Ariba Procurement Excellence

Solution Overview
Procurement Executive Optimize SAP and Ariba SAP and Ariba References
Summary Procurement Solutions Innovations Contact Us
Impact
Procurement Excellence
© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Executive Optimize SAP and Ariba SAP and Ariba References
Impact
Sustainable Savings and Innovation

Savings and Innovation Today’s procurement professionals are bombarded with increasingly complex
challenges. They need to manage global supply risk and protect profitability –
Procurement Excellence despite volatile pricing in many supply markets – and contribute new innovations
to the business. These are just a few examples of the imperatives they face.
Growth and Profitability
SAP and Ariba Innovations Global supply risk – heightened by geopolitical At the same time, procurement is being asked
instability and dramatic natural disasters – is to align and contribute to corporate initiatives
front and center for many companies; they are such as diversity and sustainability, as well as
now quickly establishing key processes to bring innovation from suppliers to new product
manage this risk and define contingency plans. development teams.
Meanwhile, cost savings is still job number one, Most procurement departments have to juggle
and it’s getting harder to realize when markets all of these demands with a limited workforce,
and pricing swing by large margins as they are making it essential that they find efficient, smart
affected by the same global risk factors. approaches to manage workloads. This re-
quires giving people the right skills, processes,
and technologies to get the job done.
© 2013 SAP AG or an SAP affiliate company.

2 / 29 All rights reserved.
Impact
Driving Procurement Excellence

Savings and Innovation A best-run procurement department delivers year-over-year cost savings as a core
competence, while balancing new initiatives that align with the corporate strategy.
Procurement Excellence Chief procurement officers (CPOs) instantiate best practices and then turn to new
disciplines, pushing boundaries to add additional business value.
SAP and Ariba Innovations With tight resources and high expectations, Another approach is to collaborate more
procurement executives are turning to tech- strategically with suppliers. For instance,
nology to drive best practices for containing procurement can leverage network-based
costs. For example, helping to ensure visibility insights to understand differentiating
into spending, effective strategic sourcing, low- competencies and draw innovation from the
risk contracting, and compliant purchasing can supply base for top-line growth initiatives.
set the baseline for cost savings. Market data and insights can also support
diversity and sustainability programs, which can
One proven approach to expanding value
be important to an organization’s brand.
involves broadening procurement’s influence
to cover all categories of spending. By having
access to rich information in key categories,
procurement can partner with the business to
gain entry into categories such as marketing,
advertising, legal, and other areas.

Impact
Bottom- and Top-Line Profitability

Savings and Innovation In highly competitive industries, the positive impact of strategic procurement cannot
be overestimated. On average, delivered cost savings increase a company’s net
Procurement Excellence income five times faster than the same percentage of revenue increase. At the
same time, procurement can support growth initiatives.
SAP and Ariba Innovations The first step in identifying opportunities for Moving contracted goods and services into
cost savings and revenue impact is to under- procurement execution systems supports
stand your organization’s spending. By using compliance for purchasing from approved
software to aggregate, cleanse, enrich, and suppliers – and at the right price and terms to
evaluate spending data, you can uncover realize negotiated savings. By making this
issues such as fragmented spending across process simple and straightforward, you can
85% too many suppliers, purchase price variances,

and supply risks.
Then your team can pursue savings opportu-
avoid maverick spending.
Lastly, managing supplier performance and
risk – and collaborating closely with suppliers
Spend under procurement nities that will likely involve strategic sourcing over time – will boost your company’s top line,
management for best-in-class projects. To maximize the number of categories as suppliers bring new ideas that support
organizations you can source, you need ways to efficiently growth initiatives.
Source: Ardent Partners collaborate with business stakeholders,
discover new sources of supply, and rapidly
conduct requests for information and proposals.
You also need to execute low-risk contracts
using a standardized process.

