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Bayer’s AP Initiative: Driving Supplier
On-Boarding and Adoption
Matteo Vidale, P2P Business Process Management – eInvoicing Project Manager, Bayer
Jurgen Martens, Global eInvoicing Project Lead, Bayer
Robert Banther, Solutions Marketing Manager, Ariba, an SAP Company
9 June 2015
© 2015 Ariba – an SAP company. All rights reserved.
3. © 2015 Ariba – an SAP company. All rights reserved.Page 3
Agenda
Company Overview
Background e-Connectivity @ Bayer
e-Connectivity Initiative at Bayer
• Geographical Scope
• Project Set-Up
• Onboarding Process
• Facts & Figures
• Key Factors for Success
4. © 2015 Ariba – an SAP company. All rights reserved.Page 4
As of December 31, 2014
Full year sales: €42.2 billion
118,900 employees
302 subsidiaries
R&D expenditures: €3.6 billion
5. © 2015 Ariba – an SAP company. All rights reserved.Page 5
Key Locations / Regions
Europe
Latin America / Africa / Middle East
North America
Asia / Pacific
HealthCare
Segments:
Pharmaceuticals
Health, Consumer
Health, Animal Health,
Consumer Care &
Medical Care
Products*: e.g. Aspirin,
Bepanthol, Betaferon
CropScience
Segments: Corp
Protection,
Environmental Science
& BioScience
Products*: e.g. Folicur,
Confidor, InVigor
MaterialScience
Segments:
Polyurethanes,
Polycarbonates,
Coatings, Adhesives,
Specialties
Products*: e.g.
Makrolon, Baydur,
Makrofol
Business Areas
*All listed products are brands of the Bayer Group or our distribution partners and are registered trademarks in many countries..
The Bayer Group is a global enterprise with
companies in 75 countries.
6. © 2015 Ariba – an SAP company. All rights reserved.Page 6
A Successful Future for Both Companies
… as a
Continued Market Leader
under New Ownership
… as an
Innovation and
Life Science Company
MaterialScience New
• Build further on 150 years of success
in Science and Innovation
• Address attractive markets with high
growth rates and profitability
• Leverage broad product portfolio with
strong brand reputation
• Focus management on Life Sciences
• All prerequisites given to succeed
• Staffed with required know-how
• Autonomous access to capital
• Competitive edge better leveraged
outside the group with tailored processes
and portfolio decisions
7. © 2015 Ariba – an SAP company. All rights reserved.Page 7
Global Set-Up of the Accounting SSC Locations
Service scope:
All countries
Location: Leverkusen
Global Office
Service scope:
Western Europe,
LATAM
Location: Barcelona
Front Office
Western EU +
LATAM
Service scope:
Germany, Eastern
Europe.
Location: Gdansk
Front Office
Eastern Europe
Service scope:
Greater China
Location: Shanghai
Front / Back Office
Greater China
Service scope FO:
South East Asia, UK/I,
U.S., Canada
Location: Manila
Front Office APAC
Back Office
8. © 2015 Ariba – an SAP company. All rights reserved.Page 8
The e-Connectivity Journey at Bayer
2005
2012 2013 2014 2015
E-Connectivity
pioneers
• First electronic
connections, mainly
e-Ordering
• Scope: limited
number of strategic
partners
Reinforce existing
solutions
• ONLY ERP
integration
• Scope: Only high
transaction volumes
& strategic partners
(short tail)
Pilot Business
Network
• Start partnership
with Ariba
• Pilot
implementation
• Introduction of
PO-Flip solution for
S/M suppliers (long
tail)
Consolidation
phase
• Start of “mass”
supplier onboarding
• Country &
business units scope
extension
• Consolidation of
technical solution
Operational
onboarding
• Continuing of
“mass” S/M suppliers
onboarding
• Onboarding
transformation from
project to operation
GAC 2015 Project
Restructure of accounting functions into Global SSC Framework
9. © 2015 Ariba – an SAP company. All rights reserved.Page 9
The e-Invoicing Strategy of Bayer
Procurement Engagement
• Accounting-driven project with procurement support
• Procurement engagement on management level
• Minimized end user impact to increase user acceptance
• Program not yet mandatory for suppliers
Main Challenges
• Multiple business units and locations in scope
• Diverse customized Bayer order processes to adapt &
standardize
• Engage suppliers & internal organizations
Goal
• Increase AP efficiency via invoice automation
• Increase electronic invoice reception rate
