One of the biggest challenges enterprises face in their sourcing processes is managing multiple types of spend – direct materials, indirect, and services. Join this session to learn how Rio Tinto is using SAP Ariba solutions to manage multiple types of spend, including complex spend. Obtain strategic frameworks and best practice recommendations for sourcing tactics and templates. Hear about new capabilities that simplify the sourcing of complex spend.

1. PUBLIC
Rick Steele, Rio Tinto; Leah Knight and Nirav Bhalavat, SAP Ariba (SAP)
Rio Tinto: Sourcing Multiple Spend
Categories in a Single Platform

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba (SAP)
 Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend
Rio Tinto
 Rick Steele, Process Champion, Source to Contract, Strategy and Global
Process Ownership
SAP Ariba (SAP)
 Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend
Agenda

3. 3PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Solutions for Direct Spend
Direct spend
sourcing
Supply chain
collaboration
SOURCE BUY AND MAKEPLANDESIGN

4. 4PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Solutions for Direct Spend: what they do
We are making
significant investments
in streamlining direct
materials source-to-
settle processes.
Planning
collaboration
Contract
Source
Planning
Design
Manage
ERP and planning
integration
Execution
collaboration
Manufacture
SAP Ariba
Solutions for
Direct Spend
End-to-end
process
management
Total landed
cost
calculation
Collaborative
planning
Collaborative
supply chain
execution
Network
intelligence
Supplier
onboarding
Advanced
negotiation
and supplier
selection
Support for
services and
materials

5. 5PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba (SAP)
 Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend
Rio Tinto
 Rick Steele, Process Champion, Source to Contract, Strategy and Global
Process Ownership
SAP Ariba (SAP)
 Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend
Agenda

6. 6PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Overview of Rio Tinto
 Managing categories within Rio
Tinto
 Sourcing in the mining industry
 Business challenges driving
adoption of SAP Ariba source-to-
contract solutions
 Selection of SAP Ariba solutions
 Scope
 Spend categories
 Complex categories
 Preventing contract leakage
 Tying sourcing and supplier
management processes
 Key successes
 Road map
Topics

7. 7PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba (SAP)
 Leah Knight, Solutions Marketing, SAP Ariba Solutions for Direct Spend
Rio Tinto
 Rick Steele, Process Champion, Source to Contract, Strategy & Global
Process Ownership
SAP Ariba (SAP)
 Nirav Bhalavat, Solutions Consulting, SAP Ariba Solutions for Direct Spend
Agenda

8. 8PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Supplier-managed
information
SAP Ariba Supplier Management solution portfolio
Common supplier record
Other
ERPs
MDG-S
Other DWs
SQL and
NoSQL DBs
SAP Business
Suite and
other ERPs
Two-
way
sync
Syncbusinessprocess
Syncbusinessprocess
SAP Ariba Supplier Lifecycle and Performance
Vendor
model
Qualification
matrix
Segmentation
matrix
Spend
matrix
SAP Ariba source-to-settle application suite
Onboarding
Due diligence
and
qualification
Segmentation
Performance
management
Development
and phase-out
News
sources
Government
sources
Ratings
sources
Financial
sources
External data sources
SAP Ariba Supplier Risk
Segmentation
by risk
Preliminary
due diligence
Risk
remediation
Ongoing
monitoring
Engagement
risk
assessments

9. 9PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Supplier
Lifecycle & Performance
SAP Ariba Sourcing SAP Ariba Contracts
Supplier qualification & segmentation
A new layer of innovations to support product sourcing
SAP Ariba Strategic Sourcing Suite for source-to-contract and supplier
management processes
Pricing
conditions
Product
lifecycle
sourcing
Volume and
price
forecasting
Product
costing
Supplier
performance
automation
Advanced
optimization
Multilevel bill
of materials
Product
lifecycle
mgt.
integration