Impact
SAP and Ariba Innovations

Savings and Innovation Advanced technologies are propelling the discipline of procurement forward. With
the world of possibilities expanding daily, procurement organizations can gain a
Procurement Excellence competitive advantage by being at the forefront of adoption.
SAP and Ariba Innovations Procurement organizations have access to vast Most employees today are mobile, connected,
amounts of internal and external qualitative and and always on. Innovative procurement depart-
quantitative data. Breakthrough database and ments are using mobile solutions from SAP to
technology solutions such as the SAP HANA streamline processes, increase efficiency, and
platform make information available instantly enable on-the-go approvals.
at any level of granularity.
Our mobile analytics and briefing applications
Leveraging that information requires flexible, provide up-to-date information to support
scalable, cost-effective analytics embedded supplier meetings and field-related needs.
within business processes and networks to
With the acquisition of Ariba, SAP now offers
enable real-time modeling and optimization,
market-leading, cloud-based solutions for
decision support, and effective analysis to
sourcing and procurement – in addition to the
inform future planning.
world’s largest trading network for supplier
collaboration. These low-cost, low-risk solutions
serve the needs of both IT departments and
procurement executives.

Impact
Optimize Procurement Impact

Optimize Procurement Impact By driving efficient, effective supplier management, sourcing, procurement, and
commodity management programs, procurement teams are delivering greater
Manage the Supply Base profitability.
Better Sourcing Proactively Manage the Supply Base

Engage the right suppliers to help ensure a responsive supply network and mitigate
Procurement Compliance risk.
Collaborative Invoicing Source More and Better

Effectively source more of your organization’s spending on a regular basis to
Manage Commodity Risk
optimize savings.
Ensure Procurement Compliance

Provide a simple, intuitive self-service shopping experience to help ensure
employees buy the right goods and services.
Enable Accurate Invoicing and Timely Payment

Automate collaborative invoice management and bank communications for efficient,
accurate, and timely process completion.

Leverage sophisticated pricing engines and integration with treasury procedures to
manage commodity exposures.
Impact
Proactively Manage the Supply Base

Optimize Procurement Impact Gaining a 360-degree view of every strategic supplier to
your business helps you make informed decisions about
Manage the Supply Base the future of these relationships. At the same time, by
understanding your supplier portfolio holistically, you can
Better Sourcing take a true category management approach to
procurement.
Procurement Compliance
Collaborative Invoicing Your supply base is essential to operating your The right program will also enable collaboration
organization effectively. So you can’t afford with your suppliers – and your suppliers’
Manage Commodity Risk supply disruptions, quality issues, or poor suppliers – by providing visibility into supplier
service levels. performance across your network.
Ensuring smooth operations requires that you You also need basic supplier information man-
39% be proactive about performance and risk

management for top-tier suppliers. An effective
program will include designated personnel,
agement – an efficient way to keep information,
logistics, banking data, and diversity and
insurance certifications up-to-date. With the
Higher average annual well-developed processes for risk identification right data readily available, you can run your
savings where system and mitigation, and ongoing performance business efficiently without administrative
provides real-time visibility management procedures that bring under- bottlenecks.
into supplier performance performing suppliers back on track – or help
for proactive improvements you discover new suppliers.
Source: SAP Performance
Benchmarking

Impact
Source More and Better

Optimize Procurement Impact With category expertise on hand, your organization may
be known for strong sourcing abilities. Even so, being
Manage the Supply Base able to source more categories in a shorter time frame –
and being able to do so more collaboratively and effec-
Better Sourcing tively – can bring additional savings to the bottom line.
Collaborative Invoicing Many organizations have learned best sourcing It’s also important to organize procurement
practices by hiring external consultants or projects so that they encourage collaboration
Manage Commodity Risk bringing on board a team of category and with business stakeholders and consider total
sourcing experts. Institutionalizing these value. You’ll find that the purchasing behavior
practices so they can be leveraged more of stakeholders is more likely to be compliant,
broadly within your company and conducted helping you to realize expected savings once a
73% more quickly creates valuable opportunities for
additional savings.
contract is awarded. By executing the projects
and contracts faster over a collaborative
technology platform, you can source more
Amount of addressable spend You also need to speed up the process of
categories and implement savings more
sourced annually by best-in- spend analysis and ensure that data is easy to
rapidly.
class organizations versus understand and reliable. When sourcing
49% on average professionals are armed with the right insights,
Source: Ardent Partners
sourcing projects get off to the right start.

