ariba & ics implementation journey

1 © 2020 ASUG Confidential

Ariba & ICS Implementation JourneyArturo Schuler, Srivaths BalasubramanianIT Solution Owners

Florida Crystals


Agenda

• Who we are?• Why Ariba?• Implementation Strategy• Ariba architecture• Symbeo• Tax Engine interface• Cost of Ownership• Challenges/Gaps• Recommendations• Benefits gained


Florida Crystals/ ASR Group at a Glance

▪ Privately owned, vertically integrated producer of cane sugar and rice products.

▪ The company also has energy, transportation, tourism and real estate operations.

▪ Employees: 18,000 worldwide

Key Facts

▪ 190,000 acres in Florida▪ 250,000 acres in Dominican Republic▪ 71,300 acres in Belize▪ 39,000 acres in Mexico

Footprint in North America and Europe

Farming Refining Sales

Florida Crystals, ASR Group & Affiliates -- Vertically-Integrated From the Farm to the Table

Milling

▪ 5 sugar mills

▪ 12 million tons cane per year

▪ World’s largest cane sugar refiner

▪ 11 sugar refineries worldwide

▪ 6 million tons of refined sugar

▪ Sell to consumer, specialty, industrial and food service channels

▪ 10 consumer brands

▪ 1,000 products

▪ Focus on product and packaging innovation


Why Ariba?

✓ Simplify user experience✓ Standardization of Sourcing and Procurement processes✓ Greater compliance with the automation of several Source to Pay processes that were

carried out manually✓ Improve end to end visibility of sourcing and procurement events on a single, integrated

platform✓ Unified view of spend data for smarter decisions✓ Shift employees focus from tactical to strategic✓ Ariba is backed by the stability, innovation, and technical resources of SAP✓ Ariba Network is the largest B2B network with more than 3.6M connected companies


Implementation strategy/roadmap

Phase 1:- Commerce Automation: to replicate PO's and GR's from Core to Ariba- ICS – Invoice Conversion Service with third party partner Symbeo- Invoice Management (all invoices except Non-PO and Credit memos)

Phase 2:- Buying & Invoicing- Guided Buying (casual users)- Catalogs (Punch out and CIF)- Integrated Suppliers- Sourcing & Contracts

Phase 3:- Forecast collaboration & commitments- Inventory visibility- Quality collaboration- Auto order confirmations and ASN's- Accurate delivery dates for MRP- Contract compliance- SLP (Supplier Lifecycle & Performance)


Implementation strategy/roadmap

Work Streams:

- Buying & Invoicing

- SCC / Commerce Automation

- Supplier Enablement

- ICS Symbeo

- Catalogs

- Master Data

- Change Management & Training

- Security & Controls

- Integration & Architecture

- Sourcing

- Contracts


Architecture


ICS Symbeo – Invoice Conversion Services



The Life of an Invoice

DAY 1

DAY 2

12 PM12 PM

18

2

3

4

7

6

5

Receiving [Production Control System]Chain of custody established- Paper- Email- Fax

Mailroom and Scan- Integrity of envelopes retained- All input (paper, email, fax)converted to invoice images

Document Separation/ClassificationThe Determinator- Blank pages removed- Transactional and non-transactionaldocuments identified- Separation from or merging withappropriate invoice- Type and document structure identified

Data Capture- 99.5% SLA guaranteed keystroke accuracy- Raw Verbatim capture by India operators- Invoices are structured and categorized- 2 operators (blind dual pass)- Compare operator for discrepancies- PO line matching - over 95% of lines matched

ERP Extracts [Accounting System]Master data

Used later to perfect the invoice- Vendor Master

- PO Master- Business Units

Online Document CenterCustomer access for:

- Exceptions- Archive- Reports

- Transitional services

Output- Ariba Network


Ariba Network supplier accounts

As an Ariba Network supplier, you have two choices in Ariba Network accounts:

1. Standard account: Basic functionality, completely free for suppliers

o Collaborate on contractso Receive orders and send invoiceso Track invoice and payment statuso Transact an unlimited number of documentso Use a centralized portal for all Ariba Network transactions

2. Enterprise account: Advanced capabilities to transform your business

o Supplier-managed catalogso Unlimited RFP responses through SAP Ariba Discoveryo Supply chain collaborationo Priority customer support

Enabled

Portal

Integrated


Ariba Invoice Management

Streamline the capture, processing, matching, and approval of all your invoices with this workflow solution