• Support higher payment on time
Multiple eInvoicing Solutions in place
Multiple solutions in place to increase supplier
acceptance rate:
• Integration - high transactional + strategic suppliers
• Web Portal - S/M suppliers
• PDF - small suppliers + non-PO invoices
10. © 2015 Ariba – an SAP company. All rights reserved.Page 10
Geographical Scope
• EMEA
9 countries (focus Germany)
42 Group companies
• NAFTA
Canada & US
7 Group companies
• APAC
Out of scope mainly due to local legal
restrictions
• LATAM
Out of scope due to system limitations
11. © 2015 Ariba – an SAP company. All rights reserved.Page 11
Project Set-Up
SE Lead
Bayer CropScience
SE Lead
Bayer Healthcare
SE Lead
Bayer Business Services
Steering Committee
Procurement Solutions Heads
Group Accounting and Controlling
Finance Shared Services
Sourcer Network
Bayer CropScience
Sourcer Network
Bayer Healthcare
Sourcer Network
Bayer Business Services
Project Core team Onboarding team
eOrdering Tech. Expert
eInvoicing Tech. Expert
Onboarding coordination
eInvoicing Tech. Expert
Bayer Project lead
SE Lead
Bayer MaterialScience
Sourcer Network
Bayer MaterialScience
Ariba SE Lead
Ariba Supplier
Manager
Ariba Integration
Manager
Onboarding team
12. © 2015 Ariba – an SAP company. All rights reserved.Page 12
Onboarding Process
Go Live
Bayer (IT) + Supplier + Ariba
Technical Implementation
& test
4-6 months
onboarding time
Procurement agreement
& contact data collection
Bayer procurement Bayer PM
Supplier summit
webinar
Ariba
Supplier onboarding
contacts & trainings
Bayer + Supplier
Go-Live
2-3 months onboarding timePO Flip
ERP Integration
Sending Project
Notification Letter
Bayer PM + Ariba
4-6 months onboarding time
Bayer + Ariba
Continuous monitoring of
non-compliance suppliers
& escalation
13. © 2015 Ariba – an SAP company. All rights reserved.Page 13
Facts & Figures
Achievements up to date*
• 290 live suppliers
• 62 only PO sent (in progress)
• 228 e-Invoiced (onboarding completed)
• Main reasons for non compliance suppliers:
• Program is not mandatory
• Transaction fees applied to suppliers
• Supplier technical limitations
• AVG 80% invoice posting automation
Forecasts 2015
• Enable additional 350 e-Invoiced suppliers
• increase e-invoice volume by >140%
• Improve onboarding success rate
• Pilot implementation of Ariba portal to share invoice status (for
non-Ariba documents)
* Figures as of 31/03/2015
14. © 2015 Ariba – an SAP company. All rights reserved.Page 14
Key Factors for Success
Organization
Clear roles and responsibilities defined within the
project team
Strong Management support (Objectives)
Continuous progress status update on management
level
Full Integration of Ariba into the local project team
Change management
Minimize impact to end user daily activities
Easy and clear communication about project targets
& onboarding progress
Centralization of all project-related activities
Strong support team to minimize escalation
Structured Onboarding Execution
Accurate supplier selection based on
prioritization criteria:
• Invoice volumes
• Ariba status
• AVG cost / invoice
• Business unit commitment
Continuous monitoring of onboarding progress
& hypercare
Strong & continuous communication plan. Clear
guidance to suppliers & internal stakeholders
during all the phases of the onboarding.
Strong Business Intelligence tools to monitor
overall progress
Maximizeresults
16. Contacts
Matteo Vidale
Head of AP Business Process Management
Phone:
E-mail:
+49 – 214 30 58703
Matteo.vidale@bayer.com
© 2015 Ariba – an SAP company. All rights reserved.Page 16
Jurgen Martens
eInvoicing Project lead
Phone:
E-mail:
+34 – 93 475 7317
Jurgen.martens@bayer.com
17. Forward-looking statements
This presentation may contain forward-looking statements based on current assumptions and forecasts
made by Bayer Group or subgroup management.
Various known and unknown risks, uncertainties and other factors could lead to material differences
between the actual future results, financial situation, development or performance of the company and the
estimates given here. These factors include those discussed in Bayer’s public reports which are available on
the Bayer website at www.bayer.com.
