What Your Spend Data Is Telling You and Why It’s Worth Listening

PUBLIC
June 2017
Spend Analysis: What Your Spend Data Is
Telling You and Why It’s Worth Listening

2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Overview and Introductions
Panel Presentations
 Christoph Verschuere – Etihad Aviation Group
 Alain Daigneault – Manager Spend Analysis, SAP Ariba (SAP)
Open Q&A
Agenda

Data aggregation
Dashboards and reporting
Traditional business intelligence is just the tip of the iceberg…
Commodity classifications
Supplier data enrichment
Market insights and benchmarks

“Knowing is not enough, we
must apply. Willing is not
enough, we must do.”
Bruce Lee
Spend analysis

Panelists
Alain Daigneault
Manager Spend Analysis
SAP Ariba (SAP)
Christoph Verschuere
Corporate Head of Information & Technology
Etihad Aviation Group

Panel Presentations
Open Q&A
Agenda

SAP Ariba
Spend Analysis
SYNERGY – sharing, connecting, winning

Knowledge is Power.
It controls access to opportunities and
advancement. Peter Drucker
Etihad Airways is the National Airline of the
United Arab Emirates, established by Royal
(Amiri) Decree in July 2003. It commenced
operations in November 2003 and has
developed into one of the fastest growing
airlines in the history of commercial
aviation.
OUR VISION
The airline seeks to reflect the best of
Arabian hospitality - cultured, considerate,
warm and generous - as well as enhance
the prestige of Abu Dhabi as a centre of
hospitality between East and West. Our
goal is to be a truly 21st century, global
airline, challenging and changing the
established conventions of airline
hospitality

What is SAP Ariba Spend Analysis ?
Drives business decisions regarding
Spend & Sourcing Opportunities
Enables Strategic Category
Management Activities
Comprehensive view of spend
Reducing Procurement Cycle Time
Transparency
Consolidation
Savings Opportunities
Spend Compliance

SAP Ariba Spend Analysis as a Service @ ETIHAD
1. What is this Service 2. Users 3. Business Capabilities Supported
4. What is included? 5. Cost of the service 6. Performance Expectations
7. Dependent Systems
Spend Analysis business service enabled
through public cloud platform that provides
a comprehensive spend analysis of
company wide spending, enriched with
supplier database.
The service drives ongoing spend
optimization and is available for all
companies and Equity Partners.
This service includes the following:
• Spend data extraction from 5 EY
backend legacy systems:
• EY Oracle
• EAS Oracle
• EY Engineering Oracle
• Almira
• FuelPlus
• Commodity classification
• Spend data enrichment
• Dashboard creation
• Reports creation
Run Frequency –
• Offline – Quarterly
• Online – Continuous (excl. enrichment)
• Spend management leading to support
streamlined and best in class sourcing
and procurement
• ID sourcing opportunities
• Manage maverick spend / improve contract
compliance
• Increase spend under management
• Reduce sourcing cycle times
• Manage purchase price variance
• Supplier rationalization
• Manage supplier risk
• Diversity management
Key Metric Target
Service hours 24 x 7
Spend Savings
To be quantified
quarterly on the
basis of the
sourcing projects
Data Quality
Minimum 90%
Supplier accuracy
Minimum 90%
Commodity
classification
Total number of concurrent users: 200
Total number of users defined: 82
Total number of Super users: 8
Business Owner/Administrator: Corporate
Analytics – Spend Analysis
• Usage based costing based on total
spend value
• Cost of the service: xxxxx USD per
annum for xxxx Billion USD Spend
covered
• OKTA (Single Sign On)
• Data from Source Systems

SAP Ariba Spend Analysis – Enabler for Delivering Benefits
Transparency
• Top spend categories
• Top suppliers in each category
• Risk management - Judgement/ Bankruptcy indicator
Consolidation
• Visibility of total spent by Supplier up to Global Parent
• Visibility of total Etihad Group Spend by Category/Supplier *
Savings Opportunities
• Improved Sourcing Pipeline
• Economies of Scale
• Analyze supply base diversity
• Supplier and category optimization
• Visibility into price indexes and discount leakages
Reducing procurement Cycle Time
• Current and detailed information available
• Focus on analysis & planning, not hunting & gathering
Contract Compliance
• Highlights out of contract spend
• Identify Maverick Spend
Dashboard
Standardized Reports
by user type
Customized Reports – Example
Spend by Supplier Region ,
Country , City

SAP Ariba Spend Analysis Enrichment Process
Data
Extraction
Data
Consolidation
Data
Validation
Data Upload
Data Upload
Validation
EY data
approval
Supplier
Enrichment
Commodity
Enrichment
Enriched
Data
Published
Dun & Bradstreet
+230Mio Businesses
SAP Ariba Supplier
Network
+500K Businesses
- Supplier Normalization/
Rationalization
- Parentage
- Enrichment: Judgements ,
Bankruptcy, Diversity, Green

Supplier Parentage
SAP Ariba Spend Analysis enables us to see how much the Etihad Group is spending with a particular Supplier Group.
Example: There are more than 10 suppliers registered in the ERP Systems that are all part of the “United Technologies”
Group.

