How Do Our Most Successful Customers Do It? The Must-Have Ingredients for Value Realization

PUBLIC
February, 2017
Kay Ree Lee, SAP
How Do Our Most Successful Customers Do It?
The Must-Have Ingredients for Value Realization

2© 2017 SAP SE or an SAP affiliate company. All rights reserved.
Public
Today’s topic
Key ingredients in the recipe for success to build a strong
program for SAP Ariba solutions
Key elements that our most successful customers have

Public
1. Please hold your questions until the end of the
presentation
2. After the end of each presentation, we will have
a quick poll – please attempt to answer this
question
Housekeeping items

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Dick’s Sporting Goods
Panel members
Christoph Elben
UPS
Deb Bolinger
Director, Non-Merchandise Procurement Director, Global Process Staff

Public
“If I had asked people what they
wanted, they would have said
faster horses.” Henry Ford

Public
Key findings and trends from SAP Ariba Business Insights
01
Procurement is expanding its influence
to greater depth.
02
Capturing savings is important but value
matters more.
03
Digital procurement is firing on all
cylinders.
82% Sourcing spend under management
Procurement increasingly plays a
strategic role within the organization.
9.7% Sourcing savings as a percentage of spend sourced
Procurement is actively tracking other
sources of value contribution.
62% Percentage of total invoices submitted electronically
Adoption of invoice automation and
validation through e-invoicing solutions.

Public
Key findings and trends from SAP Ariba Business Insights
04
Transactional efficiency enables
businesses to be “ALWAYS ON.”
05
Risk management should be a key focus
area.
06
Compliance delivers bottom-line savings
by closing the loopholes.
10,000 POs per full-time employee
Procurement supports self-service
requisition for material and service items
using online catalogs.
32% Average organization’s spend is not managed.
Average company’s total supplier count
makes up 80% of spend.
5% Increase in compliance will increase
savings by $4.4 million for each billion
dollar spend
4.5%

Public
On your phone, open a web browser
and type in
https://pollev.com/aribalive2017
Have you conducted a formal benchmark of
your procurement performance in the last
12 months?

9
Christoph Elben
March 21, 2017
Ariba P2P
Dick’s Sporting Goods Outside-in Approach
An implementation approach that allows DICK’S to operate
quickly and seamlessly at 800+ stores in the US

10
• DICK’S Sporting Goods (DSG) Overview
• DSG’ Business Case
• DSG’ Non-Merchandise P2P journey and approach – outside-in
• DSG’ P2P transformation over the past two years
• What is next
Agenda

11
• Headquartered in Pittsburgh, PA,
• Leading omni-channel sporting goods retailer offering an extensive
assortment of authentic, high-quality sports equipment, apparel, footwear
and accessories
• Operates over 800 Sporting Goods retail locations across the United States,
serving and inspiring athletes and outdoor enthusiasts
• Owns and operates Golf Galaxy and Field & Stream specialty stores
• Offer products through a content-rich eCommerce platform that is integrated
with store network and provides customers with the convenience and
expertise of a 24-hour storefront
DICK’S Sporting Goods

12
• Nationwide growth
• Inconsistent purchasing and ordering approach
at the stores
• Price inconsistencies
• Compliance issues
• Lack of visibility and lack of systematic
approval workflows
• Manual and inconsistent reporting
• No scalable solution
• Heavy manual intervention for orders and
purchases
• Other considerations:
• Scalability and expansion to DCs and SSC
• AP impact
• Store Operation priorities
• Automation
DSG’ Business Case

13
DSG’ Non-Merchandise P2P journey and approach – outside-in
Through our outside-in approach, we enabled our stores first, then distribution
centers and our HQ last, across supplier enablement wave-plans.
Wave 1
Wave 2
Wave 3

14
DSG’ P2P transformation over the past two years
Keys to our success:
• Sponsorship
• Scalability (~5k employees
with minimal training)
through:
• A end user friendly
and intuitive interface
• Consistent experience
Requisitions 89k 101k
Purchase Orders 144k 149.5k
DSG P2P Users ~4,300 ~4,900
Spend Addressed Up ~53%
Enabled Suppliers Up ~79%
2015 2016
End users are starting to come to us, with supplier enablement requests.
Significant reduction in manual intervention – we manage the exceptions.