Invoice Three-Way Match - Goods


Ariba Invoice Management

Service Purchase Orders processing was changed to replace Service Entry Sheets by an approval WF in Ariba IM which triggered to the Requestor of the services

Invoice Two-Way Match - Services

Requestor ApprovalAriba Workflow


Commerce Automation - PO replication from Core to Ariba

Replication is via EDI with the generation of outbound IDOCs:


Commerce Automation - PO replication from Core to Ariba

PO replicated in Ariba:


Commerce Automation - GR replication from Core to Ariba

Replication is via Proxy:


Commerce Automation - GR replication from Core to Ariba

GRN copied in Ariba:


Commerce Automation - Invoice replication from Ariba to Core

Once an invoice is reconciled in Ariba IM, the invoice will land into SAP core system via EDI with an inbound IDOC:


Landscape Process


Tax Engine – Onesource

Invoice Process flow in SAP Ariba



Integration

Supported SAP Ariba Processes:

Real-time Tax Calculation

• Goods Purchase Requisition

• Service Purchase Requisition

• Demand Aggregated Purchase Requisitions

• ERS Invoice

• Non-ERS Invoice

TA

X A

PI

SAP Ariba

INT

EG

RA

TIO

N

• Tax provider and Ariba development co-developed the API that is installed inside Ariba.

• The API pulls the needed data to allow the tax engine to calculate the correct tax for a transaction.

• Within milliseconds, the response is sent back to Ariba to be added to the Invoice to validate the vendor charged tax on an invoice to assist in the reconciliation process.

Tax Engine



Features and Benefits

➢ Up-to-date global tax content – Eliminates need to maintain in SAP ARIBA

➢ Seamless integration- Avoid reconciliation errors (PR’s, IR’s , ERS’s ..)

➢ Accurate, Fast and Cost effective - Getting tax right the first time

➢ Faster deployment and roll out with Templates to import tax setups


Cost of Ownership

SAP Cloud Service Usage Metric

FLEXIBLE BUNDLE - ARIBA SALES ORG Spend

SAP ARIBA BUY, ADD SITE ADDON Installations

SAP ARIBA STRATEGIC SOURCING SUITE Users

SAP ARIBA SUPPLIER RISK Users

SAP ARIBA BUYING & INVOICING Spend

SAP ARIBA COMMERCE AUTOMATION MEMBERSHIP Flat Fee

SAP ARIBA SUPPLY CHAIN COLLAB FOR BUYERS Spend

SAP ARIBA CATALOG Spend

SAP ARIBA SUPPLY CHAIN, FORECAST ADD-ON Flat Fee

SAP ARIBA SUPPLY CHAIN, QUALITY ADDON Flat Fee

SAP ARIBA SUPPLY CHAIN, INVENTORY ADD-ON Flat Fee

ARIBA ICS SUBSCRIPTION (SCANONE) Documents

ARIBA ICS DOCUMENTS (SCANONE) Documents

SAP PREFERRED CARE FOR SAP ARIBA % net rec

SAP SIGNATURE MGMT. BY DOCUSIGN, PROCURE Transactions

SAP Ariba Invoice Management Documents


Challenges & Gaps

• Special characters to Symbeo issue (e.g. inches quotes)

• Rounding error in GR if used per price unit (e.g. $13.25 per 1,000 EA)

• Duplicate PO’s from SAP core to Ariba

• Not able to post an invoice from different party against PO

• SE team recommends to activate conversion routine to strip off leading zeroes

• Vendor masters without Fax or Email ID

• We required #18 Functional Specs (Abap changes) and 19 func. Config (mostly MM) in Core systems

• Reporting


Benefits (phase 1)

❑ Additional controls for:

❑ Invoice party used for payments

❑ Payment Terms used in Invoice vs. Vendor master

❑ Invoice duplicate check

❑ Elimination of Parked invoices

❑ Invoice exception handling automated with Workflow

❑ Hands-free supplier invoices processing (now >50%; target for >90%)

❑ Invoices processed during FCC/ASR holidays

❑ Master data cleaned up (ISO codes, vendor data, etc.)

❑ Standardized processes for procurement scenarios, documents creation and handling


Recommendations

• Keep in mind Ariba B&I is designed for indirect procurement

• Make sure to define document flow monitoring processes at each integration point (Symbeo – AN –

CIG – SAP)

• Business stakeholders to adapt Ariba’s best practices rather than customizing the tool to replicate

current processes

• Strong PMO

• Use Influence SAP


For questions after this session, contact us at [email protected] and [email protected].

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