Impact
Ensure Procurement Compliance

Optimize Procurement Impact After doing an effective job of sourcing goods and ser-
vices and creating favorable contracts, your organization
Manage the Supply Base wants to see those savings hit the bottom line. But in
order for that to happen, employees making purchases
Better Sourcing have to leverage those contracts – whether they are
inside or outside your department.
Collaborative Invoicing Driving compliant purchasing across all Your direct materials buyers may not need
spending categories is a tricky business. It guidance to adhere to contracted terms and
Manage Commodity Risk requires careful consideration of how each pricing. But for indirect materials and services,
category will eventually be purchased by the placing items into catalogs for directed buying
different divisions and systems of your by company employees is essential to reap
organization. expected savings. You also need a self-service
40% Once that purchasing is mapped, it’s likely that
you’ll need to create integrated processes in a
buying process that is intuitive and drives
people to purchase from the correct supplier at
the correct price.
Lower maverick spend variety of systems, supporting direct materials,
(direct) for organizations indirect goods, and both direct and indirect
where contract compliance is services.
directed, or even mandated,
Your organization can take further cost out of
by system controls
the process by eliminating paper transactions
Source: SAP Performance and conducting purchase order collaboration
Benchmarking electronically, which also speeds delivery.

Impact
Drive Accurate Invoicing and

Timely Payments
Optimize Procurement Impact
At the tail end of the procurement process, your accounts
Manage the Supply Base payable department handles an enormous volume of
incoming invoices. Help ensure that suppliers are paid on
Better Sourcing time at the right prices based on your agreements, while
driving process efficiency.
Collaborative Invoicing The first issue AP managers must tackle is To finalize the process, you need to support
dealing with the many different invoice formats electronic payments with standards-based
Manage Commodity Risk that are received. To automate this process, all electronic payment networks – such as
invoices must be accepted and transformed Automated Clearing House (ACH) – and then
into a consistent electronic format. provide remittance details.
The next step is to validate the invoice and help Streamlining the invoice-to-pay process by
ensure the outgoing payment is accurate. To providing workflow and exception-based
accomplish this task, you need to compare the management of invoices frees up your
invoice information to the related purchase personnel to focus on higher value-add
orders, receipts, and contracts. Often there will activities, which includes the opportunities
be errors or issues that require resolution with provided by dynamic discounting to optimize
the supplier, so you need a platform that working capital.
enables you to work with the supplier until the
invoice is correct and ready to be paid.

Impact

Optimize Procurement Impact If your organization purchases commodities such as raw
materials, or even services such as electricity, your
Manage the Supply Base profitability could be heavily impacted by pricing swings in
markets where you heavily invest. To manage this risk,
Better Sourcing you need a commodity management strategy and the
tools to execute on it.
Collaborative Invoicing Nearly all manufacturing-related companies, By their nature, the processes are interdependent
and even those in other industries, interact with – so integration results in more accurate, rapid
Manage Commodity Risk the broader commodity market. Whether your response times.
company produces commodities to sell, buys
This approach enables you to manage
and uses commodities to make products,
commodity risk using integrated processes
leverages commodities to operate, or does all
66% of these, the discipline of commodity manage-
ment is important to your business success.
designed specifically for your needs, as well as
perform timely and profitable commodity
purchasing, selling, and hedging.
Of survey respondents said To do this effectively, you need to manage
commodity management was short- and long-term pricing, profitability, and
“critical” or “very important” to risks related to your commodity purchases and
their organization sales. You also need a tool set to better
Source: SAP and Procurement
manage commodity risk by supporting sales,
Leaders Survey procurement, and risk management processes
that are impacted by commodities.

