This Document discuss three aspects:
Introduction
In current scenario, due to advance in Web based technologies, increasing market volatility etc., ability to collaborate, partner and disengage in a timely manner will emerge as an important competency. eBusiness,is and will continue to drastically change the way in which companies procure, manufacture, sell and distribute products. The ready availability of information provides a great tool to run your business more efficiently and also empower customers as well.
What is Strategic e-sourcing?
Aberdeen group defines strategic e-sourcing as a use of Web based technologies to automate and streamline the identification, evaluation, negotiation and configuration of the optimal mix of suppliers, products and services in the supply chain network that can rapidly repond to changing market demands.
(Note:In this document Strategic e-sourcing is discussed from both buyers and sellers perspective)
Why e-sourcing?
Because significant part of cost of product is built in during design and sourcing phase and so greatest impact on cost, quality and assurance of a product or an assembly occurs during initial sourcing cycle. Organizations using Web based sourcing technologies can provide following benefits:
How it helps Mill Products and Mining companies?
How Ariba can enable strategic e-sourcing?
Ariba is the world’s largest business network with more than 730,000 companies transacting over $340 billion annually among 5 million users.It offers an open network and Web-based applications to buy, sell and manage cash among B2B buyers and sellers.As part of SAP’s enterprise cloud strategy, Ariba will serve as a new “business network” category, connecting suppliers, customers and partners.( It also includes Quadrem network which was a e-Marketplace to support purchasing process of Mining Industry it was acquired by Ariba in 2011.)
By their nature, Sourcing and contracting are more collaborative process that requires enterprise to extend beyond its four walls. Ariba offers cloud based solution for conducting RFx and contracting negotiations through a secure and accessible platform. This electronic collaboration can speed up procurement process involving lots of paper works and confirmations which was either manual or unstructured.Further it also allows to make spend analysis and Invoice management.
Following image shows the SAP Ariba Roadmap
How Ariba will integrate with SAP?
Ariba offers five pre-built adapters to integrate with SAP:
ECC Financials (Fin) + Materials Management (MM);
ECC Fin only; ECC MM only; ECC + Supplier Relationship Management (SRM); andSRM only.
Also there’s Ariba’s Collaborative Commerce product. According to Ariba, it’s a Net Weaver Compliant Adapter that “connects SAP to the Ariba Commerce Cloud for real-time collaboration with virtually all of your suppliers for B2B commerce, with no need to modify or upgrade your SAP environment.”
Ariba Case study:
References:
3. To know more about Ariba and Quadrem network visit following links:
Note:Although I have tried to verify all the correctness of contents given in this document. Please let me know if there are any errors or misstatements or any exaggeration from my side regarding Ariba or otherwise. Any suggestions on how can i improve this article are warmly welcomed.