Marketplaces are increasingly important for buying nonsourced items. But how do you enforce procurement policies without the right access, filters, and controls? This must-attend session will teach you how to rationalize your long-tail spend, simplify nonsourced buying, and augment and replace outdated and overpriced catalogues.

1. PUBLIC
Tuesday, 22 August 2017, 2:45 – 3:30 PM
Cameron Paice, SAP Ariba, Australia
Cor van der Scheer, Procurement Operations Manager, AusNet Services
Matt Cromar, SAP Ariba Solution Management, Spot Buy
Doug Mitchell, eBay Business Supply, Australia
Spot Buy
Your custom B2B marketplace

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Strategically Sourced
 High-spend
 High complexity
 Category
management
 RFx/Auctions
• Move commoditized
transactions
• Free up time to perform
more strategic activity
• Lower cost of sourcing and
vendor management
Tactical
 Mid-spend items
 Lower complexity
 Buy desk / BPO
 Punch-out or CIF
 3 bids and a buy
• 20% of purchases
• 80% of suppliers
• Reduce process time
and cost
Managing tactical spend -- the last-mile of spend management
H i
L o
H iTime
Cost/Risk
Tackling this spend requires
access to a wide range of
suppliers and controls
Spot Buy Software: A Modern Approach to Managing
Tail Spend, The Hackett Group, April 2016
Ad-Hoc
• P-Card
• Expensed items
• Buy desks
• Compliance
• Cost
• Efficiency
Spot Buy
Most companies only
manage about 50% of their
indirect spend. Best-in-class
is over 85%.
Optimizing Procurement Can Save You
Money

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TRUSTED source of pre-enabled and vetted supply
CONTROL suppliers, content, access and workflow for compliant buying
EASY to find and buy what you need fast from over 10 million items
User Access Approved Commodities Price Thresholds
Power
Basic
Office Supplies
Electrical & Test
Technology & Accessories
MRO & Facilities
$ 500
$1,000
$5,000
EASY to buy goods from TRUSTED
supply with built in CONTROL
Search Select
CheckoutReceive
Note: SAP Ariba™ Spot Buy subject to regional availability
Delivery
Quality
Price
Selection
Spot buy
Your custom B2B marketplace
Your custom B2B marketplace
Spot buy

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Public
SAP Ariba Guided Buying and Spot Buy
Your custom B2B marketplace makes it easy to find and buy goods from pre-enabled supply
1. Search
2. Refine search results
• Price range
• Location (zip code)
• Preferred Sellers
• Minimum Quantity
• Condition (new, used)
• Features
5. Submit for approval
3. Select item you need
4. Add item to shopping cart
• Can’t find what you need in
Company Catalog?
• Guided to Spot Buy Catalog
bluetooth headset

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Strategies for Spot Buy adoption
2. Spot Buy 1st for tactical indirect
• Start with Spot Buy for controlled
access to trusted supply to jump
start your sourcing program
• Add contracted catalogs over time
• Accelerate user adoption and
satisfactionDay 1
Contract
Catalog
Contract
Catalog
x16
x12
“Our contracted source had an
8 week backlog on these
items. So we bought them
through Spot Buy at a lower
cost and 2 day shipping.”
IT Commodity Mgr
Large Technology Company
1. Rationalize existing suppliers and catalogs
• Replace outdated catalogs for better
pricing and delivery options
• Eliminate unnecessary contracted
catalog commitments
• Rationalize master vendor file
MRO Office Supplies
“I was surprised at the
significant savings.”
“It is cheaper than
we expected”

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OFFICE
SUPPLIES
TECHNOLOGY &
ACCESSORIES
FACLITIES &
MAINTENACE
MRO &
INDUSTRIAL
OTHER
GOODS
ELECTRICAL &
TEST EQUIPMENT
Spot Buy starts with trusted Ariba Network suppliers
including over one hundred Business Preferred suppliers plus thousands more Top Rated sellers through our
integrated marketplace partners offering tens of millions of items
© 2017 SAP SE or an SAP affiliate company. All rights reserved. 6Customer
Delivery
Quality
Price
Supplier Vetting
Spot Buy in Australia

7. PUBLIC
Cor van der Scheer, Procurement Operations Manager, AusNet Services
Spot Buy at AusNet Services
22 August, 2017

8. AusNet Services operates in regulated transmission and distribution sectors
Australian Energy Market Structure
Competitive
Generation /
Production
Transmission Distribution Retail
Regulated Natural
Monopoly
Regulated Natural
Monopolies CompetitiveCompetitive
Competitive Regulated Natural
Monopolies
Regulated/
Contracted
Electricity
Market
Gas Market

9. AusNet’s Procurement Transformation Journey
Progressively adopting best practice P2P tools have led to process efficiencies, improved
visibility and better overall control of procurement outcomes