Impact
Procurement Excellence Value Map

SAP and Ariba Solutions
Supplier Discovery and Supplier Discovery Supplier

Supplier
Supplier Performance
Lifecycle Management and Lifecycle Discovery
Information
and Risk
Management
Management Management
Strategic Sourcing
and Contracting
Contract Operational
Strategic Sourcing Spend Analysis
Strategic Operational
Lifecycle Contract
Procurement and Order and Contracting Sourcing Sourcing
Management Management
Collaboration
Collaborative Invoice to Pay

Procurement Operational Operational Catalog
Purchase Order
Services Automation
Commodity Management and Order Procurement – Procurement – Content
Procurement and Order
Direct Indirect Management
Collaboration Collaboration
Invoice
Document Discount and Bank
Collaborative Retention and
Collaborative Exception and
Payment Term
Accounts
Communication
Invoice to Pay Invoicing Approval Payable
Archiving Optimization Automation
Management
Commodity Commodity
Commodity
Risk
Management Procurement
Management

Impact
Supplier Discovery and Lifecycle Management

SAP and Ariba Solutions Discover, onboard, and manage suppliers for
maximum value.
Supplier Discovery and
Lifecycle Management Solutions from SAP and Ariba, an SAP company, help you discover
new suppliers to meet business needs and then onboard them by
Strategic Sourcing creating rich profiles and transactional information. They also enrich
and Contracting relationships over time by supporting performance and risk
management.
Collaboration
Supplier Supplier discovery matches business buyers and suppliers globally, aligning
Discovery needs with capabilities. Cut the time and cost of finding and qualifying
suppliers by up to 90% and project spend by up to 15%.
Commodity Management
Supplier Supplier information management allows companies to quickly identify and
Information assess new sources of supply, rapidly onboard approved suppliers, and gain
Management a 360-degree view of supplier information.
Supplier Supplier performance and risk management facilitates the definition,

Performance measurement, and collaborative enhancement of supplier performance and
and Risk risk to meet business needs, improve supplier relationships, and minimize
Management disruptions within the supply base.

Impact
Strategic Sourcing and Contracting

SAP and Ariba Solutions Source efficiently and effectively to drive superior
savings.
Lifecycle Management Solutions for strategic sourcing and contracting from SAP and Ariba
enable rich spend analyses for savings opportunity identification and
Strategic Sourcing effective strategic-sourcing project management. They support low-
and Contracting risk, standardized contracting processes that tie sourcing and
procurement together for realized savings.
Collaboration
Spend Analysis Spend analysis helps you to identify savings opportunities by enriching,
classifying, and analyzing company spend data.
Strategic Strategic sourcing management supports a programmatic, collaborative
Sourcing approach to sourcing project management to generate cost savings.
90% Operational
Sourcing
Operational sourcing allows you to automate spot sourcing or demand-
driven sourcing activities for fast turnaround.
Of best-in-class procurement
organizations use accurate Contract
Contract lifecycle management enables standardized contract management
spend data to drive sourcing Lifecycle
for better visibility, reduced risk, and enhanced compliance.
results Management
Source: Ardent Partners Operational Operational contract management helps unify contract distribution and
Contract execution across a varied system landscape for holistic usage tracking and
Management discount management.

Impact
Procurement and Order Collaboration

SAP and Ariba Solutions Drive compliant purchasing and automated
collaboration.
Lifecycle Management Solutions for procurement and order collaboration from SAP and
Ariba enable sound purchasing processes for spend categories,
Strategic Sourcing intuitive self-service procurement with robust catalog content
and Contracting management, and efficient order transmission and collaboration over
the Ariba Network.
Collaboration Operational
Procurement – Operational procurement for direct materials supports both plan-driven and ad hoc
Collaborative Invoice to Pay Direct purchasing with pricing compliance based on outline and service agreements.
Commodity Management Operational Operational procurement for indirect goods and services enables compliant
Procurement – employee self-service purchasing based on catalogs while also allowing for ad hoc
17% Indirect
Catalog Content
requests.
Catalog content management functions keep each catalog up-to-date with correct
Lower maverick spend (direct) Management items and pricing, as well as support for punch-out catalogs.
where change orders or PO
acknowledgements are con- Services Services procurement supports processes for collaborative purchasing with
trolled and recommunicated Procurement suppliers and allows goods and services to be purchased together.
to the supplier electronically
Purchase Order
Source: SAP Performance Automation Purchase order automation and order collaboration enables the transmission of POs
Benchmarking and Order and other order-related documents through the Ariba Network.
Collaboration

