Ariba from a Supplier s Perspective Tim Quesenberry Global B2B Director

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1 Ariba from a Supplier s Perspective Tim Quesenberry Global B2B Director

2 VWR International - Enabling Science Since 1852 From a start in Gold Mining to a Global Leader in Laboratory Supplies Distribution Grown to $4.1+ billion in global sales Diverse customer base (pharma, biotech, industrial, education, research & gov t industries) suppliers Highly diversified product line to offer the right choice (1.5M SKU s) 8,000+ associates world-wide We also offer procurement, supply chain, inventory mgt, integration & technical services. 2

3 VWR s Global Footprint VWR Corporate Headquarters Radnor, PA People, Products & Services around the Globe 3

4 VWR s Experience with Ariba Seller on the Ariba Supplier Network (ASN) since customer relationships via Ariba globally VWR believes in ecommerce (66% total lines electronic) Key Benefits: Serves as a single connection point that reaches many. Consistent Integration experience Gateway to VWR e-commerce site (VWR.com) Balance of Flexibility & adherence to Standards. VWR (NA) connects with ASN via EDI (AS2) for back office transactions. VWR (EU) connects with ASN via cxml (https) for back office transactions. Stability & Scalability of the ASN is critical. Represents 20 countries for multiple VWR companies and divisions. 4

5 VWR s B2B Integration Footprint Proven Project Mgt Methodology o Dedicated B2B PM s o Standard Operating Procedures Expertise with B2B Industry Leaders North American B2B Experience o 700+ Integrations o 600+ Punchout Catalogs o 120+ Hosted Catalogs o 70+ Unique Applications Ariba SciQuest Point SAP Oracle Coupa Hubwoo GHX ReqLogic Other 5

6 Standard Ariba Integration E-Catalogs o Standard cxml Punchout Catalog - (90%) o Level 2 Punchout Local Search + Item Level Landing o Hosted / Static Catalog Files (.CIF) - (10%) Order Processing o Ariba orders sent to VWR within seconds via AS2 & Acknowledged on ASN within 5 minutes o PCard orders subject to an encrypted tokenization process Supports PCI Compliance / Level 3 credit card data E-Confirmations are generated within SAP & returned via AS2 to Ariba within an hour Users can receive Confirmations via or check Order Status via VWR.com punchout Advanced Ship Notices & E-Invoicing o Generated at the time of shipment & billing o Real-time Pricing & Availability Robust Search Engine Personal Shopping Lists Quote Retrieval Enriched Product Content Order Status / Packing Slips Invoices, Packing slips & tracking information available on the VWR.com punchout catalog Tracking # links to Carrier Sites (i.e. UPS.com) 6

7 B2B Process Flow: Best Demonstrated Practice 1 Punchout User Login (cxml / html) E-Shopping Basket (cxml / html) Fully Integrated Supplier Value Supplier Web Store (VWR.com - ATG) Robust Product Info Product Images MSDS Info B2B Quotes Real-time Pricing Inventory Availability Customer E-Procurement or ERP Application 2 3 Electronic Order (XML/EDI) E-Order Confirmations (Est. Ship Dates) Supplier ERP Electronic Ordering Automated PO Status Status Updates 6 5 E-Invoice (XML/EDI) EFT Electronic Funds Transfer (VWR SAP) Electronic Invoicing Clean Reconciliation EFT Fund Transfer 4 Electronic ASN Advanced Ship Notifications Supplier Warehouse Distribution System (VWR - QSS) Advance Ship Notice Automated Receiving 7

8 B2B Integration Benefit Summary Automation of Procure-to-Pay Cycle o Efficient Processes = Cycle Time Reduction + Process Cost Savings o BDP = E-Catalog + E-Order + E-Status + E-ASN + E-Invoice + E-Payment Drive Supply Chain Visibility Spend Management Control o Supplier Consolidation - Drive users to contracted value-add suppliers o Robust E-Catalog Content drives buying decisions, spend reporting, & workflow. Integrated Work-Flow o Safety (EH&S Approvals) o Sustainability Go Green o Integrated Accounting 8

