Improve agility and orchestrate multi-tier supply chains to become demand driven

You know Ariba for our indirect procurement expertise and Ariba Network. You know SAP for its ERP business apps, industry insights, and supply chain know-how. Now that we’re one organization, what do you get?

SAP Ariba solutions for direct spend, with supplier management, strategic sourcing, direct procurement, and supply chain collaboration all made more efficient and effective by the world’s largest supplier network – with built-in integration to your backend systems.

Now you can put these solutions to work to build a digital, collaborative supply chain for discrete manufacturing. From design to deliver, you’ll be able to:

  • Eliminate manual processes and related costs
  • Forecast and reduce final product costs
  • Achieve total visibility into supply
  • Improve both forecast and order collaboration
  • Reduce cost of goods procured and sold
  • Optimize inventory and related working capital
  • Speed up time-to-market
  • Become a demand-driven organization

Enabling Microsoft’s One Digital Supply Chain

Microsoft explains how working with SAP Ariba is streamlining their design-to-deliver direct spend processes and helping their One Digital Supply Chain initiative achieve its goals.

Key Capabilities

Supplier onboarding and management

Quickly and easily onboard, qualify, and segment suppliers – and manage performance – using comprehensive tools integrated to your sourcing process. Drive spend to preferred suppliers and improve compliance.

Multi-tiered supplier collaboration

Effectively collaborate with all suppliers, including contract manufacturers, tier 2, and beyond. Better manage your non-linear and external supply chains, reduce inventory levels, and increase fill rates with complete supply chain visibility.

Product lifecycle sourcing

Import bills of materials (BOM) directly from your PLM system and source from a multilevel BOM. Speed time to market by ensuring 100% of BOM is sourced – even complex, multi-level BOMs.

Inventory collaboration

Become more demand-driven and drive down inventory costs. Optimize inventory by collaborating on long- and near-term forecasting. Gain full visibility into inventory that is consigned, owned by you, and/or managed by suppliers – whether it is at your sites, your contract manufacturer’s, or in transit.

End-to-end process management

Connect sourcing and contracting processes with manufacturing execution using prebuilt ERP integration to ensure that negotiated terms are fully executed. Cut manual processing costs, cost of goods sold, and IT costs.

Integration to back-end systems

Integrate to any back-end system. Gain packaged integration with the SAP ERP application, PLM, and supply chain solutions. Terms in sourcing agreements flow to your ERP software, and execution documents such as forecasts, purchase orders, subcon orders, and quality notifications also flow smoothly between internal and supplier systems.

SAP Ariba Solutions for Direct Spend


Integrating all of the apps and internal back-end systems into one platform is the only real way to build an intelligent supply chain.

Vik Kothari, Director, Microsoft Supply Chain
Assembly room with robots building equipment

Source direct and indirect materials on a single integrated solution

Building a profitable, competitive supply chain is hard when you source direct and indirect materials separately, on a disconnected system. SAP Ariba’s solution manages the entire source-to-contract cycle for all categories and integrates seamlessly with ERP and other systems.

Managing Design-to-Deliver Processes in the High-Tech Value Chain

Help your supply chain evolve into one that senses and responds to demand changes, supply availability, and other events.

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SAP Ariba Supply Chain Collaboration provides global visibility

Gain complete visibility with SAP Ariba Supply Chain Collaboration

You've tried integrating direct spend suppliers into your systems with point-to-point EDI, e-mail, and faxes. But for complete supply chain visibility, you need SAP’s supply chain expertise and Ariba’s network of buyers and suppliers.