Preface – This post is part of the SAP Ariba series.

Introduction

Ariba, is an American Software and IT services company, located in Palo Alto, California. It was established in 1996 and later in 2012 it was acquired by SAP SE (German Software maker) for $4.3 billion, and thus named as SAP Ariba. SAP Ariba was the first company to introduce IPO in 1999.

The key idea for the foundation of company was based on providing ease to companies for their procurement process.

What is SAP Ariba?

SAP Ariba is a cloud-based platform that connects suppliers and buyers globally by providing procurement solutions, spend management and supply chain services on a single platform. This gives the transparency in business and a better in sight over spending.

Key features of SAP Ariba

Features of Ariba:

1. SAP Ariba connects to the largest network of supplier and vendor and enhances business partnership with right partners.
2. It connects organisation with the right vendor and provides the transparency of vendor details and procurement process which gives the clear and error free business transaction.
3. SAP Ariba helps users to connect to different suppliers meeting their needs and managing supply chain.
4. SAP Ariba can be easily integrated with other SAP ERP solutions like SAP ECC and S/4 HANA.

Key benefits of SAP Ariba

Benefits of using SAP Ariba:

1. SAP Ariba connects suppliers, buyers on a single platform while enhancing user experience and providing the best and reliable solution for their purchase.
2. SAP Ariba is a cloud-based solution and hence it can be accessed from any location and requires very less capital for the setup.
3. Setup for the procurement processes – P2P (Procure-to-Pay), P2O (Procure-to-Order) is quite easy.
4. Using suitable Integration mode, master data – Organisation structure, GL, supplier data can be easily transferred to Ariba solution.
5. Easy transfer of transactional data – IR (Invoice Receipt) details, PO (Purchase Order) details, GR (Goods Receipt) details; to Ariba using optimal integration.
6. Integration toolkit is used to connect Ariba solution and ERP system.

SAP Ariba Solution

Solution area covered by SAP Ariba are:

1. Supplier management: It manages supplier information, performance, lifecycle and risks.
2. Strategic sourcing: Manages sourcing, contracts, spend analysis process (for all three direct, indirect and services)
3. Direct Spend: Connects partners, people, processes and information required for the ease flow of activities.
4. Procurement: Helps to achieve compliance, visibility and control by downsizing cost and risks, and improving efficiency.
5. Financial Supply Chain: Manages the free flow of payables, transactions, invoice management.