SAP Ariba & Tetra Pak

Design the Future of your Supplier Relationship Management
SAP Ariba & Tetra Pak
September 13th, 2018

Webinar Agenda
“The What” “The How” “The Why”

15 min 30 min 15 min
Bernard Stoit Pia KupkaPersson Machiel Spruit Sarissa Alleijn

Tetra Pak
What's the look & feel of Ariba? Tetra Pak & Ariba What's the value of Ariba?
Show you a process flow Project Background Business Case Drivers
Buying different commodities Q&A How to build a business case?
Process Simplicity SAP Support Hard versus Soft factors
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC 2

Ariba Guided Buying
A simple way to buy smarter through preferred channels
Convenience
One Place to go to when you need something
Guidance
Guided Buying for user friendly & smart experience
Compliance
Enforce Procurement rules and policies in the procurement process
Collaboration
Facilitate the business with Tactical Sourcing & In-context help
Catalog Management
Support for Internal Contract & External Catalog Management
Efficiency
Supplier Managed Catalogues in the Cloud
Open API
Get real-time price & availability information from suppliers

USERS make procurement happen
But they are not all the Same
What are their

Specific Needs?
Customer Procurement Personas
The requester is a general user within

the business. She does not buy on a
daily basis.
SANDRA
The approver manages a large team

across a big region. He is always on the
road.
GENE
The supplier receives and processes the

purchase orders from multiple
customers.
CRISTEN

Requester creates a new requisition in Guided Buying…
SANDRA
› The requester chooses the category which they wish to purchase from
› They add ‘Safety Helmet’ to their cart
› On the checkout page, the GL information is automatically defaulted
› The requester clicks Submit
GENE
CRISTEN
Approver reviews and approves the requisition
SANDRA
› The approver receives a notification from the SAP Ariba mobile app
› They can open and review the requisition
› If everything looks okay, they approve the requisition
› Comments can be added to the approval
GENE
CRISTEN
Supplier receives the auto-generated PO on the SAP Ariba Network
SANDRA
› The supplier receives the purchase order on the SAP Ariba Network
› They create an order confirmation
› They create an advance ship notice
› They deliver the goods to the requester
GENE
› They create an invoice and sends it to the customer
CRISTEN
Requester receives the helmet from the supplier and completes the receipt
SANDRA
› The requester receives the goods from the supplier
› They locate their request in Guided Buying
› They enter the received quantity of goods from the supplier
› The receipt is completed
GENE
CRISTEN
Webinar Agenda


Tetra Pak

From SRM to Ariba P2O
Pia Kupka Persson
Tetra Pak
PKP/2018-08-28
Agenda
► About Tetra Pak

► From SRM to Ariba P2O
► Achievements so far
► Change management and compliance
► Measurements
► Key points to take home
► Q&A
PKP/2018-08-28
The perfect solutions
The widest range in the industry
Tetra Pak/2018 /3
From SRM to Ariba P20
► SRM 5.0 with OCI catalog solution implemented 2008-2010

► OCI catalog solution connected to SAP ECC MM module (2012-
2014)
► Supplier Management Transformation Program initiated in 2014
► Tetra Pak decision to implement Ariba full suite cloud based solution
with
− SIPM
− Sourcing
− Contracting
− P2O
► P2O design workshops started Q4 December 2015
PKP/2018-06-12
Ariba P2O implementation status
No Tetra Pak sites

Tetra Pak Ariba P2O Achievements October 2016 to Aug 2018
81 Company codes are live

~ 12 000 Users have access to P2O
33 Company codes to be implemented
46 Countries are live

70K PO items created in P2O
27 Countries to be implemented
130 Supplier catalogs 52% of PO items created in P2O are

More than 15 Million SKU:s Touchless*
PKP/2018-08-28
*PR or PO not touched by Purchasing departmant during the orderingprocess
Change management and compliance
Strategic buyers Tactical buyers End users and Compliance

stakeholders
Catalog
Reject free text Cost for purchase Follow up on non
requirement part of
requisitions when is not only the item compliance
pre-requisits
catalog items are cost Feedback to
Disqualify suppliers
available Total cost needs responsible
not offering
catalogs to be included managers
PK,/2018-08-28
Measurements
► Allrequisitions in scope for Ariba P2O should be placed in

Ariba P2O
► As many PO items as possible should be touchless by
Purchasing department (automated)
► Targets are agreed with the business and we follow up on
quarterly basis
► Reports available in Business Objects for the follow up
PKP/2018-08-28
Key Points to Take Home
► Everything with a fixed negotiated price can be put in a

