Best Practices in

Catalog Management
& Supplier Enablement
Beth Arvidson
(Solutions Manager, Procurement)
Cathal OSullivan
(Solutions Manager, Services
Procurement)

2009. Ariba, Inc. All rights reserved.

Ariba Procurement
Flexible support of the business needs
Procure
Network

Compliance

Workflow

SELECT
GOODS &
SERVICES

Pay

Approvals

COMPLIANCE
& PO

Analysis
RECEIVE &
RECONCILE

Reporting

Knowledge
INVOICE
& PAY

Procure to Pay (P2P)

Procure to Order (P2O)

ERP

Procurement Content

ERP

Services Procurement

Travel & Expense

ERP

2009. Ariba, Inc. All rights reserved.

Invoice & Pay

Ariba Procurement
The only solution delivering immediate savings on total indirect spend

 Immediate Savings
 Positive ROIs within 6 months Self funding
 Agile response to business needs
 SaaS - Fast implementation/Quick time to value/Low IT impact

 Compliance
 Drive operational efficiency - process, price and supplier
 Strong user adoption through a single, B2C-like interface
 Unify disparate ERP systems

 Total Spend Management

 Complete coverage for the procurement of all goods and services
 The worlds largest supplier network 200,000+
 End-to-End Spend Management Suite and Global Services

2009. Ariba, Inc. All rights reserved.

Expanding your delivered savings

How do you Stack Up?
External Savings Triangulations
Analyst: AMR 17%
Ariba Customer R: 16%

15%

Enhancement opportunities:
 Establish end user metrics and
goals around usage.
 Actively track usage levels and
areas of usage.

Ariba Customer A: 11%

Ariba Customer L: 10%

10%

Analyst: Aberdeen 7.3%

Analyst: Hackett 4.4%

5%

 Clear leadership and ownership for

delivered savings.
 Mandate usage with predetermined enforcement steps
 Proactively introduce new catalogs
based on usage levels.

Annual Savings

 Deliver increased levels of end user

training.
 Evaluate coverage of goods and
services.

Sources: Customer reports based on public customer statements. Hackett Group, Delivering on the Evolving Value
Proposition of Procurement 2008; Aberdeen e-Procurement Benchmark 2008.
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2009. Ariba, Inc. All rights reserved.

Session Goal
Share best practices and recommendations
 Content management
 Supplier Enablement

Learn from customer experiences

2009. Ariba, Inc. All rights reserved.

Agenda
 Content Management
 Why content is critical?
 What are your content management options?
 Recommendations \ Conclusion

 Supplier Enablement
 Why supplier enablement is critical?
 Recommendations \ Conclusion

 Customer Story: Deloitte

 Customer Story: Rock Tenn

2009. Ariba, Inc. All rights reserved.

Content management is the foundation upon

which every e-Procurement initiative must be
built. If this foundation is unstable or
incomplete, the rest of the project will
crumble

- Aberdeen Group

2009. Ariba, Inc. All rights reserved.

What are content management

options?
CIF
 Catalogs loaded on your e procurement system

PunchOut
 Catalog residing on supplier site. Accessible
through e procurement system

Level 2 PunchOut
 All benefits of PunchOut plus single view across
multiple suppliers.

2009. Ariba, Inc. All rights reserved.

What Are Your Catalog Options?

Option 1: Catalog Interchange Format (CIF)
 Rapid deployment
 Greater compliance
control
 Low setup cost and
complexity

Catalog uploaded to your eProcurement system

2009. Ariba, Inc. All rights reserved.

What Are Your Catalog Options?

Option 2: PunchOut
 Automated updates
of price/availability
data
 Product
configuration and
customization
 Large number of
catalog items

Interactive catalogs residing on supplier Website,

accessible through your eProcurement system
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2009. Ariba, Inc. All rights reserved.

What Are Your Catalog Options?

Option 3: Level II PunchOut
 All benefits of
PunchOut plus
additional
 Consistent view
across multiple
suppliers
 Auto updated price
and availability

Interactive catalogs residing on suppliers Websites,

searchable across multiple suppliers
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2009. Ariba, Inc. All rights reserved.

Content Catalog (CIF)

 Why Use CIF?
 Any supplier can support CIF
 Consistent User Interface
 Easy comparison of
items/price
 Control over displayed
products and pricing
 Fast for suppliers to implement

 Considerations
 Timeliness of data
 Internal catalog management
 Catalogs with many SKUs

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2009. Ariba, Inc. All rights reserved.

PunchOut Catalog
 Why Use PunchOut?
 Latest pricing and products
 Supplier site value adds
 No administration
 Reduced costs

 Considerations
 Supplier readiness
 Different user interface across
supplier sites
 Product/pricing control
 Catalog Size

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2009. Ariba, Inc. All rights reserved.

