Seller Summit Overview March 2013 1 © 2012 Ariba, Inc. All rights reserved. Seller Summit Overview • Buyers and Ariba partner to educate the buyer’s sellers on the value and opportunities of using the Ariba Network. 2 © 2012 Ariba, Inc. All rights reserved. Benefits of Summits for Buyers • Provides a platform for buyers to share their initiative directly with their sellers. • Provide Ariba an opportunity to introduce the Ariba Network and the value that sellers receive. • Helps to ease the transition for sellers. • Clearly states next steps and a call to action for sellers. • Provides a forum for the seller to ask general questions about the initiative. • Explains Network Transaction Fees and Subscription Packages upfront. 3 © 2010 Ariba, Inc. All rights reserved. Benefits of Summits for Sellers 4 • Gives sellers clarity on their buyer’s initiative and message directly from their buyer. • Educates sellers about the Ariba Network and the value and growth potential available to them. • Provides sellers with an understanding that there is a fee structure and to plan accordingly. • Informs sellers about the subscription packages and gives them a general understand of what offerings are available to them. • Provides sellers a platform to ask general questions. • Helps sellers understands what their buyer’s expectations and what the next steps are. © 2012 Ariba, Inc. All rights reserved. Successful Seller Summits Include 5 Core Messages: 1. An Overview of the Buyer’s Initiative. 2. The Value Proposition of the Ariba Network. 3. The Growth Potential for Sellers on the Ariba Network. 4. An Overview of Ariba Network Fee Structure. 5. The Buyer’s Expectations & Seller Next Steps. 5 © 2012 Ariba, Inc. All rights reserved. Types of Seller Summits In order to support and add the greatest impact to buyers’ goals, there are several types of seller summits available. The core message for these summits are similar but will be expanded to include the specific type chosen. • New Enablement - New Sellers to the Customer regardless of Ariba Network activity. • Adoption – On hold sellers, or sellers that are in “ready to transact” status for a significant period of time. • Invoice Compliance – Customer would like the sellers to begin invoicing on the Network. • Integration – Customer is recommending integration capabilities for the seller. 6 • Catalog – Customer would like sellers to begin using a catalog on the Network. © 2010 Ariba, Inc. All rights reserved. Best Practices: Seller Summit Sample Agenda Core Presentation • • • • Welcome & Introductions (5 mins) Buyer’s Overview (5 mines) Ariba Overview (5 mins) Ariba Network Overview (20 mins) • • 7 Introduction to the Network Seller Value Proposition Supplier Membership Program Tools & Resources Next Steps (5 mins) Q&A Session (10 mins) © 2012 Ariba, Inc. All rights reserved. Additional Materials • • • • • Integration Overview Ariba Discovery AribaLIVE How to Register on the AN PO Flip • Additional Information as Determined Ariba Seller Contact • Lance Snow Network Connect, Seller Summit Lead For more information about Seller Summits, please contact Lance Snow: [email protected] 8 © 2010 Ariba, Inc. All rights reserved. Sample Buyer Ariba Network Seller Summit March 2012 All phone lines are muted. Please submit all questions privately via chat to Lance Snow. Dial-in number: 1-866-240-5149 Code: 617 077 0508 © 2012 Ariba, Inc. All rights reserved. Agenda • Welcome & Introductions • Buyer Overview of the Initiative • The Ariba Network • The Supplier Membership Program • Tools & Resources for Sellers • Next Steps • Q&A 10 © 2012 Ariba, Inc. All rights reserved. Introductions • Buyer Name Buyer – Buyer Title • Lance Snow Ariba, an SAP Company – Seller Summit Lead 11 © 2012 Ariba, Inc. All rights reserved. Buyer Overivew 12 © 2013 Ariba, Inc. All rights reserved. Sample Customer Goals • <Customer> has identified top tier suppliers for Ariba Network enablement • <Customer> uses Ariba for Purchase Orders, Confirmations and Invoices • Advantages that <Customer> has experienced includes: 13 Creates better control on order processing Better communication and visibility with <Customer> Increased standardization for orders and invoices Paperless transactions from order placement to invoice © 2012 Ariba, Inc. All rights reserved. Sample Customer Goals • To partner with our suppliers in pursuit of shared cost reductions and efficiencies in all procurement activities • We are moving to a best