The following is a summary of the topics discussed during this session facilitated by Craig Myers (Director, Ariba Commerce Services).

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 Diversity:

  • One customer is building a unique custom solution using Ariba Services Procurement (formerly known as ACP) to ensure greater diversity spending.
    • The basic concept is that a collaborative requisition will be sent to the primary supplier who will then create separate line for the amounts to be spent with diversity suppliers.  The PO will then be sent to the minority line item suppliers.
  • REQUEST:  Ariba should do more to certify that minority suppliers truly qualify for that status (as opposed to simply allowing them to check that box on the Ariba Network)

 

Sourcing Adoption:

  • Barriers to adoption:
    • UI is too complex for the casual user to pick up easily (without regular use) - however 9r1 is somewhat better than 4r4
    • Current team is great a negotiating without the use of a tool
  • QUESTION:  What are best practices for selling the value proposition of using Sourcing internally?
    • Establish a separate internal training team (power users) and require that all users complete at least 5 events per year
      • Utilize "lock out" until users complete training and/or tests
    • Establish a policy that requires explanation for any instance when the Sourcing tool is not used
      • Leadership bought in because this guaranteed more centralization (all docs in one place)
      • Put legal on the workflow to prevent the creation of a contract without using tool
      • Tie usage of tool back to employee business objectives
    • Create a Center of Excellence (COE) - examples:
      • 2 administrators supporting 14 Sourcing Category Managers
      • 3 individuals who sit in the Procurement organization supporting 100 users
      • 20 individuals in low cost countries supporting 3000 users
    • Key is to have leadership support on any adoption initiative
      • Create anecdotal examples to sell to leadership (a couple of events that you know will lead to big savings)

 

Suggestions/Recommendations for Ariba:

  • Ability to use Sourcing to create a "virtual buyer" environment for standard commodities - keep an RFx open at all times to receive bids and have the system automatically choose based on price and leads
  • Improvement in hotel and meeting sourcing functionality
    • Typically have over 1000 vendors and this isn't supported by Ariba
  • Allow the creation of multiple supplier profiles in Supplier Performance Management (SPM) - through Sourcing questionnare functionality
  • Explain the difference between SPM and SIPM (same module in On Demand product)