals must also be managed
If not centralized, contracts are lost in file folders
Legal does all the work because of a lack of structure
This means:
Costs: important contract leakage in procurement
Risks: contracts enter litigation and go into overtime
Inefficiency: high cost legal FTE gets too much involved

Contracts have structured data: manage them
in a system, not in folders.
Invest time in building your clause library to
have contracts auto-drafted.
Assign the tasks of tracking, drafting, and

executing of contracts to sourcing FTE with
legal oversights.
Public
Ariba Contracts
Components
What does a
contract entail?
Dates
Items, types, time and material,

contract value, SLAs, discounts, extra
costs, statement of work
Drafting, validation, negotiation,
amending, approving, executing,
litigation, documenting, versioning
Effective from and to, milestones,
invoicing structure, renewal, grace
period, notification
Types
Renewal, framework, master and sub,

parties
Utilization
Tasks
Clauses
Signature
Risk management
Legal validity
Public
Ariba Contracts
Solution Structure
Contract Workspace
How is a contract
managed?
Attributes
Expiration
Owner
Renewal
Amount
Department
Commodity
Product
Team
Reporting
Tasks
Documents
Searchable
Repository
Public
Ariba Contracts
Links with procurement
The contract is
the bridge
Contract Management
Procurement
Catalog items
Sourcing
Contract
terms and
consumption
Public
Ariba Contracts
Contact Management screenshot cascade
Document Management
Integrated with MS Word
Full Version Control
Contract Lifecycle Mgt
Contract Management
Project Management

Team & Access Control
Message Board + Email
Template-driven
Full-text Search
Reporting & Dashboards
Public
Ariba Contracts
Summary
1. A lot of risks can be reduced by letting the
system enforce the process
2. You can start managing by exception only
Analyze
Source & Track
Negotiate
PLAN
3. The contract is the link to procurement

compliance
BUY
PAY
Contract
Request
Order & Receive
Reconcile
Send & Track Orders

Control Invoices
Optimize Payment
Public
Thank you
Contact information:
open@sap.com

No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate
company) in Germany and other countries. Please see http://global12.sap.com/corporate-en/legal/copyright/index.epx for additional trademark information and notices.
Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors.
National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its
affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and
services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as
constituting an additional warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop
or release any functionality mentioned therein. This document, or any related presentation, and SAP SEs or its affiliated companies strategy and possible future
developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time
for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forwardlooking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.
Public
11
Week 2 Unit 3:

Table of contents
Unit 1
Unit 2
Ariba Contracts
Unit 3
Unit 4
Public

Overview
3: Procure-to-Pay
PLAN
Analyze
Source & Track
Negotiate
Contract
Request
Order & Receive
BUY
PAY
Reconcile
Send & Track Orders

Control Invoices
Optimize Payment
Everything needed to order,

receive, and reconcile with the
invoice. And for the supplier,
be able to transact
electronically and view
incoming payments.
Public

An analogy
And US tracks have the
same gauge as British
tracks
Illustration in
another context:
(4 feet 8.5 inches 143.5cm)
And this came

from this
These are smaller than

desired because they had
to pass through this
So a bureaucratic measure
made in imperial Rome
survived all the way into space.
Is your procurement the result of time or has it been efficiently designed?

While the gauge of

European chariots came
from these
Public

Instant expert
Ariba Procure-to-Pay
No one can whistle a symphony. It takes a whole orchestra to play it. H.E. Luccock
Problem: prepare faster, execute better

Strategic buying, procurement, accounts payable, and finance all
have their own tools
Suppliers are only used passively
More complex procurement process is left on paper
This means:
Leakage: divide to conquer its too easy to find loopholes
Costs: non-compliance, missed opportunities, and lack of adoption
all drive costs and maverick spend

Concentrate and refocus: processes,
technology, tools, and people
Collaborate internally: AP & Procurement must
work together
Shift work to the supply side: catalogs, invoice
compliance, pricing quotes, collaboration
Bad Governance: Its very difficult to audit structurally

Public

Before and after
Analog vs
Digital Process
Online
Online
Online
Online
Online
Online
Online
Online
Search
Agreed
ePO
Confirmed
Ship
Notice
GRN
Invoice
Remittance
Identify
what you
need
Have it
approved
Send
purchase
order
Check if
supplier
agrees
When will
it be
delivered?
Confirm
receipt
Reconcile
invoice
Inform
about
payment
Public

Needs of each group
But as a BUSINESS
Reduce Costs
1. Quick process to request
2. Orders are approved and sent
3. Exactness in delivery
Achieve best cost/quality ratio

Improve efficiency maximize FTE use
Impose compliance throughout the process
Minimize Risks
Order and receive in time

Apply and track contracts
Address legal risks (corruption, fraudulent charges,
theft, etc.)
Procurement
1. No penalties for late payments

2. Prove governance was achieved
3. Minimize risks and abuses
Accounts Payable
Report
Track spend, categories, maverick, results

Track people, efficiency, duration, compliance,
achievements
Synthesize for decision making, financial reporting,
planning
Public

Contact Management screenshot cascade
In Catalogue
Self Configured Forms
List of suppliers
Ask vendors input
Procurement Dynamic
Forms
Formula Pricing
Form Reporting
Public

