This document discusses how to craft a world-class commerce program with suppliers using digital collaboration. It outlines how SAP can help companies develop and run supplier enablement programs to maximize success. The benefits of digital commerce networks for both customers and suppliers are described, such as improved process efficiency, cost reductions, and sales growth. Successful strategies for supplier onboarding onto digital networks through active and light enablement approaches are also presented.

1. PUBLIC
Dominic Atkinson, Christoph Guettinger, and Johan Hedborg
August 2017
How to Craft a World-Class
Commerce Program with Your Suppliers

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Commerce Collaboration Goes Digital
SAP Ariba Solutions and Ariba Network
Winning Network Adoption Strategy
Benefits for Customers and Suppliers
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Success in today’s fast-moving global economy depends increasingly on seamless collaboration across all
stakeholders within a value and supply chain. Rapidly adopting digital business networks and realizing the
superior value they deliver are key to staying ahead of the competition.
Why care about digital commerce collaboration?
1980 1990 2000 2010 2020+-1970
US$8.0 trillion are exchanged through
e-commerce annually
2x self-reported expected increased
usage of B2B networks in 12 months
25% of e-commerce volume is
conducted through business networks
“More than 60% of CEOs expect 15% to 50% of their
earnings growth in the next five years to come from
technology-enabled business innovations.”
McKinsey study
Mail Phone
Manual
communications
Fax
EDI
vans
Early electronic
communications
Direct B2B
connections
E-mail
Internet
communications
Corporate portal
Single-process
solutions
Collaborative business
applications
Business networks
Collaborative business
communities

4. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Few organizations can effectively target and onboard thousands of suppliers in a short time frame. At SAP we
do this everyday. We’ve helped develop and run thousands of supplier enablement programs over the last 17
years and will share that knowledge and expertise with you to maximize your success.
Digitalizing the end-to-end process for buyers and suppliers
Trading partners
Your systems
million
Companies
trillion
In annual
commerce
million
Documents
million
Catalog items
million
Leads annually
sent to sellers
buyer supplier
2.7+ 1.3+ 130+ 195+ 34+

5. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Commerce Collaboration Goes Digital
SAP Ariba Solutions and Ariba Network
Winning Network Adoption Strategy
Benefits for Customers and Suppliers
Agenda

6. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Order*
Discount Proposal
Invoice Status
Remittance Advice
Payment
Spot RFQ
Order Status Request
Service Entry Response
Scheduling Agreement
Release
Forecast
Inventory Status
EDI
E-mail
Web UI
cXML
Paper
CSV
Subcontract PO
Outbound Delivery
Order Confirmation
Catalog
Shipment Notice*
Invoice*/Payment Status
Discount Acceptance
Spot Quote
Order Status Response
Service Entry Sheet
Supply Chain Invoice
Component Receipt
Component Consumption
Forecast Response
Inventory Status
Intelligence
Automated, real time,
Big Data-driven
Comprehensive
All suppliers, all collaborative business processes,
all geographies
Open
Any vendors, any ERP system, any
protocol
Any
2.8M
companies
$1.3T
in commerce
220+
currencies
21
languages
Ariba Network: overview of document exchange and network integration
buyer supplier
Trading partnersBuyer

7. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Commerce Collaboration Goes Digital
SAP Ariba Solutions and Ariba Network
Winning Network Adoption Strategy
Benefits for Customers and Suppliers
Agenda

8. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Ariba Network
Best practice supplier enablement = active and light enablement combined
Mobile portal
Interactive e-mail
Free, simple
Upgrade by choice
Active enablement Light enablement
A B C
500
Suppliers
1500
Suppliers 5000 Suppliers
No compulsion
Buyer
Eliminate
friction
Inbox/outbox
Catalogs
Reports
Help desk and
support
Machine-to-machine
integration
Full supply chain
transaction set
Innovations like
payment capability
ACH
… Interactive e-mail
All basic fulfillment
transactions + supplier
lifecycle and
performance, sourcing,
discovery, spot quote
Crucial for
business case
Light enablement
Full Ariba Network account Ariba Network light account

9. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
What are the established best practices for network adoption?
Focus on overall
programme goals
and ROI
Foundational pillars
Project management
+ ongoing BAU
discipline
Success drivers
Flight planning Compliance and
incentive
management
Enabling assets
Leadership
commitment
Communication
plan

10. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Enablement options facilitating full supplier participation
Online portal System-to-systemInteractive e-mails
Full transaction
set
Ariba Network
portal account
All basic
transaction types
Full transaction
set, EDI, cXML,
cloud integration
Ariba Network
portal account
Ariba Network light
enablement
Supplier self-enablement/
active enablement
Active enablement
services
FREE
Supplier fees at
thresholds
Supplier fees
Ariba Network
light account
Maturity / Volume / Spend

11. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
1. Describes how the strategy can be implemented
2. Details how and when your goals will be achieved
3. Defines:
– Which suppliers to enable (by geography, category, size)
– In what order (using a prioritized wave plan approach)
– Likely enablement method(s)
4. Most important ‒ quantifies benefits delivered
– By supplier, linked back to validated business case metrics
– Allows impact assessment of removing/replacing suppliers
in the ongoing wave plan
Defining the strategy for supplier enablement using our flight planning
methodology and tools

12. 20PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Let’s have a look at the brand
new SAP Ariba light account
for suppliers.
For suppliers it’s
FREE to join and use.

13. 24PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Let’s talk to one of our
supplier enablement experts.
Please give a warm welcome to
JAY NORMAN

14. 29PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Commerce Collaboration Goes Digital
SAP Ariba Solutions and Ariba Network
Winning Network Adoption Strategy
Benefits for Customers and Suppliers
Agenda

15. 30PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Typical benefits for our customers
Improved compliance Process efficiency
4x
By drastically reducing the
touch points required throughout
the source-to-pay process
Reduced cost
4%–15%
By management of
strategic sourcing to
contract process through
an integrated solution
Spend under discount
10%–15%
improvement of spend under
discount
Source: Ariba Value Engineering Account Engagements and Benchmarking Studies
60%
By driving policy compliance
and consumption control
Days payable
outstanding
1–4 days
improvement in days payable
outstanding (DPO)
Inventory cost
optimization
1–3 days
improvement in days in
inventory

16. 31PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Let’s not forget the benefits for your suppliers
GROW
sales
20%
Year-over-year growth in the
business
LOWER
customer service costs
50%
Reduction in exceptions and
disputes
HIGHER
customer satisfaction
10%–15%
Increase in customer retention
FASTER
payment
15%–20%
Faster payment
GREATER
visibility
70%–80%
Higher order accuracy

17. 33PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
There are hundreds of these stories …
• Visit SAP Ariba seller testimonial videos here: Seller video wall
• The SAP Ariba YouTube channel is here: SAP customers and suppliers share success here

18. 34PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Benchmark Yourself
Navigate to Mini-Surveys
Login to Ariba LIVE
App1 Navigate to Surveys2
Respond to
Surveys3

19. 35PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Please complete session survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session

20. Thank you.
Dominic Atkinson Christoph Guettinger Johan Hedborg
Value Partner Director, Network Value Organization Senior Solution Consultant
+61 421 058 139 +61 481 906 742 +61 466 345080
dominic.atkinson@sap.com christoph.guettinger@sap.com johan.hedborg@sap.com