Combine Ariba and SAP know-how for speed, flexibility, and a more competitive supply chain

Just as consumer industries are evolving to keep pace with rapidly changing consumer demands, Ariba has evolved to meet the needs of the industries. Combining our procurement expertise, supplier onboarding capabilities, and global Ariba Network with SAP’s market-leading ERP business apps, industry insights, and supply chain know-how, we’ve developed SAP Ariba solutions for direct spend.

Integrated with your backend systems, these solutions can be put to work to build digital, collaborative supply chains for retail and for both fast-moving and durable consumer goods. You’ll be able to serve customers when and where they need it by working with SAP Ariba to:

  • Eliminate manual processes and related costs
  • Simplify onboarding and collaboration with direct spend suppliers
  • Drive hard cost savings
  • Improve service levels and avoid trade penalties with total visibility into supply across your supply chain
  • Optimize supplier-managed inventory levels while ensuring quality and compliance
  • Strengthen sourcing and integrate it into product design to gain agility and reduce cost of goods sold
  • Become a demand-driven organization with collaborative forecasting 

Grupo Herdez: Triple the COGS Savings Goals

This Mexican food and beverage company transformed strategic sourcing with SAP Ariba to manage direct, indirect, capex, and services spend with great results.

Key Capabilities

Comprehensive onboarding services

Turnkey services and on-demand technology, including enablement and help desk services, are built-in with every deployment. Quickly onboard thousands of suppliers, merchandise vendors, contract manufacturers, co-packers, subassembly suppliers, component suppliers, and other suppliers. Connect their systems to your planning and execution systems easily.

Supplier categorization, segmentation, and management

Use comprehensive tools to qualify and segment suppliers and manage performance. Control bid invitations to drive spend to preferred suppliers. And with a unified vendor data model in the cloud, suppliers update records themselves for accuracy.

Supplier risk information

Obtain targeted risk intelligence and enable compliance across source-to-settle processes to help ensure a focused approach to risk due diligence during the selection, onboarding, and contracting of suppliers. Proactively monitor and address risks throughout the entire supply base.

Product lifecycle sourcing and NPDI integration

Negotiate best-value sourcing agreements and import key product design documents directly into your sourcing projects. Advanced capabilities, such as product costing, total landed cost calculations, split allocations across multiple suppliers, enable sourcing teams to maximize product cost savings.

Collaboration with suppliers

Connect and collaborate with all suppliers – including contract manufacturers, co-packers, tier 2 players, and beyond on key supply chain processes, including forecasting, ordering, subcontracting, quality, inventory and more. Tier 2+ suppliers can receive key demand signals and view responses from a Tier 1 supplier, as needed.

Supplier managed inventory (SMI) collaboration

Gain instant visibility into inventory managed by direct spend trading partners. Collaborate with them on schedule agreements, inventory and minimum/maximum information, replenishment signals, advance ship notices, and goods receipts notices to help optimize inventory levels across the supply network.

Single platform

Use a networked-based, single system that harmonizes processes and provides a “single face” to contract manufacturers, assembly suppliers, component suppliers, raw materials suppliers, and others across multiple tiers of trading partners.

Integration with ERP

Streamlined integration with back-end systems ensures that sourcing agreements flow to ERP software from SAP Ariba solutions. Execution documents such as purchase orders, work orders, and quality notifications also flow smoothly between internal and supplier systems.

SAP Ariba Solutions for Direct Spend


POV paper about how SAP Ariba helps consumer durables manufacturers

Digital Evolution in Consumer Durables Supply Chain and Strategic Procurement Processes

Consumer demand, profitability pressures, and vertical and virtual integration are changing the consumer durables sector. Here's why you need a digital strategy to succeed in this new landscape.

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Paper about SAP Ariba's help of fast-moving consumer goods manufacturers

Digital Evolution in Fast Moving Consumer Goods Supply Chain and Procurement Processes

The forces reshaping the FMCG sector will spur more change in the next five years than we’ve seen in the last 50. Your new focus needs to be on serving consumers when and where they need it.

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Ian Griffith, head of procurement at DuluxGroup talks about SAP Ariba Supply Chain Collaboration

DuluxGroup: SAP Ariba Is the Only Answer for Directs

Australia’s DuluxGroup, a paint and coating products manufacturer, achieved lofty goals using SAP Ariba Supply Chain Collaboration, including opening a new, 100% paperless factory.

When we had our old system for processing invoices and purchase orders, there was a lot of manual data entry… Having SAP Ariba installed means [we] don’t have to do that anymore. That’s generated efficiencies because people can be redeployed into higher value-add activities. The savings in that have covered the cost of the subscription.

Ian Griffith, Head of Procurement, DuluxGroup
Case study about how SAP Ariba helps Albea with direct spend

Packing a Procurement Punch with SAP Ariba Solutions

Procurement for Albea, a global consumer products manufacturer, was spread across 17 different ERP systems.That made spend and supplier management hard. Read how they fixed that.

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Leading beauty retailer gets a supply chain makeover

Striving for supply chain excellence? Then automate and streamline your supply chain, just like this leader in retail beauty products, to achieve better visibility, agility, and more.

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Supplies laid out on table

Staples: Delivering 96.8 percent of orders next day

With SAP Ariba, Staples Australia and New Zealand gained complete visibility into supplier commitments and inventory, facilitating management and helping ensure on-time customer deliveries, every time.

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