Impact

SAP and Ariba Solutions Drive process efficiency across the payables function
to help staff focus on value-add activities.
Lifecycle Management Collaborative invoice-to-pay solutions from SAP and Ariba digitize
the invoice-to-pay process for PO and non-PO invoices and can be
Strategic Sourcing transmitted over the Ariba Network. Invoices submitted electronically
and Contracting undergo a “smart invoice” submission process that eliminates errors
and exceptions.
Document Retention Improve invoice storage and access, leading to faster, more-accurate invoice
Collaboration and Archiving processing and lower costs.
Collaborative Invoice to Pay Collaborative Send and receive digitally signed, legally compliant invoices electronically as part of
Invoicing the accounts payable process.
Invoice Exception Verify invoices against preconfigured business rules. Handle exceptions and
and Approval Mgmt. produce an audit trail with workflow approvals, from receipt through settlement.
Discount and
Reduce the time for invoice processing and improve cash management planning by
Payment Term
automating discount collaboration, evaluation, and capture.
Optimization
Record and manage all accounts payable data and integrate that data with the
Accounts Payable
company’s purchasing system.
Bank Provide open interfaces and standards, intuitive status monitoring, batching of
Communication payments, and automated exception handling. Facilitate compliance with digital
Automation signatures and flexible approval.
Impact
SAP and Ariba Solutions Optimize commodity procurement and risk
management.
Lifecycle Management Commodity management solutions from SAP provide a consoli-
dated, real-time view of physical and paper commodity positions.
Strategic Sourcing Enabled by a direct transfer of procurement data to treasuries, they
and Contracting support decisions that integrate with your physical supply chain,
financial risk management, and accounting processes.
Collaboration
Price commodities based on quotes from exchanges, automate price
Commodity calculations, and streamline invoicing. This provides a clear view into the
Procurement physical positions of commodities, a streamlined process for pricing and
Commodity Management settling commodities according to market conventions, and the ability to
manage risk in times of high volatility.
56% Identify and quantify exposure to commodity price and foreign-exchange

risk from commodity procurement processes in real time so you can monitor
Of survey respondents say Commodity Risk and reduce price risks with appropriate hedging. You can also handle the
they use price indexing, and Management financial transactions used to hedge this risk, gain insights into overall risk
30% leverage hedging to positions, and generate comprehensive reporting of your commodity
manage commodities portfolio.
Source: SAP and Procurement
Leaders Survey

Impact
SAP and Ariba Innovations

SAP and Ariba Innovations Real-time data and analytics, on-the-go applications, and
cloud-based solutions provide more flexibility than ever to
SAP HANA procurement organizations. These solutions enable pro-
curement to deliver more value faster, as they eliminate
Mobile costly bottlenecks in strategic processes.
Analytics
Cloud SAP HANA

Handle large volumes of spending and supplier data, coupled with external information, to drive
better decisions.
Mobile
90% Unwire employees and equip them with access to your sourcing and procurement processes to
prevent bottlenecks and provide real-time insights.
Estimated penetration of Analytics

cloud-based sourcing and Generate relevant insights that matter most to procurement so you can focus on identifying and
procurement tools executing on opportunities.
Source: Spend Matters
Cloud
Leverage Ariba solutions for fast, flexible deployment of procurement processes, and tap the
world’s largest business network to capture rapid, unique value.

