Join industry experts in discussing how you can transform your business by digitalizing design-to-deliver processes with integrated SAP solutions. Secure critical supply and optimize time to market with SAP Ariba Strategic Sourcing Suite. Become more responsive with the SAP Ariba Supply Chain Collaboration for Buyers solution. And much more.

1. PUBLIC
David Vallejo, Don Phillips
March 5–7, 2018
Making Procurement an Integral Part of
the High-Tech Digital Supply Chain

2. 2PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
1. Industry Trends and Challenges
2. Solution Overview
3. Key Innovations
4. Business Benefits and Customer Use Cases
5. Questions and Answers
Agenda

3. 3PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Disclaimer
 The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the
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therein.
 This presentation, or any related document and SAP's strategy and possible future developments, products and or
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without notice. The information in this presentation is not a commitment, promise or legal obligation to deliver any material,
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errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross negligence.
 All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ
materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

4. Industry Trends and Challenges

5. 5PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
High tech is everywhere

6. 6PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Innovation, time to volume, and supply chain
Innovation still
important…
… time to volume key
to market success

7. 7PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Linear supply chains turn into complex multitier supply networks
End markets | Geographies | Tiers | Outsourcing | Trading partners | TechnologiesMORE

8. 8PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital disruption is here
96% are influenced by social
media and reviews before buying.
Sophisticated customers expect
100% service experience.
83% of companies use public cloud,
51% workload through cloud today
Data explosion: 90% of data
generated in last 2 years
50.3% of commerce transactions
through mobile
And your supply chain systems?

9. Solution Overview

10. 10PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Customer
40M/B (Buyer) , 5M/B (Supplier)
Revenue
Acceleration
Inventory
BOMs, RFx, part price optimization, supplier risk,
compliance, contracts
Collaborative sourcing
Collaborative planning
Forecast, sched. agreem., inventory, contract mfg.
visibility
Operating
Expense
Expectations ↑
 Digital experience
 Faster innovation
 Perfect order
 Full transparency
Global
Complex
Responsive
Efficient
Contract
manufacturers
Direct suppliers
Distribution partners
3PLs
N-tier suppliers
IOT
Collaborative finance
Invoices, ERS, status, SC finance, payments
Extended supply chain
Demand
Supply
Control
IBP
Value
 Price reduction 
 Increased compliance 
 Faster time to market 
 Inventory 
 Assurance of supply
 Lead time 
 Higher service levels
 Expedites 
 Manual overhead 
 DPO 
 Free cash 
 Exceptions 
Digital supply chain transformation in high tech with SAP and SAP Ariba
solutions
Ariba Network
$1.3+ trillion spend
2.8+MM trading partners
SAP
ERP or
SAP S/4HANA
digital core, incl.
PLM
Collaborative execution
POs, changes, confirmations, ASN, quality notifications, returns

11. 11PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ Highlighted innovationsLegend
SAP Integrated Business Planning solution
S&OP ResponseDemand Control
tower
Inventory
SAP’s digital platform for supply chain
SAP Ariba solutions
Sourcing
suite
Spend
visibility
Buying Finance and
payment
buyer supplier
Ariba Network
Orders, confirmations, quality, shipments, and invoices
Forecasts and confirmations,
Manufacturing and inventory status
Supplier qualification,
bidding and contracts
SAP Leonardo – IoT connected
Fleet Products Assets Infrastructure Markets People
IoT signals
Harmonized IoT actions and
intelligence
Supplier
risk
Supply base
Optimization

12. Key Innovations

13. 13PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Supplier Risk solution
Incidents
Legal and
regulatory
compliance
Financial Operational
Environmental
and social
Impact
Exposure
Assessments
Adjudication
Remediation
Supplier risk scoring
model
Integrated, open, configurable
Business
continuity
Business
reputation
Supplier engagements
Inherent Relationship
Performance Supplier ratings

