Increasing Customer Retention Through Automation: B2B Automation and How To Do It
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Automating your connection to the networked economy can save time. And make your work easier. You can use automation – also called electronic integration, connectivity, and touchless processing – to automatically receive orders and send invoices to your customers through the Ariba Network. Automation directly impacts your fiscal performance, increasing customer satisfaction through timely and accurate order responses and invoices, reducing the cost of sales and helping you get paid faster by eliminating manual processes. But how do you get started - and how will it benefit your organization? Join this session to learn about the business case for integrating with customers, how integration increases customer satisfaction, and how you can get started.
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Increasing Customer Retention Through Automation: B2B Automation and How To Do It
- 1. Increasing Customer Retention Through Automation B2B Automation and How To Do It © 2013 Ariba, Inc. All rights reserved.
- 2. #AribaLIVE What is Automation? machine-to-machine © 2013 Ariba, Inc. All rights reserved.2 PunchOut cXML EDI server-to-server B2B integration back-end integration
- 3. #AribaLIVE Many Different Interpretations © 2013 Ariba, Inc. All rights reserved.3 0% 20% 40% 60% 80% 100% Have Automated Believe They Have Automated* * Are actually doing: • Emailed POs • Manual data entry through the portal
- 4. #AribaLIVE Why Automate? © 2013 Ariba, Inc. All rights reserved.4 Buyers Sellers • Increased order accuracy • Increased invoice accuracy • Faster cycle time • Fewer disputes • Increased customer satisfaction • Improved shopping experience • Greater order accuracy • Higher on-time payment rates
- 5. #AribaLIVE Today’s Presenters © 2013 Ariba, Inc. All rights reserved.5 Petra Burssens Head of Global eProcurement Chad Crook Director of Integration
- 6. #AribaLIVE What We’ll Cover • Company Background • What Is Automation? • Our Approach to Automation • Benefits to Buyers and Sellers • Best Practices and Lessons Learned © 2013 Ariba, Inc. All rights reserved.6
- 7. #AribaLIVE About Merck Millipore © 2013 Ariba, Inc. All rights reserved.7 *EMD Millipore in the USA and Canada Merck Millipore*, a division of Merck KGaA, Darmstadt, Germany, offers solutions that enable scientists to conduct life science research easily, efficiently, and economically.
- 8. #AribaLIVE Merck Millipore Credentials © 2013 Ariba, Inc. All rights reserved.8 Europe 38% Asia, Africa, Australasia 27% Latin America 8% North America 27% 2011 Sales by RegionIndustry Sector Number of Employees Revenues 2011 Manufacturing Operations Number of Products Number of Customers Life Science Tools ~ 10,000 Employees ~ EUR 2.4 Billion 26 Sites Worldwide > 60,000 Products ~ 1 Million Number of Countries 67 Countries
- 9. #AribaLIVE What We’ll Cover • Company Background • What Is Automation? • Our Approach to Automation • Benefits to Buyers and Sellers • Best Practices and Lessons Learned © 2013 Ariba, Inc. All rights reserved.9
- 10. #AribaLIVE eProcurement Components © 2013 Ariba, Inc. All rights reserved.10 ePO Electronic Purchase Order eCatalogue Static/hosted PunchOut eInvoice Electronic Invoice
- 11. #AribaLIVE Our eProcurement Vision • To become the recognized partner and leader in helping our customers: • Manage spend • Deliver significant transactional efficiency • Through the rapid deployment of easy-to-use electronic procurement solutions such as: • eCatalogues • Electronic Purchase Orders (ePO) • Electronic Invoices (eINV) © 2013 Ariba, Inc. All rights reserved.11
- 12. #AribaLIVE eProcurement Value Pyramid © 2013 Ariba, Inc. All rights reserved.12 Incremental Revenue Growth Scientific Collaboration (24/7 access to Merck Millipore content) Transaction Efficiency (Merck Millipore and Customer) Customer Retention
- 13. #AribaLIVE A History of eProcurement © 2013 Ariba, Inc. All rights reserved.13 2010 2009 2008 2007 2006 2005 and before 2011 expected 0 605040302010 Massive decline in number of completed projects until 2008 Reactive Technical Approach Proactive Sales Approach
