Seller Summit Overview
March 2013
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© 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.
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© 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.
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© 2010 Ariba, Inc. All rights reserved.
Benefits of Summits for Sellers
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•
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.
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© 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.
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• 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)




•
•
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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: lsnow@ariba.com
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© 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
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© 2012 Ariba, Inc. All rights reserved.
Introductions
• Buyer Name
Buyer – Buyer Title
• Lance Snow
Ariba, an SAP Company – Seller Summit Lead
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© 2012 Ariba, Inc. All rights reserved.
Buyer Overivew
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© 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:




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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

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Buyer Expectations of Sellers Placeholder
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© 2012 Ariba, Inc. All rights reserved.
The Ariba Network
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© 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)
•
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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
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© 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
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© 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
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© 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
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© 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
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© 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
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© 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
•
•
•
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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
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• 83% PO error rate
reduction
• DSO reduction of 27
days
© 2012 Ariba, Inc. All rights reserved.
The Supplier Membership Program
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© 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
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© 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
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© 2012 Ariba, Inc. All rights reserved.
Payment and Threshold Examples
POs +
Non-PO
Invoices
•
•
•
•
•
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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
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© 2012 Ariba, Inc. All rights reserved.
Electronic Integration
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© 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
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© 2012 Ariba, Inc. All rights reserved.
Manual vs. Electronic Invoices:
Why sellers automate
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•
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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
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© 2012 Ariba, Inc. All rights reserved.
Ariba Discovery
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© 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
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© 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
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© 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.
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© 2012 Ariba, Inc. All rights reserved.
AribaLIVE
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© 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: CommerceAssistance@Ariba.com
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© 2012 Ariba, Inc. All rights reserved.
Resources & Support
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© 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
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© 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

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CommerceAssistance@Ariba.com
© 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
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© 2012 Ariba, Inc. All rights reserved.
Next Steps
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© 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:
 XXXX@ariba.com
• BUYERspecific business questions:
 supplier@ BUYER.com
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© 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
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© 2012 Ariba, Inc. All rights reserved.