Hear how Smith & Nephew are gaining real advantages and efficiencies by using a single platform in the source-to-pay environment. Learn about the company's sourcing and procurement transformation.

1. Andrew Croston
Dominic Cunnew
Daniel Silver
Smith and Nephew Team Today:

2. 2
Smith and Nephew –
SAP Ariba Journey
1) Background and Transformation
2) Downstream Focus
3) Upstream Delivery

3. About Smith and Nephew
3

4. Our Business
4

5. 5

6. Transforming Procurement
#MakeProcurementAwesome

7. PRIVILEGED AND CONFIDENTIAL
Global Procurement Strategy
What we’re doing to improve delivery/value for the Business:-
Page 2
Create Global
Procurement
Team, so far:
- China
- Brazil
- South Africa
- India
- Columbia
- Mexico
- Russia
1
2
3
4
S+N Dinosaur Supply Chain – 20,000 Vendors
Top 25
Strategic Vendors
Preferred Vendors
3000
Approved Vendors
(Small Tail) 5000
5
Compliance, reduce Financial &
Fraud Risks:
- Global Policy Roll-out
- No PO No Pay
- No Contract No PO
- All Contracts on Ariba
- All Contracts Procurement Signed
6
Cost Out / Price Down:
- Tail End Project
- Year End $ Target
- Non contracted Vendors
- Post Contract (SRM)

8. PRIVILEGED AND CONFIDENTIAL
Procurement Transformation:
Ariba Project
Kick-off
March 1 2016
Phase 1
Upstream Go-Live
Sept 19 2016
Team Bolster
-New PM
-Change Lead
Phase 1Partner
Exits Project
Phase 2
Delivery Partner Engaged
Phase 2 Kick-off Jan
2016 - Downstream
P2P Go Live:
PO & Invoices
Q2 2017
Go Live Q2 2017
Catalogues, Spot
Buy, Guided Buying
Peak 2018
World Class
Indirect
Procurement
Project Ariba is a
complex deliverable,
Mount Everest
depicts our challenge
Downstream? Transactions:
- Purchase Orders
- Invoices
- Catalogue and eBay orders
- Guided Buying
Upstream? Events such as:
- Request for Quote
- Request for Proposal
- Reverse Auction
- Contracts db + Work Flow

9. The benefits derived and Implementation of P2P, Guided Buying and Spot Buy
Ariba Downstream

10. What challenges did we face?
1. We need to reduce
costs
3. We need to
improve visibility
2. We need better
fiscal control and
compliance
5. We need to work
more efficiently
4. We need to
consolidate the
supplier base

11. Why Ariba?
Spot Buy
Guided Buying
Purchase to Pay

12. Benefits to Smith and Nephew from Guided Buying
1. We need to reduce
costs
3. We need to
improve visibility
2. We need better
fiscal control and
compliance
5. We need to work
more efficiently
4. We need to
consolidate the
supplier base
Guided Buying:
• Centralises spend to approved suppliers
• Increases expenditure data for later use in category
planning
• Easy to use
• Increases visibility of procurement approved suppliers

13. Benefits to Smith and Nephew from Spot Buy
1. We need to reduce
costs
3. We need to
improve visibility
2. We need better
fiscal control and
compliance
5. We need to work
more efficiently
4. We need to
consolidate the
supplier base Spot Buy offered us the following benefits:
• Visibility at the lowest levels of spend
• Replace the one-time-ad-hoc vendors to a single
Spot Buy proxy vendor
• Fill existing catalog gaps
• Price comparison opportunity

14. Benefits to Smith and Nephew from P2P
1. We need to reduce
costs
3. We need to
improve visibility
2. We need better
fiscal control and
compliance
5. We need to work
more efficiently
4. We need to
consolidate the
supplier base
P2P has the following benefits:
• Streamlined requisitioning process within all one
system
• Reduce the number of ERP systems currently in place

15. Key stages of Implementation
Design
Workshop
• Outline initial design & timescales
• Identify and incorporate key stakeholders
Build Workshop
• Identify changes to be made to the current iteration of the system
• Identify progress and roadblocks
Systems
Integration
Testing
• Ensure Ariba downstream elements integrate with finance systems, MDM systems
• Identify any challenges which need to be overcome
User Acceptance
Testing
• Ensure final build works as planned
• Is the language used appropriate for the global end users?
Go Live
• Communicate and publicise the new system via company intranet, posters, emails
• Review and build upon the feedback received

16. What’s changed?

17. The journey so far, Smith and Nephew’s use of the Ariba solution and eAuctions
Upstream

18. Upstream to date
• Live with upstream in September 2016
• Supplier onboarding (SIM)
• Sourcing
• Events
• Savings Form
• Contracts

19. Upstream to date
• Live with upstream in September 2016
• Supplier onboarding (SIM)
• Sourcing
• Events
• Savings Form
• Contracts
Events to date
• 16 RFI
• 236 RFP
• 9 eAuction
Savings forms to date
• 271 Approved saving forms for FY2017

20. Savings Form
Data capture
• Sourcing project meta data
• Different savings types
• Baseline, Estimated, Actual,
Negotiated
• Monthly Allocations
Reporting
• Approval status
• Single currency
• Calculated fields
• Dashboards

21. Awesome eAuctions

22. Why do an eAuction
Pros:
• Transparent
• Generates competition
• More savings
Cons:
• Price is the main deciding factor
• Must be specific
• More opportunity for error
eAuctions are a dynamic Procurement tool

23. Volunteers please
• 3 Volunteers
• Will be required to participate in paper based eAuction as suppliers
• May be ask to explain reason behind bids

24. Live eAuction
Plantronics Blackwire 300, USB headset
RFP: All 3 participants place 1 bid
2nd and 3rd placed participants place 1 more bid
Has anything changed?
How could this have been improved?
1. Minimum bid decrement
2. Show lead bid
3. Buffers
Overtime, 30 seconds, any more bids?
Was this any easier?
$ Unit Price Here