Leading companies are revolutionizing their procure-to-pay (P2P) process by using new technologies. During this session, hear how customers use the Ariba Procure-to-Pay solution to automate, streamline, and provide visibility into their P2P processes to better manage spend, reduce costs, have control over compliance, and enable better supplier collaboration.

1. Joselito Diga, CFO, United Laboratories, Inc. (Unilab)
Maria Tessa V. Castro, CPO, United Laboratories, Inc. (Unilab) / August 30, 2016
Modernize, Enhance, and Gain Flexibility in
E-Procurement with Ariba Procure-to-Pay
Public

2. UNILAB
Procurement
Transformation
Joselito G. Diga, CFO
Maria Tessa V. Castro, CPO
United Laboratories, Inc. (UNILAB)
Philippines

3. THE BUSINESS NEED
Compliance to Purchasing Policies
Lack of tool to support strategic
sourcing of indirect materials
Several spend systems being
maintained
Multiple sources and manual generation
of reports

4. THE UNILAB JOURNEY
2010
2011
2012
2013
2014
2015
Project Kick-Off
Design Phase
Supplier enablement
First sourcing eBidding
event
Catalog enablement
Travel Enablement
Pilot division run
(Biomedis)
Roll out to
other
divisions
(Phase 1)
Web-service
for real-time
interface between
SAP Ariba and SAP
solutions
DIY Requisition
Implementation
Implementation of
Non-PO Invoice
module
Implementation to
UNAHCO and
Mt. Grace Hospitals
Roll out to
other divisions
(Full)

5. Manage
Pay
eBidding
Contract
Source
Receive
DIY
Non-Catalog
Catalog
Source &
Contract
Request & Buy
Invoice & Pay
THE FRAMEWORK

6. eBidding
Contract
Source
Source &
Contract
Request & Buy
Invoice & Pay
THE FRAMEWORK

7. 776
eBidding
Events
USD
19 MM
Identified
Savings
USD
114 MM
Total Spend
2011 2012 2013 2014 20162015
33
9
31
18
13
10
(USD in Millions)
Savings
SPEND
8% 31%
16%
18%
26%
22%
SOURCING

8. CASE STUDY: THE UNILAB CORPORATE CENTER

9. 23
eBidding
Events
27
Suppliers/
Contractors
USD
26
MM Total
Spend
USD
4
MM Total
Savings
Key Learnings
 Technical evaluation should be done before the eBidding event
 Training and re-training of suppliers
 Access to SAP Ariba Singapore Helpdesk
 Close monitoring of the events from start to end
 Only accredited suppliers should be invited
CASE STUDY: THE UNILAB CORPORATE CENTER

10. eBidding
Contract
Source
Receive
DIY
Non-Catalog
Catalog
Source &
Contract
Request & Buy
Invoice & Pay
THE FRAMEWORK

11. IMPLEMENTATION
PROCURE TO PAY -
Request
PO Creation
PO Approval
PO
Confirmation Payment
Bayantrade
20 supplier catalogs
consumables and supplies
One
Stop
Shop
SAP ELMER
Catalog
Non
CatalogDIY
Goods
Receipt
SAP
Manual
Payment
Request
Form
SAP
SAP
700+
Transacting
suppliers
63
Supplier Catalogs
BEFORENOW

12. THE SPEND DATA
PO COUNT
2012 2013 2014 2015
SPEND
Catalog Non-catalog DIY
2012 2013 2014 2015
49%
24%
27%
59%
39%
11%
64%
36%
63%
37%
20%
37%
43%
23%
64%
13%
23%
77%
31%
69%
47
(USD in Millions)
121
115
100
21
32 31
33
(in Thousands)

13.  Implementation Team
Finance, Sourcing, Purchasing, Marketing and Enablers
 Launch Plans
 Supplier Engagement
Readiness (technical), Size of business, Resistance to change
 User Training
Communication Plan, Continuous education
 Keep pushing the envelope
KEY LEARNINGS

14. CASE STUDY:
DO-IT-YOURSELF (DIY) PURCHASES
What are DIY Purchases?
 No Purchasing group involvement
 Specialized goods and services
 Built-in customized templates
 Simplified approval workflow
 Unique to business or divisions
Benefits
 3-way match for better control
 Centralized receiving online of invoice
 More efficient spend consolidation
 More convenient commodity tracking
 Budget commitment upon Purchase Order approval
 Maximize functionalities of the SAP Ariba system

15. Advertising and Media – 28%
Courier and
Forwarder
22%
Drugstore and
Distributor – 11%
Other Professional
Services – 9%
Building Rental – 8%
Research and
Development – 6%
Catering Services- Sponsorship –
6%
Packaging Development – 3%
Company-Sponsored Activities- 3%
Transportation Rental – 2%
Membership Dues – 1%
Trainings and Seminars – 1%
Medical Program and Services – 0.5%
Plants & Flowers – 0.1%
USD 37 MM spend
9,100 POs
520 suppliers
DIY SPEND DATA (2015)

16. Manage
Pay
eBidding
Contract
Source
Receive
DIY
Non-Catalog
Catalog
Source &
Contract
Request & Buy
Invoice & Pay
THE FRAMEWORK

17. CHALLENGES AND BENEFITS
 Users’ online approval and
receiving
 Suppliers’ delay in PO
confirmation
 Technical issues related to
SAP Ariba solutions
 Large, mobile workforce
 Web-based
 Data capture at source
 PO transmission via cloud
 Real-time recording of
transactions
 Faster turnaround time for
requisitions
 Better spend analysis tool –
auditability and
transparency
Challenges Benefits

18. Manage
Pay
eBidding
Contract
Source
Receive
DIY
Non-Catalog
Catalog
Source & Contract Request & Buy
SAP Ariba mobile app - Buyer
Service Procurement
Supplier Management via SIPM
Invoice & Pay
THE FRAMEWORK – NEXT PHASE

19. NEXT PHASE
SAP Ariba mobile app - Buyer
 Leverage on the use of mobility
 Can work anywhere and faster
on mobile.
 As an additional channel for
decision making
Key Benefits
Implementation Strategy
 Pilot to major/ critical users first
 Implementation time: Q4 of 2016
 Estimated number of users – 1,800

20. Implementation Status:
Final Testing Stage
 Production Environment: Q4 of 2016
 Target Implementation: Q1 of 2017
Tool to measure and monitor
Supplier’s performance
 mitigates risk
 drives continuous improvement
What is SIPM?
NEXT PHASE
Supplier Information Performance Management

21.  Users can pre-approve service billings to minimize errors
 Accurate and efficient processing of service invoices
Key Benefits
 Manpower Services
 Travel (Plane Tickets)
 Hotel & Land Arrangements
 Other Services
Categories
NEXT PHASE
Service Procurement

22. Maraming Salamat!

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