Supplier Fragmentation
SAP Ariba Spend Analysis allows for easy supplier fragmentation analysis.
We can run a report to see how many suppliers are in each category of spend
We can add alerts. Example: Any category above 20 suppliers highlight in yellow , any category above 50 suppliers highlight in Red

Commodity Enrichment
Machinery & Equipment
Freight & Handlings
Pool Equipment Capital
Accrual for Commission
Unallocated Receivables
Schenker Logistics LLC
Schenker Deutschland AG
HM-Schenker Logistics LLC
Schenker AG
Schenker Limited Kenya
Supplier & Commodity Visibility in the financial system
Supplier listed as multiple vendors in ERP Spend type presented by GL account
SAP Ariba Spend Analysis – Providing Transparency on spend categories per supplier
Spend Correctly classified as Cargo Transport All Schenker vendors grouped under one Global Parent

Category Analysis
SAP Ariba Spend Analysis enables us to analyze categories to identify spend patterns, compare to
benchmarks and identify top suppliers
The Top 10 Legal Suppliers based on Spend
make up 76% of total legal fees
56% of Total Legal Fees are
for the Top Vendor
xxxxxxxxxxxx
Legal Fees Analysis

Etihad is
Embedding
Spend
Analytics in a
continuous
improvement
Process
 Spend Vis enrichment process is ongoing
 We will continue to create enrichment
rules to classify data better and more
accurate
 The accuracy to more granular spend
category levels will improve over time
 Active participation from Category buyers
and managers is required to ensure
maximum enrichment confidence
 Super Users have the responsibility of
submitting Enrichment Rules
 But the Strategic Tool delivers
immediate business value and insight,
even on legacy data

Panel Presentations
Open Q&A
Agenda

User Adoption
 Let Super Users Lead the Way
 Better Your Data on Your ERP
 Enable Custom Taxonomies
 Create Best-in-Class Dashboards and Reports
 Leverage Best Practice Center Projects (Most of Them Free of Charge!)
Open Q&A
Agenda

“Where is the data coming from?”
“Can I trust the data?”
“Why should I use this tool?”
“How do I identify opportunities and areas for improvement?”
“How do I build the reports I need?”
“What are the data telling me?”
“Why is this any better than my offline Excel spreadsheets?”
Deploying spend analysis raises questions

 Can articulate the business case for SAP Ariba
Spend Analysis
 Single point of contact for end users
 Advanced user of analysis who can train your
users
 Coordinate with SAP Ariba deployment lead
and internal stakeholders on
– Custom reports and dashboard content
– Announcements, recent successes
– Communicate enrichment availability
Make adoption work –
let super users lead the way

 Trust in data and classification is essential for
user adoption!
 Regularly review commodity classifications with
predefined timeline
 Create refinement report to focus enrichment
review on newly loaded data
 Consolidate approach of online enrichment
change request (ECR) feature
 Implement “in-house” source system data
improvements to further enhance enrichment
outcomes
data improvement at source

 A custom taxonomy allows translation of SAP
Ariba classification taxonomy to end-user
language
 Enable easier execution on initiatives such as
strategic sourcing, maverick spend
management, and rebate programs
 Build taxonomy at a deeper level to support
direct spend vs. indirect spend
 Work toward a 1:1 mapping with SAP Ariba
classification taxonomy to preserve granularity
custom taxonomies

 Keep dashboards and reports focused on key user
groups
 Use predefined easily accessible content
 Leverage announcement/news section for project
successes, milestones, timeline
 Integrate compound reports to give 360-degree
view of suppliers and commodities
 House relevant documents on dashboard (cheat
sheets, presentations, …)
Make adoption work – dashboards and reports

* as of Q1 2017
*
leverage best practice center projects

Summary: 5 key points to take away
1. Enable super users to support your end users.
2. Benefit by trustworthy data thanks to ongoing refinement.
3. Implement custom taxonomies to support effective sourcing and spend management.
4. Make dashboard content easily accessible and group-relevant.
5. Take advantage of the best practice center!

Please Complete Session Survey
Locate Session Click Surveys Button Select Breakout Survey Rate Session

Thank you.
Contact information:
Alain Daigneault, MBA
SAP Ariba (SAP), Spend Analysis
+420 225 375 791
alain.daigneault@sap.com

What Your Spend Data Is Telling You and Why It’s Worth Listening

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a What Your Spend Data Is Telling You and Why It’s Worth Listening

Semelhante a What Your Spend Data Is Telling You and Why It’s Worth Listening (20)

Mais de SAP Ariba

Mais de SAP Ariba (20)

Último

Último (20)

What Your Spend Data Is Telling You and Why It’s Worth Listening