Welcome at SAP · Procurement Shared Services* operational procurement and accounts payable Category Procurement strategic and tactical sourcing in 36 locations Structure Procurement

Welcome at SAP Taking Procurement to the Next Level in Performance & Automation

Global Procurement Organization

May 20, 2014

© 2013 SAP AG. All rights reserved. 2

Agenda

SAP’s P2P Organization

Procurement Innovations

SAP Corporate Presentation


75% of global workforce

will be

Millennials

We are entering into a new era of unprecedented

change across a multitude of dimensions

5 billion people worldwide

will become

middle class

50% of the world’s population

will live under

water shortage

1.3 billion users on business &

social networks today

50 billion connected devices and

“internet of things” by 2030


These changes unveil new areas of opportunity

for businesses to innovate and grow

business leaders believe that

customer experience is the next

battleground

increase in operating margin in

retail leveraging Big Data as the

new resource

higher operating margin than the

ones with poor employee

engagement

higher sales & margins when effectively running a networked enterprise

71% 3X 60%

50%


Cloud

Abundance of cost-

effective computational

power and storage

Mobile

The new de facto

standard in business

interaction

Disruptive technologies offer significant potential to drive

business innovation

Social

Connected business

and social networks

Big

Data

Real-time analytic

for behavioral and

predictive insights

More than 60% of CEOs expect 15-50% of their earnings

growth in the next 5 years to come from technology-enabled

business innovations.

– McKinsey study, 2013

” “


Our Vision

help the world run better

and improve people’s

lives.

Our Mission

help organizations

become best-run

businesses.

Our Passions

teamwork, integrity,

accountability,

professionalism,

and trust.

At SAP, we help accelerate business innovation through radical

simplification


Simplify consumption with SAP cloud, powered by SAP HANA

Simplified User Experience

SAP HANA Platform

Applications Analytics

Faster

Process massive amounts of data,

and deliver information at

unprecedented speeds

Smarter

Rethink and envision entirely new

ways and applications to run your

business

Simpler

Dramatically simplifies complex

and expensive

IT architectures


Agenda





Procurement Organizations Need Help to Navigate a Changing

Environment with Competing Pressures

Increased Globalization Expansion into new markets

Global process standardization

International supply chains

Economic Volatility Volatility in markets

Decreased stock valuation

Slow economic growth

Pressure on Margins Profitability by segments

Decreased budgets and spending

Determination of the cost to serve

Focus on Risk Supply chain disruption

Financial risk and fraud

Commodity risk

New Business Models Shared services organizations

Business partnerships

Leveraging big data for decisions

Regulatory Changes Increasing disclosure requirements

Country-specific regulations

Industry-specific disclosures

10

SAP, Finance and P2P Innovations SAP runs Ariba Q & A

© 2014 SAP AG or an SAP affiliate company. All rights reserved. Internal

Key themes: Globalization and Shared Services Approach

2004 2005/ 2006 2007 2008 2003 2009 2011 2013

Home-run:

Finalize our

GFA

Trans-formation

Centralized

Controlling of

Corporate

Units

Globalized

Purchasing

worldwide

Shared Service

Centers

for APJ,

EMEA & LA

Globalized

Governance,

Risk &

Compliance

worldwide

Globalized

Facility &

Real Estate

worldwide

Global

Finance &

Admin.

Global

Field Finance

Global

Controlling

Global Legal

Global Tax

Global Treasury

Global Shared

Service

Execution of

Location

Strategy for

Global Shared

Services:

enhanced

service portfolio

Finance Run

Better Together

Customer

Centricity

Operational

Excellence

People &

Organization

2011 Acceleration of the

Vision of Finance

2005

Original

Vision of Finance

SAP Finance evolved during the years…


Next Level in Procurement Evolution of Procurement prom Operational towards a Strategic Function

