The following is a summary of the topics discussed during this session facilitated by Charles Durazo (Sr. Product Manager, SPM), Chris Hartman (Discovery Adoption Consultant), Gretchen Eischen (Sr. Network Connector), and Meagan Carpenter (Sr. Network Program Manager).

There are questions and follow-up items embedded in the summary.  Some have been answered, and we are still working on answers to others.

 

Supplier Participation:

  • Any supplier with 3 or more connections always renews (100% renewal rate)
  • Large, national suppliers with catalogs (cif and/or punch-out) are the least likely to show concern over SMP fees
  • Perceived supplier concerns:
    • Fee is too high if the PO value is high and document count is low
    • Don't have the time to use a separate system to create an invoice
    • Smaller businesses don't want the hassle of joining the ASN
    • New quarterly billing structure will not be well received
  • QUESTION: What value can be articulated to suppliers to prevent negative reactions to SMP fees (especially for smaller suppliers)?
    • Diamond Buyer program has been successful - Ariba is now talking to suppliers who are considering leaving the Network

 

Ariba Discovery:

  • There are currently 630,000 suppliers that use buyer created postings to view suppliers who have signed up for that category code and location.  This creates a match that a buyer can then use to find an additional supplier.
  • Some suppliers include D&B information in their profiles
  • Original process allowed suppliers to respond to as many opportunities as they wanted.  This resulted in suppliers responding to many opportunities that they were really not qualified to do.
  • New pricing structure was put in place to prevent "spamming" by suppliers. This supplier pricing change has dropped the total number of supplier responses, but the average supplier response is a better match.
    • This new "pay as you go" pricing stucture is more difficult for smaller suppliers
    • Because Discovery is still new, Ariba will evaluate and possibly change the pricing structure again
    • SUGGESTION:  If a supplier is already paying SMP fees, they should receive some free responses
  • Buyers can access Discovery from On-Premise Sourcing (requires a small configuration by the system administrator) or can simply go to the Discovery homepage and create a Buyer's account
  • New functionality (planned for release in November) should include a supplier activity tab that will allow users to view how many responses they've submitted, for which commodities, and how many they were selected for.