Impact
SAP HANA
SAP and Ariba Innovations Most procurement organizations struggle with capturing,
transforming, enhancing, and analyzing large volumes
SAP HANA of spending and supplier data from various systems with
anything but a hindsight view. By exploiting Big Data
Mobile technology, you can change this paradigm to support
real-time insight and action.
Analytics
Cloud Supplier Supplier Discovery and Lifecycle Management

Discovery and With the 800,000+ suppliers in the Ariba Network and continued expansion,
Lifecycle opportunities for new supplier discovery abound. These opportunities are
Management enhanced by external data feeds from thousands of sources, adding critical
information about risk, diversity, and sustainability, and making high-speed
performance a must.
250,000+ Strategic
Sourcing and
Strategic Sourcing and Contracting
As large enterprises bring granular, line-item detail to sourcing events and
Invoices processed over the Contracting contracts, you need to collect and evaluate responses and transact against
Ariba Network daily large-scale contracts. This requires the processing power of Big Data
solutions.
Source: Ariba
Procurement Procurement and Order Collaboration
and Order With so many buyers and suppliers collaborating on the Ariba Network,
Collaboration transacting on hundreds of thousands of POs and invoices daily, heavy
horsepower and real-time transaction execution keep business moving in
real time.

Impact
Mobile
SAP and Ariba Innovations Today, the rule is “Nothing Important Happens in the
Office” (NIHITO). If your procurement team follows this
SAP HANA mantra, mobile functions are critical to helping them keep
projects and transactions on track and access information
Mobile that supports field-based supplier interactions.
Analytics

Discovery and Not long ago, it was impossible to imagine having a 360-degree view of
Lifecycle each important supplier relationship, including spend, RFx, contracts,
Management supplier transactions, performance and risk information, diversity and
sustainability status, and joint strategic programs. With mobile solutions,
you get visibility into all this and more in a mobile-friendly format – when
and where it’s needed most.
Strategic Strategic Sourcing and Contracting

Sourcing and Mobile solutions from SAP help you avoid bottlenecks. You can review and
Contracting approve important RFx and contract activities on the go so that negotiated
savings hit the bottom line faster. And with Web-based applications for sourcing
and contracting available from both SAP and Ariba, entire platforms are
accessible on mobile devices for anytime, anywhere work management.

and Order Leverage on-the-go approvals for purchase requisitions and purchase orders to
Collaboration keep business flowing at all times.

Impact
Analytics
SAP and Ariba Innovations Gain up-to-the-minute visibility into key performance
indicators across every facet of procurement operations,
SAP HANA enabling real-time monitoring, spend and savings
analysis, risk mitigation, and predictive supplier
Mobile performance modeling.
Analytics

Discovery and Insight into your current supplier portfolio, including category coverage and
Lifecycle performance and risk analysis, allows you to proactively manage the supply
Management base to minimize risk and identify opportunities to add more business value.

Sourcing and A robust spend analysis that aggregates and enhances your data is always
Contracting the first step to enabling effective sourcing and contracting. Beyond deliv-
ering insightful spend analysis, solutions from SAP and Ariba help you
analyze all sourcing and contracting projects and activities. This helps bal-
ance team workloads, identify process bottlenecks that must be addressed,
and ultimately prove sourcing program savings.

and Order Analysis and insight into your company’s purchasing operations enable
Collaboration program enhancements for process and policy changes and new catalog
requirements in support of ever-more-compliant purchasing.

Impact
Cloud
SAP and Ariba Innovations Our on-demand software offers fast, flexible deployment
of both critical and complementary solutions. Best-run
SAP HANA procurement departments deploy cloud solutions from
SAP and Ariba to enable flexible processes and supply
Mobile networks for faster, deeper collaboration.
Analytics
Supplier Supplier Discovery and Lifecycle Management

Cloud By leveraging our cloud-based solutions for supplier information, you can
Discovery and
Lifecycle integrate this data and make it accessible and usable by both people and
Management systems, allowing for an efficient assessment of supply bases and new supply
sources.
1,200+ Sourcing and

Contracting
By their nature, sourcing and contracting are collaborative processes that
extend beyond your own four walls. That’s why Ariba offers a cloud-based
solution for conducting RFx and contract negotiations; it provides a secure yet
New companies join the accessible platform for this critical activity.
Ariba Network every week
Source: Ariba
and Order The procurement process is perfect for the cloud – for example, managing cata-
Collaboration log content collaboratively and keeping it up-to-date is achieved more easily
this way. Further, electronic collaboration on POs and all related documents
– confirmations, ASNs, and service entries – speeds the process and saves
significant administrative burden. Leveraging the cloud-based Ariba Network
to support this activity has become the de facto standard in procurement.
Impact
Best-Run Customers
Best-Run Customers
H.J. Heinz
Lexmark
Korea Exchange Bank
Why SAP and Ariba?
>60%
Of the Global 2000 and more
than 90% of the Forbes 500
transact and collaborate over
the Ariba Network
Source: Ariba

