AIA Transforms Source-to-Pay with SAP Ariba
Company leverages cloud-based applications and business network to drive comprehensive, simple process that delivers results
LAS VEGAS, NV., March 14, 2016 – Supply chain excellence can be defined in many ways. But for AIA Group Ltd., it means one thing: driving innovation across the source-to-pay process that delivers tangible results. With the help of SAP Ariba, the world’s third-largest life assurance group is doing just this. Combining SAP Ariba’s market-leading cloud-based applications and business network, AIA is fueling a comprehensive, yet simple source-to-pay process that is transforming its operations and improving both its top and bottom lines. Tomorrow, the company will share the story of its success at SAP Ariba Live, the premier business commerce event that being held this week at The Cosmopolitan of Las Vegas.
“Procurement is no longer about buying things at the best prices, but collaborating in new, more efficient ways that create value across the entire source-to-pay process,” said David Man, AIA Group Controller, AIA Group. “To do this requires more than just point solutions that address specific tasks. It takes an end-to-end offering that combines the convenience and agility of the cloud with the connectivity and global reach of business networks and strength of enterprise applications. With SAP Ariba, this is exactly what we get.”
Starting from Scratch
In 2010, AIA was spun off from its parent, AIG. Operating in 18 markets across Asia Pacific, AIA not only needed a standard, transparent process through which it could source goods and services, but a system to fuel it.
“There was minimal integrated technology to enable an efficient end-to-end process,” David recalls.
AIA Group started to modernize and transform its supply chain organization, creating a centralized operating model for sourcing and procurement, allowing them to leverage their collective buying power and drive collaboration among key stakeholders.
Then it started to digitize things. With SAP ERP as its foundation, AIA began adding solutions from SAP Ariba to fuel a simpler, smarter, more connected source-to-pay process, including:
• Ariba® Sourcing™ – to automate negotiations across all categories of spend with the world’s most global network of digitized suppliers
• Ariba Contract Management™ - to more efficiently create, execute and manage best-value agreements
• Ariba Supplier Information and Performance Management™ – to simplify onboarding and management of its global supply base
• Ariba Procure-to-Pay™ – to improve the speed, simplicity and results of its procure-to-pay process from requisition to reconciliation.
And the solutions are delivering results. “We have seen improved cross-functional and market collaboration and adoption as a result of implementing these innovative tools and best-practice approach,” David said. “And this has led to significant sourcing savings and process efficiencies.”
Join the Movement
More than two million global companies like AIA are using SAP Ariba solutions to digitize and transform their supply chains.
“Source-to-Pay isn’t a series of discreet tasks, but a connected process that involves tight integration of stakeholders, systems and processes across multiple functions and geographies,” says Alex Atzberger, President, SAP Ariba. “As innovative organizations like AIA have recognized, the only way to effectively manage this process is through end-to-end, network-based solutions that are enterprise strong, yet consumer simple and power new ways of thinking and operating that create advantage.”
Through its cloud-based source-to-pay solutions and business network, SAP Ariba provides a single, integrated platform and easy-to-use interface through which companies can manage all of their customers, partners and spend and collaborate around key business processes – from procurement and finance to sales and marketing.
To learn more about these solutions and the value they deliver, visit: www.ariba.com
About AIA Group Ltd.
AIA Group Limited and its subsidiaries (collectively “AIA” or the “Group”) comprise the largest independent, publicly listed pan-Asian life assurance company. It has a presence in 18 markets in Asia-Pacific – wholly-owned branches and subsidiaries in Hong Kong, Thailand, Singapore, Malaysia, China, Korea, the Philippines, Australia, Indonesia, Taiwan, Vietnam, New Zealand, Macau, Brunei, a 97 per cent subsidiary in Sri Lanka, a 26 per cent joint venture in India and representative offices in Myanmar and Cambodia.
The business that is now AIA was first established in Shanghai almost a century ago. It is a market leader in the Asia-Pacific region (ex-Japan) based on life insurance premiums and holds leading positions across the majority of its markets. It had total assets of US$172 billion as of 31 May 2015.
AIA meets the long-term savings and protection needs of individuals by offering a range of products and services including life insurance, accident and health insurance and savings plans. The Group also provides employee benefits, credit life and pension services to corporate clients. Through an extensive network of agents, partners and employees across Asia-Pacific, AIA serves the holders of more than 29 million individual policies and over 16 million participating members of group insurance schemes.
AIA Group Limited is listed on the Main Board of The Stock Exchange of Hong Kong Limited under the stock code “1299” with American Depositary Receipts (Level 1) traded on the over-the-counter market (ticker symbol: “AAGIY”).
About SAP Ariba
SAP Ariba is the world’s business commerce network. SAP Ariba combines industry-leading cloud-based applications with the world's largest Internet-based trading community to help companies discover and collaborate with a global network of partners. Using the Ariba® Network, businesses of all sizes can connect to their trading partners anywhere, at any time from any application or device to buy, sell and manage their cash more efficiently and effectively than ever before. Companies around the world use the Ariba Network to simplify inter-enterprise commerce and enhance the results that they deliver. Join them at: www.ariba.com
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