This document summarizes two presentations about supplier enablement for procure-to-pay processes. The first presentation discusses Gasunie's journey to enable their 874 suppliers on Ariba's network. It describes their change management approach, including information sessions and making Ariba usage a tender requirement. The second presentation discusses Clariant's strategy to enable over 1,000 suppliers on Ariba in waves based on spend volume. It emphasizes the benefits of P2P including cost reduction and increased transparency. Both emphasize the importance of change management and clear communication with suppliers.
2. Global Supplier Enablement:
The Key to P2P/eInvoicing Success
Paula Zijda
Project Manager Ariba - Gasunie Procurement
8 april 2014
Ariba Live 2014, Rome
6. Ariba at Gasunie – The Netherlands
DONE
Sim and Sourcing
P2O and ASP, temp. labor
Contract management
P2P including ICS
-6-
Registration
Supplier
Information
Management
Requirement
Sourcing
Contract
Contract
Management
Purchase
Requisition
(PR)
Purchase
Order
(PO)
Receipt
(RC)
Invoice
(IR)
Reconciliation
Payment
(PAY)
TO DO
POC connecting SAP-PM with Ariba
POC stock driven materials
ASP for subcontracted work
ICS roll-out
NOT (YET)
Stock materials and Energy
7. The key success factor for implementing Ariba
CHANGE MANAGEMENT
Software as a Service
Work process changes
Digital way of working
ICT component
8 april 2014-7-
TWO
STEPS
FORWARD
ONE
STEP
BACK
IS
STILL
FORWARD
PROGRESS
9. Characteristics of the Gasunie supplier base
Each year a delta of 300 suppliers
80% Dutch suppliers / 20% foreign suppliers
< 1% was familiar with Ariba at start of the project
In the energy industry, Gasunie is an early adopter of Ariba
874 suppliers enabled on the Ariba Network
8 april 2014-9-
1100 suppliers (per year) spread over 4 different spend categories
Category # Suppliers Spend (M€)
Materials 500 (only maintenance) 150
Contracting 250 300
Services 325 150
Energy 25 (not in Ariba) 300
10. Approach
Start in 2011 – implementation Sourcing and P2O
Information sessions for suppliers, with Ariba team present
Flyers - manuals www.gasunie.nl/en/suppliers
In 2012 we switched to a more personal approach – implementation P2P
Tender conditions prescribe the use of Ariba (for tender and order phase)
Currently we are reconsidering the approach for small suppliers since enabling them
requires too much effort
8 april 2014-10-
11. Feedback from suppliers
All POs are in one place (the Ariba Network)
Transparency in invoicing process –
status updates
Process for hiring temporary labor is
more efficient
Some invoices from Ariba lead to
discussion
Invoicing in 2 systems (own ERP and Ariba Network when
manually processed)
8 april 2014-11-
12. Lessons learned – conclusions
Enablement approach: personal approach works best
Timing of enablement, align with roll out plan
Change management, define strategy
Act with one voice
Arrange support for suppliers
Be open about the Ariba network fees, don’t be the go-between
P2P delivers more value to the supplier then P2O
Enabling small suppliers is time consuming
8 april 2014-12-
“THE SECRET OF CHANGE IS
TO FOCUS ALL YOUR ENERGY
NOT ON FIGHTING THE OLD,
BUT ON BUILDING THE NEW ”
(Socrates)
14. Peter Beyeler, Group Procurement Services, 25.03.2014
Employees 2013
18 099Business Areas
EBITDA 2013 (CHF m)
before exceptionals
14.1%
Net result 2013 (CHF m)
from continuing operations
Sales 2013 (CHF m)
from continuing operations
A globally leading company in specialty chemicals
Public, Corporate Presentation, Clariant at a glance14
Clariant focuses on creating value
through innovation and sustainability.
