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SAP Ariba Supply Chain Collaboration Roadmap UpdateRaj Alluri & Arun Thiyagarajan, SAP Ariba Product & InnovationsApril, 2019PUBLIC

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About the SpeakersRaj AlluriVP, Ariba Network Solutions Management, SAP Has been with SAP since 1997 and hasextensive experience in guiding customersglobally across manufacturing, consumer,and retail industries with their digital supplychain transformation journeys. Current responsibilities include solutionstrategy, road map, and GTM activities forthe SAP Ariba Network Solutions.Arun ThiyagarajanVP, Ariba Network Product Management, SAP Has been with SAP since 2004, started as andeveloper in the Automotive IBU and thenmoved to consulting to help globalcustomers in supply chain implementationsacross Supply Chain Planning, Execution andCollaboration solutions. Currently, leading a global team of AribaNetwork Product Management for SupplyChain and PO Automation.

Agenda for todayvBrief Solution OverviewvUpdate on Current Roadmap & highlights of upcoming InnovationsvCustomer Adoption StatusvQ&A 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC5

Legal DisclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosedwithout the permission of SAP. This presentation is not subject to your license agreement or anyother service or subscription agreement with SAP. SAP has no obligation to pursue any course ofbusiness outlined in this document or any related presentation, or to develop or release anyfunctionality mentioned therein. This document, or any related presentation and SAP's strategy andpossible future developments, products and or platforms directions and functionality are all subject tochange and may be changed by SAP at any time for any reason without notice. The information inthis document is not a commitment, promise or legal obligation to deliver any material, code orfunctionality. This document is provided without a warranty of any kind, either express or implied,including but not limited to, the implied warranties of merchantability, fitness for a particular purpose,or non-infringement. This document is for informational purposes and may not be incorporated into acontract. SAP assumes no responsibility for errors or omissions in this document, except if suchdamages were caused by SAP s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actualresults to differ materially from expectations. Readers are cautioned not to place undue reliance onthese forward-looking statements, which speak only as of their dates, and they should not be reliedupon in making purchasing decisions. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC6

SAP Ariba solutions for direct spendbuyerSource and y and makeCommitRequestOrderMakeInvoice and payReceiveManagePaySupplier and risk managementPLMERPAPSSAP Ariba StrategicSourcing SuiteFaster time to market 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICSAP IBP*ERPSAP Ariba Supply Chain Collaboration for BuyersLower cost of goods soldReduced Supply chain disruptions7

SAP Ariba Supply Chain Collaboration for BuyersBrings real time visibility and efficiency for your supply chainsYour companyYour trading partnersAny BackendAny ChannelRaw material suppliersPORTALEDIFACTS/4HANA/ECCComponent suppliersbuyersupplierSubassembly suppliersIBPX12OAGISGUSIContract cXMLEmailOnePlatform 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ ponseBuild-inIntelligence8

SAP Ariba Supply Chain Collaboration for BuyersBusiness Process CoverageBUYERPLANBUY & MAKEForecast Collaboration*Share forecastForecast commitSupplier Managed InventoryShare demand, inventory and min/max levelsProvide & execute against shipment planvia scheduling agreementExternal Manufacturing VisibilityProvide Manufacturing and Inventory StatusConfirm order and provide advancedshipment notificationPurchase Order Collaboration *Place, inquire and receive orderVendor ConsignmentReport consumption of consigned stockScheduling Agreement ReleaseProvide rolling delivery schedule w/ differentfirming levelsExecute against firmed orders(released)Subcontract/ ContractManufacturingPlace order with componentsProvide notification of components’ shipmentProvide component inventory & order visibilityNotify buyer of components’ receiptProvide component consumptionQuality NotificationsQuality InspectionsQuality ReviewsCommunicate & respond to quality notificationRequest test results, COC, COACollaborate and share quality documentsRequest & respond to quality notificationSubmit test results, COC, COACollaborate and share quality documentsSelf-Billing/ ERS InvoicingINVOICE &PAYMENTSUPPLIERProvide self-bill/ ERS invoice based on GRProvide payment notificationVendor Invoice ProcessingProvide invoice processing status & paymentnotificationProvide invoice based on PO/ ASNReturn Order CollaborationPlace return order & provide return ship noticeProvide credit memo 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC(*with multi-tier orchestration support)9

SAP Ariba Supply Chain Collaboration for BuyersIntegration with SAP SAP Integrated Business Planning – Supply SideYour trading partnersYour companyForecast Commit ScenarioUnconstrained ForecastForecast Commit/UpsidePortal/Web UIConstrained ForecastbuyerInventory/Manufacturing Visibility ScenariossupplierPartnerenablementInventory & Order StatusCloud integrationgatewayCompanies with enterprise widecollaboration with trading partners have 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC4 - 12% lower DIO2 - 5% higher On-Time Delivery10

