Nonsourced, one-off emergency spot buys can account for as much as 15% of buyers’ indirect spend and represent significant opportunities for suppliers. Attend this session to learn more about managing spot-buy categories and purchases through Ariba Spot Buy as a buyer and a supplier. SAP Ariba solution customers are joined by an independent consultant on Ariba Spot Buy to discuss their experiences and how to best leverage the service to manage spend and grow revenue.

1. Simon Roberts, Head of Procurement Solutions, RS Components
Marc Hoessels, Director of Indirect Tax, PWC Belgium
Sebastian Englich, Head of Procurement Solutions Excellence, SAP
Alexander Graff, Corporate Sales, Schweitzer
Claudio Pinto, Senior Director Spot Buy, SAP Ariba (SAP) / June 15, 2016
Transform Noncontracted Spend into Supplier Opportunity
Public

2. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 2Public
Important information
This information reflects the status of SAP Ariba solution planning as of June 2016. All such
information is the confidential information (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 SAP or Ariba to any particular course of
business, product strategy, and/or development. Its content is subject to change without notice.
SAP and Ariba assume no responsibility for errors or omissions in this document. SAP and 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.

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Welcome our guests today
Simon Roberts
E-Procurement Development Manager, RS
Components
Marc Hoessels
Director, PwC
Sebastian Englich
Head of Procurement Solutions
Excellence, SAP
Alexander Graff
Head of Corporate Business, Schweitzer
Claudio Pinto
Senior Director Spot Buy
SAP Ariba

4. Simon Roberts
About Yourself and Your Role at RS
Head of procurement solutions for large customers,
developing solutions and services for Enterprise, 7
years at RS, now heading up strategy for added
value services.
What is making e-commerce exciting and
terrifying a the same time?
Simon Roberts | RS
E-Solutions Development Manager
RS Components Ltd
email: simon.roberts@rs-components.com

5. RS Curriculum Vitae
AWARD WINNING DISTRIBUTOR
WIDEST PRODUCT RANGE OF ANY SUPPLIER
BEST IN CLASS SERVICE AND DELIVERY CAPABILITY
ONE MILLION
CUSTOMERS WORLDWIDE
GLOBAL DISTRIBUTOR
IN OVER 80 COUNTRIES
EXPORTING
CAPABILITIES
44,000 SHIPMENTS
DAILY
500,000
PRODUCTS
DESIGN
SOLUTIONS
PROCUREMENT
SOLUTIONS
TRADE
COUNTERS
MULTI-AWARD
WINNING DISTRIBUTOR
FTSE 250
COMPANY
6,200
EMPLOYEES
QUEENS EXPORT AWARD
FOR ENTERPRISE
3,500
SUPPLIERS

6. Our core product categories are Electronics, Automation & Control,
Electrical, Test and Measurement and Tools and MRO Consumables.
SEMICONDUCTORS
TOOLS &
CONSUMABLES
AUTOMATION &
CONTROL
ELECTRICAL, TEST &
MEASUREMENT
INTERCOMMECT, PASSIVE &
ELECTROMECHANICAL
COMPONENTS

7. RS Global Presence
We have direct operations in 32 countries, with
distributors giving us an indirect presence in 37 more.
Distributor countries
Operating countries

8. How well do you understand your own MRO procurement behaviours?
Begin by considering how well you understand your own
consumption behaviour.
(what you buy, where you buy it from, when you buy, why you buy, whom you buy from)
PRODUCT SAVINGS
INVENTORY SAVINGS
SOURCING SAVINGS
PURCHASING SAVINGS
FREQUENCYOFPURCHASE
NUMBER OF UNIQUE ITEMS
NATURE OF MRO

9. Marc Hoessels
What is a nice tax guy doing in a place
like this?
Tax technology director, validated compliance for
various solutions for SAP
What is About to Change in Procurement?
What elements of accounting and tax have
to evolve within companies for them to be
more agile in procurement?
Marc Hoessels
Director Indirect Tax, PwC
+32 496 513080
marc.hoessels@be.pwc.com

10. PwC June 2016
The worldwide PwC network
PwC around the world
The worldwide PwC network
208,000employees
157countries
FY11: USD 29.2
FY12: USD 31.5
FY13: USD 32.1
FY14: USD 34
FY15: USD 35.4
revenue,
billions

11. PwC June 2016Capability Statement
Why PwC?
Our standard compliance approach for e-invoicing & beyond
PwC has a strong reputation for helping
businesses ensure their e-invoicing & archiving
service comply with national regulations. Our
“comfort letters” are being actively used by the
world-leading global service providers as a
marketing tool for their (potential) clients.
We have conducted numerous surveys of the tax and legal requirements regarding e-
invoicing, e-archiving, e-signature and invoice content legislation. The territorial scope of
such assistance is rapidly expanding. Whereas initially the scope of such projects was focused on
EU countries, the number of projects dealing with non-EU countries has been increasing
significantly, bringing into scope countries as Argentina, Bahrain, Brazil, China, Colombia,
Costa Rica, Ecuador, Guatemala, Guam, Honduras, Hong Kong, Iceland, India, Indonesia,
Israel, Japan, Kuwait, Macau, Malaysia, Mexico, New Zealand, Oman, Pakistan, the Philippines,
Peru, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Switzerland, Taiwan,
Thailand, Turkey, Uruguay, United Arab Emirates, Ukraine, Vietnam, to only name few of them.
We are launching update cycles on an on-going basis to
make sure our clients are ahead of legislative changes that
could potentially affect their business.
In addition, we have established “helpdesks” making sure
all business critical questions can be answered within the
shortest possible delay.
Our global e-invoicing and e-archiving network has
trusted relations with the standardisation bodies
of regulators and with governments globally.
PwC has extensive experience with respect to the End to End
implementation of AP/P2P automation projects. This
process should be fully integrated in the different
business units of a company to ensure compliance &
efficiency from Accounting, Tax & Legal point of view

12. PwC June 2016Capability Statement
PwC
Our global presence and Network
Count on a global network, local expertise and individual service
With PwC, you will have access to the leading global Network in more than 153
countries, with over 2.000 ITX experts and more than 12.000 technology consulting
experts. To date, our e-invoicing core team, in collaboration with PwC’s e-invoicing
network has worked on (e-)invoicing and (e-)archiving related assignment/queries in
more than 120 countries around the world.