Level II PunchOut
 Why Use Level II PunchOut?
 Consistent user interface
 Real time price/availability
 Easy comparison of items/price
 Direct punchout to item

 Considerations
 Cross site comparison
 Content file maintenance
 Supplier readiness
 Kit, favorites support

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2009. Ariba, Inc. All rights reserved.

Buyers Point of View: Which Option

Best Fits Your Requirements?
CIF
High User Adoption
Rapid Supplier
Enablement
Control over Spend
High Number of Catalog
Items
Search across Multiple
Suppliers
Timely, Accurate and Complete
Information

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2009. Ariba, Inc. All rights reserved.

PunchOut

Level 2
PunchOut

Suppliers Point of View: What Will

Your Supplier Recommend?
CIF
Ease and Speed of
Implementation
Ease of Integrating to
eBusiness Website
Ease of Updating
Flexibility in
Merchandising
Ability to Direct Buyers
to Shelf or Item Level
Opportunity to Increase
Wallet Share

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2009. Ariba, Inc. All rights reserved.

PunchOut

Level 2
PunchOut

Best Practices in
Supplier Enablement

2009. Ariba, Inc. All rights reserved.

Enabling and managing supplier catalogs and transactional

capabilities has long been the Achilles heel of eProcurement
Initiatives the [2004] benchmark shows supplier enablement
as an activity that is vital to the success of eProcurement
initiatives

- Aberdeen Group
26% of the companies interviewed cited Supplier enablement
and content management as an unplanned headache
- Forrester Research
Dont underestimate the amount of support youll need when
implementing supplier adoption is difficult
- Utility Company

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2009. Ariba, Inc. All rights reserved.

Why Supplier Enablement is critical?

Vendor Data Dispersed through Org.
 Disparate, inconsistent vendor data. Aggregation \
Rationalization not feasible

Incomplete and inaccurate data

 Process automation and associated savings not
realized

Lack of Incentive to E-Procurement

 Project delays. ROI impacted.

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2009. Ariba, Inc. All rights reserved.

Supplier Enablement Challenges

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2009. Ariba, Inc. All rights reserved.

Best Practice for Supplier

Enablement?
Choose wisely
 Utilize the knowledge of proven suppliers

Plan well. Be prepared for surprises.

 Have a clear project plan that includes: roles &
responsibilities, time lines, contingency.

Over communicate
 Keep suppliers in the loop for everything. Dont give
your suppliers mixed messages.

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2009. Ariba, Inc. All rights reserved.

Choose wisely
 Choose experience
 Utilize the knowledge of proven Suppliers
 Leverage the experience and work that suppliers have
gained in previous enablement projects.
 Provide your business rules and strategy upfront.

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2009. Ariba, Inc. All rights reserved.

Plan well
 State all requirements up front.
 Clear Requirements and Specifications, and limit
"special requirements". Standardize.
 Be aware that suppliers have e-commerce limitations
and may not be able to meet all your needs.
 Multiple integrations are being worked on
simultaneously. Allow time for resources to be
allocated in order to meet your implementation
schedule.
 Make sure IT is on board and available before
engaging the supplier.

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2009. Ariba, Inc. All rights reserved.

Over Communicate
 Be sure everyone in your company (Purchasing, IT,
Finance) is on the same page. Don't give your
suppliers mixed messages.
 Include all parties who will be involved in the
integration on the initial requirements call;
 Keep the suppliers informed of changes to the project
plan
 Listen to your suppliers. They may have solutions that
will benefit you!

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2009. Ariba, Inc. All rights reserved.

Customer Story
Deloitte

Yadira Macias
eEnablement Specialist, Strategic
Procurement Operations

2009. Ariba, Inc. All rights reserved.

Deloitte Stats
 Deloitte is the brand under which dedicated professionals in independent firms throughout
the world collaborate to provide professional services to selected clients. These firms are
members of Deloitte Touche Tohmatsu (DTT), a Swiss Verein.
 44,000 Employees
 1,200 Unique Requisitioners per Quarter
 Managed Spend of $2 Billion
 Ariba Spend of $111.6 Million
 YTD 46 PO Suppliers
 4 Temp Labor suppliers in ACP with 15 catalog skill sets and one ad hoc
 8 IT Contract Labor suppliers in ACP with 36 catalog skill sets, one ad hoc skill set with
preferred suppliers and 1 ad hoc skill set with ad hoc supplier (quick enablement)
 10 Punch-out catalogs (Level 1)
 17 CIF catalogs one which we are working to transfer to Punch-out
 2 CIF & Punch-out supplier
 5 Ad hoc only suppliers
 Change Orders - We allow change orders for all but flowers, stationery, business
cards, office supplies.
 We havent activated electronic invoicing for PO suppliers, only for the Labor Services
categories (time sheet and PO flip)
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2009. Ariba, Inc. All rights reserved.

