Transcript Slide 1

Ariba Network Order
Management
Achim Voermanek, Senior Product Manager
UC
© 2011 Ariba, Inc. All rights reserved.
Introduction
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Solution Overview
What’s New in Q1/2011
What’s Coming – Roadmap Themes
Quadrem
Question and Answers
© 2011 Ariba, Inc. All rights reserved.
What’s in the Ariba Commerce Cloud?
Sellers
Buyers
Sourcing
BUY
Buyer
Source
MANAGE
CASH
SELL
Sales/Mktg.
TECHNOLOGY
Procure
Pay
Applications
Spend Mgmt. | Collaborative Finance Mgmt. | Sales Acceleration Mgmt.
Procurement
Order Mgmt.
Platform
Analytics | Security | Performance | Integration | Mobility
Sell
Peer Collaboration
Fulfill
COMMUNITY
World’s Largest Trading Network
Treasury/AP
Finance
Invoice &
Collect
Partner Ecosystem
Seller
AR/Finance
CAPABILITIES
Domain Expertise
IT
3
© 2011 Ariba, Inc. All rights reserved.
Value Enablement
Execution Support
IT
Basic Transaction Processes
Regular PO Process: If you know what you want to buy, know its
price and its quantity, send a PO. When the vendors send you an
invoice, match it to the PO. (e.g. office supplies, IT goods, …)
Contract/Blanket PO Release Process: Like a regular PO, but it’s
a purchase/release against a pre-negotiated contract or blanket
purchase order (BPO) with the vendor that defines contracted
pricing and forecasted (or even obligated) quantity over the BPO
time period.
Invoice vs. Contract/No-Release BPO: You know exactly what
you’ll buy and for what price, but you don’t know exactly when or
how many, and the fulfillment trigger is not a formal purchase order.
(Maybe it’s a phone call for emergency service, or maybe the
supplier regularly checks and replenishes your inventory). When the
vendor provides goods/services, they invoice you vs. your contract.
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© 2011 Ariba, Inc. All rights reserved.
Basic Transaction Processes
Non-PO Invoice: You’ve got a problem and you’re asking
your vendor to fix it. He fixes it and bills you for the parts and
labor afterward (e.g. equipment repair services).
Check Request: No one has sent you an invoice, but you
want or need to pay someone. This is probably someone you
don’t do business with frequently (E.g. charitable donations,
expert witnesses or a refund to one of your customers).
Recurring Payment: You’ve got an agreement to pay a
vendor for a recurring or ongoing service without the vendor
sending you an invoice every time. Usually this is time-based
(e.g. legal retainer, facilities maintenance).
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© 2011 Ariba, Inc. All rights reserved.
P2P Transaction Processes
PO Triggered Purchasing
Regular PO Process non-Contract (e.g. Widgets)
Sends PO
Order Confirmation
Advanced Ship Notice
Delivers Goods/Services
Sends Invoice
Credit
Payment
Regular PO Process - Contract (e.g. Budgeted Widgets)
Sign Contract
Send PO – based on contract
Order Confirmation
Advanced Ship Notice
Delivers Goods / Services
Sends Invoice
Credit
Payment
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© 2011 Ariba, Inc. All rights reserved.
P2P Transaction Processes
Non-PO Triggered Purchasing
Invoice vs. Contract/No-Release BPO
Sends/Signs Contract/No-Release BPO
Maybe Requests Goods/Services
Delivers Goods/Services
Sends Invoice Referencing Contract / BPO
Credit
Payment
Non-PO Invoice
Maybe Requests Goods/Services
Delivers Goods/Services
Sends Invoice
Credit
Payment
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© 2011 Ariba, Inc. All rights reserved.
P2P Transaction Processes -
Advanced
Contract PO Process vs. Blanket PO-Release Process
Contract PO Process (e.g. Budgeted Widgets)
Sign Contract
Send Purchase Order
Order Confirmation
Advanced Ship Notice
Delivers Goods / Services
Sends Invoice
Credit
Payment
Blanket PO Process (e.g. Budgeted Widgets)
Sends BPO
Sends BPO Release Order
Order Confirmation
Advanced Ship Notice
Delivers Goods / Services
Sends Invoice
Credit
Payment
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© 2011 Ariba, Inc. All rights reserved.