The company assumes no liability whatsoever to update these forward-looking statements or to conform
them to future events or developments.
© 2015 Ariba – an SAP company. All rights reserved.Page 17
19. #AribaLIVE
@ariba
Bayer’s AP Initiative: Driving Supplier
On-Boarding and Adoption
Robert Banther, Solutions Marketing Manager, Ariba, an SAP Company
9 June 2015
© 2015 Ariba – an SAP company. All rights reserved.
20. #AribaLIVE @ariba
Keys to Success
• Strategy
Determine Goals, Objectives and Timeline
• Process and Procedure
Define Business Process
Make Changes
• Master Data Refinement
Analyze Current Data
Cleanse Data
• Resources
Preparation for What Lies Ahead
© 2015 Ariba – an SAP company. All rights reserved.20
21. #AribaLIVE @ariba
Strategy – Why is it Important?
• So you can plan, communicate and have organizational alignment and support in
order to reach your goals.
What defines success?
How long will it take to get there?
What is the plan to reach it?
© 2015 Ariba – an SAP company. All rights reserved.21
22. #AribaLIVE @ariba
A Strong Network Strategy Includes:
Strong Leadership
Commitment
• Executive support and oversight
• Established program charter
• Regular Steering Committee meetings and quarterly reviews
Focus on Program
Goals/ROI
• Documented goals and success metrics
• Program scorecard regularly reviewed through Steering Committee
• Ongoing benchmarking and continuous improvement focus
Foundational
Pillars
Enablement Lead/Team
• Dedicated team that manages enablement process
• Team members understand sellers and internal stakeholders and are change agents within the
organization
Supporting
Infrastructure
Supplier Flight Plan
• Flight Plan for supplier onboarding: Pilot, Waves, and Timing
• Comprehensive analysis based on ROI and probability of successfully transacting across the
Ariba Network
Communication Plan
• Internal communication plan educating organization and driving adoption
• External communication plan for suppliers focused on compliance (see below) and Ariba
Network benefits
Compliance
Management
• Agreed upon approach for making sure sellers participate in initiative
• EDICT with: Expectations, Deadlines, Incentives, Consequences, and Togetherness Messages
Dynamic Elements:
Review and Update
Regularly
© 2015 Ariba – an SAP company. All rights reserved.22
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Process and Procedure
• Identify needs for internal process and procedure change
Ad hoc adds of new suppliers, non-approved supplier use
Non-PO spend moved to PO required
• Build and Document the end-to-end enablement process
How to bring in a new supplier
How to identify supplier waves
How will compliance be enforced
Get rid of the notion, “This is that way we have always done it.”
© 2015 Ariba – an SAP company. All rights reserved.23
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Prepare Master Data
• Accuracy and readiness of master data will impact the enablement timeline
Data Cleansing: duplicates, non-active supplier locations
Data Gathering: missing contacts, email and phone numbers
Remittance Information: non-active pay to locations
Transaction and Spend: ensure accurate data is available and summarized per supplier
• Do prior to or during the enablement process
If handled during the enablement process, it will lengthen the enablement timeline
Suppliers may experience long pauses in the midst of the process
Goal is to make the enablement process fit within a specific timeline – ties
back to strategy
© 2015 Ariba – an SAP company. All rights reserved.24
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Engage the Right Resources
• Engaging the right resources will ensure:
There is organizational alignment
Business and transactional requirements are fully vetted and agreed upon
There is buy-in and support for the change in process for both internal and supplier compliance
Learning the process is not happening in pockets
• Resources that should be included:
Stake holders, project sponsors
Sourcing
Information Technology
Accounts Payable
Procurement, Buyer SMEs
Supplier Enablement Program Owner
© 2015 Ariba – an SAP company. All rights reserved.25
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Sponsors
• Goals/Objectives
• Program Health Checks
• Change Management
• Compliance Messaging
Resource Involvement
© 2015 Ariba – an SAP company. All rights reserved.26
Buying Organization
Sourcing
• New Supplier Expectation
• Contract Language
• General Ariba Knowledge
Information Tech
• Requirements
• Build, Test, Deploy
• Error Resolution
Accounts Payable
• Invoice Requirements
• Testing, UAT
• Supplier Data Maintenance
• Post Go Live Support
Procurement
• PO Requirements
• Catalog Requirements
• Testing
• Post Go Live Support
Program Owner
• Requirements
• Process/Procedure
• Change Management
• Supplier Enablement on AN