SAP’S ARIBA VENDOR MANAGEMENT SOLUTION: WORKING AND VALUE PROPOSITION

Abstract

SAP’s Ariba is a strategic product which helps in the integration of Procurement & Vendor/Supplier collaboration [1] . Ariba provides the buyer as well as supplier a wide range of solutions; this paper structured to draw attention or particularly focus towards the Supplier/Vendor management solution that Ariba has to offer. It is important to build a strong relationship with the suppliers and service providers which in turn will strength the strengthen the business process. As defined by “The Balance” magazine “Vendor management is not about constantly negotiating with the vendors to get lower prices but constantly working together to arrive at solutions that will benefit both companies” [2] . This is where SAP Ariba, being the most comprehensive suite solution for buyer and Supplier Digital Collaboration comes handy. In this research paper focus is also given towards the economic aspects of the business by illustrating the potential savings in various parts of a process such as Sourcing/Contracting, Procuring, Invoice & Paying and Order processing. The SAP Ariba’s Supplier management solution offers capabilities such as Supplier Information and Performance management, Supplier Lifecycle and Performance and Supplier Risk Management. All of these solutions offer a comprehensive digital collaboration between the supplier and company that leads to better connectivity along with stronger relationship.