Every great transformation starts with the end in mind. Enabling suppliers on Ariba Network is no different. Join this session and learn from the experts as they tell us how they have been able to achieve great results in getting their spend, suppliers, and documents digitized on Ariba Network. You’ll hear the perspective of sellers, buyers, and the SAP Ariba team—starting with the up-front business case and diving into the details of the actual enablement. You will also learn about exciting new Ariba Network developments that support SAP Ariba’s vision to help buyers and suppliers simply commerce with a single platform--including an enablement option for low transaction volume suppliers to further enhance your Ariba investment and improved supplier packaging and pricing. Successful enablement is within your grasp.

1. Supplier Enablement – How to Bring Suppliers
to Ariba Network
Val Blatt, Vice President, Seller Engagement, SAP Ariba / March 16, 2016
Jennifer Sinatra, Director, Network Enablement, SAP Ariba / March 16, 2016
Jin Gao, Procurement Business Analyst, Avery Dennison / March 16, 2016
Public

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Agenda
Define Value
Clearly defined strategy
Enablement paths
Business Case and Strategy: Avery Dennison

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Savings
Impact Area Savings Opportunity
Spend
Compliance
• Ensuring purchases and invoices are based off of negotiated contract
pricing and terms
• Reduction of over payment errors
Process
Improvement
• Reducing lost purchase orders and expediting time
• Streamlining & automating process
• Reduced exceptions
• Reduced costs: people, legacy technology, paper, postage
Cash
Management
• Optimization of early payment discounts
• Improve working capital via DPO extension and inventory reduction
Price
Reduction
• Better sourcing practices and competitive bid process
• Per-unit cost savings
Benefits across the source-to-settle process
All enabled via the Ariba Network
Analyze
Spend Source Contract Procure
Invoice
& Pay Manage
Best in Class performance results
enabled by the Ariba Network:
$3M
overpayment reduction per billion in spend
10,000
POs processed per FTE
$1-3M
discounts earned per $1 billion in spend
10-16%
savings realized for > 70% of their spend

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Ariba delivers solutions
• Ariba
Discovery™
• Ariba Network
(via catalogs)
FIND buyers
ready to buy
• Ariba Sourcing
and Ariba
Contract
Management
• Ariba Network
ACCELERATE
the sales cycle
PREDICT and
APPLY cash
• Ariba Network
IMPROVE
customer retention
• Ariba Network (via
invoicing and early
payment discounts)
• AribaPay™

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Seller journey on Ariba Discovery
https://www.youtube.com/watch?v=qvjo1R818
hY&feature=youtu.be

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Define the value for each of your stakeholders
For [Stakeholder], the [what are you asking them to do on SAP Ariba?] is the [insert Point of Differentiation]
among all [insert Frame of Reference] because [insert Reason to Believe].

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Ongoing
Management
•Evaluate KPIs related
to process
improvement, cost
reduction and adoption
on a regular basis and
plan for continuous
improvement and
expansion of program
•Set up process for
catching transactions
happening outside of
the system
•Track savings based on
key value levers
•Evaluate exceptions
and adjust Network
settings as necessary
Resources
and Timelines
•Set a pace for the
deployment and
adoption of the
Network
•Align with technology
adoption goals
•Target the right
suppliers at the right
time to hit ROI goals
•Consider the resources
available for testing with
suppliers when deciding
how many suppliers
will be enabled at a
given time
•Researching good
supplier data up front
will save time and
frustrations due to
escalations down
the road
Suppliers
•Supplier Management
is critical during the
deployment and
ongoing. Consider the
following:
•Correct contact data for
fast, effective outreach
•Appropriate compliance
messaging to support
business goals
•Create value in the
program that incentives
the suppliers to
participate
•Ongoing maintenance
and management of
supplier enablement
Stakeholder
Alignment
•Which internal and
external people and
teams must provide
requirements, approve
and maintain compliant
processes for a
successful program?
•AP
•Procurement
•Sourcing
•Category Managers
•End Users
•Legal
•IT
•Treasurey
•Regional/Business Unit
Stakeholders
Solution and
Processes
•Consider what
technology solutions
and processes will
need to be
implemented or
changed.
•Internal procurement
processes and policies
•Ariba and non Ariba
system integrations
•Creation and
maintenance of
procurement content
(contracts, catalogs,
etc)
Strategy
meets
flightplan
•Accounts for a buying
organization’s
objectives such as:
•meeting regulatory
requirement
•improving process
efficiency
•driving spend
compliance
•reducing operational ris
•gaining better spend
visibility
•working capital
optimisation
•other specific
requirements
Value informs Strategy Value drives tactical Execution

8. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 8Public
Create a strategic overview of suppliers that correlate to an
executable plan
A Supplier Enablement Program
must have identified suppliers in
‘enablement lanes’ based on
category, region, procurement
process, and contribution to ROI

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Create a strategy and track efficacy of tactical execution
• Details about suppliers, categories, and procurement processes intersect with a
project plan for technology deployment and adoption to provide a roadmap to
value and ROI for all stakeholders.
Science
• Buying Process
• Spend
• Transaction Count
• Geography
• Discount Propensity
Art
• Business Units
• Resource Availability
• Integration to Back End Systems
• P2x Design Work Required
• Other Customer-Specific Considerations

10. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 10Public
Multiple enablement channels to service all suppliers
Supplier Value Journey
PaperScanning/
Conversion
Portal &
PO Flip
File
upload
Machine
to
Machine
Suppliers
Interactive
Email

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Ariba Network
When to select light enablement: understanding
supplier segmentation
Helpdesk & Support
M2M integration
Mobile Portal
Full transaction set
Innovations
AribaPay
Spot Quote
Interactive email
Free, simple
Upgrade by Choice
Business
rules
REGULAR PORTAL ENABLEMENT NEW! LIGHT ENABLEMENT
$
A B C
500
Suppliers
1500
Suppliers 5000 Suppliers
No compulsion
...
You
Eliminate
friction
Full Ariba Network
functionality
Interactive email
No Ariba Network
registration
€$ ¥
Crucial for
business case

12. Business Case and Strategy
Avery Dennison

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Avery Dennison Corporation – Who we are and what we do
Founded in 1935
$6.3 billion sales from continuing operations in 2014
2014 Fortune 500® ranking: 385 (NYSE:AVY)
A global leader in labeling and packaging material and solutions
Headquartered in Glendale, California w/operations in 50+ countries
More than 25,000 employees worldwide

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Our businesses are a powerful part of everyday life
$4,658
$1,592
$81
2014 Sales (in millions)
Vancive Medical Technologies
Pressure-sensitive Materials
Retail Branding and
Information Solutions

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Avery Dennison case study
Background:
Avery Dennison moved from the SAP Ariba on premise Smart Buy product to the SAP Ariba SaaS
solution ~ 2 years ago at the same time we moved our financial systems to Oracle R-12.
Our initial scope was limited to placing purchase orders, receiving PO confirmation and shipment
notifications through the network.
The organization was a long-time user of SAP Ariba products, but did not have a strong understanding
of the new processes associated with the SaaS model including enablement.
Our journey, like many, had its challenges, but with a clear understanding of the platform and team
focus on enablement, we achieved 87% of our NA PO volume transacting through the Ariba Network
within 6 months.

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Avery Dennison case study
Our Journey
Percentage of purchase orders
(by volume) issued through
Ariba Network:
North American: 70% to 87%
Europe: 35% to 65%
30%
40%
50%
60%
70%
80%
90%
100%
NA
EU

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Avery Dennison case study
How did we do it?/Lessons learned
Supplier enablement is a JOURNEY, not a project
 Enablement is hard work
 Dedicated internal resources to enablement
 Set a goal - 80% of PO volume by YE

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Avery Dennison case study
How did we do it?/Lessons learned
Be results driven. Be VERY results driven
 Established weekly meetings and check in with Avery and SAP Ariba teams
 Monthly reporting of SAP Ariba utilization %
 Targeted top 100 suppliers by volume ( # of POs)
 When suppliers push back, pursue several at a time. Don’t go after all at once

