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Ariba Implementation in

Monsanto IT
Keyvan Samadi, Greg Diecker
Monsanto Company

SESSION CODE:SC2224
LEARNING POINTS

 Why Ariba?
 Value added
 Overview of Ariba solutions in Monsanto
 Integration with SAP ERP
MONSANTO AT A GLANCE
WHY ARIBA?

Align With Procurement Operational Strategy

Business Strategy Objective: “Increase controls and compliance”

• Delivered global process standardization


• Provided Visibility and Oversight via Ariba solutions
• Enabled compliance with Corporate Controller Policy. (Compliance tracking metrics have
been established and are reported monthly)

Business Strategy Objective: “provide financial benefit and minimize risk”

• Allowed first time ever Monsanto global addressable spend visibility with Ariba Spend
Visibility, P2P and Sourcing Pro tools
• Provided a new level of information to support risk management via SIPM
• Established and tracked savings and spend metrics which are included in the monthly
Procurement SmartMetrics report

Business Strategy Objective: “Ensure stakeholder satisfaction”

• Ariba solutions are Business Productivity tools providing Monsanto users with
demonstrated efficiencies, reduced procurement cycle times, automations and delivery of
timely information within an integrated, cloud based, user friendly package.

5
PROJECT VALUE

Strategic Enterprise Growth Platform for Procurement


• Global Business Network in Place
• Future standard eInvoicing, ePay, dynamic discounting
• Provides a step up the maturity curve to world class procurement organization

Spend Under Management


• Adding control of indirect spend through P2P and Sourcing Pro
• Spend categorized, enhanced and available for insight analysis via Spend Visibility
• Globally standardized processes

Business Productivity
• Providing visibility to global spend – enabling achievement of Global Procurement’s savings
target.
• Savings of 40% internal cost for each PO created via Ariba vs. standard SAP process
• Created Savings per Sourcing FTE Metric (with Procurement) to measure efficiency gains
attributable to Ariba.

6
IMPLEMENTATION SCHEDULE WAVE 1 (P2P)

 The Wave 1 P2P deployment was an


accelerated 16 weeks deployment consisting of
 Solution Planning and kick off
 Setup base configuration, Import “sap transport”,
load master data manually, develop transactional
interfaces as well as some master data interfaces
 Automate master data and transactional data transfers
through ITK
ARIBA MODULES IN MONSANTO

 P2P (Purchase to Pay)


 Sourcing
 Contract Management
 SIPM (Supplier Info & Perf Mgmt)
 Spend Visibility
ARIBA P2P

 Rapid enablement of suppliers(catalogs)


 Amazon-like user experience when shopping
 Streamlined catalog maintenance
 Integration options with SAP ERP
 Pre-delivered reporting capabilities
ARIBA P2P

 Contract Compliance
 Seamless Integration with Ariba Network
 Single Sign-on Capable
 Mobile Approval
 Hosted solution
ARIBA CATALOG TYPES

 CIF (Catalog Interchange Format) or Local


Catalog
 PunchOut Catalog
CIF CATALOG

 Also referred to as internal catalog, a local


catalog, or hosted catalog.
 It is a simple text file managed and maintained
by supplier
 Based on a flat file templates using excel or text
editors
 Contains product or service master data
CIF CATALOG

 Good option for:


 Suppliers who are new to the Ariba Network
and or to Catalog Enablement
 Small to Medium sized catalogs (100-500
SKUS)
 Supplier is unable to host their own websites
 Catalog is static with small number of
updates yearly
 Price is not driven by dynamic and complex
rules
PUNCHOUT CATALOG

 Allows users to access catalog content residing


at the supplier's interactive e-commerce web
site
 Supplier controls and maintains content
 Content and Pricing is specific to your company
PUNCHOUT CATALOG

 Good Options when:


• Catalogs contain configurable items
• Catalogs require frequent updates
• Catalogs are very large
• Additional value added features are
available
• Supplier already has a PunchOut website
ARIBA P2P REQUISITION PROCESS
ARIBA P2P REQUISITION PROCESS
ARIBA P2P REQUISITION PROCESS

1
ARIBA P2P REQUISITION PROCESSC

1
ARIBA P2P REQUISITION PROCESSC

2
ARIBA P2P REQUISITION PROCESSC

PO
Requisition Supplier
AN
1 - Conf/Ack
Ad-hoc Catalog Supplier
PO 2 - PO Flip
Approval

PR  PO AN
Supplier
Approval
Buyer Supplier
PO  Receipt  Conf/Ack AN
 PO Flip
Reconciliation AN
Supplier
Pmt  Inv P2P  Invoice
Supplier

