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.
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.
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
Ian Griffith, Head of Procurement, DuluxGroup
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.