Improve visibility and collaboration across your supply chain with Ariba and SAP know-how

Something tremendous happened for process manufacturers when Ariba joined the SAP family. We combined our indirect procurement expertise, supplier onboarding capabilities, and global Ariba Network with SAP’s market-leading ERP business apps, industry insights, and supply chain know-how. The result was SAP Ariba solutions for direct spend.

These solutions, with built-in integration to your backend systems, can digitally transform your process manufacturing supply chain, from recipe creation to delivery. Our innovations in supplier management, strategic sourcing, direct procurement, and supply chain collaboration – made even more efficient and effective by integration with the world’s largest supplier network – can enhance your ability to:

  • Qualify and segment suppliers
  • Achieve compliance while reducing supplier risk
  • Gain visibility into total landed costs
  • Improve product quality
  • Collaborate with contract or toll manufacturers
  • Monitor and reduce inventory levels
  • Manage costs of underlying commodities
  • Manage and reduce cost of goods sold

SAP Ariba Solutions for Direct Spend in the Chemicals Industry

Watch how SAP Ariba helps chemical manufacturers with better information on suppliers and inventory, and stronger collaboration across their global, multi-tier supply networks.

Key Capabilities

Total landed cost calculation

Use advanced lookup tables and customized data to include value not specific in sourcing activities – but germane to total landed cost calculations – in your costs formulas.

Supplier categorization, segmentation, and management

Quickly and easily onboard, qualify, and segment suppliers – and manage performance – using comprehensive tools integrated to your sourcing process. Control whom to invite to bid, and drive spend to preferred and previously audited suppliers. And, with a unified vendor data model in the cloud, suppliers can maintain their own records to ensure 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 CMOs, toll manufacturers, APIs, and other suppliers.

Quality collaboration

Collaborate with suppliers, contract manufacturing organizations (CMOs), toll manufacturing partners, raw material and ingredient suppliers, and other trading partners by sharing such information as inspection results and deviations on components, work in process, and end products to help ensure alignment before, during, or after manufacturing, shipment, or invoicing.

Inventory visibility and collaboration

Gain full visibility into inventory positions across the supply network, including buyer-owned, consigned, and all supplier-managed inventory, including planned shipments and inventory in transit. Use network-generated intelligence to optimize inventory levels, accelerate your reaction to changes in demand, and improve on-time customer delivery rates.

Source-to-contract process management

Globally transform sourcing and strategic procurement processes to harness economies of scale and cut costs. Gain better visibility into total landed costs. Use sophisticated cost optimization tools such as what-if analyses to develop base pricing on particular commodity price indices. Connect sourcing and contracting processes with manufacturing execution using prebuilt ERP integration to ensure that negotiated terms are fully executed.

Trading partner onboarding and support

Use turnkey supplier onboarding services and on-demand technology – including trading partner enablement and help-desk services. Quickly onboard and connect to hundreds or thousands of trading partners with our flexible portfolio of trading partner options, including B2B integration, portal, light enablement tools, and others.

Integration to back-end systems

Integrate to any back-end system. Gain packaged integration with the SAP ERP application 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

Resources

Video about Life Sciences industry using SAP Ariba

SAP Ariba Solutions for Direct Spend in the Life Sciences Industry

Watch how SAP Ariba solutions help life sciences companies integrate supplier management, strategic sourcing, and quality and supply chain collaboration.

Case study about PTT Global Chemical using SAP Ariba

Doubling Efficiency in Key Performance Areas

PTT Global Chemical streamlined, automated, and centralized procurement processes. Now they're seeing 40% spend savings, 50% improvement in procurement cycle time, and 56% lower inventory cost.

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With improved procurement methods, we now have visibility into spending and cost-reduction opportunities. A centralized service group manages spending across the business, and proactive analysis is in place to ensure that business needs are forecasted and addressed.

Rachean Chanthaweekul, Vice President of Procurement, PTT Global Chemical Public Group Limited

The Digital Evolution in the Chemicals Value Chain: From Recipe Creation to Delivery

Transform your operations and harmonize your supplier management, sourcing, and supply chain processes using a digital strategy.

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POV paper about Life Sciences industry and direct spend

Digital Evolution in Life Sciences Supply Chain and Strategic Procurement Processes

Download this paper to learn how a true digital strategy can optimize internal and external processes – and extend them beyond the enterprise.

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