Run Procurement as a Profit Center
with SAP Ariba
Ashraf Al Agha
© 2014 SAP AG or an SAP affiliate company. All rights reserved. 2 Public
20% profit over 100 $ = 20 $ (so costs = 80 $)
10% savings on costs = 8 $
Ask your sales to make a 8 $ profit extra:
They need to sell 8 $ ÷ 20% = 40 $ extra
So increase of 40% (40 $) in Sales
is the same as
a 10% savings on costs (8 $)
Cost Money is “Heavier” than Sales Money
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Cost Money is “Heavier” than Sales Money
10% Cost Savings
Cost Money is “Heavier” than Sales Money
Is the same as
40% Increase in Sales
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RESEARCH BUYING & SELLING COMMUNITY &
CONTENT
COMMUNICATION
& COLLABORATION
The Power of a Personal Network
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Suppliers Buyers
Proof is in the numbers: 1.5+ Million partners
use the Ariba network for $400+ Billion spend
The Ariba
Network Nearly 1.5 million
trading partners
40+ million Purchase Orders
60+ million Invoices
$450+ billion in spend
142 countries
72 currencies
36 VAT compliant countries
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The Ariba Network
is most comprehensive, functional, and open
The World’s Largest Business
Network: One place for commerce with
all trading partners enables rapid
connectivity
Beyond Document Exchange: Easy to
extend with prebuilt network solutions
Open: Delivering inter-enterprise
business value agnostic to technologies
used by trading partners
Easy to Connect: Allows the same level
playing field for all businesses, larger or
small
On-Premise & Cloud
Solutions Portfolio
The Ariba
Network
Creating win-win outcomes for both buyers and suppliers
Cloud Solutions
Portfolio 3rd Party
Applications
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SAP and Ariba Powering the Networked Business
15+ years of cloud spend
management innovation & global
leader in business networks
Business Networks &
Spend Management #1 40 years of business
software leadership and
solutions expertise
Enterprise
Applications #1
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A powerful combination
190,000+ Customers
€16B+ 2011 total SAP revenue
63% Of the world’s transaction
revenues touch an SAP system
34 Languages
5M+ Users
1.5 million Companies in 190 countries
$450B+ Commerce conducted annually
1200 New network
suppliers weekly
9 © 2014 SAP AG or an SAP affiliate company. All rights reserved.
• Vendor Self Registration and
Performance Management
• Transparency into the
negotiation process
• Focus on laying out
comparative criteria clearly
before bidding / negotiations /
responses are received
• Over 48 auctioning / RFx
formats
9
Ariba Spend Management
Invoice
Automation
Spend Visibility
P2P / P2O Sourcing
• Monitor Performance &
Compliance
• Transparency into ‘buyer’
performance
• Visibility by Commodity
• Strategic decision making
information by Purchasing
Behavior
• Identify opportunities and
prioritize spend
• Can work on top of existing
ERP or Ariba system
• Enable Catalog and non
catalog based buying
• Ensure purchasing of
Punchout, Dynamic, rate
card and contract catalogs
• Ensure contract compliance
• Reduce Maverick buying
• Leakages plugged on
volume discounts
• Drive policy compliance and
consumption control
• Reduce invoicing errors
• Reduce cycle time for
invoice processing
• Compliance against
contracts for non-PO spend
• Ensure Transparent
approval and payment
process
Ariba Supplier Network
Contracts
• Clause Library
• Electronic Work flow for
approvals
• Electronic Repository
• Seamless transfer and
communication with
outside parties
• Achieve global contract
visibility
• All Types of contracts
Ariba Discovery
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Buyer Dashboards
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Supplier Dashboards - Via Ariba Network
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Thank you
Contact information:
Ashraf Al Agha
Solution consultant
SAP MENA – Dubai
00971 50 55 41 303