Lessons Learned/Best Practices



Communicate the timeline to your tech team.



Engage the supplier



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Have a check list, re-confirm milestones

Category Management teams need to take ownership



Never assume

Other competing initiatives and availability of resources impacted scope and timeline


Give yourself enough time (plan for the worst)

Communication, Communication, Communication



Technology, resources and their own pipeline

PLAN


Share the objectives with the supplier, they can provide experience .

Supplier Limitations


Confirm if other deployments or projects affect your timeline (black out dates)

It is still your category even when enabled in Ariba

User Adoption


Create easy to follow training materials, offer refresher courses

Dedicated support email box for any inquiries

2009. Ariba, Inc. All rights reserved.

Customer Story
Rock Tenn

Antoinette Faggion
Purchasing Manager

2009. Ariba, Inc. All rights reserved.

RockTenn and Ariba P2P

RockTenn went live with Ariba P2P in March of 2008. Since the go-live date, RockTenn has seen
tremendous improvements in user compliance, order efficiencies, and site-acceptance.
When RockTenn launched Ariba P2P in March 2008,
we had:

One site using Ariba

Less than 50 suppliers enabled

Approximately 10 catalogs loaded into

production

Electronic POs v Manual POs March 08 Sept 09

Today, approximately a year and a half after our

launch date, RockTenn has:

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67 sites using Ariba across 5 divisions

1870 suppliers enabled

19 catalogs (6 small CIFs, 3 large CIFs, 10

punch-out) in production and more in our
test environment

2009. Ariba, Inc. All rights reserved.

29

Supplier Enablement Challenges

RockTenn had to face and overcome several obstacles when enabling suppliers for Ariba P2P.
Developing a clear strategy for supplier enablement can you help avoid some of the challenges we
faced.

In order to properly allocate the supplier enablement efforts, RockTenn identified 3 primary types of
suppliers when implementing Ariba:
Suppliers that were currently using Ariba and familiar with the system
Large suppliers unfamiliar with Ariba
Small supplier unfamiliar with Ariba

The majority of RockTenn suppliers

to be enabled were upper left quadrant vendors

Advise supplier of process

and guide as needed (walk
then run manual, E PO, E
Invoice)

Quick Enable Process

Guide supplier through

process, hand-hold, and
monitor progress

e
w e!
re o b
he t
W ted
an
w

Resistance to change

Guide supplier through

process quickly and monitor
to ensure compliance

Size of supplier

Keys to Successful Supplier and Catalog Enablement:

Define a clear strategy for catalog selection, testing, implementation, and training
Have a central repository for training materials, process flows, etc
Have a central supplier request portal if multiple users/groups can request suppliers
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2009. Ariba, Inc. All rights reserved.

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Best Practices & Lessons Learned

Supplier Enablement and Catalog Deployment was a learning process for RockTenn. Now that we
have overcome the challenges surrounding these activities, we are able to move on and start
realizing the additional benefits of Ariba P2P.

Lessons Learned

Define your strategy for what an Ariba supplier is

Document your supplier set-up process clearly

Timely supplier set-up is important to increase user adoption

Interns are a cost-effective option to staff short-term needs for initial supplier set-up

Establish a strategy and communication plan for suppliers for the purpose of addressing fees
associated with Ariba

Best Practices
Now that RockTenn has standard processes and procedures established for Ariba Supplier
Enablement, we are trying to leverage the P2P system to improve efficiency and purchasing
decisions. To do this, RockTenn has identified several Best Practices in order to fully realize the
benefits of the Ariba Supplier Network:

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Prioritize effort with highest value payback: high volume high SKU count multiple sites
Leveraging Ariba capabilities to identify optimal transaction method:
Pcard Invoice Conversion Electronic Transaction
Utilizing BPOs and Contracts to drive value (bottom-line benefit)
Drive efficiencies for RockTenn and our suppliers
Automated 3-way match (ePO, eInvoice, smart receiving)
Utilize ASN Supplier Discovery tool to discover new suppliers

2009. Ariba, Inc. All rights reserved.

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Additional Resources
Improving User Adoption and Contract
Compliance with Your Existing Procurement
Platform Whitepaper
Ariba Catalog Management Service
datasheet
 Level 2 Punchout Value and Benefits
datasheet
www.exchange.ariba.com

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2009. Ariba, Inc. All rights reserved.

Q&A

2009. Ariba, Inc. All rights reserved.