catalog
► Include catalog requirement in the sourcing event already
as business requirements
► Tactical purchasers should reject free text requisitions
when there are catalog items available
► End users need to be informed that the cost of a purchase
is not only the item price
► Define KPI:s, agree on targets and follow up on
compliance
PKP/2018-08-28
Q&A
Pia.kupkapersson@tetrapak.com
+46 46 363960
+46 733 363960
PKP/2018-08-28
SAP’s support to build your transformation plan from SRM to Ariba
Solution scope:
▪ Visit our SRM transformation website: https://www.ariba.com/programs/transform-
▪ SAP SRM srm
▪ SAP Sourcing / CLM / SLM (SLC) ▪ Follow our OpenSAP Course: https://open.sap.com/courses/srm1-1
▪ SAP Ariba On Premise ▪ Fill out a Transformation Survey, to capture the high level procurement processes
▪ SAP S/4 HANA Procurement ▪ Understand the major pain points with the current procurement process
Self Service:
▪ IBM Emptoris Getting acquainted
on the possibilities
Project execution Existing customer ▪ Based on the survey input we prepare an initial
▪ Leverage the SRM to Ariba transformation landscape assessment of the customer’s landscape
services assessment ▪ We conduct a detailed landscape assessment
▪ Leverage the Master Data & Transaction data ▪ Prepare the As-Is IT landscape of the customer
migration accelarators
SAP Support
overview
Recommended Fit-gap ▪ Conduct customer workshops to carry out a

▪ Recommend a migration path to the phased assessment & deep dive Fit-Gap assessment
customer transformation Resolution ▪ Highlight the best fit processes, and the
approach and potential gaps
▪ Provide a phased transformation approach to
business case
the customer ▪ Analyze the reported gaps
▪ Build a tailor made business case for the Recommended ▪ Work with the SAP development team for Gap
transformation To Be landscape redressal, or leverage the SAP Cloud platform
▪ Based on the landscape, and fit-gap assessment,

provide a To Be landscape recommendation to the
customer
Webinar Agenda


Tetra Pak

Quick start
Get Business
Case Output
Step 1: Input your customer values

click on ‘Key Inputs Check’ 1
Step 2: Check calculated values

click on ‘IT Benefits’
correct in customer input columns 2
Step 3 Adapt maturity assessment per
current function
click ‘Incremental Business Benefits
adjust customer maturity levers 3
(hover over is help)
Step 4 Discuss soft benefits

click on ‘Soft Benefits’
Adjust levers per business area 4
Step 5 Generate PowerPoint version of the

result
Note: you will be asked to change the 5
name of, or delete previous Outputs Get Business
Case Output
The Pillars of Benefit Realization through SAP Ariba
Incremental Business
IT Benefits Soft Benefits
Benefits

IT Benefits from Cloud Deployment
IT Benefits
Where you haven’t provided inputs for the IT Benefits calculations the model has defaulted to estimates linked to business revenue. Example peer metrics include a 5 € Bn insurance
company, a €16 Bn Insurance company, and a €60 Bn Chemicals company.
Value Driver Your Peers Your Inputs Your Inputs

(Lower Range) (Upper Range)
Software Maintenance 1400 k£ - 1600 k£

Existing license cost for SAP and non-SAP software in regard to procurement and payment solution.
(Annual Cost)
Application Management 455 k£ - 750 k£

Resources required to deploy service packs, fixes, and enhancements, including functional changes such as:
Application monitoring, Patches and hot fixes, Security management, Database management
7 - 10 FTEs @ 65 k£ - 75 k£
Future Upgrade Costs 667 k£ - 500 k£

Future solution upgrade costs
- Hardware
- Additional consulting support required for deployment Primary focus to manage customizations, modifications and 2000 k£ - 2500 k£
(Once Every 3 - 5 Years)
add-on
Help desk: Resources 160 k£ - 250 k£

Resources to support end user help desk, employees to support across Source-to-pay process 4 - 5 FTEs @ 40 k£ - 50 k£
418 k£ - 769 k£
Supplier Connectivity
Resources to support EDI connections or self developed upload tools e.g. cxml import, batches as well as
6 - 10 FTEs @ 65 k£ - 75 k£
management mail/ fax server for supplier communication incl. PO/Invoice, ERS or 3rd Party. And 85 k£ - 95 k£ (Over Contract Term)

Close Performance Gap on Best In Class
Incremental Business Benefits
Reference Key:
The current solution’s maturity was assessed in a capability review with SAP Ariba (see slide 5 for list of capabilities by function). The lower the function’s
Ariba Yellow = Solution In Scope
current maturity the greater the Incremental Benefits potential (i.e. realizable benefits are likely to be at the upper end of the benefits range). Value drivers
Black = Solution Out Of Scope
and associated key benefit realization metrics are provided by function.
Current Current Benefits

Function Value Driver Incremental Benefits, Key Metrics
Solution Maturity Potential
Spend Analytics Non SAP IT Very Low Very High Negotiate Better Prices & Conditions 1 - 2% savings benefit due to more focussed sourcing
€17M savings per billion of spend achieved with 39% higher