Ariba P2P Ariba Network


ERP
Application
BACKEND INTEGRATION (MASTER DATA)

 Extracting data from customer’s backend systems


 ERP System
 HR Database
 Generating data that is manually maintained
 Data that is specific to Ariba may need to be
manually created and/or maintained
 Loading master data into Ariba P2P
 Manually through the UI
 Automatically using Integration
BACKEND INTEGRATION (MASTER DATA)

 Data loaded into Ariba P2P from backend system


(ERP)
 Manually maintained data (Minimal)
 Source of truth should be existing backend
systems
 Automate data movement as much as possible
BACKEND INTEGRATION (MASTER DATA)
MASTER DATA FILES (.CSV)
Example Costcenter.csv

KOSTL - A unique internal identifier for the cost center


BUKRS - The unique internal identifier of a company code.
This value must match a company code defined in CompanyCode.csv
KTEXT - The name of the cost center
LTEXT
UDATE
ACTIVE
PurchasingUnit - The unique internal identifier of a purchasing unit.
This value must match a purchasing unit defined in PurchasingUnit.csv
IMPORTING MASTER DATA (VIA UI)

 Generate & Review .csv files


 Load them into Ariba P2P
 Must be logged in as a Customer
Administrator
IMPORTING MASTER DATA(VIA ITK)
 Sample ITK script to import
Filename: UploadFullMasterData.sh
topDir="/XXXXXX/Ariba/topdir/"
inDir="/XXXXXX/Ariba/outbound/"
outDir="/XXXXXX/Ariba/topdir/outDir"
logDir="$topDir/logs"
filterPrefix="processing"
event="Import Batch Data"
operation="full-upload"
urlPrefix=https://s1.ariba.com/Buyer/fileupload
additionalServerArgs="-event \"$event\" -fullLoad true"
BACKEND INTEGRATION(TRANSACTIONAL)

 Exporting transactional data from Ariba P2P


 Export Payment Requests (OK2Pay)
 Export Purchase Orders
 Export Receipts
 Loading transactional into customer’s
backend system
 Parse the exported data and consume in
ERP
EXPORT PAYMENT REQUESTS (OK2PAY)

 Data is only available for export after invoice is


fully reconciled
 Payment Export Task consists of 4 .csv files:
 Payment files:
 PaymentAccountDet.csv
 PaymentDetailExport.csv
 PaymentHeaderExport.csv
 PaymentLineItemDet.csv
EXPORT PURCHASE ORDERS

 Data is available after Purchase requisition is


created and approved
 Purchase Order Export Task consists of 6 .csv
files:
 Purchase Order files:
 PurchOrdAcctDetails.csv
 PurchOrdHeaderDetails.csv
 PurchOrdLineAddDetails.csv
 PurchOrdLineDetails.csv
 PurchOrdLineText.csv
 PurchOrdScheduleDetails.csv
EXPORT RECEIPTS

 Data is available after Receipts have been


created
 Export Task consists of 2 .csv files:
 Receipt files:
 ReceiptHeaderDetails.csv
 ReceiptLineDetails.csv
BACKEND
INTEGRATION(TRANSACTIONAL IMPORT)

 Importing transactional data into Ariba P2P


 Importing Remittance Information
 Extracting remittance information from customer’s backend
and importing into Ariba P2P
 Importing PO status
 Importing PO status, including SAP PO number
 Importing Receipt status
 Importing Goods receipt status
IMPORTING REMITTANCE

 Data is generated based on payment information from


customer’s backend system
 Remittance files imported into Ariba P2P
 Provides visibility in Ariba P2P of payment information.
 Offers the ability to create reports of transaction payments
 Remittance Import consists of 2 .csv files:
 Remittance.csv
 RemittanceDetails.csv
 In Monsanto Payments are issued outside Ariba
environment
SCHEDULE MASTER DATA AND
TRANSACTIONAL DATA INTERFACES
SAP scheduled Jobs
Description Type
Cost Center Interface Master Data
Coster Center Translations Interface Master Data
G/L Account Interface Master Data
G/L Account Translations Interface Master Data
Internal Order Interface Master Data
Purchase Org Interface Master Data
User Interface Master Data
WBS Element Interface Master Data
PO Create Interface Transaction
PO Cancel Interface Transaction
PO Order Confirmation Transaction
GR Create Interface Transaction
Invoice Create Transaction
Remittance Advice Interface Transaction

3
P2P UPCOMING IN MONSANTO

• Mobile Approval and tracking through Ariba


Fiori
P2P UPCOMING IN MONSANTO

• Webservices Based Integration

• File based Based Integration(current state)


