Are you considering Dynamic Discounting with Ariba Discount Professional™, but not sure if you have the internal expertise or focus to achieve your full potential? Never fear, the Value Engineering Team is here! Ariba combines market leading dynamic discounting technology with the industry’s most experienced managed services team dedicated solely to helping you achieve world class dynamic discounting results. In this session you will hear from a panel of customers who have combined Ariba Discount Professional™ and Managed services to accelerate their time to value and achieve excellent results.

1. Supercharge your Ariba Investment
with Dynamic Discounting and
Value Engineering!
© 2013 Ariba, Inc. All rights reserved.

2. Deb Bolinger
Director of Operations, UPS Accounts Payable & Purchasing
© 2013 Ariba, Inc. All rights reserved.
Andrew Richings
Manager, Strategic Sourcing and Procurement Operations, John
Wiley & Sons Publishers
Andrea Cooper
Director, Treasury & Finance, ONEOK, Inc.
Linda Piazza
Director, Working Capital Management, Ariba, An SAP company

3. #AribaLIVE
Value Engineering Team
(Managed Services)
Discount Professional™
(Technology)
$/€ Savings + DPO Improvement
(Outcome)
Ariba Discount Management Components
Technology + Managed Services packaged together

4. #AribaLIVE
1) Capturing missed discounts through Ariba’s smart invoicing approach
2) Rapidly enabling more suppliers to increase the amount of spend under discount
3) Introducing sliding scale dynamic discounts.
4) Giving Visibility into Opportunity to right audience and providing Technology
to act on it.
Example:
2% 10 Net 30
2%
1%
0%
2.5%
Best Practices for Dynamic Discounting
Supercharge Savings with Ariba Discount Management

5. #AribaLIVE
About Ariba Value Engineering
• Trusted Advisor Role
Interview key stakeholder: What’s working and challenges
Recommend solutions/services that address current challenges
Prescribe process changes to support efficiencies or prepare for transformation to automation
Help identify risks in advance and advise how to mitigate
• Success Planning
An evaluation that not only pinpoints savings and cash management opportunities that
are trapped inside your Procurement and Finance operations, but provides details on how to
realize those benefits
Savings timeline
Integrated supplier flight plans that show size/scope/timing of deployment
• Why do companies participate?
A personalized readout that shows areas of savings potential and categories of spend that
can/should be fully enabled
Projected benefits, ROI and how to accelerate time-to-value
Clear understanding of what it will take to achieve benefits
Minimal investment of time and resources to ensure success
© 2013 Ariba, Inc. All rights reserved.5

6. #AribaLIVE
Ariba Working Capital Managed Service
• Spend Analysis and Business Case Development
Peer benchmarking and Data Enrichment
Supplier Liquidity Analysis
Suppliers already participating in early pay programs
• Program Design
Working Capital/DPO Improvements and/or Early Pay Savings
Payment Terms Standardization and Early Pay
ACH
• Unlimited Supplier Outreach
Position customer approved messaging and terms
Augments Procurement by working through a different stakeholder: Finance Channel
• Lifetime Program Management
© 2013 Ariba, Inc. All rights reserved.6

7. UPS – Early Payment Outreach
Deb Bolinger
Director of Operations, UPS Accounts Payable & Purchasing
© 2013 Ariba, Inc. All rights reserved.

8. #AribaLIVE
UPS – Overview
• Founded in 1907
• Corporate Headquarters: Atlanta, GA
• Primary Business Units: Small Package, Supply Chain
Solutions and UPS Freight
• 2012 Delivery Volume: 4.1 Billion packages/documents
• 2012 Total Revenue: $54.1 Billion
• Employees: 397,100
• 2,915 Operating Facilities Worldwide
© 2013 Ariba, Inc. All rights reserved.8

9. #AribaLIVE
UPS Terms Challenges
• Issues
• Incorrect ERP Payment Terms
• Contracts without Defined Payment Terms
• Long-Term Contracts that Neglect Changes in
the Financial Climate
• Considerations when Finding a Solution
• 30,000+ local and national suppliers
• Avoid risk associated with “reopening” existing contracts
• Identifying the supplier’s financial contacts vs. sales
© 2013 Ariba, Inc. All rights reserved.9

10. #AribaLIVE
Early Payment Outreach Campaign
• Partnered with Ariba for a three-year managed program
Pay-for-performance model based on actual discounts realized
• Inclusion of all spend, not just the spend targeted for Ariba Network
e-invoicing
Facilitates prioritization of suppliers for Ariba Network enablement
Validation of commodities interested in cash acceleration
• Objectives:
Validate Contract Payment Terms
Convert suppliers without Contract Terms to Net 45 Payment Term
Position Early Payment Offers to Supplier’s Financial Teams
© 2013 Ariba, Inc. All rights reserved.10

11. #AribaLIVE
Campaign Results
Wave 1 – Low Spend Suppliers
• $308MM in target spend
• 20% of spend and 18% of
suppliers converted to a
discount term
• 31% of spend and 32% of
suppliers agreed to payment
term extensions of at least
15 days
Wave 2 – Med. Spend Suppliers
• $276MM in target spend
• 15% of spend and 19% of
suppliers converted to a
discount term
• 44% of spend and 46% of
suppliers agreed to payment
term extensions of at least
15 days
© 2013 Ariba, Inc. All rights reserved.11
• Low UPS resource impact
• Exceeded projected discount savings goals by three times
• High call quality – low supplier escalations
• Solid partnership and executing above expectations

12. #AribaLIVE
Lessons Learned/Key Insights
• Higher Levels of Procurement Engagement
Create up-front partnership between Campaign and
Procurement leadership
• Implementation
An all-encompassing approach works for some, but not all organizations
Phasing smaller groups of spend/suppliers provides the opportunity to
showcase success
• Change Management
Large, complex organizations require frequent and
multi-level coordination
Senior management cross-functional support
© 2013 Ariba, Inc. All rights reserved.12

13. John Wiley & Sons Publishers: Global
Working Capital & Discount Strategy
Andrew Richings
Manager, Strategic Sourcing and Procurement Operations
© 2013 Ariba, Inc. All rights reserved.