Sourcing No IT System Very Low Very High Negotiate Better Prices & Conditions cost reduction savings for Ariba customers compared to non-
Ariba customers
Negotiate Better Prices & Conditions,
Contract Management No IT System Very Low Very High 14 -19% Increase in sourced spend and spend compliance
Buy & Pay at Negotiated Savings Rates and Conditions
13 - 23% reduction in revenue loss due to supply chain
Supplier Management No IT System Very Low Very High Revenue Protection
disruption
Negotiate Better Prices & Conditions, 4.3 – 7.1%, savings on tactical spend, 22 - 29% reduction in
Buying SRM Very Low Very High Buy & Pay at Negotiated Savings Rates and Conditions, maverick spend, 84% higher POs per FTE for Ariba customers
Lower Operating Costs compared to non-Ariba customers
SAP Ariba customers achieve 11% - 18% maverick spend with
Catalogs SRM Very Low Very High Buy & Pay at Negotiated Savings Rates and Conditions
90% - 64% PO spend from catalogs and contracts.
Substitute information for inventory and reduce inventory
Supplier Collaboration No IT System Very Low Very High Free Up Working Capital
levels
Buy & Pay at Negotiated Savings Rates and Conditions, 44% more invoices processed per FTE for Ariba customers
Invoice / Pay SRM Very Low Very High
Lower Operating Costs compared to non-Ariba customers
3x more discount savings per Billion of spend for Ariba
Financial Supply Chain No IT System Very Low Very High Free Up Working Capital customers compared to non-Ariba customers, equivalent to
€750K in savings per € in spend
Scope Summary for Digital Transformation
Source Procure Pay

Contract Supplier Supplier Financial Supply
Spend Analysis Sourcing Buying Invoice/ Pay
Management Performance Collaboration Chain
▪ Spend Classification ▪ Supplier Discovery ▪ Contracting ▪ Supplier Registration ▪ Consumer-like ▪ Collaboration on ▪ Invoice Autom. ▪ Dynamic
▪ Enrichment ▪ Strategic Sourcing Workflow ▪ On-Boarding buying experience forecasting, ▪ Intelligent Invoice discounting
Services ▪ Reverse Auctions ▪ Authoring ▪ Diversity/Green/ ▪ Requisitioning inventory, ▪ Supplier self-service ▪ Early Payment runs
▪ Market Intelligence ▪ Knowledge/ ▪ Repository Certs ▪ Catalogs scheduling portal to receive against
▪ D&B Insight Repository ▪ Contract Lifecycle ▪ Risk Mgmt ▪ Approval Flows ▪ Instant visibility into invoices in any discounts/auctions
▪ Spend Analytics ▪ Reporting/ Analysis ▪ Notifications ▪ Surveys ▪ Electronic POs & supply chain format ▪ Supply Chain
▪ Scorecards Receipts ▪ Comprehensive ▪ Business rules that Finance through
▪ Performance ▪ Spot Buy costing of multi-level capture errors and Banks
Tracking Marketplace from PLM exceptions
Reference Key:
▪ Contract
Ariba Yellow = Solution In Scope
Manufacturing
Black = Solution Out Of Scope

On Premises to SAP Ariba Adoption Acceleration
Soft Benefits
Adoption acceleration demonstrates the effect of soft benefits. The higher the importance of Soft Benefits the more actively stakeholders will help drive solution implementation.
Business Importance &

Benefit Area Adoption Acceleration Impact
Adoption Acceleration Driver
User Experience Very High • People - improved user experience for better adoption – no more work-arounds
Faster customization Very High • Ability to access an eco system with a secure, open platform
Very High • Integration to back-end ERP for enhanced collaboration with finance and tax teams available currently
Additional capabilities
• Access to future apps as they become available through Ariba Network’s open APIs
Very High • A significant portion of the workforce is mobile
Mobility
• Efficiency is reduced when requisitions cannot be raised and authorisations approved away from a desk
Very High • Facilitates easier transition to move to a shared service model, standardized and scalable shared service operations
Scalability
• Preparation for rapid growth either by acquisition is essential
Very High • Embedded compliance with law and regulations eg GDPR
Regulatory data security compliance
• Managing data security is at the heart of Ariba’s cloud solutions hence reducing complexity
Very High • Continuous enhancements for both the buy and sell side, are embedded in SAP Ariba solutions via monthly releases
Continuous Innovation
• Sell side enhancements will bring better collaboration with suppliers outside of the company
Very High • Improved understanding of liabilities and committed spend – better forecasting of cash needs and accruals, with full audit trail
Visibility • Full view of enterprise-wide spend patterns, Greater insight into demand Scorecarding and benchmarking to track against KPIs
• Accurate capture of transactional data to achieve near real-time reporting and improve performance measurement
Medium • Choice of approach –modular to address specific needs, scalable to expand to other areas, end to end for full process coverage
Flexibility
• Faster time to market – execute more projects and accelerate time to value
Medium • Increased supplier collaboration, satisfaction – supplier self-service
Suppliers
• Discovery of new suppliers
Very High • Employees aligned to the business and goal of being a sustainable, purpose-oriented operation
People • FTEs freed up for more strategic tasks
• Better employee recruitment and retention through use of the most advanced procurement systems
Very High • Ability to track supplier diversity information
Purpose
• Vetting of suppliers against watchlists for unethical practices
Thank you
Contact information:
Machiel Spruit
Sr. Director, SAP Ariba Center of Expertise
Machiel.spruit@sap.com
+31653529998

SAP Ariba &amp; Tetra Pak

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Design the Future of your Supplier Relationship Management