Operational Partner

Tactical Partner

Strategic importance

of procurement

tim<e

Strategic Partner

2011 2012 2004 2013

Globalization E2E Process Simplification

2015

Automation and Cloud/Mobile

12



Procure-to-Pay @ SAP Key Facts and Spend Distribution

ASIA PACIFIC

13% EMEA

54% AMERICAS

33%

Spend by Region

65,000+ Global SAP employees

16.9 billion € Revenue

3.6 billion € Spend

14,000+ Global suppliers

>730,000 Annual invoices

>460,000 PO Line Items

>780,000 Trip Entries

420 FTE in P2P

Key Facts 2013


• Cover all units of SAP centrally with prioritized

geographies

• Leverage purchasing power and driving

sustainable savings

• Deliver best-in-class procurement processes and

highest possible service levels to internal

customers

• Mitigate risk to SAP

• Be a fair partner to our suppliers

Goals

CPO and Procure-to-Pay Business Owner

Procurement

Shared Services*

operational procurement and

accounts payable

Category

Procurement

strategic and tactical sourcing

in 36 locations

Structure

Procurement Vision is to help SAP buy better and be a trusted advisor to the business for all

procurement related activities, globally

>3.6 billion € Spend

>460,000 PO Line Items

>730,000 Annual invoices

*reports solid line into Global Finance Shared Services Organization

Procure-to-Pay @ SAP

Organization and Goals

14



Chief Procurement Officer Business Owner Procure to Pay

Category IT

Category Facility

Category Marketing

Category Mobility

EMEA Travel

Executive Assistant

P2P Shared Services within

Global Finance Shared Services

Car Fleet

Category Services & HR

Billable

Non-Billable

Commercial TP Licensing

Procurement Operations

Accounts Payable

Travel & Expenses

Client/Server/Serv.

Strategic Supplier Management

Regional Procurement Latin America

Regional Procurement APJ

Procure-to-Pay Strategy Group

India China

HR

Global Procurement Organization of SAP

15



Procurement Volume 2013 per Category Overview per Category

GPO is structured by five Categories Travel and Car Fleet belong to the Category Mobility

Services & HR 1.079,2 m€

IT/Telecommunication 690,6 m€

Travel 565,6 m€

Facility 568,1 m€

Marketing 483,7 m€

Car Fleet 247,8 m€

TOTAL 3.635 m€

Category 2013 Services & HR

30%

IT/Telecommunication 19%

Travel 15%

Facility 16%

Marketing 13%

Car Fleet 7%


Agenda





Simplify our user experience with a mobile-first experience

Procure-to-Pay Innovations at a Glance

Mobile Solutions

Improved Usability and

increased Manager

Effectiveness

Ariba Cloud / Business Network

Reduced Process costs and faster cycle times

Leveraging purchasing power of SAP

Catalog

New Shopping Experience

with Ariba Catalog

Analytics

Procurement Dashboards are key to manage the

Procure-to-Pay Process

18



Implementation of Hybrid Model by orchestrating

SAP On Premise and Ariba Cloud Solutions

Supplier

Supplier

Supplier

Purchase Order, Invoice Status

Invoices, Order Conf., ASN

SRM

Self Service

Procurement

Ariba

Discount Pro

ERP on

HANA

Purchasing /

Invoicing

Vendor Invoice

Management

by Open Text

Ariba

Spend

Visibility

Ariba

Sourcing

Ariba Supplier

Management

Ariba

Procurement

Content

(Catalog)

SAP’s end-to-end Procure-to-Pay Process

Ariba Cloud Solutions

Ariba PO & Invoice Automation

Accounts Payable and T&E Strategic and tactical procurement Operational Procurement

19



“SAP runs ARIBA” Benefits since Go-Live in June 2013

Ambitious objectives defined: 7% annual savings, 50% increase in automation by 2014 and overall

20% productivity gain in end-to-end P2P process by 2015

3 months implementation time using an SAP

rapid-deployment solution to connect to the Ariba Network

(record time) More than 1,200 top suppliers of SAP are already

live on ARIBA (target: 1,000)

More than €200m sourced via ARIBA

More than 500 m€ PO Value already transmitted via

ARIBA on ARIBA

More than 57,000 supplier invoices

already transmitted via ARIBA -> automation in Procure to Pay


RUN BETTER WITH

Many Thanks

Documents

Welcome at SAP · Procurement Shared Services* operational procurement and accounts payable Category Procurement strategic and tactical sourcing in 36 locations Structure Procurement