14. #AribaLIVE
About Wiley
• Established in New York, N.Y. in 1807
• Serves professionals, scientists, educators, students, lifelong learners, and
consumers worldwide.
• Publisher/provider of books, journals and content-enabled services
• Unique collection of businesses/subject matters
Global Research
Professional Development
Global Education
• 5,200 employees
• $1.8 billion revenue (FY2012), 50% generated outside U.S.
• Global headquarters: Hoboken, NJ
• Global operations: North America, Europe, Asia, South America,
Middle East
© 2013 Ariba, Inc. All rights reserved.14

15. #AribaLIVE
Current State Challenges
• Paper-based Procure to Pay processes
• No centralized contract repository
• Process large volumes of paper invoices
• Wide variation in global payment terms with limited
early payment discount terms in place
• Approval cycles often missed early payment window
© 2013 Ariba, Inc. All rights reserved.15

16. #AribaLIVE
Working Capital Objectives
• Alignment and standardization of global payment term strategy
Improved Days Payable Outstanding
Provide guidelines for Procurement and AP
• Growth in adoption of early payment terms
Deliver incremental savings
• Growth in US ACH/electronic payment
• Leverage Ariba’s Rapid Ramp methodology and working capital
Managed Service
Experience and Network insight
Faster ROI with reduced impact on Wiley resources
• Create savings to fund larger automation project initiatives
© 2013 Ariba, Inc. All rights reserved.16

17. #AribaLIVE
Project Status (Still early stage)
• Project kick off (Jan) and planned Procure To Pay and DiscountPro Go live
(June 2013) – Part of an overall strategic sourcing and procurement implementation
• Completed working capital strategy and scope (Feb/Mar)
Countries and suppliers in scope
Agreed to payment terms offering (regional variations)
Completed supplier messaging (regional variations)
• Completed internal communications (Feb/Mar)
CEO message and corporate-wide announcement
Email to Regional AP and Procurement heads
Individual Email to procurement owner/AP approvers
Internal Portal – Housing pertinent tools, resources and information
for colleagues
• Ariba payment terms supplier outreach (Apr)
© 2013 Ariba, Inc. All rights reserved.17

18. #AribaLIVE
Lessons Learned
• Cross-functional executive team allowed for fast
approvals
• Ariba’s guidance was meaningful and adopted
• Leveraging Rapid Ramp methodology is key to
delivering results while still deploying larger solution
• Early and frequent internal communication was
beneficial
• Payment terms were all over the place…savings
through consolidating
© 2013 Ariba, Inc. All rights reserved.18

19. ONEOK: Funding AP/Treasury
Transformation with Dynamic
Discounting
Andrea Cooper
Director, Treasury & Finance
© 2013 Ariba, Inc. All rights reserved.
19

20. Page 20
ONEOK, Inc.
• Assets that fit and work
together
– Integrated operations
– Connecting prolific supply
basins to key markets
• Proven ability to grow
profitably
• ONEOK Partners is
ONEOK’s primary growth
vehicle
• ONEOK Partners’ cash
distributions drive ONEOK
shareholder value
• Demonstrated financial
flexibility and discipline
A Premier Energy Company
ONEOK Natural Gas Distribution
ONEOK Energy Services
Leased Pipeline Capacity
Leased Storage Capacity
ONEOK Partners
General Partner
43.4% ownership (as of Dec. 31, 2012)

21. Page 21
ONEOK’s Accounts Payable Journey
• Our vision:
– Centralized structure
– Transition from manual entry method to an online, automated method with
coding/approval workflow
– Outsource invoice scanning to capture the suppliers that are not participating in
electronic invoicing process
– Ability to have dynamic discounting available to our suppliers
• ONEOK centralized the accounts payable organization in 2010
• ONEOK needed a strategic partner to complete our vision
especially as it relates to dynamic discounting
– Discounting returns were a key component in business case
Prior to 2010 ONEOK and ONEOK Partners accounts payable organization was decentralized, paper based
and with a manual entry method

22. Page 22
Strategic Partner - Ariba
• Discount professional services (Rapid Ramp Service) –
started immediately after contract signing – October 2011
– First wave approximately 500 suppliers; $1.1 million in potential discounts
– Offered the following terms:
• 2.0% 10, net 30
• 1.5% 15, net 30
• 1.0% 20, net 30
• 0.5% 25, net 30
• Net 45
– Ariba instrumental helping target the right suppliers, strategy of how we
structured the calling campaign and flexible on the message to our suppliers
Discounting program and early successes

23. Page 23
Lessons Learned / Key Insights
July 2012 – “go live” with Ariba
– Invoice/PO automation; invoice professional; invoice conversion services
What we did right?
– Engage the Rapid Ramp service
– Monitor the missed discounts and target where the in the approval process is
slowing the payment
– Provide all new vendors with discount options at the time of setup
What would we have done differently?
– Engage supplier relationship manager early in the project for “buy in”
– More robust company-wide communications & education
– Change-management initiatives – you need the operations staff in your corner!
Communication! Communication! Communication!

24. Questions?

25. #AribaLIVE
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