- 14. #AribaLIVE Enablement Transformation Our Business Commerce Management Evolution & Roadmap © 2013 Ariba, Inc. All rights reserved.14 2003-2009: • Randomly non - dedicated approach • First relationships via Ariba 2009-2011: • More strategic proactive approach with dedicated ePro team • Prioritization of projects • Training of Sales presenting benefits Since 2011 • Strategic and focused approach including a fully dedicated support team • Stronger focus on eInvoicing • Combined MM eProcurement • Applying lessons learned Phases of Merck Millipore Evolution Reactive Proactive Innovative CollaborativeCommerce BusinessValue
- 15. #AribaLIVE What We’ll Cover • Company Background • What Is Automation? • Our Approach to Automation • Benefits to Buyers and Sellers • Best Practices and Lessons Learned © 2013 Ariba, Inc. All rights reserved.15
- 16. #AribaLIVE Solution Portfolio for Our End Customer © 2013 Ariba, Inc. All rights reserved.16 Customer Merck Millipore eCatalogue Static/hosted PunchOut Awareness Less calls requesting portfolio information Full transparency to portfolio Correct item number/price Correct information in order Accurate product data
- 17. #AribaLIVE ePO electronic Purchase Order Solution Portfolio for Our End Customer (cont.) © 2013 Ariba, Inc. All rights reserved.17 Customer Merck Millipore Proof of posting Automatic entering in system Data flow between ERP system No manual touch No manual touch Transaction efficiency
- 18. #AribaLIVE eInvoice electronic Invoice Solution Portfolio for Our End Customer (cont.) © 2013 Ariba, Inc. All rights reserved.18 Customer Merck Millipore No chasing of paper invoices No resending of paper invoice Receipt Invoice accessible in system Proven reduction of DSO Payment
- 19. #AribaLIVE What We’ll Cover • Company Background • What Is Automation? • Our Approach to Automation • Benefits to Buyers and Sellers • Best Practices and Lessons Learned © 2013 Ariba, Inc. All rights reserved.19
- 20. #AribaLIVE Stay in Line: Be Most Efficient • eProcurement components are often requested separately, leading to: Inconsistencies in the process Delays through false data (content/price) Inefficiencies while implementing © 2013 Ariba, Inc. All rights reserved.20 ePOeCatalogue eInvoice
- 21. #AribaLIVE Step 1: eProcurement Team • Owner of global eProcurement channel and activities within Merck Millipore • Primary contact for eProcument-related questions Customer Sales Third-party providers Other internal customers • Partners with the support team © 2013 Ariba, Inc. All rights reserved.21
- 22. #AribaLIVE eProcurement Team Since Q4_2009 • Business Development Manager (BDM) Front-office operations “Work around the customer” – Market analysis – Prospecting – Relationship Management (customer visits/sales trainings) • Project Manager (PM) = Key contact Back-office operations “Coordinate projects” – Driving projects to completion – Relationship Management (third party) – Process Optimization © 2013 Ariba, Inc. All rights reserved.22
- 23. #AribaLIVE Step 2: Support Team Since Q2 2012 • Located in customer service organization Optimal skill set • Essential functions covered Static/hosted catalogues – Creation and maintenance PunchOut – Set up/testing eConnection – Set up/testing Integrated IT support – Ongoing development work © 2013 Ariba, Inc. All rights reserved.23
- 24. #AribaLIVE A Dedicated Approach © 2013 Ariba, Inc. All rights reserved.24 eProcurement is GLOBAL and requires 100% DEDICATION eProcurement Team Support Team pergeography distributedoverall geographies • Qualify • Drive • Complete • Build • Maintain • Troubleshoot
- 25. #AribaLIVE 7 Key Points to Take Home • eProcurement needs dedication and ownership 100% FTE in Sales and Support • Project Managers are key One single point of contact • eProcurement is teamwork Alignment of customer and supplier side • Every customer is unique Listen to determine best solution for both parties • No bits and pieces! Take a structured approach starting with the catalogue component © 2013 Ariba, Inc. All rights reserved.25
- 26. #AribaLIVE 7 Key Points to Take Home (cont.) • Align your activities with internal key directions Get your internal stakeholders on board • A strong partner like Ariba speeds up your success Standardize your approach © 2013 Ariba, Inc. All rights reserved.26
- 27. #AribaLIVE Results* (5-year period) © 2013 Ariba, Inc. All rights reserved.27 • 49 active customers on Ariba today Up from 39 in 2007 • 40% growth in accounts over 5 years • 5 accounts > 60% in transaction value • 84% cXML/punch-out adoption rate • 286% growth in invoice volume representing a 168% increase in invoice value *Millipore only Click to Tweet!