P2P Transaction Processes
Non-Invoice Triggered Payments
Ad-hoc Check Request (e.g. Charitable Donations)
Maybe Requests Goods/Services
Maybe Provides Goods/Services
Requests Check
Payment
Recurring Payment Request (e.g. Rent)
Agreement/Framework for Service and Payment
Goods/Services Delivered Repeated/Ongoing
Recurring Payment Date Reached
Triggers Payment
Payment
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© 2011 Ariba, Inc. All rights reserved.
Introduction
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Solution Overview
What’s New in Q1/2011
What’s Coming – Roadmap Themes
Quadrem
Question and Answers
© 2011 Ariba, Inc. All rights reserved.
Key New Features – AN49
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Ariba Network
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Supplier Enablement
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Add Polish language
Add Integrated eArchive and expand PDF invoice copy generation
Payment
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Begin integration with Sungard (Hold to AN50), other partners
Working Capital Management
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Supplier Enablement Automation – Give our tools to our customers
European eInvoice
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Change Ariba Supplier Network to Ariba Network
Oracle Fusion and Hubspan Buy-side Integration Options
Community Architecture – Prepare for growth and partner ecosystem
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Integrate Citi Trade Financing (Hold to AN50)
Improve existing features for T-Mobile and customers
Order Management
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Order confirmation and advanced ship notice controls for Schlumberger
P2O architecture improvement, addable to Invoice Automation/PO Auto
© 2011 Ariba, Inc. All rights reserved.
AN49 – Feature Items
Supplier Enablement (see next page for details)
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SE Tools Automation, Customer Availability
Vendor Master Management light and launch
Working Capital Management
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Utilize Calendar, Nike
Discount Performance Reporting, Nike
MasterCard In-Control, MasterCard and Citi,
partnership with revenue, virtual card
Invoice Management
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PDF generation and eArchive Capability – EMEA
Quote, Order and Catalog Management
Automated Archive Function, ZIP file deliver
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Enhanced Order Confirmation
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Add Ship-to on PO Summary Page for sorting
Supplier Self eSignature for Invoices, IBM
customer commitment
Payment Management
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Payment Professional - Full return processing via
EDI 827 (CR# 1-APIN9V) – Citi and DC.Org
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Integration of Mellon Bank, T-Mobile
Integrate Sungard to offer Integration cost savings
for Banks
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Remittance CSV with Web Services, T-Mobile
© 2011 Ariba, Inc. All rights reserved.
Increase Item Quantity in PO
Require Ariba Network before Invoice can be
submitted option
AN49 – Feature Items
Supplier Enablement
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Create Reporting visibility for customers
of Tracker
Give Buyers Access to Ariba Network
Tracker Functionality
Assigning Milestones in
Ariba Network Tracker
All have to do with the Supplier
Enablement Automation and allowing
customers to enable suppliers
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Customer Upload of Suppliers
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Customer Invite Suppliers
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Customer Track Suppliers
Vendor Master Management
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Upload Vendor Master
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Clean Vendor Master
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SE Tools to support enablement
© 2011 Ariba, Inc. All rights reserved.
(Cont.)
Ariba Network
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Invoice Automation + P2O and P2O plus
Invoice Automation
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cXML Logo capability
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Increase Size of attachment
Rebrand Network Label to Ariba Network
from Ariba Supplier Network
EBS and Partner messaging on change,
for integrated partner message like
ICS partners
Ariba Order Management and Catalog
AN49 Feature Highlights
Require Order Confirmation before Invoice creation, OC
Tolerance Rules
Require Advance Ship Notice before Invoice creation, Ariba Network
Tolerance Rules
PO Summary page enhancements
Catalog Tester enhancement
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© 2011 Ariba, Inc. All rights reserved.
