SAP ARIBA: SUSTAINABLE PROCUREMENT SYSTEM FOR BUSINESS
SAP Ariba is an integrated procurement management system for business, which ensures the complete control over the entire supply chain. This cloud solution can help you to transform procurement without significant investment in software development.
The user of the solution reduces the risks regarding the terms and conditions of deliveries and has confidence in the execution of contracts.
The system can be easily integrated with the ERP used by the enterprise. Thus, working with the new SAP S4/HANA, it simplifies the financial and organizational administration of procurement.
SAP Ariba guarantees process transparency and brings together more than 4 million companies worldwide. In particular, tens of thousands of suppliers have already registered in the system in Ukraine, and this number is constantly growing.
SAP ARIBA – “ALL-INCLUSIVE” DELIVERIES
The system provides all stages related to procurement. It is a functional solution that automates and ensures the delivery of products, goods or services as much as possible.
The buyer chooses a convenient format of work depending on the needs and fully controls the supply chain.
FEATURES OF SAP ARIBA
- Procurement spend analysis. Conducting an audit, which identifies weaknesses and ways to optimize spends. Allows to balance the operating costs and structure the procurement budget.
- Planning. Development of categorical strategies, where created the segmentation of procurement categories, determined the algorithm of cooperation with suppliers, distributed responsibilities among the participants and formed basic accounting documents.
- Search for new suppliers. Sourcing is according to a given algorithm in compliance with the requirements for the contractor and the identification of potential bidders. Enterprises are divided into categories, which simplifies the search for business partners and networking.
- Qualification. Helps to structure the requirements for the supplier of products, goods or services and to choose companies that meet the customer’s request, have the appropriate competencies and experience.
- Procurement procedure. Allows you to conduct any type of tender and select the most reliable supplier using the SAP Ariba Sourcing module. This simplifies the selection of candidate-companies and eliminates irrelevant proposals.
- Risk management. Risk assessment is performed using the SAP Supplier Risk solution. This allows to predict the timely and high-quality execution of the contract.
- Contract. Contract is prepared, agreed and concluded in the SAP Ariba Contacts, which eliminates the omission of at least one link or an error in the choice of supplier. Execution of the contract begins after confirmation of the requisition, electronic order, terms of delivery.
A feature of the SAP Ariba system is the ability to move to the next stage only after approval of the previous one. Thus, full control over the entire supply chain is exercised.
ADDITIONAL MODULES – FULL CONTROL
In addition to the main processes, additional modules are integrated in the SAP Ariba system. These add-ons make it possible to optimize the supply system as much as possible, as they provide powerful analytical information to the user.
According to statistics, only up to 30% of companies clearly control supply chains electronically. The rest are forced to do analytics manually, collect data from various sources, check many times.
All this work is performed by SAP Ariba modules:
- Spend Analysis. Conducts a complete cost analysis through the collection of information from various sources, processes and generates a consolidated document that clearly demonstrates the cost structure.
- SAP Ariba Discovery. Service for finding suppliers and buyers through the Ariba Network. Helps to find and create new relationships with suppliers and choose stable partners according to the rating of supplier companies in the relevant categories.
- Supplier Lifecycle and Performance. A unique supplier lifecycle management solution. Allows to plan and determine the segments and categories of procurement, to determine its procurement strategy for each category, to form an organizational structure.
- Ariba Sourcing. Helps to develop a strategy of savings based on market dynamics, to attract the most relevant suppliers. Also participates in the control over the selection of suppliers and negotiations, performs the functions of control over suppliers and agreements.
- Supplier Risk. Allows to monitoring of risk areas and on the basis of the obtained data to choose the most reliable supplier or to assess the competencies of the winner of the tender. This is especially true when it comes to long-term contracts.
- SAP Ariba Contracts. Allows companies to interact with customers at all stages of contract management: creation, discussion, conclusion of contracts and their further administration. Responsible for the execution of the contract from the moment of the purchasing order to confirmation of the status of shipment of products.
The buyer company receives end-to-end procurement solution, minimizing the risk of supply disruption. At the same time, logistics costs are reduced by 1-8%, and operating costs – up to 60%.
HOW SAP ARIBA WORKS FOR COUNTERPARTIES
The supplier works in the “mirror” of the system and clearly knows the responsibilities for the performance of the contract and the terms of delivery. In parallel, the process is controlled by the customer’s supply manager, who monitors in real time:
- delivery status,
- service sheets,
- discounts and special conditions.
Each category manager and delivery manager work with a clearly defined category and monitors only actual contracts.
BENEFITS OF SAP ARIBA
This is the only procurement ecosystem that allows:
- manage all supply categories and the entire procurement process,
- control costs, identify sources of savings,
- create a reliable procurement system,
- integrate procurement into a single enterprise management system.
SAP Ariba is a cloud solution, so it does not require additional investment to rebuild the IT infrastructure.
At the stage of system setup, solution architects, functional and technical consultants of SAP products carry out full support and testing of the system during the project. There is no need to involve external developers and support from them.
JOIN THE TEAM OF LEADERS
Today, SAP Ariba is the world’s largest procurement management network with more than 4 million companies. Annual payments within the system exceed $ 50 billion, and catalogs of products and services contain 195 million items.
Leading analytical companies recognize SAP Ariba as a leader in contract management. The system went beyond the service solution. It is a social business network that allows to effectively manage purchases, spends, quality and contract performance.
Powerful analytical modules help to choose the best suppliers, and contractors are interested in high-quality execution of contracts. Each company in SAP Ariba has a rating based on customer ratings and reviews.
It is a universal cloud solution that works in any sector of the economy and meets the needs of both international corporations and local buyers.
Dramatical changes are currently taking place in the markets’ performance. The implementation and usage of electronic procurement services allows to optimize supply chains and protect the company from risks.
Every user has access to SAP Ariba 24/7 from any device anywhere. Even with distant working, the company establishes full control, optimizes operating costs and manages the supply chain.