​Why SAP Ariba provides the best recipe for compliant supplier engagement

By Justine Dinnell, Solution Architect on

What does it take to bake a great cake? It can be done without a recipe, but as every good baker will tell you to achieve consistent results it is important to follow – and repeat – a successful formula.

Onboarding suppliers to deliver services and projects for your business is a comparable process. How do you ensure you select the right suppliers and get the right results – every time?

The key is to establish a recipe for achieving consistent and compliant supplier sourcing and the Ariba Network is the platform that can help you do it.

Ariba Network for cloud-based supplier sourcing & contract creation

The Ariba Network helps organisations establish both upstream supplier sourcing and contract creation, as well as providing downstream tools to monitor and control contract performance.

Controlled, complaint, repeatable.

A cloud-based, B2B marketplace where buyers and suppliers can find each other and do business within a single, networked platform.

Essentially, SAP Ariba allows you to create and maintain effective standard processes and provides a control panel where the sourcing and contract management processes can be closely managed.

Source.

Using Ariba’s sourcing cockpit you can easily run a sourcing exercise, establish a self-registration process for interested suppliers, and manage the applicants and all their supporting credentials in one, online area.

Evaluate.

Having selected your short list, you can then use Ariba to manage the RFx process, providing applicants with specific requirements and using Ariba’s evaluation criteria to score and select the preferred vendor.

Select.

Having selected the preferred supplier, Ariba will manage the contract component of the relationship. It will ensure the contract is executed correctly against all the necessary commercial terms and conditions, ensuring the supplier delivers the right services for the right dollar value.

Manage.

You can integrate the contract established in Ariba with your SAP ERP system and then manage its execution as purchase orders are called off against the contract. At any stage you can see exactly what commitments and spend you have against the contract.

Repeat.

The benefit Ariba provides is that it enforces repeatable protocols, which ensure your sourcing and supplier contracts are compliant. Ariba ties off sourcing, contract creation and execution into one closed loop, which prevents users from instigating maverick spending.

Controlled, complaint and repeatable, Ariba enables you to report back on supplier performance providing information that can fine-tune your protocols to further improve supplier engagement in the future.

Want more?

Oxygen has completed several SAP Ariba projects, most notably for power distribution company, TasNetworks and water treatment and chemical distributor IXOM.

If you would like to know more about SAP Ariba for your business, please don’t hesitate to contact us below for more information.