AN49
Require Order Confirmation before allowing supplier to create invoice
(Impacted: Globalization/Localization, Deployment, Support, Documentation, Training)
Features
Buyer configuration screen allows buyer to require OCs
Buyer can define the requirement to supplier groups
Separate tolerance rules can be defined for the OC
Benefits
Helps buyers obtain timely commitments from suppliers on PO price,
quantity, and date
Improved supplier compliance to operational policies and procedures
Examples
Tolerance rule checks the price and QTY
PO QTY=100, $=10. Tolerance=10%. Supplier can change price <=11,
Qty<=110, or Total<=$1,100
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© 2011 Ariba, Inc. All rights reserved.
AN49
Description
Require Ariba Network before allowing supplier to create invoice
(Impacted: Globalization/Localization, Deployment, Support, Documentation, Training)
Features
Buyer configuration screen allows buyer to require Ariba Network
Buyer can define the requirement to supplier groups
Separate tolerance rules can be defined for the Ariba Network
Benefits
Better control of tolerance that aligns to typical business practices
Allows buyers to establish very tight invoice tolerances when processes are in
place to lock down agreement on price, quantity, and delivery date on PO.
Examples
cXML Suppliers receive a Failed error message. Doc should add a new
reason code “Invoice failed because there is no AN”
PO QTY=100, Shipped 60. Invoice can go through
PO has 2 lines. Line 1 is shipped, Line 2 is not. Invoice can go through
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© 2011 Ariba, Inc. All rights reserved.
Improved Controls to Enforce Order
Confirmation and Advanced Ship
Notice Creation
Problem
• Buyer require tools to ensure on-time delivery of
materials and services. It's critical to have the
right tools to keep a manufacturing plant or
production-related operations running and
enforce policies and procedures.
• Buyer must rapidly confirm a supplier's ability to
deliver the appropriate quantity, on the
appropriate date, at the appropriate price.
• Buyer needs to ensure suppliers provide data
to plan for the receipt and delivery of goods
and services.
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© 2011 Ariba, Inc. All rights reserved.
Solution
• New controls ensure suppliers create Order
Confirmations and Advanced Ship Notices by
preventing supplier’s ability to invoice.
Benefits
• Helps buyers obtain timely commitments from
suppliers on PO price, quantity, and date.
• Helps buyers obtain timely communications
regarding planned deliveries and shipments.
• Improved supplier compliance to operational
policies and procedures.
• Less risk of operational downtime for
manufacturing companies.
Improved Controls to Enforce Order
Confirmation and Advanced Ship
Notice Creation
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“Create Invoice” button not
selectable until Confirmation
and/or Ship Notice created
Business rules apply equally to
integrated suppliers
© 2011 Ariba, Inc. All rights reserved.
Improved Tolerances for Order
Confirmation and Advanced Ship
Notice Creation
Problem
• Prior to AN49, buyers could only establish
a single tolerance that applied to Invoices,
Confirmations, and Ship Notices.
• Buyers typically require tighter tolerance
on Invoices than Confirmations.
• Buyers may require looser tolerance on
Ship Notices, since goods have been
already transported.
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© 2011 Ariba, Inc. All rights reserved.
Solution
• Separate tolerances for Confirmations and
Ship Notices
Benefits
• Better control of tolerance that aligns to
typical business practices.
• Allows buyers to establish very tight invoice
tolerances when processes are in place to
lock down agreement on price, quantity,
and delivery date on PO.
Creating a Group
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© 2011 Ariba, Inc. All rights reserved.
Configuring the Rules
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© 2011 Ariba, Inc. All rights reserved.
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© 2011 Ariba, Inc. All rights reserved.
Supplier Groups
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© 2011 Ariba, Inc. All rights reserved.
Assign Suppliers
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© 2011 Ariba, Inc. All rights reserved.
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© 2011 Ariba, Inc. All rights reserved.
Supplier Relationship View
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© 2011 Ariba, Inc. All rights reserved.
Customer Details
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© 2011 Ariba, Inc. All rights reserved.
PO Confirmation and Ariba
Network Limitations
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Partially confirmed and/or partially shipped orders
can be invoiced
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Transaction rules should be set at the group level
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A candidate for AN50 is to allow buyers to further define
rules to either allow or disallow partials
A supplier can only be assigned to one group
© 2011 Ariba, Inc. All rights reserved.