13. Sebastian Englich
What is your role at SAP? How disruptive is noncontract spend for
you? What other innovation would you
like to see in procurement?
Sebastian Englich
Head of Procurement
Solutions Excellence
+49 151-16809848
sebastian.englich@sap.com
Sebastian has been with SAP procurement for over 15 years and
leads the Procurement Solutions Excellence Team. The team is
responsible to implement and adopt cloud solutions for SAP’s Global
Procurement Organization and move procurement toward a value-
adding enabler role, focusing on cloud, simplification, and automation
within the end-to-end P2P process framework.

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The SAP Global Procurement Organization (GPO) vision
Global procurement combines all procurement functions and source-to-pay (S2P) activities globally.
Our GPO vision is to help SAP buy better and be a value-generating business partner to the
business for all procurement related activities.
78,000+
SAP employees
€ ~4.0billion
Spend
19,000+
Global suppliers
>778,000
Annual invoices
>547,000
PO line items
Key performance indicators
Customer satisfactionValue contribution to P&L Employee satisfaction
Facts and figures

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Challenges – our value proposition

16. Alexander Graff
What is your role at Schweitzer? Why are you so good at what you do?
Who causes noncontracted spend?
Alexander Graff
Head of Corporate Business
Schweitzer Fachinformationen
Elsenheimerstr. 41-43
80687 München
Tel: +49 89 55134-131
A.Graff@schweitzer-online.de

17. Overview slide about Schweitzer
Founded 1868, 600 staff, 200 Mio €, 30 Million items in the catalogue, 50,000 suppliers
3 key services/tools
 Buy, Manage and Use
Clients across Multiple Industries
 Finance, Consulting, Chemical/Pharma,
 Automotive, Media, Manufacturing

18. 2016+ what we think
 The “user” is the new customer
• Strategic buyers connect you to the system, but the users spend money
• Users are not price sensitive (really) -> they want it all, easy, now and wherever they are
• “Your products” have to be visible, “findable” and described good enough to make a purchase decision
 Single Supplier Strategy will eventually end
• There is no need for it, as long as you have one process and a business network to update master data, match
invoices and distribute orders
• Be prepared: best content and best supply availability will win
 The long tail is a long tale
• If every supplier would open up their catalogue in full (and provide everything in the catalogue that they offer) – there
would be no need for a long tail

19. What we are proposing
And what we can and want to discuss

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Supplier opportunity: What might be happening
There is nothing “one-off” about “one-off” purchases – they happen all the time
Source: “Shining a Light on ‘One-Off’ Purchases,’” Procurement Leaders, 2016.
Spot buy
 15% of indirect goods – both strategic and tactical
 Nonsourced/noncontracted
 Not in company catalog
 Needed immediately
Suppliers
20% 40% 60% 80% 100%
$$$$
$$$
$$
$
Tactical
 20% of indirect spend
 80% of suppliers
 1–4 weeks
Strategic
 80% indirect spend
 20% of suppliers
 4 weeks

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Common spot buy categories
Examples of spot buy purchases
Replace a broken security camera that
was not in the company catalog
Reduce backlog on tactical purchase
requests to improve customer satisfaction
Find a replacement for a power cord his
boss left at the hotel on her last trip
VP of procurement Facilities manager Executive admin
Other urgent and
unanticipated items
Facilities and
maintenance
Office furniture and
supplies
Electrical and
test equipment
Technology and
accessories
MRO and
industrial supplies

22. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 22Public
Suppliers for spot buy in Ariba Network
Suppliers for spot buy
 Commodity-specific suppliers in Ariba Network
– Maintain spot buy catalog
– Support transactions in Ariba Network including purchase
order, order confirmation, advance ship notice
– Support invoicing
– Support shipping options and returns
Supplier benefits
 Increase in existing customer sales
 Acquisition of new customers
 Reduced onboarding time for customers
Buyer benefits
 Regional supply
 Trusted suppliers
 More category coverage
SHIP
Spot buy ecosystem
APPROVE PAY
SEARCH
BUYERS
SAP Ariba procurement
solutions
ANALYZE FILTER
Network
sellers
Company
catalog
Spot buy
catalog
SUPPLIERS
Other urgent and
unanticipated items
Facilities and
maintenance
Office furniture and
supplies
Electrical and
test equipment
Technology and
accessories
MRO and
industrial supplies

23. © 2016 SAP SE or an SAP affiliate company. All rights reserved. 23Public
Let’s talk about this
The suppliers’ perspective
What contracted spend categories are
the most vulnerable to ad hoc spending?
How would you transform contracted
spend to include ad hoc spend? Top 3
things you would do?
What are the top 3 buyer success
metrics? Seller metrics? Future metrics?
What is causing B2B to begin to look
and feel like B2C?
The buyers’ perspective

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Any recommendations for buyers and sellers
© 2016 SAP SE or an SAP affiliate company. All rights reserved. 24Public
Things
you should
do
Things
you should
NOT do
Things
you would
like to do

25. Thank you for attending
Contact information:
Claudio Pinto
Senior Director
Spot Buy Supply
M: + 1 925 216 1767
Palo Alto, California
Claudio.Pinto@SAP.com

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