First, for those of you who may not be familiar with Ariba, let me take a moment to tell you about us. Ariba is world’s largest B2B commerce network. Ariba combines industry-leading cloud-based applications with the world's largest web-based trading community to help companies discover connect and collaborate with a global network of partners. Using the Ariba® Network, businesses of all sizes connect to their trading partners anywhere, at any time to buy, sell and manage their cash more efficiently and effectively than ever before. Nearly 1 Million companies around the world use the Ariba Network to enable efficient and effective commerce and enhance the results that they deliver. And our goal, simply stated, is to aggressively deliver on the value of the Networked Enterprise. Why? Because according to a McKinsey survey last year of over 4300 executives, “Networked enterprises were 50% more likely than their peers to have increased sales, higher profit margins, gain market share, and be a market leader.”As a company, that is what Ariba is all about…helping our clients tap into the power and value of the Ariba Network to drive similar results.
We’re all familiar with the McKinsey study regarding the rise of the networked enterprise – one that connects their back office systems with customers and suppliers. According to McKinsey, Networked Enterprises are 50% more likely to increase sales, margins, and market share. A key take away from this Commercial Kickoff is learning how … [click]E-Invoicing is transforming finance organizations like Disney, HP, GSK, ONEOK, from tactical cost centers to strategic profit centers by improving collaboration across procurement and AP; improved visibility with suppliers; reduced cost leading to higher margins.
Now, IF YOU REMEMBER ANYTHING FROM THIS PRESENTATION, remember this….SUPPLIERS HAVE BIG PAINS IN THE PROCESS TODAY AS WELL….as such a big value proposition exists for them as well. - The big one is compressing the time it takes for you, on the buy side, to get the pay term clock to start. Today there is lag of many days – sometimes weeks, before the pay term clock starts on the buy side and when it starts with the suppliers. Ariba makes this the SAME (thru the capabilities outlined)…..our suppliers who transact with many Ariba Network clients and of course non Ariba clients have realized a DSO benefit ‘on average’ of 6 days. When we are talking about many millions of business with you, this is a big value proposition. - Of course cost savings is a big benefit as well….receiving a paper PO, dealing with calls from you on Ocs, managing PO errors and re-issues and changes, and sending you paper SES or Invoices cost more money than doing electronically over the Ariba Network. - Clean Harbors (hazardous waste disposal for energy co.s). DSO was a pain point, typically getting paid 15 dates late and often resulting in invoice disputes after that – especially for underfunded POs requiring a change order or unplanned jobs. It took them hours per week to manage these disputes. Now they manage complex and simple jobs via the Ariba Network with dozens of energy customers, including cutting resource costs in their A/R function; and improved invoice accuracy. - The final benefit, and one that is picking up a lot of steam with our mature suppliers, is gaining access to more business and new clients. - McJunkin commented recently they are seeing a higher % of PO spend now from their Ariba clients as maverick spending has been eliminated due to PERFECT PO controls in place due to Ariba Network - Motion Industries commented to us recently they just won a new contract, with a new client, with a major focus/reason on their vast experience serving other Ariba clients on Network (and the lower costs to serve and spend benefits they receive that translates into being a better partner).
Ariba have signed an OEM partnership with Dell Boomi to enable Ariba to sell Boomi solutions and services to Ariba customersInitially Boomi was chosen to help network suppliers integrate with the network due to its low cost and simplicity
Ariba have signed an OEM partnership with Dell Boomi to enable Ariba to sell Boomi solutions and services to Ariba customersInitially Boomi was chosen to help network suppliers integrate with the network due to its low cost and simplicity