PO Summary Page and Reporting
Enhancement
(Impacted: Globalization/Localization, Deployment, Support, Documentation, Training)
Features
Can filter/sort orders by “Ship-to” on the PO Summary page
“Ship-to” is included on PO Report
Benefits
Huge benefit in supplier usability to solve customer questions
Easier for supplier to service customers with different Ship-to locations
Examples
See next slide
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© 2011 Ariba, Inc. All rights reserved.
Ship-to on PO Summary and Report
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© 2011 Ariba, Inc. All rights reserved.
New PO Summary Screen
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© 2011 Ariba, Inc. All rights reserved.
Catalog Tester Enhanced
(Impacted: Globalization/Localization, Deployment, Support, Documentation, Training)
Features
 Replacement of drop-down list in Catalog Tester with auto-completion chooser
 Default drop down list size is 10. User can search for more to select from a modal table
 Modal table will display Credential Name, Ariba Buyer Version, Created By, and
Last Updated by
Benefits
Better ability for supplier to select out different customer credentials during testing
Credentials are alphabetized and easier to search
Examples
 See next slide
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© 2011 Ariba, Inc. All rights reserved.
Alphabetized Credential Set
Drop–down in Ariba Catalog Tester
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© 2011 Ariba, Inc. All rights reserved.
Ariba Network
Release Guide Contains More Information…
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About (Use cases)
Using

Enabling
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Requirements

Limitations

Workflow Overview
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Changes to Existing Functionality

Changes to Existing User Interface
Managing
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Configuring
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Administering
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Importing and Exporting Data

Configuring Ariba Network
Integration with External Systems
Reports
Troubleshooting
© 2011 Ariba, Inc. All rights reserved.
Questions on Release AN49
More on Release AN49
 To learn more about the Ariba Release AN49,
please log into Ariba exchange:
http://exchange.ariba.com and request to join
the group in the “Featured Content” on the right.
 Visit the Group (Suppliers, Buyers or Partners)>
“AN49 Early Access Information" section to
signup to participate in EA
 This presentation and the WebEx replay of the
session will also be posted on Ariba Exchange
Continue the Feature Discussion
@ Ariba Exchange

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http://exchange.ariba.com/
Request to join the group in the “Featured Content”
on the right. Visit the Group (Suppliers, Buyers or
Partners)> “Start a Discussion” on the right
Register to comment
http://exchange.ariba.com/create-account.jspa
© 2011 Ariba, Inc. All rights reserved.
Introduction
•
•
•
•
•
40
Solution Overview
What’s New in Q1/2011
What’s Coming – Roadmap Themes
Quadrem
Question and Answers
© 2011 Ariba, Inc. All rights reserved.
Roadmap
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Expand AN reach into collaborative service and trading management
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A horizontal platform for multiple industries, commodities and service categories
An industry de-facto standard to manage complex categories
A leading solution that helps buyers and suppliers collaborate through order-to-cash
and resolving dispute
Features under consideration
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Get invoice paid faster
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Gain visibility of your selling activities
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Provide cXML integrated quoting process
Automate supplier-initiated change order and order-to-cash collaboration
Increase customer satisfaction
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Provide commodity and line level details driven by service catalogs, quote-to-order
collaboration
Reduce operational cost
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Enter service receipts on the AN; generate service entry sheet in your customers’ SAP
Validate the invoices against PO, quote and service catalogs and provide status feedback
Support your customer’s eProcurement initiative and contract compliance by providing
service catalog, a detailed quote, etc.
© 2011 Ariba, Inc. All rights reserved.
Features on Horizon for AN50
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Procurement Improvements
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Invoice/PO Email Notification enhancement
CC: Order to Invoice Pro Failure Notifications
Mask BPO Amount Display
© 2011 Ariba, Inc. All rights reserved.
Invoice/PO Email Notification
Enhancement
Problem
• Sellers using AN emails to
handle rejected or failed
invoices don’t have a
reference to the related PO
• Sellers using AN emails to
handle automatically route
failed POs, don’t have the PO
number in the subject line
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© 2011 Ariba, Inc. All rights reserved.