practice model that will allow our company and our suppliers to interact via a single electronic channel in a more efficient and self sufficient manner • The solution is electronic invoicing via the Ariba Network <Customer> and Ariba have a strategic business partnership We continue to develop the relationship and the tool set The partnership has further evolved with the deployment of electronic invoicing © 2012 Ariba, Inc. All rights reserved. Our success is tied together 14 Buyer Expectations of Sellers Placeholder 15 © 2012 Ariba, Inc. All rights reserved. The Ariba Network 16 © 2012 Ariba, Inc. All rights reserved. The Business Commerce Problem… Investment Inefficiencies Remain Between Companies + Transactions completed manually: 80% (Source: Celent Communications) + Paper-based invoices and payments: 85% (Aite Group: Global Cash Management: Going Green. 2009) • 17 Costs of ineffective collaboration: [$650 Billion] (Source: Basex Research- “Information Overload” Feb, 2008) Inefficient Commerce Collaboration is Costing G2000 $338 Billion (Source: Ariba Benchmarking) © 2012 Ariba, Inc. All rights reserved. Ariba Overview Who is Ariba? Our value proposition? Ariba is the leading provider of collaborative business commerce solutions to enable more efficient and effective buying, selling, and cash management between companies. We eliminate the inefficiencies and burdens of commerce to help businesses: • Control costs • Minimize risks • Improve profits • Optimize cash flow • Increase sales The Ariba Commerce Cloud is a global, web-based utility that combines: How do we do it? • On-Demand technology to optimize the commerce lifecycle – from source-to-settle and market-to-receipt • A web-based community to discover, connect, & collaborate with a global network of trading partners • Capabilities to augment internal resources and skills with always-on expertise and commerce services 18 © 2013 Ariba, Inc. All rights reserved. The Ariba Network is the world’s largest business commerce Network Over1 million trading partners 60+ million Invoices $300+ billion in spend 142 countries 72 currencies 36 VAT compliant countries 730K + Suppliers 350 + Buyers 2500+ employees 19 © 2012 Ariba, Inc. All rights reserved. 40+ global offices 18 supported languages What is the Ariba Network? The Ariba Network connects buyers and sellers for successful business collaboration NETWORK 20 © 2013 Ariba, Inc. All rights reserved. Sellers are Realizing Value LEADS SELLER Ariba Network for Sellers PROPOSALS FIND CONTRACTS ORDERS & INVOICES buyers ready to buy ACCELERATE IMPROVE the sales cycle customer retention BUYERS GET PAID 21 © 2013 Ariba, Inc. All rights reserved. faster Benefits for Sellers Find Buyers Ready to Buy Accelerate the Sales Cycle Improve Customer Retention Get Paid Faster 22 © 2013 Ariba, Inc. All rights reserved. 30% growth in existing accounts 35% growth in new business 75% faster deal closure 75% order processing productivity gains via cXML 80% increase in order accuracy through PunchOut 15% increase in customer retention Up to 99% renewal rates 20% faster payment 6 day DSO reduction Business commerce is an evolutionary process for sellers… Collaborative Commerce Business Value Innovative Proactive Responsive Reactive Comply with First Customer Request Address Additional One-off Requests Enablement 23 23 © 2012 Ariba, Inc. All rights reserved. Create Processes, Infrastructure and Resources Expand Collaborative Channel and Poise for Growth Transformation Supplier Case Studies Welcome to B&H Photo • • • 24 Welcome to B&H Photo Welcome to B&H Photo Getting discovered online: $100K in new business Providing timely product content: 300% growth in accounts Collaborating with customers: 75% faster sales cycle © 2012 Ariba, Inc. All rights reserved. Innovative sellers experiencing value on Ariba Supplier Testimonials “We are excited about the increased exposure to new business through our Express Content catalog available to Ariba Clients” Benefits • Increased purchases by 32% Mitch Langstein Director of Marketing “Ariba Spend Management has received Fastenal’s highest ranking in terms of functionality, adaptation and supplier onboarding. A true benchmarked win-win for the customer and the electronically enabled supplier base” Brian K. Fihn eBusiness Sales Manager “Our eBusiness strategy and use of the Ariba Network support consistent high-quality service while achieving efficiencies throughout the order-to-invoice process, allowing us to be competitive in 29 countries and across different continents” Jocelyn Lescure Group eBusiness Manager • Offers single platform for all ordering and invoicing • More successful invoice reconciliation “As the economy is forcing companies to cut costs, the savings that come from an eProcurement solution become even more important. MarkMaster is glad to be positioned to help customers meet their cost savings goals” • 65% of new clients are a direct result of Ariba • 20% sales growth Craig Moore Customer Relations Manager 25 25 • 83% PO error rate reduction • DSO reduction of 27 days © 2012 Ariba, Inc. All rights reserved. The Supplier Membership Program 26 © 2012 Ariba, Inc. All rights reserved. Subscription Offerings for Network Sellers Differentiate – Grow – Automate Standard Select See-value-first model providing a no-cost service for sellers transacting occasionally or just getting started Helps sellers differentiate and build stronger customer relationships with catalog-driven collaborative commerce Premier Offers expanded technical support and white-glove services to drive sellers to embrace automation and online channels Enterprise Delivers complete collaborative commerce optimization – bundles of tools, services, and support for sellers utilizing Ariba as a multi-million dollar channel Enterprise Plus Optimizes the $10M+ Ariba channel with automation, catalog and networking opportunities for highest-volume sellers Offered PunchOut catalog and grew 300% in 3 years while saving the customer hundreds of thousands of dollars. - Business Development Manager 27 27 © 2012 Ariba, Inc. All rights reserved. The Ariba Supplier Membership Program Helping Sellers to Differentiate – Grow – Automate • FREE for all sellers to join and begin transacting • Free registration provides everything sellers need to collaborate Paid participation adds value Value-added features, support and services • No surcharges for sellers with multiple divisions, business units, or subsidiaries using the Network • Network Transaction Services billing broken into digestible quarterly bills, Subscription Fees annually • Ariba will streamline and simplify sellers’ bills by calculating fees across all customer relationships once one is chargeable . Network Transaction Service Subscription Fees Annual Volume Per Customer Relationship Annual Fees Annual Volume Across All Customer Relationships Annual Fees < $50,000 USD or < 5 documents* None Standard < $50K or < 5 documents sent* None Select $50K to < $250K and 5+ documents $50 $50,000 to $12.9M and 5+ documents 0.155% of total volume Premier $250K to < $1M and 5+ documents $495 $12.9M+ and 5+ documents** $20K Enterprise $1M to < $10M and 5+ documents $2,495 Enterprise Plus $10M+ and 5+ documents $7,495 *Sellers transact at no cost if no single customer relationship transacts 5 or more documents and $50K or more annually **Only 1.2% of transacting sellers reach the $20K cap Note: Sellers who use cXML or EDI technologies and transact 5+ documents and $50K+ annually automatically receive the $495 Premier or higher level subscription 28 28 © 2012 Ariba, Inc. All rights reserved. Payment and Threshold Examples POs + Non-PO Invoices • • • • • 29 Value Eligible for Fees? Subscription NTS $10,000,000 $7,500,000 $2,500,000 No Standard / $0 $0.00 Seller A Buyer 1 Buyer 2 4 2 2 Seller B Buyer 1 Buyer 2 148 50 98 $25,000 $10,000 $15,000 No Standard / $0 $0.00 Seller C Buyer 1 5 5 $250,000 $250,000 Yes Premier / $495 $387.50 Seller D Buyer 1 Buyer 2 Buyer 3 1,100 4 500 596 $50,000,000 $48,500 $37,098,420 $12,853,080 Yes Enterprise Plus / $7,495 $39,997.45 $75.18 (capped) $20,000 $19,922.27 Based on the broad benefits case for network users, fees are based on transacted value Subscription fee based on transacted value when both thresholds are crossed for at least one customer NTS fee = 0.00155 x transacted value (0.155% of value) NTS fee is capped at $20k per relationship No cost to sellers where no customer relationship exceeds 5 documents and $50K in annual transaction volume - these sellers are not assigned into subscriptions. © 2012 Ariba, Inc. All rights reserved. Tools & Resources Electronic Integration Ariba Discovery AribaLIVE Resources & Support 30 © 2012 Ariba, Inc. All rights reserved. Electronic Integration 31 © 2012 Ariba, Inc. All rights reserved. Electronic Integration - Why integrate? Reasons For Electronic Invoice Integration via Ariba: • High document count (purchase orders, invoices) • Speed invoice processing • Minimize risk of error • Minimize delays in securing payment • Reduce invoice inquiry by exchanging real time invoice status via the Ariba Network 32 © 2012 Ariba, Inc. All rights reserved. Manual vs. Electronic Invoices: Why sellers automate • • 33 According to the Hackett Group, 3.5% of invoices contain errors. This can be reduced to 1% through B2B process automation or up to 2.3% via use of eInvoicing through a portal. • Threshold for Integration According to Paystream Advisors and the Aberdeen Group, the typical paper invoice processing cost is $10.54; the costs for “best in class” organizations drops 50% to $5.29 per invoice, driven by e-invoicing and electronic disbursements. • Staples & HP: See 99.9% customer retention when they integrate. © 2012 Ariba, Inc. All rights reserved. cXML > 100 invoices/month (1200 annually) CSV > 20 invoices/month (5/week, 240 annually) Electronic Integration Methods Electronic Invoice Routing Methods Available: cXML (recommended) EDI Ariba’s native format Flexible Wide variety of translation software (parsers) options - less expensive For more details and further explanation on cXML: http://www.ariba.com/network/supplylines/vol11/ en/missingoutcxml.cfm 34 © 2012 Ariba, Inc. All rights reserved. Ariba Discovery 35 © 2012 Ariba, Inc. All rights reserved. Introducing: Ariba Discovery • The premier service for matching business buyers and sellers globally, built on the world’s commerce network 50 PERCENT OF THE GLOBAL 2000 OVER 3,000 BUYERS Matching Service Faster, Easier, and Better Lead Generation 36 © 2012 Ariba, Inc. All rights reserved. Effective Lead Generation • Ariba Discovery addresses the challenges sellers are facing across industries Increasing revenue from existing customers Generating revenue from new customers Developing awareness in perspective accounts Getting more qualified leads Reaching decision-makers Gaining awareness in existing accounts 37 © 2012 Ariba, Inc. All rights reserved. Open Invitation: Ariba Discovery Demo • Learn more about Ariba Discovery • Every Other Friday • Follow the link: www.ariba.com/resources/live-demo • Choose the first option, “Ariba Discovery for Sellers” and choose the best date/time available. 38 © 2012 Ariba, Inc. All rights reserved. AribaLIVE 39 © 2013 Ariba, Inc. All rights reserved. • Three days of education, training and networking • 1,300+ procurement and sourcing executives • More than 50% director-level and above Cross-industry representation Networking and learning opportunities Network with prospects, customers and eCommerce experts For more information: [email protected] 40 © 2012 Ariba, Inc. All rights reserved. Resources & Support 41 © 2012 Ariba, Inc. All rights reserved. For More Information, Go to http://supplier.ariba.com Online Help Free Tutorials Customer Support Best Practices Technical Documentation 42 © 2012 Ariba, Inc. All rights reserved. Support Resources Ariba Customer Support • Via Online Web Form • Step 1: Log into your company's account – at http://supplier.ariba.com Step 2: Log in with your company name’s Username and Password Step 3: Fill out the Web form and submit Via Telephone US/Canada: 1-866-31ARIBA (1-866-312-7422) Latin America: +1-412-222-6170 EMEA: +44 (0) 20 7187 4185 Asia Pacific+65 6311 4585 For Enterprise & Enterprise Plus Subscriptions Commerce Assistance Team 43 [email protected] © 2012 Ariba, Inc. All rights reserved. Ariba Provides the Industry’s Most Comprehensive Approach to Ensuring Supplier Success Tools and Resources Proven Applications Value-Added Services Largest Global Support Team for Suppliers Monterrey 44 © 2012 Ariba, Inc. All rights reserved. Next Steps 45 © 2010 Ariba, Inc. All rights reserved. Next Steps (buyer led) • Trading Relationship Request Letter on: April XX, 2013 Follow instructions in letter to register or accept the relationship with an existing Ariba Network account. • After trading relationship is established: Ariba will follow up with sellers to aid in completing essential tasks. Visit the BUYER Supplier Information Portal to find details on transacting with BUYER. • Questions regarding about Ariba Network: [email protected] • BUYERspecific business questions: [email protected] BUYER.com 46 46 © 2012 Ariba, Inc. All rights reserved. Q&A Session is supported by both Ariba and the Customer. Typically, 70% of the questions are directed at the buyer and are process related. Question & Answer 47 © 2012 Ariba, Inc. All rights reserved.