Supplier Enablement Overview

and Best Practices

 Supplier Enablement is …
• More than just connecting suppliers electronically to your back office systems
• Developing the processes and materials to support the “enablement” of
suppliers to exchange electronic business documents
• Offering the right technology and tools for all supplier volumes
• Supplier enablement involves:
• Business Process
• Technology
• Organizations
• People
• Change

“You really don’t fully understand Supplier Enablement until you’ve lived it.”

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 Supplier Enablement Methodology
Prepare
• Commodity & supplier
analysis
• Strategy Development
• Supplier Flight Plan
• Supplier Compliance
Policy &
Non-Compliance
Escalation Process
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Enable
• Define Requirements & Supplier Registration • Go Live
AN Transaction Rules Communication
• Supplier Communications
• Configure Ariba Network • Deploy Tasks
• Create Network Accounts
account • Supplier Support &
& Trading Relationships
• Supplier Data Collection Help Desk transition
• Follow up with suppliers
& Vendor Upload File
to complete tasks
• Build Supplier
Supplier Education
Communication &
Education materials • Supplier Information
Portal
• Buyer Stakeholder
Sessions (internal • Webinars & Recorded
Change Management) Trainings
Supplier Testing w/
• Integrated & Strategic
suppliers
• Supplier support & error
resolution
Public 3
 Keys to Success

View Supplier Enablement as a Program and

Function of the Business, not as a Project

It’s a
Marathon…
not
a Sprint

Supplier Enablement is on-going…

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A Strong Supplier Enablement Strategy Includes:

Strong • Executive support and oversight

Leadership • Established program charter
Foundational Commitment • Regular Steering Committee meetings and quarterly reviews
Pillars
Focus On • Documented goals and success metrics
Program • Program scorecard regularly reviewed through Steering Committee
Goals/ROI • Ongoing benchmarking and continuous improvement focus

Supplier Flight • Flight Plan for supplier onboarding: Pilot, Waves, and Timing
• Comprehensive analysis based on ROI and probability of successfully
Dynamic Plan transacting across the Ariba Network
Elements:
Review and Communication • Internal communication plan educating organization and driving adoption
Update • External communication plan for suppliers focused on compliance (see
Plan below) and Ariba Network benefits
Regularly
Compliance • Agreed upon approach for making sure sellers participate in initiative
• EDICT with: Expectations, Deadlines, Incentives, Consequences, and
Management Togetherness Messages

Supporting Enablement • Dedicated team that manages enablement process

Infrastructure • Team members understand sellers and internal stakeholders and are
Lead/Team change agents within the organization

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Critical Success Factors

Current Supplier data

Teams are aware this may be a challenge – much time and effort will be needed to compile accurate list
of supplier contacts with whom to engage – and this is critical to meeting wave objectives

Communication / compliance – internal and external

Strong compliance messaging (internal and external) is essential to secure supplier registration, which in
turn will drive adoption

Change Management
Your internal teams will encounter a significant wave of change during the course of this program; active
change management programs coupled with direct and frequent cross-functional executive messaging to
the organization is often the lynchpin of success

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Supplier Enablement
Best Practices
Developing a Supplier Enablement Program

Moving from a traditional paper or manual environment to an electronic

process takes planning:
• Ensure resources are on hand to support this process
• Ensure policies and procedures are reviewed/changed
• Ensure sufficient support and communication for your Buyer and AP community

Executive Support & Buy In from All Stakeholders

• One vision and direction
• Gain sponsorship and resource commitments from each major stakeholder
• Solicit ideas/input from all areas within your organization where this change will have
an impact:
• Procurement, Sourcing, Accounts Payable, Finance, Business Units, IT, Legal, Tax

• Ensure you have internal compliance with key business partners up front
• Educate business units on the value of electronically enabling suppliers

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Supplier Enablement Best Practices

Supplier Enablement Aligned with Customer Goals & Objectives

• Understand your goals – what are you trying to achieve?
• Ensure suppliers targeted match Goals & Objectives; Prioritize suppliers based on
goals
• Provide refreshed supplier data for strategy analysis to ensure active suppliers are
targeted and avoid wasted effort

Build a Strong Supplier Compliance Plan

• Most successful organizations implementing Ariba solutions have a strong supplier
compliance plan
• Document your compliance plan & non-compliance escalation process and enforce
it from the onset
• Easier to relax your position for a few suppliers as the need arises than it is to try
enforce strict changes down the line
• Results in more suppliers transacting electronically
• Suppliers only do what they are required to do or what they see as benefit & value

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Supplier Enablement Best Practices
Change Management Plan in Place
• It is important suppliers hear the same message from all personnel
• Educate stakeholders, buyer community, end users about the project and what is
expected of suppliers

Communicate Often
• Be clear and consistent in communications
• Provide timeline, value and benefits, importance of participation
• Keep suppliers informed of project status in the event of delays or changes in
requirements
• Follow-up with non-compliant suppliers promptly

IT and Supplier Enablement Plans Aligned

• Development of Supplier Education materials is dependent upon completed
requirements, network customizations
• Supplier Testing is dependent upon technology & test environment availability

Appropriate resources designated for Supplier Enablement

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Supplier Compliance Messaging
Program Messaging

• The foundation for enablement program communications is the Compliance

Policy

• The Compliance Policy has a direct effect on the effectiveness of supplier

enablement efforts

• All internal buyer stakeholders should be aware of and able to communicate

the Compliance Policy

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Why is Supplier Compliance Important?

% Targeted Suppliers Transacting on the Network

• The Compliance 20% 40% 60% 80%

message has a direct
impact on the Policy Strength
Weak Strong
effectiveness of
supplier enablement
efforts
No internal Internal Internal Buy-in
Weak

Moderate

Best In Class
• A strong Compliance communication awareness Expectation
Policy will result in Optional Expectations set embedded
more suppliers participation Deadlines Mandatory
transacting No deadlines Incentives Deadline
electronically… No consequences No consequence NCE process in
Inconsistent place
• All internal buyer No defined NCE Incentives &
stakeholders should be process Consequences
aware of and able to • Net 60
communicate the • $25 paper fee
Compliance position • No paper

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Why Define a Compliance Policy and Non-Compliance
Process?
Supplier Responses
• Already on Ariba Network
• Experienced, Sees Benefits/Value
I’m ready! • Knowledgeable about SMP Fees
• Eager to do business
• Completes all tasks requested

I want to integrate! • cXML/EDI supplier

Can you wait 6 months? • May have overload of projects
• May require development
We are working on it… • May need extra resources

I don’t want additional fees!

• Doesn’t like change
I like paper invoices • Refuses to attend Summit, sees no benefit
My buyer said I don’t have to use Ariba • Refuses to participate due to SMP Fees

I’m technically challenged. • Supplier doesn’t have internet access, technical

capabilities, or resources to support new process
I don’t like change. • Wants Customer to validate the request
• Doesn’t do enough business with Customer

I will do it next month…what letter? • Supplier ignoring requests or new process

I can’t find my letter. • Ariba has exhausted out reach attempts
• Supplier needs buyer follow-up

What customer? I don’t do business with them.

My contract is expiring.
• Wants customer to validate request
Who is Ariba? I need to talk to customer first. • Doesn’t do enough business with Customer
I forgot & sent a paper invoice!

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Issue a Compliance Message

• EXPECTATION
• Inform suppliers of the project and what you want them to do
E

• DEADLINE
• Set a deadline date for enablement
D

• INCENTIVE
• Provide an incentive for participation
I

• CONSEQUENCES
• Establish realistic and executable consequences for Non-Compliance
C

• TOGETHERNESS
• Assure your suppliers that these changes are mutually beneficial; You are in this together.
T

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Electronic Seller Integrations
Electronic Supplier Integration Overview

WHAT IS IT?
 Connecting a supplier’s ERP to the SAP Ariba Network via an electronic method
(cXML, EDI, CSV, Dell Boomi) to transact PO, Invoices, OC, ASNs via a touchless
process.

HOW IS IT DIFFERENT FROM PO FLIP?

 POFlip is a manual invoicing option in the SAP Ariba user interface where suppliers
log in to their SAP Ariba account, select a PO, and manually flip it into an invoice.
 Requires development & mapping by supplier; effort is reduced for suppliers already
integrated on AN

WHO INTEGRATES?
suppliers with:
 High Annual Doc Volume: SAP Ariba recommends integration for suppliers with >
500 docs/year per relationship
 cXML/EDI capabilities
 An eCommerce or IT team

WHY INTEGRATE?
 Electronic communication is faster, more accurate (45-60%), more repeatable, less
expensive (60-75%), provides better customer satisfaction

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Supplier Integrations - What You Need to Know

Planning and managing supplier Integrations is a critical / strategic

component of supplier enablement. The enablement flight plan makes
provisions to stagger these types of supplier enablement phases, allowing for
time and resources to effectively manage and prioritize the supplier
integrations.

Why does your supplier want to integrate?

 Your integrated supplier want to automate the PO/Invoice with you to support process
efficiencies. These are typically high volume/spend suppliers with IT resources.
 supplier integration requires resources and time from both supplier and <BuyerName>.
 It is at the supplier’s discretion to opt in for integrated AN transactions.

Why do you want to support supplier integrations?

 These suppliers typically represent high volumes/spend = high volume/spend is automated
= high yield of ROI.
 It is at your discretion to support your supplier’s desire to integrate.

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Supplier Integrations - Assumptions

 Your typical integrated suppliers = high document volume/ high spend

 It will take ~8 weeks to get this supplier transactional
 Implementation of catalogs is the best practice approach for automation technology. Some
integrated suppliers require the enablement of their catalogs in order to support integration
 Allocation of resources to (Procurement/Payables/Technical) to support kick off discussion
with suppliers AND end to end testing with suppliers. Kick off is meant to discuss business
process (current vs future state), high-level overview of solution scope, transaction scope
and network requirements
 Requirement: (Buying organization resources) Resources to perform end to end testing
and sign off on successful testing completion for every integrated supplier
 Consider: Some integrated suppliers willing to use PO Flip as interim solution while in
planning and testing phase of integration

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Supplier Integrations - Misconceptions

 All integration suppliers will be production-ready as of Day 1 of Go Live

 All integrated suppliers can support your SAP Ariba Network business rules and/or
requirements
 All document types in scope will be sent in an integrated manner
 Suppliers will have IT resources at the ready to engage immediately
 If they have already integrated to SAP Ariba Network with another Trading Partner- they will
do so for your program
 If they have already integrated to the SAP Ariba Network with another Trading Partner- they
do not require additional technical work and testing for your program. Each Trading Partner
has their own network requirements and business rules.

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