Summary
1. Compliance should be enforced by the system
2. Each teams need to collaborate
3. When all in the same tool, everybody speaks
the same language.
PLAN
Analyze
Source & Track
Negotiate
Contract
Request
Order & Receive
BUY
PAY
Reconcile
Send & Track Orders

Control Invoices
Optimize Payment
Public
Thank you
open@sap.com

Public
11
Week 2 Unit 4:

Table of contents
Unit 1
Unit 2
Ariba Contracts
Unit 3
Unit 4
Public

Overview
PLAN
BUY
PAY
Analyze
Source & Track
Negotiate
Contract
Request
Order & Receive
Reconcile
Send & Track Orders
Control Invoices
Optimize Payment
4: Technology Options
Understand the options available
from the different modules and
mix possibilities for the buyerside and the Marketplace.
Public

Identifying the scope
Supplier Portal
Catalogs
Buying Tool
Tenders
Spot Buys
Approvals
Auctions
Budgets
Contracts
Receiving
Invoice
Management
Credit Memos
Approvals
Marketplace
Electronic PO,
Invoices, and
More
Public

Cloud procurement menu
Catalog
The Cloud
Procurement Menu
Procurement Tool
Requesters
Name: Ariba Procure-to-Pay

Invoice Mgmt Tool
Accounts Payable
Marketplace
Catalog
B
Name: Ariba Procure-to-Order
Procurement Tool
Requesters
Marketplace
Cheat sheet: Whats in

the cloud with those
options?
A.
B.
C.
D.
E.
Everything
Procurement & Network
Catalog & Network
Invoice Process & Network
Network Only
Catalog
Name: Ariba Procurement Content +

Ariba PO and Invoice Automation
Marketplace
On your
ERP(s)
On your
ERP(s)
On your
ERP(s)
Name:
Ariba Invoice Professional
On your
ERP(s)
Name:
Ariba PO and Invoice Automation
On your
ERP(s)
Invoice Mgmt Tool

Accounts Payable
Marketplace
Marketplace
Invoice Mgmt Tool

Accounts Payable
Procurement Tool
Requesters
Invoice Mgmt Tool

Accounts Payable
Catalog
Procurement Tool
Requesters
Catalog
Procurement Tool
Requesters
Invoice Mgmt Tool

Accounts Payable
Public

Importance of integration standard offering
Solutions with only a few sockets available
When you use a solution built for integration
Public

Ariba/SAP packaged integrations
Network Transactions
Standard
Integrations
Master Data to P2P
P2P Transactions to ERP
ERP Transactions to P2P

Public

Delivered integration programs with SAP/Ariba
Standard
Services
All Native SAP Pre-Built
Public

Technology options summary
1. Enriching existing systems
2. The Marketplace fits everywhere
3. It is all related to how integrated your teams are
PLAN
BUY
PAY
Analyze
Source & Track
Negotiate
Contract
Request
Order & Receive
Reconcile
Send & Track Orders
Control Invoices
Optimize Payment
Public
Thank you
open@sap.com

Public
11

OpenSAP Bnar1 Week2 All Slides

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

OpenSAP Bnar1 Week2 All Slides

Uploaded by

Copyright:

Available Formats

Week 2 Unit 1: Ariba Sourcing

Ariba Sourcing Professional

Ariba Sourcing Professional

Ariba Procure-to-Pay Part 1

Ariba Procure-to-Pay Part 2

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Sourcing Professional

1: Ariba Sourcing Professional

From a savings pipeline, plan

Send & Track Orders

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Sourcing Professional

It all boils down to a good template and many prospects.

Problem: too many details to handle

What needs to be done

Dare to be aggressive: invite more suppliers,

Ariba Sourcing Professional

2015 SAP SE or an SAP affiliate company. All rights reserved.

Analyze price against score and assign

If delivered in more than 5 days, add

Price per item

Ariba Sourcing Professional

What do you get with

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Sourcing Professional

View in Presentation Mode

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Sourcing Professional

3. You receive support from Ariba on the content

2015 SAP SE or an SAP affiliate company. All rights reserved.

Send & Track Orders

Week 2 Unit 2: Ariba Contracts

Ariba Sourcing Professional

Ariba Procure-to-Pay Part 1

Ariba Procure-to-Pay Part 2

2015 SAP SE or an SAP affiliate company. All rights reserved.

Send & Track Orders

2015 SAP SE or an SAP affiliate company. All rights reserved.

Problem: prepare faster, execute better

What needs to be done

Assign the tasks of tracking, drafting, and

Items, types, time and material,

Renewal, framework, master and sub,

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

View in Presentation Mode

2015 SAP SE or an SAP affiliate company. All rights reserved.

3. The contract is the link to procurement

2015 SAP SE or an SAP affiliate company. All rights reserved.

Send & Track Orders

2015 SAP SE or an SAP affiliate company. All rights reserved.

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Procure-to-Pay Part 1

Ariba Sourcing Professional

Ariba Procure-to-Pay Part 1

Ariba Procure-to-Pay Part 2

2015 SAP SE or an SAP affiliate company. All rights reserved.

Ariba Procure-to-Pay Part 1

Send & Track Orders

2015 SAP SE or an SAP affiliate company. All rights reserved.

Everything needed to order,

Ariba Procure-to-Pay Part 1

(4 feet 8.5 inches 143.5cm)

And this came