SAP Ariba Network: Analytics StrategyEmbeddedProvide analytics around key supplychain metrics natively within thenetwork for all trading partnersExtensibleAN Analytics(Powered by SAP SAC)Leverage SAP Analytics Cloud toprovide additional custom reportingto meet customers businessEnabledAccess the network analyticsfrom applications like S/4 HANAand Integrated BusinessPlanning 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC11

Ariba Network Vision1234Unified ationsImprovedScalability 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC12

SAP Ariba Supply Chain Collaboration for BuyersPlanned innovations highlightsQuality Review &Certificate SupportImproved Trading PartnerUser ExperienceSupplier ManagedInventory – Days ofSupplyTrading Partner CapacityCollaboration3PL Ship NoticecreationEmbedded SAC Analytics BuyersSAP HANAadoption2018 Q420202019Handling Units & PackagingSupply Chain MonitorOrder ConfirmationException Mgmt.Logistics Enhancements 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC13

SAP Ariba Supply Chain Collaboration for BuyersPlanned InnovationsAuto Packing with Handling UnitsCAPABILITIES / BENEFITSShipping andreceiving compliance 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICEasier BarcodePrintingPackagingconfigurability Increase compliance/ Standardizationduring the shipping process as well asimproved productivity upon receiving andmore accurate handling of arrivinginventory. Buyers can now advise suppliers of theirpackaging needs or allow suppliers todetermine how the packaging will beexecuted. Leverage the use of bar code labelsrepresenting a unique handling unit that canbe printed and affixed to each individuallevel of the packing while eliminating timeintensive and error-filled manual inputand label reprinting. Increases efficiency of Goods receiptprocess at receiving locations and14

SAP Ariba Supply Chain Collaboration for BuyersPlanned InnovationsSupply Chain Monitor for BuyersCAPABILITIES / BENEFITSMonitoring§ Buyer/Planner visibility into supply chainIncreased supplychain visibilityProactive exceptionmanagementUser basedconfigurability§ Alerting capabilities covering different processesüconfirmationsüforecastüinventory§ User defined contentException management§ Real time supply chain exception managementresolution§ Easy monitoring and approval process ofconfirmation deviations based onüquantityüdateüPrice§ Approval actions defined by the buyers§ Advanced user authorization settings 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC15

SAP Ariba Supply Chain Collaboration for BuyersActionable Intelligence – Embedded Analytics with SAP Analytics CloudPlanned InnovationsCAPABILITIES / BENEFITSBy integrating with SAP AnalyticsCloud, SAP Ariba will offer a superiorreporting front end within the productsuite thus delivering in-depth visibilityas well as an intuitive reportingexperience.§ Ability to provide rich contextualinformation that’s relevant to thepersona and the action beingperformed§ Action specific reporting views§ Reporting views/dashboards§ Supply Chain Performance KPI’s§ Mobile access to Ariba Data withSAP Analytics IOS App. 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC16

SAP Ariba Supply Chain Collaboration for Buyers – Supplier ViewNew persona based customizable Unified Trading Partner WorkbenchPlanned InnovationsPersona basedConfigurableEmbedded AnalyticsWorklist driven 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC17

SAP Ariba Supply Chain Collaboration for BuyersShipment tracking based on integration with3rd PartyVisibility/Logistics ProvidersPlanned InnovationsTracking status in Ship NoticeCAPABILITIES / BENEFITSurl§ Closed loop integration with 3rd PartyVisibility or Logistics providers forshipment trackingSupplierehascPuror der s2§ Ability to navigate to providers webapplications via an URLShip Notice1ETA Updates4Buyerbuyersupplierme33PL 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLICipSh DELInntfoSAP LBN/ 3rd PartyVisibility Provider§ Ability to update Ship notices basedon Estimate Time of Arrival (ETA)updates received from trackingproviders using Open API’s.§ Benefits both Buyers and Suppliersto have visibility into shipment statusprovided by visibility providers orLogistics providers and accessrelated impact.§ Better manage supply chainexceptions and risks* This is example flow only, actual communications could differ based on who the Shipper is who manages the transportation18

Ariba NetworkFreight PO & Invoice collaboration with logistics providersPlanned InnovationsCAPABILITIES / BENEFITSSupplierMahur cPlate r iteMaBuyerFreigFreigerasriaht PurdeOvol Inice§ Logistics providers can createFreight Invoices based on FreightPurchase orders received and sendthem to buyersbuyerrchas§ Ability for Buyers to sharepredetermined freight conditions inERP Purchase Orders as FreightPurchase orders with known logisticsproviderse Or dsuppliererh t In voice§ Benefits buyers to have anintegrated close loop collaborationwith both material suppliers andlogistics providers on Ariba Network3PL 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC19