Increasing Market Share in Customer Accounts Through Online Catalogs
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The document discusses Fleurop AG's use of PunchOut catalogs on Ariba to increase online ordering from business customers. It describes Fleurop's history with e-commerce solutions, highlights benefits of PunchOut catalogs for both buyers and sellers, and outlines lessons learned from implementing PunchOut with multiple customers.
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Increasing Market Share in Customer Accounts Through Online Catalogs
- 1. Increasing Market Share in Customer Accounts Through Online Catalogs Why Buyers and Sellers Collaborate Using Catalogs © 2013 Ariba, Inc. All rights reserved.
- 2. #AribaLIVE Today‟s Presenters © 2013 Ariba, Inc. All rights reserved.2 Jon Davidson Chief Operating Officer Achim Oberhauser Manager, Corporate Business
- 3. #AribaLIVE Catalog Options on Ariba • No catalog Non-catalog purchase orders • Hosted (static) catalog Catalog Interchange Format (CIF) • PunchOut catalog cXML integration to your E-commerce site © 2013 Ariba, Inc. All rights reserved.3
- 4. #AribaLIVE Today‟s Presenters © 2013 Ariba, Inc. All rights reserved.4 Jon Davidson Chief Operating Officer Achim Oberhauser Manager, Corporate Business
- 5. #AribaLIVE What We‟ll Cover • Company Background • History of E-Business • Why PunchOut? • Lessons Learned • Q&A © 2013 Ariba, Inc. All rights reserved.5
- 6. #AribaLIVE Who is Fleurop AG? © 2013 Ariba, Inc. All rights reserved.6 German partner network with more than 7,000 florist stores founded: 1908 in Berlin turnover: 71 Mill. Euro employees: 75 in headquarter orders: 3,5 m. incl. voucher associated with Interflora network worldwide: 50.000 florists in more than 150 countries over 25 million Fleurop greetings a year Headquarters in Berlin
- 7. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Fleurop – business model Each Fleurop greeting is put together by professional florists exclusively, and handed over to the recipient personally. Worldwide. 7
- 8. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Why Flowers in Business? • Improve customer relationships • Retain customers • De-escalate in critical situations • Honor achievements • Emotionalize communication • Reach “target“ directly and personally • Get high attention and create a positive atmosphere • Touch recipient 8
- 9. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. E-Business and Fleurop • Reason why? - Large companies search for a centralized solution. - Fleurop secures business for professional partner florists. 9
- 10. #AribaLIVE 10© 2013 Ariba, Inc. All rights reserved. History of Fleurop„s E-Business First Hosted-Catalog Solution Implementation
- 11. #AribaLIVE 11© 2013 Ariba, Inc. All rights reserved. History of Fleurop„s E-Business More Hosted-Catalog Solution Implementation More Hosted-Catalog Solution Implementation More Hosted-Catalog Solution Implementations
- 12. #AribaLIVE 12© 2013 Ariba, Inc. All rights reserved. History of Fleurop„s E-Business First PunchOut catalog OCI-Integration
- 13. #AribaLIVE 13© 2013 Ariba, Inc. All rights reserved. History of Fleurop„s E-Business Document Exchange cXML-Implementation PO + e-Invoice First Ariba PunchOut catalog Integration First project with Ariba was customer driven -> change from XML to cXML was necessary :
- 14. #AribaLIVE 14© 2013 Ariba, Inc. All rights reserved. History of Fleurop„s E-Business Document Exchange cXML-Implementation PO + e-Invoice More Ariba PunchOut catalog Integrations Multiple use of PunchOut catalog for further customers: Less effort for further projects because of standards Document Exchange cXML-Implementation PO + e-Invoice More Ariba PunchOut catalog Integrations Document Exchange cXML-Implementation PO + e-Invoice More Ariba PunchOut catalog Integrations
- 15. #AribaLIVE Emotions at Your Fingertips with PunchOut catalog © 2013 Ariba, Inc. All rights reserved.15
- 16. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Why PunchOut? • flower greetings require a special order logic - fixed delivery date - shipping address (buyer or recipient) - personal message - additional fees for express / Sunday hardly possible to provide in hosted catalogs 16
- 17. #AribaLIVE Exclusive features for buyer - Choose from 7,000 florist stores - order product from the florist you know and trust - option to pick up flowers personally - possibility to deliver on the same-day - enclose personal cover letter - flexible free-text arrangements for individual needs © 2013 Ariba, Inc. All rights reserved.17
- 18. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Demo 18
- 19. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Advantages for Seller - order data is transferred without any integration gap - cost and time required to fill and process has been reduced - to be not only “mail order provider” but - to be a partner = Managed Service Provider to offer added values 19
- 20. #AribaLIVE 20© 2013 Ariba, Inc. All rights reserved. Buyer perspective Seller perspective PunchOut offers “Best of two worlds” • service and quality of florists • consistent with purchasing policies • offering the full flexibility • tailored product catalogs • user acceptance • savings of €35 in administrative costs per arrangement 20 • secure orders for florists • fully automated process without integration gap • greater efficiencies • Managed Service Provider = deep integration + strong relationships
- 21. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Lessons learned • customers have different technical requirements and business demands. • create one PunchOut catalog and keep it flexible: multi-client capability configurable / parameterizable features 21
- 22. #AribaLIVE © 2013 Ariba, Inc. All rights reserved. Further Improvements planned • offering additional services of florists e.g. maintance of plants, gardening and landscaping subscriptions e.g. decoration of entrance areas • customize design / layout of PunchOut 22
- 23. #AribaLIVE Advantages of PunchOut at a Glance Managed Service Provider Order data automatization Strong customer loyalty Integrated solutions Offer added values Savings in administrative costs Transparency Compliance Consumer-like shopping experience Attractive assortment Buyer Seller PunchOut catalog 23© 2013 Ariba, Inc. All rights reserved.
- 24. #AribaLIVE Today‟s Presenters © 2013 Ariba, Inc. All rights reserved.24 Jon Davidson Chief Operating Officer Achim Oberhauser Manager, Corporate Business
- 25. #AribaLIVE What We‟ll Cover © 2013 Ariba, Inc. All rights reserved.25 • Company Overview • Problems that justified PunchOut and the results • How IESA have invested in PunchOut to increase on-boarding • The IESA PunchOut Marketplace • Best Practice for PunchOut adoption • Astra Zeneca story – why we like to work with Ariba PunchOut
- 26. #AribaLIVE Company Overview © 2013 Ariba, Inc. All rights reserved.26 IESA is the largest Integrated Supply organization in the EU providing integrated self-financing procurement and inventory management solutions to Industry on all aspects of Tail-end indirect spend particularly MRO materials •€150+Million Turnover p.a. on Industrial Materials •1Million+ active stock materials under daily MRP •30,000 Global Suppliers consolidated into one for our clients •6Million+ transactions p.a. •1.1Million+ MRO PO lines p.a. / Average PO line Value €138 •530,000 NON-STOCK PO lines p.a. / Average PO line value €118
- 27. #AribaLIVE Classic Non-Stock Indirect Spend Problem © 2013 Ariba, Inc. All rights reserved.27 IESA is committed to make savings for our clients. However using “traditional” procurement techniques, unit-cost savings alone will be inadequate, as the transaction cost is close to the line value of the Purchase Order line. 2004 – Started using PunchOut as a means to attack transaction cost on the 50+% of our business which is non-stock purchasing. 2013 – IESA handle 239,000 PunchOut Order lines p.a. PunchOut Provides •100% Accuracy on material codes and descriptions •100% Accuracy cost and stocking positions from suppliers •Client Contract compliance checks in real time •Higher Granulation on Purchasing Categories •100% Perfect match on e-Invoicing from suppliers and to clients •Client user to PO to e-Invoice with ZERO IESA human involvement
- 28. #AribaLIVE MyMRO Marketplace © 2013 Ariba, Inc. All rights reserved.28 PunchOut has been so successful in 2010, IESA developed the MyMRO Marketplace for our clients to extend PunchOut beyond supplier web catalogues Increase on-boarding for large suppliers as Ariba and IESA have done this many times Increase on-boarding for small tail-end suppliers as one-off purchases appear in Ariba as PunchOut catalogue orders
- 29. #AribaLIVE How Does It Work? © 2013 Ariba, Inc. All rights reserved.29 FREETEXT SUPPLIER PUNCHOUT QUOTATION PICKUP AN PunchOut Composite Order-pad AN PunchOut Return Approved cXML PO 100% matched cXML Invoice IESA send individual PO to suppliers, delivery to ship-to as specified in client PO with client PO numbers