Impact
Best-Run Customers
H.J. Heinz
The H.J. Heinz Co. is a global food products company with
over $10 billion annual revenue and worldwide operations. >65%
On catalog spend-
To standardize on global sourcing and procurement processes and
Lexmark systems, Heinz has leveraged the SAP Sourcing application and the SAP ing, up from about
10% globally
Supplier Relationship Management (SAP SRM) application, supported by
Korea Exchange Bank the Ariba Network. Considerable savings have resulted, paving the way

for additional investments in procurement.
Why SAP and Ariba?
Key Benefits: Availability of real-
 Double-digit savings in many categories of spend time spending data
to drive policy
 Approximately 65% of transactions on catalog/compliant and process
 Real-time spend information (vs. previously 6 weeks prior) improvements
 Streamlined and standardized processes in sourcing and procurement
 Savings generated from initial deployments that funded subsequent
rollouts of the solutions 
Savings from both
sourcing and
more efficient
“By leveraging SAP software, we have driven process standardization, full procurement
spend visibility, and system-enabled compliance, allowing us to achieve
significant savings across multiple indirect categories.”
Bill Durbin, Global Process Owner for Procurement, The H.J. Heinz Company

Impact
Best-Run Customers
H.J. Heinz
Lexmark International is a $4 billion leading provider of
printing and imaging products, software, and services
operating in 70 countries.
60%
Reduction in time to
Lexmark To create a more automated, low-touch environment on purchasing set up catalogs
transactions and drive compliant employee usage of a standard system,
Korea Exchange Bank Lexmark leverages Ariba Procurement Content and the Ariba Network.
Why SAP and Ariba? Key Benefits:

2 days
To connect Ariba
 Increase in user adoption of 15% and growing Procurement
Content to SAP
 Anticipated 30% improvement in invoice/payment processing cycle software
times
 Flexible Ariba Procurement Content interface allows procurement to
happen from any back-end system (had multiple ERPs in place,
including enterprise source planning software from SAP) 
High user
 New catalog set up in less than 1 week
acceptance and
ease of use without
training
“Ariba Procurement Content is helping us to get where we need to be from
a spend compliance and catalog compliance activity. The time it takes to set
up a new catalog is greatly reduced. I’m able to do things with business
resources, whereas before it would require IT resources.”
Matt Montgomery, Manager, Practices, Legal and Supplier Sustainability, Lexmark

Impact
Best-Run Customers
H.J. Heinz
With the equivalent of $15 billion in revenue, Korea Exchange
Bank is one of South Korea’s largest commercial banks with
350 domestic branches and 25 international locations.
7%
First year annual
Lexmark To streamline all its operations and data management including a major procurement
savings
focus on procurement, Korea Exchange Bank implemented the SAP ERP
Korea Exchange Bank application with SAP SRM for purchasing and sourcing activities.
Why SAP and Ariba? Key Benefits: $10

 Improved lifecycle management of supply operations


Improved budget planning and control
Increased efficiency and productivity with greater automation
million
Sourcing savings
 Significant first-year savings driven by efficiency and sourcing in first year
activities, in a year when total spending was meant to increase from
expansion efforts
 “Straight-through” processing of purchase orders through payment 30%
Staff available
for strategic
“Standardized software makes it easier for our bank officers to manage redeployment
end-to-end processes, while providing all our employees with more accurate
and consistent data.”
Song Jong-Hwa, Manager, Information Development Team,
Korea Exchange Bank

Impact
Why SAP and Ariba?

