Manitowoc Shares Vision for Supply Chain Collaboration with Direct Materials Suppliers

#AribaLIVE
@ariba
#AribaLIVE
@ariba
Supply Chain Collaboration with
Direct Materials Suppliers:
Manitowoc Shares Their Vision
Bruno Durand, Process Excellence and Data Governance, Manitowoc
Marko Navala, Ariba, an SAP company
Leah Knight, Ariba, an SAP company
10 June, 2015
© 2015 Ariba – an SAP company. All rights reserved.

#AribaLIVE @ariba#AribaLIVE @ariba
Supply Chain Visibility Is Key to
Achieving the Perfect Order
2
of buyers have poor
visibility into
source of supply
of suppliers lack visibility
into customer
order management
drop in stock price
due to high cost of
supply chain
disruptions
to the RIGHT PLACE,
with the RIGHT PRODUCT,
at the RIGHT TIME,
in the RIGHT CONDITION,
in the RIGHT PACKAGE,
in the RIGHT QUANTITY,
with the RIGHT DOCUMENTATION,
to the RIGHT CUSTOMER,
The Perfect Order is defined as
the percentage of orders delivered
with the CORRECT INVOICE.
65%
70%
9%

Few Organizations Use the Full Range of
Supply Chain Collaboration Options
3
Source: No Business is an Island, The Economist Intelligence Unit, 2014

Today’s Presenters
• Bruno Durand
 Process Excellence and Data Governance
• Ariba
 Marko Navala, Leah Knight
4 © 2015 Ariba – an SAP company. All rights reserved.

Manitowoc’s Transformation
Manitowoc is a global industrial manufacturer
with two market-leading business platforms

Industry-Leading Foodservice Company
Broadest Portfolio Offering Market-leading Brands
Leading brands across multiple foodservice categories
Serving Global Customers Extensive Geographic Footprint
 28 locations across 9 countries
 24 manufacturing facilities
 4 offices and technology center
Footprint allows Manitowoc Foodservice to
better serve its customers

Industry-Leading Crane Company
Award-winning Technology #1 in Major Crane Categories
Leading positions in each major crane category
Extensive Geographic FootprintServing Global Customers
 Crawler Cranes
 Tower Cranes
 37 facilities across 18 countries
 13 manufacturing facilities
 21 sales/service centers
Strong presence in high-growth
markets
 Mobile Cranes
 Boom Trucks

Business transformation effort
Lean manufacturing
Project One drives supply chain process maturity and goals
Need for a new collaborative solution
Why Supply Chain Collaboration?
8
Ten Years Ago
Project One:
Global SAP implementation
Single-instance ERP
with global design
A 10-year journey that
began in 2007
A single portal for our
Collaborative Supply Chain needs
Strong Direct Materials functionalities to
sustain an accelerated Lean Journey
Solutions that can evolve with
Manitowoc and our suppliers
2017

E A R L Y N O T I F I C A T I O N
Ariba replaces homegrown
supplier portals
Highly cyclical business drives
need for collaboration
The Business Case for Ariba
Collaborative Supply Chain
9
Visibility and trust are a must to
enable short-term planning and agility on
our supply chain
Eliminates
three existing
portals, reducing
development
costs
Provides a
“single face”
of Manitowoc
for suppliers
Enables management of supplier maturity levels –
ranging from very mature to immature
of demand from Manitowoc
of availability of supply from suppliers

Manitowoc’s Supply Chain Strategy:
Robust Core Processes Build the Base
10
EDI
Email
Web UI
cXML
Paper
Smart PDF
CSV
xCBL
SuppliersManitowoc
Order Confirmation
Shipment Notice
Forecast Response
Invoice
Quality Report
Service Entry Response
Forecast Change
JIT call
Kanban Consumption
Purchase Order
Scheduling Agreements
Forecast
Invoicing Processed
Quality Notifications
Goods Receipt Notification
Focus Supplier and Manitowoc attention on potential issues:
past-due orders, new demand, changes in demand and supply

How Ariba/SAP Fit in This
Supply Chain Strategy
11
ERP’s are the single source or truth for us; Ariba
network is a bridge to supplier partnership
• Interaction enhancement between ERPs and the
Ariba Network is a must
• Ability to trust and monitor Ariba Network activities
from the ERP’s side
• Suppliers capability to visualize our systems data
in full transparency
• This enables the partnership to begin
Manitowoc is an Ariba design partner
• Implementing product’s first release of product
in the short term, with the expectation to
evolve the functionality together with Ariba
in the long term
• Ariba and Manitowoc have committed
resources to ensure success – including
an internal champion to rally the
business and IT around
common vision

12
• Collaboration is a change
management journey for us
and suppliers
• Visibility & trust are a must
• Change is prioritized based on
value creation
Best Practices and Lessons Learned
• Focus on what really matters
• Maturity differs per commodity, per
type of supply (direct / indirect), per
sourcing country
• Interaction between ERPs and
Ariba Network is a must