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Avery Dennison case study
How did we do it?/Lessons learned
Change Management, Gestión del cambio, 变革管理
 Strong leadership support needed at executive and functional level
 Established SAP Ariba Compliance Policy
 Aligned internal functions to importance of enablement
 Consistent message to suppliers

20. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 20Public
Avery Dennison case study
How did we do it?/Lessons learned
Change Management, Gestión del cambio, 变革管理
 Set the right tone and mindset. This is business, not personal
1. This is the way Avery Dennison will conduct business
2. This is the way of the future (or the present to be more accurate)
Educated suppliers - partnering with SAP Ariba enablement team
1. Fees vs Benefits. Sell the value proposition with both fact and determination
2. Supplier training webinar and training documentation on Avery Dennison portal

21. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 21Public
Avery Dennison case study
How did we do it?/Lessons learned
Change Management, Gestión del cambio, 变革管理
 Embed supplier enablement into existing business processes
1. Build into sourcing and RFP process
2. Check point upon contract renew
3. Require suppliers to establish trading relationship with us on Ariba Network before first PO
 Monthly or Quarterly SAP Ariba Compliance Committee Meeting
1. Review SAP Ariba compliance policy
2. Discuss action plan – top five suppliers we need to bring into compliance. Who? What? When?

22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Introducing more simplicity and transparency in supplier packaging
and pricing – based on their feedback
Improving our supplier model to enable our simple commerce vision:
services and
capabilities for
suppliers
transparent, usage-
based pricing model
Light Enablement
capability to engage
long-tail suppliers
approach to
subscription packages
and fees

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You asked, we delivered: new services and capabilities for
registered suppliers
GROWTH
More sales
opportunities from
Ariba Discovery
bundled in
SUPPORT
New dedicated
supplier support
channel
EFFICIENCY
New tools
for suppliers’
buying needs
New marketing
badges to showcase
e-commerce capabilities
MARKETING TOOLS

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SAP Ariba’s improved supplier subscription model
Fee Schedule
Subscription
Level Entry Standard* Bronze Silver Gold Platinum
Documents
per year
Unlimited PO,
OC, Invoice
Up to 4* 5 to 24* 25-99* 100-499* 500+*
Key
Benefits
Interactive
Email
Interactive Email
Plus:
• Portal use
• PO Flip
• PO-Invoice
reconciliation
and status
• Catalog use
• Customer
support
Standard Plus:
• Advanced
reporting through
Portal
• Ariba
achievement
badges
• Sales opportunity
response
Bronze Plus:
• Integration
Express
consultation
• Unlimited cXML
and EDI usage
• Supplier
technical
support
Silver Plus:
• Unlimited
responses to
sales
opportunities
• Basic integration
tools
• eCommerce
consultation
services
Gold Plus:
• Dedicated
support
channel
• Advanced
integration
tools
• Ariba LIVE
pass
Subscription
Fee
No charge No charge
50
USD/yr
750
USD/yr
2250
USD/yr
5500
USD/yr
Transaction
Transaction
Fee
No charge No charge .155% for Bronze-Platinum levels
Document in this count: purchase order, invoice, service entry sheet, service entry sheet responses.
Entry-level suppliers may transact Purchase Order, Order Confirmation, and Invoice documents only. For all other document transactions (catalog, invoice status, goods receipt notice,
advance ship notice, service entry sheets, service entry sheet response, invoice status, payment remittance advice) you must be a registered user.
Suppliers transacting under $50K USD per year will not be charged
Maximum transaction fee per relationship is 20,000 USD (plus any applicable subscription fee).
REGISTERED

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SAP Ariba Customer Success Day events
Learn from your peers.
Share with your peers.
Grow with your peers.
Learn more at: www.ariba.com/lp/customer-success-day

26. Thank you
Contact information:
F name L name
Title
Address
Phone number
F name L name
Title
Address
Phone number

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