Morgan Stanley has already realized significant savings through process efficiency, better sourcing practices and purchasing compliance using Ariba applications

IN PURSUIT OF EXCELLENCE—AND PROCUREMENT EFFICIENCY

Morgan Stanley is one of the world's largest diversified financial services companies,

with a reputation for excellence in advice and execution on a global scale. Morgan

Stanley enjoys leading franchises in three areas: Securities, where it serves individual

and institutional investors and investment banking clients; Investment Management,

with highly rated Morgan Stanley and Van Kampen funds; and Global Credit Card

Services, with Discover Card, held by 40% of U.S. households, as well as a growing

Morgan Stanley card business in the United Kingdom. The company continually seeks

ways to better serve clients and maintain its leadership. It saw it could become even

more efficient by deploying a global eProcurement system. In 1999, Morgan Stanley

began to evaluate eProcurement packages that could help it track captured spend data

by cost center in order to aid expense management—and ultimately lower the

company's purchasing and processing costs.

THE ARIBA ADVANTAGE

Morgan Stanley evaluated more than 30 vendor solutions and conducted a formal RFP

process with more than ten. The company assessed each vendor by how well it could

meet Morgan Stanley's 250+ functional requirements. Ariba excelled in its ability to

meet those requirements, and it offered other advantages that were compelling for

Morgan Stanley. Significant factors in the selection of Ariba were Ariba's strong

presence in the financial services industry, its support for Morgan Stanley's overall

product vision, and its ability to operate in a multi-organizational environment with

many different back-end systems, master data sources, and rules.

THREE AREAS OF SAVINGS:

PROCESS EFFICIENCY, PURCHASING COMPLIANCE, AND BETTER SOURCING

Morgan Stanley now has coverage for approximately 50,000 Ariba® Buyer™ users

globally, with all major geographies enabled except for Japan. The company is

currently using Ariba Buyer to manage its spend in more than ten service and

commodity categories, and overall spend through Ariba is increasing in line with user

and supplier coverage. Currently, over 400 ad-hoc and catalog suppliers have been

enabled for purchasing transactions through Ariba® Supplier Network™ (Ariba SN).

Ariba catalogs and approval flows have streamlined and standardized the ordering

process, especially when supported by business forms and PunchOut™ for selected

suppliers. In addition, Morgan Stanley has experienced hard dollar cost reductions

when suppliers have fully integrated into Ariba SN to receive orders electronically.

Standardized pricing through Ariba catalogs has driven significant savings from

increased compliance and usage of selected vendors across business units. Improved

sourcing and greater contract leverage have also delivered savings. Morgan Stanley

plans to use Ariba for full requisition-to-invoice functionality for all users and suppliers

to maximize process savings, compliance savings, and sourcing savings.

As a major driver of process efficiency, Morgan Stanley has also recently implemented

Ariba® Invoice™ to complete the purchase to pay cycle for Ariba-related orders. Ariba

Invoice has been implemented initially for technology procurement in the Americas,

but will be rolled out to support all Ariba-related purchasing. Morgan Stanley is the

first customer to implement Ariba Buyer 7.1 in production and is on track to be the first

to process electronic invoices using Ariba Invoice.

“Morgan Stanley has already realized

significant savings through process

efficiency, better sourcing practices and

purchasing compliance using Ariba

applications. The Ariba Spend Management

Suite aligns well with our vision—we're now

using the Ariba applications to provide full

requisition-to-invoice functionality.”

–Andrew Culver, Executive Director, Morgan Stanley

Inc. Ariba Spend Management, Ariba Buyer, Ariba Supplier Network, PunchOut, and Ariba Invoice are

trademarks or service marks of Ariba, Inc. All other products or company names mentioned are used for

identification purposes only, and may be trademarks of their respective owners.

Part Number 03.13.10.1

Ariba, Inc.

Worldwide Headquarters

807 11th Avenue, Sunnyvale, CA 94089 USA

TEL: +1.650.390.1000 | FAX: +1.650.390.1100

www.ariba.com

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CUSTOMER SPOTLIGHT