Solution
• Include the PO number,
related to an Invoice, the
Invoice number and the
customer name in the
Invoice and the PO failure
email notification
Benefits
• Faster handling of rejected
and failed invoices and POs
• More potential for automated
workflows at seller side
Current Inbox Screen
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© 2011 Ariba, Inc. All rights reserved.
CC: Order to Invoice Pro Failure
Notifications
Problem
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If a buyer posts a PO for supplier that is not
set up in Invoice Pro, the Copy Request
from AN to Invoice Pro fails, but there is no
notification of this failure sent.
This will only later show up, when Buyer
post receipts and they fail due to the order
not being in Invoice Pro.
Solution
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CC:Order logs a failure message indicating the reason
for the failure to load the order into Invoice Pro (e.g. the
supplier not being created in Invoice Pro).
AN sends an Error Notification indicating why the error
occurred to the Buyer’s Pending Queue Notification
email address
The email sent to the buyer indicates the error and
solution steps for the Buyer
CC:Order allows them to manually resend the order to
Invoice Pro once the supplier has been set up in Invoice
Pro, but that order will not be resent to the supplier.
Benefits
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© 2011 Ariba, Inc. All rights reserved.
Better integration between AN and Invoice Pro
Buyer self service fixes an error instead of
Ariba Support.
Mask BPO Amount Display
Problem
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Buyers want to be able to hide the
Contract Amount and the Amount
Available on a Blanket PO for the
Supplier on the AN
Important for contracts where the total
amount is unknown and the total amount
is used for internal budgetary reasons
Solution
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Strip the BPO of the budget amount at
AN before it is passed to the supplier
through EDI or cXML
AN keeps the budget amount “stored”
for further Invoice Processing
Use an extrinsic on the BPO message
to dictate this behavior
Benefits
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46
© 2011 Ariba, Inc. All rights reserved.
Buyers will be able to feel we protect
their internal data from getting exposed
to the supplier
Sellers still get to use BPO flip
Current Supplier Screen
Above: A BPO (non-release, Invoice allowed) Contract for €10,000, with the flag “Hide
Contract Amount” set to Yes.
As displayed, the Amount column for the BPO displayed for the Supplier shows €0.
In addition, the Supplier has, in this case, created an Invoice for €100 (+7% in VAT),
which is displayed in the “Balance” column.
Below: The BPO screen shows an additional field “Amount Available”. This is also sent as
part of the cXML message from Ariba P2P/Buyer in the AmountAvailable field; This field
reveals €10,000 - €100 (+7% in VAT) = €9,893, which is just as bad as showing the total
Contract Amount.
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© 2011 Ariba, Inc. All rights reserved.
Introduction
•
•
•
•
•
48
Solution Overview
What’s New in Q1/2011
What’s Coming – Roadmap Themes
Quadrem
Question and Answers
© 2011 Ariba, Inc. All rights reserved.
Introduction
•
•
•
•
•
49
Solution Overview
What’s New in Q1/2011
What’s Coming – Roadmap Themes
Quadrem
Question and Answers
© 2011 Ariba, Inc. All rights reserved.
Questions
50
© 2011 Ariba, Inc. All rights reserved.
“Safe Harbor” and Confidential
Information Statement
This information reflects the status of Ariba solution planning as of
January 2011. All such information is the Confidential Information of
Ariba (per the contract between our companies), and must not be further
disclosed, as stated in the confidentiality clause of that contract. This
presentation contains only intended guidance and is not binding upon
Ariba to any particular course of business, product strategy, and/or
development. Its content is subject to change without notice. Ariba
assumes no responsibility for errors or omissions in this document.
Ariba shall have no liability for damages of any kind including without
limitation direct, special, indirect, or consequential damages that may
result from the use of these materials.
51
© 2011 Ariba, Inc. All rights reserved.
Ariba Network Order
Management
Achim Voermanek, Senior Product Manager
UC
© 2011 Ariba, Inc. All rights reserved.