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Manage source-to-
contract processes on
a single solution
 Address all categories of
direct and indirect spend
 Integrate source-to-
contract processes to
PLM, ERP, and
execution systems
SAP Ariba solution for sourcing direct spend

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Supplier Risk
Simplify risk management across procurement processes
Segmentation
by risk
Due
diligence
Risk scoring
Compliance
checks
Real-time risk
dashboards
Engagement
assessments*
Issue
management*
Regulatory
and legal
compliance
Financial
Environmental
and
social
Operational
* Include planned innovations
Resolves barriers to information
Segments your supply base by risk
Embeds risk intelligence into procurement
Enables end-to-end risk management

12. 12PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Supplier Risk
 Drive compliance through entire supplier
base through engagement-level risk
assessments
 Targeted risk intelligence provides
guidance for each stage of the
procurement lifecycle
 Foster collaboration between stakeholders
and suppliers with configurable supplier
monitoring and automated alerts

13. 13PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
5
Standard integrations – 175
29
Master
Account categories
Assets
Company codes
Cost centers
Cost center languages
ERP commodity codes
General ledger
Internal orders
Plant
Payment terms
Purchase groups
Tax codes
WBS elements
User data
User group mapping
Remittance locations
Supplier data
Supplier location
Contracts
FM derive
Material PO
Service PO
Change PO
Cancel PO
Close PO
Goods receipt
Service entry sheet
Invoices (OK-to-pay)
Advance payment requests
Advance payments
Cancel advance payment
Requisition
Change requisition
Budget check
SES response
Purchasing organization
Purchasing groups
Company code
Payment terms
Supplier (inbound)
14
Master
Quote request
Quote message
Material master/plant
Manufacturer part number
Purchase info record
Material groups (product categories)
22
Transaction
Transaction
SAPAribasolutions
Supplier (outbound)
Plants
Incoterms
Bill of material
Material master
Company code internal order mapping
Company code WBS element mapping
Purchasing organization supplier combo
Account category field status
Plant to purchasing organization
Currency conversion rates
Fund management objects
Purchasing organizations
General ledger languages
Expense report
PO status
Change PO status
Receipt status
Invoice status
Remittances
Catalog
ProcurementSourcing
Sourcing award to PO
Contract workspace
Sourcing award to outline agreement
107 = SAP ERP and SAP S/4HANA
68 = Other formats – network sell side
70
AribaNetwork
28
Buy side
Order
Change order
Cancel order
9
Sell side
Buy side
Order confirmation
Invoice
Shipment notification
Remittance advice
Delivery schedule (forecast)
Delivery schedule (JIT)
68
Sell side
105
240 (In and out)
810
820
824
830 (Forecast)
830 (Commit)
842 (In and out)
846 (in and out)
850
855
856
860
861
862
866
866 (MO/PO)
997
ORDERS
ORDCHG
ORDRSP
INVOIC
DESADV
CONTRL
RECADV
REMADV
INVRPT
DELFOR
DELJIT
APERAK
IFTMIN
IFTSTA
INVOIC
ProcessPurchaseOrder
AcknowledgePurchaseOrder
NotifyShipment
ReceiptRequest
ProcessReceiveDelivery
NotifyPlanningSchedule
NotifyPlanningSchedule
NotifyInventoryConsumption
NotifyProductionOrder
NotifyInventoryBalance
ConfirmBOD
X12 v4010 EDIFACT D96A OAGiS v9.2
EDIFACT D01B
OrderRequest
OrderChange
OrderResponse
Invoice
InvoiceResponse
Receipt
PiDX v1.61
Order
ChangeOrder
InvoiceResponse
GoodsReceiptNotice
ServiceEntrySheetResponse
OrderResponse
Invoice
AdvanceShipNotice
ServiceEntrySheet
RemittanceAdvice
xCBL v3.0
Standard PO
Subcontract PO
Consignment PO
Change PO
Cancel PO
Order enquiry request
Order confirmation
Inbound ship notice
Outbound ASN
Component consumption
Outbound payment remittance
Inbound remittance advice
Remittance cancellation
Inbound payment proposal
Outbound payment proposal
Scheduling agreement (incl. forecast/
Delivery schedule and JIT)
Product replenishment
Transfer movement/product activity
Inbound receipt
Outbound receipt
Service entry sheet
Service entry status update
Invoice (incl. credit memo)
Invoice status
Carbon copy (CC) invoice
Quote request
Quote message
Payment instruction file
GS1 GUSI
MultiShipmentOrder
DespatchAdvice
GS1 EANCOM 97
INVOIC
GS1 EANCOM 2002
ORDERS
ORDCHG
INVOIC

