Spend management is one of the challenging tasks for many companies due to data complexity, manual mistakes, and tech limitations. The demanding nature of spend management can be addressed with the help of digital solutions, like SAP Ariba, which facilitates the financial health of the company. Let’s learn what it offers.
What Is SAP Ariba?
SAP Ariba is a cloud-based platform, which features a comprehensive suite of modules to manage the entire procurement process including spend analysis, supplier management, sourcing and bidding, contract management, and invoice management. It also performs as a B2B global marketplace bringing together suppliers and buyers in one platform.
Key Components of SAP Ariba
SAP Ariba is a cover-it-all suite of interconnected modules. The key components are:
- SAP Ariba Discovery – a global marketplace, which connects suppliers and buyers extending the sourcing capabilities.
- SAP Ariba Sourcing – management of RFIs (requests for information), RFPs (requests for proposals), and reverse auctions.
- SAP Ariba Contracts – facilitation and management of contracts with suppliers.
- SAP Ariba Supplier Network – the network of suppliers available for sourcing goods and services.
- SAP Ariba Invoice Management – invoice management (capturing, validation, and approval).
- SAP Ariba Spend Visibility – analysis of spending data and cost-saving opportunities.
- SAP Ariba Supplier Risk – facilitation of financial, quality, and reputational risks, thus ensuring high-quality performance.
Benefits of SAP Ariba
- Operational automation
SAP Ariba introduces a major change to financial performance – automation. The automation targets supplier onboarding, purchase orders, invoices, contract management and spend analysis, thus, streamlining the entire procurement operations, bringing accuracy and efficiency to every aspect of it.
As the procurement process is streamlined and easily traceable, businesses can easily mitigate mistakes preventing serious financial losses.
- Improved B2B collaboration
SAP Ariba is a global collaborative platform that establishes communication and partnership between suppliers and buyers. It provides all the tools for regulating the B2B financial relationship, ensuring transparency and safety of the cooperation.
- Safety and Security
Data safety and security is one of the major concerns of SAP Ariba. It offers a set of features to protect the information and follow industry standards. Its key characteristics include data encryption (both, at-rest and in-transit), access controls (role-based and multi-factor authentication), continuous security audits, compliance frameworks (following the industry standards like ISO 27001, SOC 2 Type II, and GDPR), and data privacy.
With all the introduced measures, SAP Ariba creates a strong foundation for preserving sensitive data and creating a safe procurement environment.
- Scalability
Scalability is a common characteristic of all SAP solutions. With the help of cloud-based architecture and scalable data processing, SAP Ariba can handle the growing complexity of the procurement processes, increased volumes of transactions, multiple procurement patterns and payment processing methods, etc.
Due to its highly flexible nature, the solution helps businesses to adjust to fluctuating market demands and transaction needs.
- Efficiency
SAP Ariba brings a new wave of efficiency by optimizing the procurement process, automating multiple operations, and providing insights and analytics regarding performance.
When integrated with other modules, the system establishes full visibility into the day-to-day functioning, introducing a higher level of control and streamlined workflow of all the departments involved.
- Integration with ERP
Implementing SAP Ariba can start a further extension of the digital architecture of a company.
For instance, for a more efficient and streamlined supply chain, SAP Ariba can be primarily integrated with SAP S/4HANA (a central platform for connecting various SAP and non-SAP applications), and then with SAP Supply Chain Management, which will establish control and visibility over the procurement processes and the movement of materials along the supply chain. When further integrated with SAP Extended Warehouse Management, there is more control over the movement of goods to the customer.
In such a way, module by module, starting with Spend Management Solutions, organizations can build an entirely digital structure of a company, and introduce efficiency in every area of performance. All the integration capabilities should be addressed to companies with a decent level of expertise, like LeverX, who have a proven record of successful projects and guide their clients through all the complexities of the SAP environment.
Bottom Line
SAP Ariba is a global collaborative platform that grows business tech capabilities, extends the cooperation network, establishes secure partnerships, takes care of the procurement process, and thus, benefits the financial prosperity of the clients. This solution introduces a new level of efficiency regarding spend management, as well as gives access to a global market of services and goods.
Contact LeverX professionals to get more insights regarding SAP Ariba and foster qualitative changes to your business performance.