Best-Run Customers SAP and Ariba solutions empower your team by enabling accurate spend analysis,
effective sourcing and contracting, compliant purchasing, robust supplier
H.J. Heinz management, and efficient order collaboration – all with flexible deployment options
using the latest technology innovations.
Lexmark
Korea Exchange Bank Tightly Integrated, Comprehensive Solutions

SAP and Ariba offer the most complete on-premise and cloud-based platforms for sourcing and
Why SAP and Ariba? procurement, enabling the closed-loop cycle of identifying and realizing savings for greater
profitability.
Leveraging Key Breakthrough Innovations

Our solutions leverage the industry’s most innovative technologies, combining solutions for
database and technology, mobile, analytics, and cloud-based applications, as well as the world’s
largest trading network. This provides unsurpassed process efficiency at the lowest possible cost.
Proven Time to Value in Large-Scale Implementations

The world’s leading companies, across every major industry throughout the world, continue to rely
on SAP and Ariba to enable them in their journey for procurement excellence.

Impact
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Solution Overview
Procurement Executive Optimize SAP and Ariba SAP and Ariba References
Impact
To learn more, visit:

CMP 24125 (13/04)
www.sap.com/procurement
www.ariba.com
http://thenetworkedeconomy.com
Or visit our community pages:
http://scn.sap.com/community/sourcing
Ariba Exchange
https://twitter.com/ariba
https://twitter.com/sap_procurement
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Ariba Procurement Excellence

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Solution Overview

© 2013 SAP AG or an SAP affiliate company. All rights reserved.

Sustainable Savings and Innovation

© 2013 SAP AG or an SAP affiliate company.

Driving Procurement Excellence

© 2013 SAP AG or an SAP affiliate company.

Bottom- and Top-Line Profitability

85% too many suppliers, purchase price variances,

© 2013 SAP AG or an SAP affiliate company.

SAP and Ariba Innovations

Growth and Profitability

© 2013 SAP AG or an SAP affiliate company.

Optimize Procurement Impact

Better Sourcing Proactively Manage the Supply Base

Collaborative Invoicing Source More and Better

Ensure Procurement Compliance

Enable Accurate Invoicing and Timely Payment

Manage Commodity Risk

Proactively Manage the Supply Base

39% be proactive about performance and risk

© 2013 SAP AG or an SAP affiliate company.

Source More and Better

© 2013 SAP AG or an SAP affiliate company.

Ensure Procurement Compliance

© 2013 SAP AG or an SAP affiliate company.

Drive Accurate Invoicing and

© 2013 SAP AG or an SAP affiliate company.

Manage Commodity Risk

© 2013 SAP AG or an SAP affiliate company.

Procurement Excellence Value Map

Supplier Discovery and Supplier Discovery Supplier

Collaborative Invoice to Pay

© 2013 SAP AG or an SAP affiliate company.

Supplier Discovery and Lifecycle Management

Supplier Supplier performance and risk management facilitates the definition,

© 2013 SAP AG or an SAP affiliate company.

Strategic Sourcing and Contracting

© 2013 SAP AG or an SAP affiliate company.

Procurement and Order Collaboration

© 2013 SAP AG or an SAP affiliate company.

Collaborative Invoice to Pay

56% Identify and quantify exposure to commodity price and foreign-exchange

© 2013 SAP AG or an SAP affiliate company.

SAP and Ariba Innovations

Cloud SAP HANA

Estimated penetration of Analytics

© 2013 SAP AG or an SAP affiliate company.

Cloud Supplier Supplier Discovery and Lifecycle Management

© 2013 SAP AG or an SAP affiliate company.

Cloud Supplier Supplier Discovery and Lifecycle Management

Strategic Strategic Sourcing and Contracting

Procurement Procurement and Order Collaboration

© 2013 SAP AG or an SAP affiliate company.

Cloud Supplier Supplier Discovery and Lifecycle Management

Strategic Strategic Sourcing and Contracting

Procurement Procurement and Order Collaboration

© 2013 SAP AG or an SAP affiliate company.

Supplier Supplier Discovery and Lifecycle Management

Strategic Strategic Sourcing and Contracting

1,200+ Sourcing and

Korea Exchange Bank

Why SAP and Ariba?

© 2013 SAP AG or an SAP affiliate company.

© 2013 SAP AG or an SAP affiliate company.