9 VWR B2B Project Methodology Integration Phase Initiation - Kickoff Call / Requirements Gathering Detailed Technical Assessment Document Deliverables: Project Plan, Scope of Work, Test Plan, Flow Backend System Confirmation: Account #'s, Pricing, Business Rules OCI RT / Punchout Catalog Configuration Testing: OCI RT / Punchout Catalog XML / EDI Map Development / Partner Setup / Unit Testing Testing: Backend XML / EDI transactions Customer / VWR Signoff Production Migration Monitoring / Post-Audit Reviews days Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Sample Project Deliverables: (VWR Dedicated PM) o Business Process Assessment o Project Plan o Scope of Work o Status Calls / Updates o Test Plan o Post-Audit 9

10 Ariba Supplier Network: Supplier Value Integration Flexibility Transaction Visibility Technical / Testing Tools 10

11 Best Practices for E-Procurement Integrations Confirm your Project Scope Know your OTC Business Processes & key requirements o o Engage Contacts that know the business rules Document & share your expectations internally & externally. Confirm all Content Requirements (Content drives everything) o o Shipto addresses, UOM & UNSPSC codes, hosted vs. punchout catalog, product/parametric data Critical information for supplier documents (packing slips, mailing labels, invoices...) Implement Workflow rules that make sense o Example: Requisition approvals for chemicals tied to a specific UNSPSC levels Follow Industry Standards (data formats, communication protocols) Plan for Integration Testing o Minimum of 2-3 weeks Partner & Pilot with ecommerce-savy suppliers 11

12 VWR B2B Services System to System Integration Key Benefits: Procure-to-Pay Automation Drives Efficiency Integration to Customer ERP / E-MarketPlace Easy Connectivity VWR.com Integration Robust Content Connecting Customers to VWR globally Unique B2B Customers 100+ Unique B2B Systems Standard Protocols: Transactions: PO, PO Status, ASN, Invoice, EFT Onboarding: Data Maps, Project Plans, Testing, SOPs Data Formats: cxml, OCI, xcbl, IDOC, EDI ANSI X12, EDIFACT Integrated Supply Chain E2E Visibility Hosted Catalog Services Local Product Visibility cc-chemplora Connectivity: https, AS2, SFTP, VAN E-Catalogs:.CIF,.CSV,.xls,.txt, Punchout (Level 1 or 2) VWR International Proprietary & Confidential 12

13 GXS Application Suite B2B Gateway Customer B2B Marketplace Customers (Direct XML/EDI) ESS Sourcing (Sci Ed) VWR Mexico BPX System VWR LabShop (DM Insite) Supplier Portal (300+ Suppliers) BioExpress (B2B Pipe) Supplier 3 rd Party Service (TrueCommerce, ADX, SPS ) GXS VSR+ (Stockroom Mgt Interface) Suppliers (Direct EDI) SAP Customs / Exports (i.e. Palo Garza) Global Sourcing (BDP Import Hub) GXS Carriers (UPS, Calrite, ABF, ATS..) Paymetric (Credit Card Broker) Banks / Financials (FDMS, AMEX, PNC) OB10 Customer E-Invoice Hub Micro- Dynamics (Paper Invoice Service) McKesson (Freight Forwarder) 13

14 VWR NA B2B Architecture: SAP Integration EI / B2B SAP Customer Gateway Enterprise Gateway Web Methods SAP Adapter RFC Call Status Response Import Layout ZBAPI BDOC Custom BAPI SAP Standard BAPI Application Document INBOUND TRANSACTIONAL MESSAGES Partner Enterprise System Application Integrator Export Layout RFC Destination IDOC PORT RFC Partner Profile IDOC Application Document OUTBOUND TRANSACTIONAL MESSAGES Inbound = via BAPI / BDOC Outbound = via IDOC / RFC 14