6 076
858 EBITDA margin 2013
before exceptionals
323
4
Corporate Center, Pratteln, Switzerland
15. Peter Beyeler, Group Procurement Services, 25.03.2014
Clariant world-wide
Public, Corporate Presentation, Clariant at a glance15
More than 100 Group
companies worldwide
Over 200
production sites
Represented in
over 60 countries
16. Peter Beyeler, Group Procurement Services, 25.03.2014
Clariant’s products and services are grouped into
four Business Areas
Natural Resources
BA Natural Resources,
comprising BUs Oil & Mining
Services and Functional
Minerals, is characterized by
high growth and low cyclicality as
well as strong megatrend
orientation. Main drivers are the
rising demand for high-value
added specialty chemicals used
in the oil, mining, food and
packaging industries, and
increased consumption of oil,
gas and base metals, driven by
the fast-growing economies.
Plastics & Coatings
BA Plastics & Coatings
comprises the BUs Additives,
Pigments and Masterbatches.
The BA has a large exposure to
Europe and, as such, is subject
to lower growth and to economic
cycles. Main drivers are the
increasing use of plastics with
tailor-made properties in
applications such as mobile
phones, cars, construction, as
well as the rising consumption of
plastics in line with increased
wealth.
Care Chemicals
Business Area (BA) Care
Chemicals comprises the
Industrial & Consumer
Specialties (ICS) Business Unit,
food additives as well as the
future Industrial Biotechnology
business. It demonstrates a
clear focus on highly attractive,
high margin, and low cyclicality
segments. The BA follows a
lifestyle-driven megatrend and
strengthens Clariant’s image of
being a supplier of green and
sustainable products.
Catalysis & Energy
Business Area Catalysis &
Energy develops, manufactures,
and sells a wide range of
catalyst products for the
chemical, fuel and automotive
industries, as well as producing
materials for electric vehicles
and energy storage systems.
The BA is the smallest within
Clariant but is highly profitable
with high growth rates and low
cyclicality.
17. Peter Beyeler, Group Procurement Services, 25.03.2014
17
P2P Supplier enablement benefits
Reduce process costs
Improve purchase to pay cycle times (efficiency & effectiveness)
Reduce material and service cost e.g. streamlining
Reduce CO2 and paper usage – carbon footprint
Modern purchasing tool – state of the art
Reduction of complexity
Increase transparency and spend under control
Globally used tool fully integrated
Compliance improvement
Functional excellence
18. Peter Beyeler, Group Procurement Services, 25.03.2014
P2P system integration @ Clariant
An SAP Company
MM
FI
SRM
eProcurement SRM PO 300..
Call Off & Standard MM PO450..
Collaboration , Integration, Transparency, Network
EDI
HTML
cXML
CSV
Business Rule
Check
entity
PO
Comp
liance
Invoic
e #
Supplier
19. Peter Beyeler, Group Procurement Services, 06.02.2014
Implementation Strategy | Data Analysis
19
Possible Suppliers to be
on boarded
Supplier
Supplier
Supplier
Wave 1
>1000 Transactions
>10 Mio. CHF Invoiced Value
Wave 2
>300 Transactions
<10 Mio. CHF Invoiced Value
Wave 3
>100 Transactions
>1 Mio. CHF Invoiced Value
Indirect Spend Suppliers
1. Materials
2. Services
Direct Spend Suppliers
1. Chemicals
2. Services
Logistics Suppliers
20. Peter Beyeler, Group Procurement Services, 06.02.2014
Implementation Strategy | Onboarding
20
Possible Suppliers to be
on boarded
Suppli
er
Suppli
er
Suppli
er
Invoice Data
Analysis
Flight Plan
1st
Supplier
Contact
Initial
Wave
Start
Ariba to
contact
Suppliers
Testing /
Go Live
Flight Plan
creation based
on Invoice
analysis and
Ariba Network
information
Procurement
to contact
Suppliers with
initial
Information
and Contact
collection
Supplier
Manager to
contact
suppliers to
introduce the
eInvoice
strategy
Ariba to
contact
suppliers for
Network
Training
PO Flip Go
Live
CSV and XML
Tests and Go
Live
21. Peter Beyeler, Group Procurement Services, 06.02.2014
Lessons Learned
Public, Global eProcurement @ Clariant21
Top Management Support!
Clear statement to suppliers what the corporate strategy is
Relation and cooperation Procurement and AP
Clear Organization & Responsibilities
Analyze and align processes and technical environment