- 28. #AribaLIVE Today’s Presenters © 2013 Ariba, Inc. All rights reserved.28 Petra Burssens Head of Global eProcurement Chad Crook Director of Integration
- 29. #AribaLIVE 50 – 99 <1000 Ariba Integration Options © 2013 Ariba, Inc. All rights reserved.29 In-house Technical Capability EDI CSV >300 >100 1200 combined transactions monthly or transactions annually invoices monthly or invoices annually documents annually • High volume of transactions • Existing EDI infrastructure • Invoice only • High volume of transactions • Lack infrastructure for cXML/EDI • Requires manual effort to upload to Ariba Network • High volume of transactions • On-demand based Integration via ERP/Package to Ariba Network • No need for additional infrastructure/software • Dell Boomi-supported SaaS and on-premise applications Sage Peachtree Intuit Quickbooks Microsoft Dynamics • Other ERP/packages supported can be built from scratch Ariba cXML >100 1200 combined transactions monthly or transactions annually • High volume of transactions • Human readable data structure • Recommended if not already integrated • Existing integration capability
- 30. #AribaLIVE Why Does Automation Make Sense? • Electronic communication makes full integration with your Supply Chain possible • Electronic communication is: Operationally efficient More accurate (45-60%) More repeatable Less expensive (60-75%) Increased customer satisfaction Secure © 2013 Ariba, Inc. All rights reserved.30
- 31. #AribaLIVE Technical Considerations for Automation • Security • Business Process • Infrastructure • ERP or Accounting Systems • Connect Once Trade Many • Up-Time • Compliance (PCI, Legal Invoicing) © 2013 Ariba, Inc. All rights reserved.31
- 32. #AribaLIVE Ariba’s Offering to Platinum Sellers © 2013 Ariba, Inc. All rights reserved.32 Key contact in UK (same time zone!) taking care of all issues, monthly update calls Experts of all kinds (technical, marketing, etc.) to support Frequent meetings with other “Platinum Sellers” to exchange ideas Account Managers for Strategic Sellers Services and Training Resources Seller Steering Committee 24x7 Global Support Global helpdesk to sort out basic issues for sellers and their customers
- 33. #AribaLIVE Dell Boomi Integration Services © 2013 Ariba, Inc. All rights reserved.33 PO/INV Supplier Supplier Supplier DB HTTPS cXML DB / HTTPS Supplier Boomi Atom Boomi Atom Supplier FTP / HTTPS Boomi Atom Supplier Supplier Supplier Boomi Atom Buyer Buyer Buyer PO/CO Boomi Atom Supplier Supplier Boomi AtomINV DB INV / INV Status
- 34. Patent-Pending Atom® Technology Centralized Control Distributed Execution Instant Load Scalability No Single Point of Failure Distributed Architecture with Centralized Management & Monitoring
- 35. © 2013 Ariba, Inc. All rights reserved.35 CloudappsOn-premise 128-bit encryption (metadata only) DataData External firewall Dell Boomi and Ariba Network On-premise Deployment
- 36. © 2013 Ariba, Inc. All rights reserved.36 Dell Boomi and Ariba Network Hybrid Deployment CloudappsOn-premise 128-bit encryption (metadata only) Data DataData External firewall Data
- 37. Dell Boomi and Ariba Network Cloud-to-cloud Deployment © 2013 Ariba, Inc. All rights reserved.37 Cloudapps Data Data Atom Cloud
- 38. Please Complete Session Survey © 2013 Ariba, Inc. All rights reserved.38 Find Session in Schedule Click Choose one Rate Session Thank you for joining us Click Survey and Select Breakout Session Survey
Notas do Editor
- John D’AquilaSHI Applications Support Manager John D’Aquila leads a team of professionals who support SHI’s customer-facing and internal applications, e-commerce platforms and integration, and data quality. His group provides innovative technology solutions to help SHI’s customers drive down the cost of IT acquisition, lower processing costs and provide superior visibility into their IT spend. John joined SHI in 2001 as a Accounts Receivables Representative where he effectively managed aged receivables organizations in 10 states for 2 years before moving to the e-commerce realm. He graduated from Kean University with a Master’s in Management Information Systems and Bachelor’s in Management Science. For more information, visit www.shi.com.
- Data entry errors are reduced 45-60% when you move to cXML. You can gain 60-75% in productivity when you move to cXML.
- Distributed Architecture with Centralized Management & MonitoringThe Boomi Atom that I just described is really our secret sauce and it is patent pending technology. It is based on a distributed architecture. It provides you with the ability to have a centralized dashboard to control integrations throughout your enterprise. With Boomi, you can log-in to one account online and manage all of the integration processes you have running on Boomi Atoms across multiple locations anywhere in the world. It is extremely scalable and has no single point of failure.For example, larger companies typically have business applications running in different data centers. Rather than having to install separate instances of software or appliances, you can now install our lightweight, run time Atom in each location, but have a central view of all atoms running across your entire enterprise, regardless of where those Atoms are installed in the world.