10. Why use Ariba Spot Buy?
• Content, this is only the beginning. Content provided by market leading eMarket Place
• Aimed at tail spend, where typically it is not viable to spend time to negotiate rates, terms
• Familiar to end-users, intuitive and low touch, 1 step process – create the PO then payment and cost allocation automatic
Advantages over Punchout …
• Compare products across internally managed catalog items AS WELL AS Ariba Spot Buy items
• Use the one familiar screen
Advantages over Pcard …
• Search through approved merchants
• Cost allocation is done at time of ordering (when front of mind)
• Order is approved PRIOR to being sent to supplier
• Line item purchasing information captured for future contracting opportunity identification
Advantages of Ariba Spot Buy

11. The Journey so far … and Next Steps
The Journey
• Ariba has been great to support us to get it working in Australia
• They’ve worked with ATO on tax implications
• Addressed GST impact in SAP – to name but a few issues we worked through together
Implement Spot Buy
• First 20 users have been identified
• Introduction pack has been developed
Optimise Investment made in Ariba
• Target additional supplier groups to be truly electronic B2B – small subcontractors with Light Account,
contingent workforce related transaction handling via Ariba Network
• Facilitate Supplier Accreditation via Ariba SIPM (or SLP)

12. PUBLIC
doumitchell@ebay.com
Doug Mitchell
Vertical Lead – General Merchandise
eBay Business Supply

13. • +100 million listings on ebay.com.au
• Thousands of trusted, Top Rated suppliers,
including almost 100 Business Preferred sellers
• Facilities & MRO, Electrical & Test, Technology,
Office Supplies, Parts & Accessories, and many
more categories
• eBay seller prices often lower than negotiated
catalog supplier prices
• eBay Money Back Guarantee protects every
purchase on eBay
• 11.3m Unique Monthly Visitors
• 90% of Items Sold are Brand New
• 80 of Australia’s Largest 100 Retailers
• +30,000 Small Businesses
• 71% of Transactions Ship for Free
Did you know?

14. Level 1 Vetting – eBay Top Rated Seller ~ 5,500 Sellers
 Upload tracking details within 1 day of selling the item
 Defect rate of <0.5% of transactions
 Cases closed without seller resolution <0.30% of transactions
 On-time delivery >95% of transactions
Level 2 Vetting – Business Preferred Suppliers ~ 95 Sellers
 Organizational structure – parent and subsidiary relationships
 Supply Chain – quality and stability of suppliers
 Company history
 Review of new and existing Inc. relationships
 Brand Risk Management or Compliance concerns
 Financial Statement analysis
Spot Buy Seller Vetting
Two level Vetting to ensure Buyer Confidence and Satisfaction
 Account Managed by eBay Australia
 Review of debt ratings (if any)
 Detail of capital funding
 Business credit review
 Derogatory credit public filings
 Calculation of estimated exposure

15. What’s Next
eBay for Work AU
Guided Buying
Category Augmentation
Mobile
Migration to SAP Ariba Buying (P2O)

16. Wrap Up

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SAP Ariba Spot Buy options
S/4
ERP
SRM
• Requisitions
• Workflow
• Purchase Orders
• Reconciliation
Option 2. SAP Ariba Spot Buy CatalogOption 1. SAP Ariba Buying with Spot Buy
Search
P l u g s i n t o y o u r e x i s t i n g S A P p l a t f o r mC l o u d p r o c u r e - t o - p a y s o l u t i o n
SAP Ariba Catalog
SAP Ariba Buying
Contracted
Catalogs
Spot Buy
Catalog
For companies that have or who will have SAP
Ariba Buying soon, Spot Buy is included.
For companies not planning to move to SAP Ariba Buying
soon, Spot Buy is a great option for accelerated value.

18. Productivity Improvement
• Streamline buying process
• Simplify vendor management
Spend Compliance
• Accelerate user adoption
• Identify buyer demand signals
Cost Savings
• Capture price savings
• Reduce sourcing costs
Spot Buy delivers great business value
“Spot Buy is a life saver!”
Shannon Simmons
AIG

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Thank You
SAP Ariba™ Spot Buy video -- https://youtu.be/zGoBsenSuqE
Spot Buy at AIG -- https://youtu.be/620Zw0kYh90
Spot Buy at HP Inc -- https://youtu.be/QnqYxp_I2vE
Cor van der Scheer
Procurement Operations Manager
AusNet Services
P +61 xxx xxx xxx
E cor.vanderscheer@ausnetservices.com.au
www.ariba.com/go/spotbuy
Cameron Paice
SAP Ariba Customer Organization
Australia
P +61 417 558 733
E cameron.paice@sap.com
Doug Mitchell
eBay Business Supply
Australia
P +61 xxx xxx xxx
E doumitchell@ebay.com
Matt Cromar
SAP Ariba Products & Innovations
Spot Buy
P +1 415 497 6091
E matthew.cromar@sap.com

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