14. 14PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Product capabilities
 ERP/PLM integration, multilevel BOM
 Volume/time-based pricing, price history
 RFPs and auctioning, supplier 360-degree view
 Category and program management
 Contract creation and collaboration, incl. e-signatures
 Dashboard-driven exception management
Key benefits
 Automate end-to-end processes
 Eliminate data re-entry
 Real-time pricing visibility
 Easier reporting and filtering
SAP Ariba Strategic Sourcing Suite – product sourcing

15. 15PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
High-tech supply base managers – objective
Price erosion
Global, multitier supply-
chain complexity
Components drive
product cost
Price
Availability
Quality
Risk

16. 16PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Supply Base Optimization solution as decision-support application
Key capabilities
Automated data collection
Intelligent negotiation target-setting
Optimization-driven recommendations
Simulation-enabled adjustments
Streamlined analysis/negotiation cycle
KPI-driven process
Key benefits
Reduced direct-materials spend
Improved efficiency – data collection,
business process
Negotiation
target setting
Reporting
In-process
analysis /
award
decision
Predictive / machine learning
optimization / simulation
Manageback-end
data
Role-based workbench
SAP Integrated
Business
Planning
Market
benchmarks
Other
(SAP/non-SAP)

17. 17PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Ariba Supply Chain Collaboration for Buyers solution
Supplier-managed inventory
 Flexible data model
 Selective data sharing
buyer supplier
Ariba
IBP real-time integration
 Multitier visibility
 Bidirectional planning
Quality collaboration
 Notifications
 Inspections, review
Supply chain intelligence
 Exception-based dashboard
 Supplier performance
Logistics integration
 Handling units
 Integration to global track and trace
Machine learning and AI
 Component category automation
 Financial risk scoring

18. Business Benefits and Customer Use
Cases

19. 19PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Business benefits of a digital supply network1
Shorter time to
market
Lower cost Less risk
Improved working
capital
1. SAP Performance Benchmarking 2017
Higher customer
satisfaction
11%14% 20% 1%-2%14%

20. 21PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
“Our inventory levels are down and services
levels are going up to support the same
end customer demand through better
management of supply and suppliers.”
Robert Meshew, CTO, Microsoft Supply Chain
Microsoft’s evolution from allocation-based to demand-driven supply chain
$15M+ savings in cost of goods procured
85% improvement in supplier onboarding time
$300M annual inventory savings
customer video
5% improvement in on-time in-full

21. 22PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Hewlett Packard – Enterprise: rapid extension of IBP platform
“Within just 10 weeks, we turned on Ariba to
integrate into our existing SAP Integrated
Business Planning environment and enabled our
key suppliers to respond to our demand signals.”
Balaraj Pudota, Supply Chain IT Lead
Real-time integration of suppliers for faster market
response and reduced planning cycle time
Easier “plug-’n-play” supplier enablement through
flexible integration with portal, Web upload, or B2B
Replace existing on-premise portal

22. Questions and Answers

23. 25PUBLIC© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital Supply Chain brochure
www.sap.com/documents/2016/12/9eecacd5-9d7c-0010-82c7-eda71af511fa.html
SAP Ariba solutions for direct spend
www.ariba.com/solutions/solutions-overview/supply-chain
SAP Ariba Strategic Sourcing Suite
www.ariba.com/solutions/solutions-overview/strategic-sourcing/sap-ariba-sourcing-solutions
SAP Supply Base Optimization
help.sap.com/viewer/p/SBO_OD
SAP Ariba Supplier Risk
www.ariba.com/solutions/solutions-overview/supplier-management/supplier-risk
SAP Ariba Supply Chain Collaboration for Buyers
www.ariba.com/solutions/solutions-overview/supply-chain/supply-chain-collaboration
SAP Integrated Business Planning
www.sap.com/product/scm/integrated-business-planning.html
End-to-End Integrated Digital Supply Chain for High Tech Demo Video
Where to find more Information

24. David Vallejo
Senior Director Ariba Supply Chain
Palo Alto, CA USA
Email: david.vallejo@sap.com
Phone: 408-667-4533
Don Phillips
Senior Director Industry Product Management High Tech
Palo Alto, CA USA
Email: don.phillips@sap.com
Phone: 408-390-2109
Thank you.