15
• Continuously challenge and drive down PCard spend, manual Purchase Orders (ERP
based) and obtain better visibility into the purchases (and behavior) of our stores and
associates
• Quarterly business review meetings with P2P Council (Stores, DCs & SSC)
• P2P provides great visibility, approval workflows and reporting, to drive compliance
• We believe there is still a 5x – 10x spend opportunity for P2P ahead of us
What is next

Thank you.
Contact information:
Christoph Elben
Director, Non-Merchandise Procurement
Christoph.elben@dcsg.com

17
On your phone, open a web browser and
type in https://pollev.com/aribalive2017
Have you done the preparation work to define a
clear vision, along with obtaining executive
sponsorship to introduce and implement your
procurement initiative(s)?

The Evolution of Procure-to-
Pay (P2P) at UPS
March 22, 2017

Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
UPS Quick Facts
19

P2P Transformation Events & Technology
1997
Oracle
AP
2003
Sourcing
Methodology
2005
Strategic
Sourcing
2010
Ariba
Tools
2014
P2P
Assessment
2016
e-Invoicing
Expansion
P2P Evolution
ERP
Oracle
• U.S.
• International
UPS Solutions
• Railroad trailer movements
• Vehicle and trailer rentals
• Tires
• O/S Vehicle Repairs
• Fuel
• Utilities
Ariba Solutions (SAAS)
• Sourcing
• Contract Management
• Ariba Network
• Content Management
• Invoice Pro
• SPM
Technology Landscape
20

21
U.S. Accounts Payable Transformation
Doing more with less......
1993
11 Regions
72 Districts
72 AP Systems
1.7M Invoices
$3.2B Spend
443 Staff
2017
2 Regions
17 Districts
1 U.S. AP ERP System
10.1M Invoices
$26.1B Spend
132 Staff
District A/P consolidate to
Region sites – 1994
•Oracle ERP implemented – 1997
Region sites consolidate to
one U.S. site – 1999
Global Business Services
is formed – 2011
•P2P Process aligns to CPO

22
Our SAP Ariba Adoption
76,542
Active supplier contracts
278Catalog suppliers
2,879Contract invoice suppliers
145Sourcing events per year

Keys to Success: Global Business Services – focused on
delivering customer satisfaction
1
2
3
4
5
6
7
1. Atlanta, GA USA
2. Mexico City, Mexico
3. Wroclaw, Poland
4. Pune, India
5. Hefei, China
6. Manila, Philippines
7. Medellin, Colombia
23

Keys to Success: Catalog Content and Supplier Rules of
Engagement – create process standardization
24
278 Catalog
Suppliers
Ariba Network
26 Supplier Groups
Catalogs
• 691 catalogs
• 686 CIF catalogs, 5 punch out catalogs
• Purchaser visibility based on a person’s function
• Example: Automotive items only visible to automotive users
• Process supported by 4 FTEs
• Onboarding new suppliers/catalogs
• Updates to CIF files
PO rules
• POs must be confirmed or PO Change Requested
• ASN’s are required for all products
• Invoice cannot be submitted until PO is confirmed and ASN sent
• Invoice must match to PO based on rules
• Zero tolerance on price
• Cannot exceed quantity
• No shipping charges

Keys to Success
25
• Global vision
• Evaluate best of breed solutions vs. entire suite of applications
• Evaluate organizational structure
• Find the right solutions for the commodity/category
• Engagement of Global Process Owners
• Supplier contracts that support back office processes
• Support process improvements and compliance
• Standardized Policies and Procedures
• Purchasing and Payment end user certifications
• Stringent network rules
• Standardized systems to improve process....
• Accuracy, efficiency and compliance
• Reporting
• Analysis

© 2015 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.27
On your phone, open a web browser and
type in https://pollev.com/aribalive2017
Do you have supplier rules of engagement that is
documented and understood by your internal
users and suppliers?

28PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Public
Key
Elements
of Success
01
02
03
04
VISION AND SPONSORSHIP
Executive Sponsorship to win the hearts
and minds of stakeholders and suppliers
ROLL-OUT PLAN
All encompassing strategy for roll-out
CONSISTENCY
Standard and consistent processes and
training
ORGANIZATION STRUCTURE
Dedicated resources for implementation
and to drive adoption and value
05 SUCCESS MEASUREMENT
Track performance and direction

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How Do Our Most Successful Customers Do It? The Must-Have Ingredients for Value Realization

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How Do Our Most Successful Customers Do It? The Must-Have Ingredients for Value Realization