- 30. #AribaLIVE Best Practice for PunchOut Adoption © 2013 Ariba, Inc. All rights reserved.30 Keep to the cXML standard and use the Extrinsic Tags for variants - Leads to seamless integration from PunchOut to ePurchase-Orders to eInvoicing - The Key to eInvoicing success is good data at the beginning - Use the Extrinsics to allow variations with suppliers/customers Insist on the inclusion of Purchasing Categories during development - Ideally as granular as possible UNSPSC/8 Define a UOM and Category Policy at the beginning - Supplier Mapping vs inbound mapping
- 31. #AribaLIVE Astra Zeneca Story - an example of why we like to work with Ariba © 2013 Ariba, Inc. All rights reserved.31 AZ policy was that as many non-stock purchases were processed electronically via Ariba as possible Today IESA process 100% of Non-stock purchases for AZ through Ariba and our Marketplace AZ have strict contract compliance rules on certain material types ( H&S, PPE, etc ) PunchOut allows IESA to block non-compliant requests in real-time AZ wanted the interface live as fast as possible From handover of IESA ASN code to first test PunchOut and PO on IESA – 45minutes Go live after full cycle test to cXML e-Invoice - 1 week AZ wanted to maximize on-boarding of the small sporadic tail end suppliers Direct website punch-out to their largest 8 MRO suppliers at go-live 800+ small vendors onboard and PO placed through freetext Marketplace
- 32. #AribaLIVE Please Complete Session Survey © 2013 Ariba, Inc. All rights reserved.32 Find Session in Schedule Click Choose one Rate Session Thank you for joining us Click Survey and Select Breakout Session Survey
Editor's Notes
- savings of €35 in administrative costs per arrangement An attractive assortment
- AgendaCompany OverviewProblems that justified PunchOut and the resultsHow IESA have invested in PunchOut to increase on-boardingThe IESA PunchOut MarketplaceBest Practice for PunchOut adoptionAstra Zeneca story – why we like to work with Ariba PunchOut
- Introduction to IESA.€150+Million Turnover p.a. on Industrial Materials1Million+ Stock materials under daily MRP30,000 Suppliers consolidated into one for our clients6Million+ transactions p.a.1.1Million+ MRO PO lines p.a. / Average PO line Value €138530,000 NON-STOCK PO lines p.a. / Average PO line value €118Leading to the point that IESA handles 100,000s of Non-stock PO at very low value
- Justification for Punchout to reduce transaction2004 started 2013 239,000 PO lines pa through punchout100% Accuracy on material codes and descriptions100% Accuracy cost and stocking positions from suppliersClient Contract compliance checks in real timeHigher Granulation on Purchasing Categories100% Perfect match on e-Invoicing from suppliers and to clientsClient user to PO to e-Invoice with ZERO IESA human involvement
- MyMRO MarketplaceDesigned to extend Punchout beyond web cataloguesIncrease on-boarding for both large company web-catalogues andSmall sporadic buy suppliers.
- MyMRO flowASN to MyMRO MarketplaceFreetext OrderQuotation request then Quotation pickupPunchout to Supplier web catalogueComposite OrderpadChecks for Contract compliancePurchasing category mapping UOM mappingReturn Orderpad to ASNASN to IESA POIESA e-Invoice to ASN
- Best PracticeKeep to the cXML standard and use the Extrinsic Tags for variants - Leads to seamless integration from Punchout to ePurchase-Orders to eInvoicing - The Key to eInvoicing success is good data at the beginning - Use the Extrinsics to allow variations with suppliers/customers - Don’t be tempted to allow standard butcheryInsist on the inclusion of Purchasing Categories during development- Ideally as granular as possible UNSPSC/8Define a UOM and Category Policy at the beginning - Supplier Mapping vs inbound mapping
- The AZ StoryWhy IESA like to work with AribaAZ policy was that as many non-stock purchases were processed electronically via Ariba as possibleToday IESA process 100% of Non-stock purchases for AZ through Ariba and our MarketplaceAZ have strict contract compliance rules on certain material types ( H&S, PPE, etc )Punchout allows IESA to block non-compliant request in real-time AZ wanted the interface live as fast as possibleFrom handover of IESA ASN code to first test punch-out and PO on IESA – 45minutesGo live after full cycle test to cXML e-Invoice - 1 weekAZ wanted users to maximize on-boarding of the small sporadic tail end suppliersDirect website punch-out to their largest 8 MRO suppliers at go-live800+ small vendors onboard and PO placed through freetext Marketplace