S/4HANA and SAP Ariba: 1+1 = 3!

"S4 is the nucleus, the digital hub of this amazing digital company
that helps other companies achieve their dreams - and SAP Ariba
is clearly the cloud and business network solution for
procurement for our company. Hard stop.“

- Bill McDermott
SAP Ariba solutions and the SAP customer base
Common hybrid scenarios to consider
On-premise procurement with Hybrid procurement Full cloud procurement with
Ariba Network with Ariba Network Ariba Network
Network

PO/invoice automation Catalog PO/invoice automation Catalog PO/invoice automation Catalog

Ariba

content content content

Dynamic discounting Dynamic discounting Dynamic discounting
Supply Chain Collaboration Supply Chain Collaboration Supply Chain Collaboration

Native integration
solutions

Ariba Spend Visibility Ariba Spend Visibility

Ariba Sourcing
Cloud

Ariba Contract Management
Ariba Supplier Information and
Performance Management
Ariba Guided Buying on S/4 – Q4
Ariba Sourcing
Ariba Contract Management
Ariba Supplier Information and
Performance Management
Ariba Buying

Cloud integration
On-premise

SAP SRM
solutions

SAP S/4HANA SAP S/4HANA SAP S/4HANA

or SAP ECC or SAP ECC or SAP ECC
 107 = SAP ERP and S/4 HANA On-Premise
Standard integrations - 160 53 = Other Formats – Network Sell side

Quote request Sourcing Award to PO Sourcing Award to Outline Agreement

Purchasing organization Supplier (outbound) Material master/plant
Master Purchasing groups Plants Manufacturer part number Transaction Quote message Contract Workspace
Sourcing

Company code Incoterms Purchase Info Record

Payment Terms Bill of Material Material Groups (product categories)

14 Supplier (inbound) Material Master

5
Ariba Applications

Master
Account categories Purchase groups Company code internal order mapping Material PO Expense report Advance Payment requests
70
Procurement

Assets Tax codes Company code WBS element mapping Transaction Service PO PO status Advance Payments
Company codes WBS elements Purchasing organization supplier combo Change PO Change PO status Cancel Advance Payment
Cost centers User data Account category field status Cancel PO Receipt status Requisition

29 Cost center languages

ERP commodity codes
General ledger
Internal orders
Plant
User group mapping
Remittance locations
Supplier data
Supplier location
Contracts
Plant to purchasing organization
Currency conversion rates
Fund management objects
Purchasing organizations
General ledger languages
22 Close PO
Goods Receipt
Service Entry Sheet
Invoices (Ok-to-Pay)
Invoice status
Remittances
Catalog
Change Requisition
Budget Check
SES Response

Payment terms FM derive

Standard PO Inbound Receipt Outbound payment remittance X12 v4010 EDIFACT D96A OAGiS v9.2
Buy side Subcontract PO Outbound Receipt Inbound remittance advice Sell side
810 ORDERS ProcessPurchaseOrder
Buy side
Consignment PO Service Entry Sheet Remittance Cancellation
820 ORDCHG AcknowledgePurchaseOrder
Change PO Service Entry Status update Inbound Payment proposal
824 ORDRSP NotifyShipment
Cancel PO Invoice (incl. Credit Memo) Outbound Payment proposal
830 (Forecast) INVOIC ProcessReceiveDelivery
Order Enquiry request Invoice status Scheduling Agreement (incl. Forecast/
830 (Commit) DESADV NotifyPlanningSchedule

28
Order Confirmation Carbon copy (CC) invoice Delivery Schedule and JIT)
846 CONTRL NotifyPlanningSchedule
Inbound Ship Notice Quote request Product Replenishment
850 RECADV
Ariba Network

Transfer movement / product activity NotifyInventoryConsumption

Outbound ASN Quote message 855 REMADV NotifyProductionOrder
Component consumption Payment instruction file 856 INVRPT NotifyInventoryBalance

90
860 DELFOR ConfirmBOD

53 861
862
866
866 (MO/PO)
DELJIT
APERAK

xCBL v3.0
PiDX v1.61
Order
ChangeOrder
OrderResponse
997 Order
Order Order confirmation Remittance advice ChangeOrder Invoice
Sell side Change order Invoice Delivery schedule (forecast) EDIFACT D01B
InvoiceResponse InvoiceResponse
Cancel order Shipment notification Delivery schedule (JIT)
INVOIC GoodsReceiptNotice

9 ServiceEntrySheetResponse
OrderResponse
Invoice
AdvanceShipNotice
ServiceEntrySheet
RemittanceAdvice
What is the guidance related to customers at different
S/4 investment stages…?

• S/4 co-deploy with SAP Ariba to self-fund the S/4 investment simultaneously
• Extend the digital capability in parallel and fast track your digital transformation in one hit

• S/4 installed customers, expand with SAP Ariba – help fund the S/4 investment
• Now extend the digital capability outside your organisation to encompass your suppliers

• S/4 2018 investment, select SAP Ariba NOW to help self-fund the future S/4
investment
• Start your digital transformation now and get connected fast – it’s the easy bit…
S/4HANA+SAP Ariba realises savings from
year 1! Self-funding!
Best-in-Class Business Outcomes: Typical Results in Source-to-Pay
Cost Reduction
 Negotiate better pricing based on advanced negotiation tools
and insights into consumption history
 Savings on ad hoc purchases through demand management and
spot quoting
 Market competition to drive price reduction in unit costs
4-15% in average unit price reduction
Process Efficiency
 Drive sourcing productivity through deep spend analytics and
immediate supplier discovery
 Reduce supply chain operation costs (e.g. content
management, supply chain planning/execution and order
processing)
 Reduce cycle times and increase AP productivity through
invoice process automation
40-60% in operating cost reduction
Spend Compliance
 Control maverick spending, risk and fraud through use of
contracted suppliers and preferred specs with standard,
repeatable buying processes
 Ensure supplier compliance to preferred terms with
reconciliation of invoice, PO, receipt & contract
€20M in contract leakage per €1 billion of spend
Cash Management
 Avoid unintended cash flow drainage with a formalised
payment terms strategy
 Realise early payment discounts and/or margin sharing via
shorter invoice processing cycle times and greater % of
spend on discount or financing
 Capture rebates on high volume, low value spend through
card programs
€1-2M in savings per €1 billion of spend
 Deloitte following their choice of
SAP Ariba as part of their S/4HANA program

LINK: http://www.computerworlduk.com/applications/deloitte-upgrades-s-4hana-align-global-financial-processes-3655497/
S/4HANA & SAP Ariba approved process flow
content now available
Industry content for SAP Ariba in the context
of S/4HANA available

Industry focused materials available highlighting our 2016-2017 sales success in EMEA/MEE
plus relevant solutions and its value drivers.
Summary
• There IS now alignment at product level between S/4 & SAP Ariba product management…
• So we should stress this when leveraging the approved collateral…SAP Ariba has its place.
• The self-funding aspect and de-risking is absolutely proven to work when dealing with GAD’s
• The Ariba Network is a central pillar in SAP’s long term digital strategy with S/4HANA
• S/4 HANA doesn’t have a Network…that’s your start point…work from there
• SAP Ariba is positioned as THE procurement in the Cloud solution set for SAP
• There is a migration pathway and timeline to suit any and all customers
• Customers will want objective recommendations, recognising legacy estate/appetite for
change
• Stay upto date with latest collateral via the Jam sites we mentioned – its constantly changing