15 VWR s SAP BDOC Interface User-Friendly BDOC Interface (for Customer Service) Easy to Correct Errors & Release orders systematically 15

16 B2B Ecommerce: Industry Trends Level 2 Punchout provides local item searching Automation of special PO types B2B Quotes via Punchout / RUSH Orders / Special Handling Comments Increased E-Invoicing Demand (AP Cost Savings) Federated Search / Web Service Calls Real-time search on a supplier site (product info / inventory / price) w/o punchout Mature Supplier Punchout Catalogs Configurable Items (Emolecules / Illumina punchouts, Kitting) Includes related non-product charges (Freight, Special Handling, Tax) E2E Supply Chain Tracking / Traceability Enhanced Advanced Ship Notices (ASN) / Carrier Integration / Serialization / Lot Tracking Mobility - Visibility from Anywhere 16

17 Investment in e-commerce Foundation Product Info Management System (PIM) Enriched Product Data Product Images MSDS, Certificates, etc. Global Web Platform Content Management System (CMS) Web Site Content Order Processing Contract Pricing Product Availability Order Tracking SAP (ERP) 17 17

18 ecommerce Vision: Build on Foundation (VWR.com) Expanded Market Place Self-Service Kiosk Drive Savings & Cost Containment Innovative Easy-to- Use/ Amazon -Like Expanded B2B Capabilities Enriched Product Catalog Site for Science Collaborative 18 18

19 VWR International - Enabling Science Since 1852 From a start in Gold Mining to a Global Leader in Laboratory Supplies Distribution For your ecommerce journey Choose the Right Partners to grow with 19

20 Addendum Slides Building on the foundation VWR.com Highlights (1-Stop Shop - Lab Supplies/Chemicals) Mobility Inventory Management Point of Use Visibility 20

21 VWR.com Highlights Customization Product Availability / Shipping Estimates Secure Contract Pricing Robust Search Tools Integrated Cross-Referencing 21 21

22 VWR.com Highlights (continued) Click-to-Chat On-Line Support Shopping Lists/Custom Catalogs Antibody Selector Guide - IgGy Quotes Processing Order Status/Tracking 22 22

23 VWR2Go - Mobile Our Webshop Goes Mobile Achieve the freedom of mobility during your daily routines. VWR2Go provides the essential features from our web-based shop system. We support mobile phones and tablets. Get comprehensive search results from more than one million products Intuitive search with auto-complete and advanced refinement (product, supplier, etc.), along with chemical attributes Extensive content (attributes, images, literature, documentation, MSDS, CoA, etc.) with all the detailed information you need to help you make smarter purchasing decisions Real time product availability: In stock notices and product contract pricing Integrated product cross-referencing Shopping and order tracking Proprietary & Confidential 23

24 VSR+ Inventory Management VSR + is an easy to use Stockroom Manager, providing full management and transparency on every aspect of your stockroom products. VSR + is a web-based warehouse and inventory management system that supports VWR products as well as third-party products from any vendor. VSR + addresses daily situations such as low visibility of inventory, over or out-of-stock problems for critical products, time intensive ordering and replenishment of stock. VSR + is easy to deploy, maintain and can integrate with your current system using in-built configurators allowing you to connect into your environment. Features an activity-based notification and messaging system which informs users, managers and administrators about pending tasks such as orders, picking requests, shipments and other updates. Proprietary & Confidential 24

25 POU Mobile Search Interface Tablet-based search interface for researchers and scientists Typically a company s infrastructure consists of many Point-of-Use (PoU) stockrooms. Researchers and scientists pick articles for daily use. Using the new tool researchers can check alternative article locations when an article is out-of-stock at the current place. The search tool will allow quick searches and results will be listed by proximity (walking distance). Researchers can then decide to either walk and pick the article or request a VWR onsite to fetch and deliver it. The new search tool is based on VSR+ technology and is available on Apple ipad tablet computers. 25

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