ARIBA NETWORK - ERP DIRECT INTEGRATION
using Business Suite Add-on

 Routing ERP orders to suppliers electronically


through Ariba network
 Receiving order confirmations, ASNs, Invoices,
etc electronically from suppliers
 Connecting ERP to largest global network of
trading partners
 Configurable business rules and validation
 Rapid integration with Ariba network through
multiple integration options
ARIBA NETWORK INTEGRATION
ARIBA NETWORK INTEGRATION
ARIBA NETWORK INTEGRATION (DIRECT)
USED IN MONSANTO
ARIBA NETWORK INTEGRATION
(MEDIATED)
ARIBA PROCUREMENT CONTENT (APC)

 Consumer shopping cart


 Leveraging the ERP processes
 Seamless ERP integration through OCI
 Punch out catalogs to simplify ordering
 Ordering can still be performed through existing
ERP processes
ARIBA PROCUREMENT CONTENT (APC)
ARIBA PROCUREMENT CONTENT (APC)

 Embedded catalogs in:


 SAP Purchase requisition screen
 SAP Purchase order screen
 SAP Maintenance order screen
 Fairly simple IMG configuration
 Some customizations options available
ARIBA PROCUREMENT CONTENT (APC)
ARIBA PROCUREMENT CONTENT (APC)
ARIBA PROCUREMENT CONTENT (APC)
ARIBA INTEGRATION SCENARIOS IN
MONSANTO
ARIBA SPEND VISIBILITY

 Enrichment of spend data


 More detail info(parentage) on supplier
 Prepackaged reports
 Custom reports can easily and quickly be created
through drag and drop interfaces
 Quarterly extracted data
 Commodity classification
 Accelerated(HANA)
SPEND VISIBILITY ACTIVITIES
SPEND VISIBILITY DATA STRUCTURE
SAP DATA EXTRACTION

• No delivered code available for data


extraction from SAP
• The input is a group of .csv files (invoices,
POs, suppliers, accounts, …
• The output of process is pre-packaged as well
as custom reports presented in the Ariba
spend visibility environment
ENRICHMENT(SUPPLIER INFO)

 The following fields will be used to assign supplier


parentage during the supplier enrichment:

 Supplier enrichment provides the following details:


 Parentage
 Revenue Rating
 Payment Trends
ENRICHMENT(INVOICE)

 The following hint fields are used to perform


classification during the invoice enrichment
EXAMPLE: SUPPLIER LEVERAGE ANALYSIS
BY COMMODITY

 Are there large number of supplier for a given


commodity? Lack of leverage with supplier
 Are we depending on very few suppliers for a
commodity with a large spend? Risk
OPPORTUNITY ANALYSIS

 Examples

5
ENRICHMENT
Enrichment Depth (Very High & High combined)

Total
Depth Total % Spend Total Records
Spend
Segment 0.00%
Family 31.76%
Class 29.89%
Commodity 35.39%
Level 5 2.96%
Level 6 0.00%
Total 95.59%

Enrichment Confidence (Invoice) Enrichment Confidence (Suppliers)


Confidenc Total Total Total #
Confidence Total Spend % Spend Total % Spend
e Spend Suppliers
Very High
62.01%
Very high 95.01%
High 33.58% None 4.99%
None 4.41% Total 100.00%
Total 100.00%

Supplier Enrichment by Source System


Enriched (Very
Data Accuracy SS Total spend % Enriched
High)
Random
Confidence # Correct Accuracy
Sample SAP 95.01%
Very High 379 371 97.89% Total 95.01%
High 383 367 95.82%

Invoice Enrichment by Source System


Classified
SS Total spend % Classified
(High+VH)
SAP 95.59%
Total 95.59%
SPEND VISIBILITY ON HANA COMING TO
MONSANTO

80% reduction in 74% increase in number of 134% increase in total


average report run - unique reports run reports executed
time

54,187

1.46 7.12
1,337 2,328
23,190

Unique Reports Run Total Reports


Report Run Time
Executed

Pre HANA After SAP HANA


Source: Aggregated usage metrics of customers that are live on Ariba
Spend Visibility on HANA
KEY LEARNINGS
 Integration is crucial
 Know your options
 User training is key
 Demands close collaboration between IT and Business
 Leverage Ariba documentation as well as SAP documentation
(know where to go when you have problems)
 Keep up to date with released corrections from Ariba and SAP
 Ensure IT has proper access to trace and troubleshoot
transactions end-to-end
 User provisioning
STAY INFORMED

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SESSION CODE: SC2224
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