Achieving Smarter Buying, Better Collaboration and Bottom-Line Contributions
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To better control and manage your company’s spend, you not only need to buy at the lowest price, you must also know everything about your company’s spending habits and use that knowledge for stronger negotiating. Being connected to a diverse network of high-quality suppliers is critical for lowering your costs for goods and services while minimizing your risks. Contracting and procuring in ways that ensure compliance is also a necessity. Learn how you can achieve these goals with Ariba’s spend management solutions and expertise. Rick Raker, Director, Pfizer
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Achieving Smarter Buying, Better Collaboration and Bottom-Line Contributions
- 1. Achieving Smarter Buying, Better Collaboration, and Bottom-Line Contributions with Ariba Buy-Side Solutions Rick Raker, Pfizer © 2012 Ariba, Inc. All rights reserved.
- 2. Agenda • About Pfizer • Challenges faced by Pfizer • ERP Landscape • Ensuring Compliance • Internal Policies & Procedures • Financial Controls • External Regulatory & Compliance Guidelines • Better Collaboration • What’s Next 2 © 2012 Ariba, Inc. All rights reserved.
- 3. The world’s premier biopharmaceutical company. We make medicines and vaccines that help people and animals when they are sick and prevent them from getting sick in the first place.
- 4. Applying innovative science to improve health and well-being throughout the world.
- 5. Making some of the world’s best known and most prescribed drug therapies and vaccines.
- 6. Proud to be part of an industry that has helped treat, cure and eradicate life-threatening diseases
- 7. Pfizer Today $67 BILLION 150 revenue manufacturing countries products with in 2011 sites worldwide in which Pfizer sales greater than sells products $1 billion in 2011 $3.1 MORE THAN BILLION 100,000 R&D partner cash and products Primary Care, colleagues institutions donated from U.S. Specialty Care around the globe and Puerto Rico and Animal Health in 2010 globally businesses worldwide
- 8. Our medicines, vaccines, consumer and nutritional products help billions of patients. (Benefix) (Prevnar 13) Aricept 8 © 2012 Ariba, Inc. All rights reserved.
- 9. Starting Point: ERP Landscape What’s wrong with this picture? • Growth through Mergers & Acquisitions resulted in Differing sets of Policies & Procedures Increased Support Costs due to multiple tools performing the same function • Multiple Instances Ariba • Single Instance SUN ACM SRM 9r1 SAP Oracle Ariba • Multiple Instances Buyer BI 8.2 Computron • Multiple Instances 9 © 2012 Ariba, Inc. All rights reserved.
- 10. Where do we go from here? If only it were this easy to know the right answer! • ERP Rationalization Project Five Year Deployment Plan • Creation & Enforcement of a Standard Global Model 10 © 2012 Ariba, Inc. All rights reserved.
- 11. 11 © 2012 Ariba, Inc. All rights reserved.
- 12. Ariba Solutions Deployed at Pfizer Identify Develop Source and Contract Invoice Monitor Opportunity Strategy Negotiate and Procure and Pay and Manage Upstream Procurement Downstream Procurement Dashboard Ariba Analysis Ariba Category Management Ariba Category Procurement Ariba Data Ariba Ariba Enrichment Ariba Ariba Ariba Ariba Contract Contract SPM Sourcing Buyer 9r1 Invoice Workbench Compliance eForms Ariba Supplier Network Ariba Platform Currently deployed SAP SUN Computron Oracle Supplier 12 © 2012 Ariba, Inc. All rights reserved.
- 13. Statistics on Ariba Usage at Pfizer (2010) • Global presence 30+ countries • Indirect Spend through the system $12 billion • Active Users 60,000 (active) • Connected to Multiple ERP Systems SUN, Oracle, Computron 13 © 2012 Ariba, Inc. All rights reserved.
- 14. Future ERP Landscape The Power of One • One Owner Unified Team (Finance/Procurement/Technology/Compliance) Strategic Vision Standard set of Policies & Procedures Toolset for indirect procurement BI Ariba ACM 9r1 SAP Ariba Buyer 9r1 SUN 14 © 2012 Ariba, Inc. All rights reserved.
- 15. United We Stand, Divided We Fall Procurement Finance Procure to Technology Pay Compliance 15 © 2012 Ariba, Inc. All rights reserved.
- 16. Ensuring Compliance at Pfizer • Internal Policies & Procedures Following Preferred Purchasing Methods by Spend Category Bidding Requirements based on Value Reduce Maverick Spend through use of Preferred Suppliers • Extensive Financial Controls Enforcing Approved Spend Limits Estimating Tax on Purchase Orders & providing visibility • External Regulatory & Compliance Guidelines Foreign Corrupt Practices Act (FCPA) Global Policy on interaction with Healthcare Professionals (GPIHP) 16 © 2012 Ariba, Inc. All rights reserved.
- 17. Preferred Purchasing Methods 17 © 2012 Ariba, Inc. All rights reserved.
- 18. Ensuring Bidding Requirements are met with Ariba • Easy to enforce business rules within the tool Automated Approval Routing Clear visual indicators with links to supporting documentation 18 © 2012 Ariba, Inc. All rights reserved.
- 19. Supplier Search One Stop-Shop • Automatically displays list of preferred suppliers by spend category • Ability to search on the entire vendor master • Link to Create/Modify a vendor 19 © 2012 Ariba, Inc. All rights reserved.
- 20. Better Collaboration What do you want to get out of a Supplier network? Source: Supplier Networks 2.0 from Aberdeen Group 20 © 2012 Ariba, Inc. All rights reserved.
- 21. How to make the most out of a Supplier network 21 © 2012 Ariba, Inc. All rights reserved.
- 22. What’s Next? • Enhance the Services Procurement Process within Ariba • Effectively manage Supplier Data • Reduce/Eliminate e-Invoicing Exceptions 22 © 2012 Ariba, Inc. All rights reserved.