14. 14PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Which session to attend next? Don’t miss these direct spend sessions!
Wednesday 23 AugustTuesday 22 August
11:30: Extending Supply Chain Systems from SAP
to Your Suppliers with SAP Ariba Solutions for Direct
Spend (SID 51376)
2:45: Recent Innovations in SAP Ariba Supply Chain
Solutions (SID 51393)
9:00: WINC. (previously Staples) Australia
and New Zealand: Collaborating with Direct
Spend Suppliers (SID 51252)
1:45: Ask the SAP Ariba Product Leadership
Team (SID 51370)
1:45: DuluxGroup’s Paperless Supply Chain
Collaboration Spend (SID 51254)
10:00: Discovering SAP Ariba Solutions for
Direct Spend with SAP Ariba’s Product and
Innovations Leadership Team (SID 51392)
3:45: Rio Tinto: Sourcing Multiple Spend
Categories in a Single Platform (SID 51255)
11:00: Innovations in Direct Spend Sourcing:
Managing Direct Spend Sourcing And Supplier
Management in the Cloud (SID 51274)
Direct spend
customer
OR
2:45: Recent Innovations in Supplier Management (SID
51390)
Direct spend
customer
12:15: Direct Spend Luncheon (invitation only)
3:00: Enable End-to-End Product Specification,
Sourcing, and Execution Processes to Drive Savings
(SID 51511)
1:30: Manage Your Supply Chain by Exception
(SID 51512)
12:30: Source All Materials And Services from
a Multilevel BOM (SID 51513)
Direct spend
customer

15. 15PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
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16. Thank you.
Contact information:
Nirav Bhalavat
nirav.bhalavat@sap.com
Leah Knight
leah.knight@sap.com

17. 17PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Legend: Potential starting points of the process are indicated with the following symbol:
SAP Ariba
Contracts
Ariba Network
Supplier /USE
SAP Ariba
Sourcing
SAP ERP
SAP S/4HANA
Integration between SAP Ariba Sourcing, SAP Ariba Contracts, and SAP ERP
Sourcing
request
RFX
auction
Sourcing
project
RFQPR
Operational
contract
Purchase
order
Supplier
response
Award
Contract
workspace

18. 18PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Fulfill SettleMarket
Buyer management
Procure SettleSource
Supplier management
Integration to SAP and non-SAP solutions, secure,
open platform
SAP Ariba solutions in the
context of the digital economy
BuyerSupplier
Ariba Network
Spendcategories
Direct
Indirect and MRO
Contingent labor
Travel

19. 19PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Legend: Available scenario. Potential starting points of the process are indicated with the following symbol:
SAP Ariba Sourcing
“BoM manager”
Ariba Network
“Supplier”
SAP Ariba Sourcing
“Sourcing manager”
SAP ERP
* Price history and trend is based on sourcing price acceptance
SAP Ariba Strategic Sourcing Suite
Application innovation: product sourcing flow
Sourcing
price
acceptance
Part
360-degree
view*
Part
worklist
BoM
Purchase
info
record
Supplier
response
Simple
RFx
SAP PLM BoM
BoM
Pin
BOM
Assign
part owner
Configurationdata
Masterdata