S P E N D
of
spend
I S
U S I N G
Scope of Our Efforts
13
$1.15B
G l o b a l
d i r e c t
s p e n d
$415M
I n d i r e c t
$204M France
Portugal
Italy
40%
Purchase
orders
For pilot
targeted
countries
20%
LPA Scheduling
Agreements (target ~80%)
of
spend
I S
U S I N G
Crane Segment Global Crane Segment Managed in SAP
Crane Segment Managed in SAP
Crane Segment Managed in SAP
Pilot Invoice Pro

Today’s Presenters
• Bruno Durand
 Process Excellence and Data Governance
• Ariba
 Marko Navala, Leah Knight

Complexity and Lack of Collaboration
Innovation Limit Supply Chain Visibility
Costly and
time-consuming
supplier onboarding
FOR BUYERS
High IT costs and
risks for onboarding and
using multiple
point solutions
FOR SUPPLIERS
Inefficient, manual supply
chain collaboration
processes
Inability to assess
supplier performance
Risk of excess
safety stock or
stock-outs
Manual collaboration
impacts
The Perfect Order
Complexity assessing
performance and
service levels
Lack of compliance
due to multiple
collaboration
systems

Strengthen Your Supply Chain with
Business Networks: What if You Could…
Network intelligence,
data and insights
One network to manage
collaboration across the
world’s largest community of
buyers and sellers
Comprehensive solution and
services for onboarding
trading partners
Access
Actionable Intelligence
On-Board
Efficiently
Collaborate
Broadly
…and increase visibility in your supply chain
Ariba Collaborative Supply Chain focuses on extending innovations and capabilities for trading partners to address their needs
in relation to Supply Chain Visibility for Direct Materials, also known as Merchandise in Retail.

Order*
Discount Proposal
Invoice Status
Remittance Advice
Payment
Spot RFQ
Order Status Request
Service Entry Response
Scheduling Agreement
Release
Forecast
Delivery Instruction
Inventory Status
17
Collaborations ≤ 2014
Procurement, MRO, Invoicing, Payment,
Services, Quotes, Direct Material Support 24 Collaborations – 2015
Supply Chain Processes 30 Collaborations ≥ 2016
Supply Chain, Logistics, Inventory
EDI
Email
Web UI
cXML
Paper
Smart PDF
CSV
xCBL
Your trading partnersYour applications
Self- Billing
Subcontract PO
* Supply Chain/Direct Material Extensions ** Some limitations exist
Outbound Delivery
Building a Single Business Network
Order Confirmation
Catalog
Shipment Notice*
Invoice*/Payment Status
Discount Acceptance
Spot Quote
Order Status Response
Service Entry Sheet
Supply Chain Invoice
Subcon. PO Consumption
Proof of Delivery
Component Consumption
Forecast Response
Inventory Status
Replenishment Order
Intelligent
Automated, Real-Time, Big Data-Driven
3
Comprehensive
All Suppliers, All Collaborative business processes, All Geographies**
2
Open
Any Vendors / Any ERP system /Any Protocol
1
“Other”
© 2015 Ariba – an SAP company. All rights reserved.17

Ariba Collaborative Supply Chain:
CSC 1.0 Release - August 2014
• Collaboration
 Order/ASN/Invoice (Direct Material Extensions, ASN Due
List)
 Scheduling Agreement Releases
• Industry specific extensions for retail and manufacturing
• Integration to SAP Supply Network Collaboration (SNC)
CSC 2.0 Release – July 2015
• Collaborations
 Contract manufacturing scenario – Subcontract PO
 Consignment PO support- related Movement visibility
• Order confirmation Due List
Future Focus
• Perfect Order Network Intelligence
• Collaborations
 Forecast, Inventory, Demand Signals
• Multi-tier collaboration scenarios, Mobile, Network Intelligence
• Integration to SAP Integrated Business Planning (IBP)
Provides Visibility and Efficiency with Direct Materials / Merchandise Spend

K E Y T O P I C
What does the Perfect Order
mean to your organization?

K E Y T O P I C
How and why to measure
the Perfect Order?

K E Y T O P I C
At what point(s) in the process to
measure Perfect Order attainment?

K E Y T O P I C
Orchestrating Perfect Order
measurement across multiple
trading partners

K E Y T O P I C
Best practices for trading
partner collaboration in direct
and indirect materials

Lessons learned in buyer-seller
collaboration
K E Y T O P I C

K E Y T O P I C
How will fundamental changes to
the future of buying and selling
impact the future of collaboration?

K E Y T O P I C
How are these changes
influencing your organization’s
roadmap for collaboration?

K E Y T O P I C
What role does technology play
in buyer-seller collaboration for
the Perfect Order?

Manitowoc Shares Vision for Supply Chain Collaboration with Direct Materials Suppliers

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Manitowoc Shares Vision for Supply Chain Collaboration with Direct Materials Suppliers