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SAP Ariba Introduction

Dear SAP Friends,

 

Welcome to another interesting topic in SAP.

In this Blog will try to understand about Ariba and its benefits

SAP was founded in 1972 with the vision of providing integrated applications supporting
business processes in real-time. Procurement was an early business process
supported in the first SAP ERP applications. Practically all business and government
SAP customers procure items and services to support their day-to-day operations
and to create and deliver goods and services to the marketplace or, in the case of the
government, to their citizens. Fast-forward almost half of a century, and procurement
is still a core area supported within the SAP portfolio of products and solutions.
This procurement area has changed a great deal, as with all areas of computing, over
this time span.

The SAP ERP suite of products has taken advantage of and driven this trend by offering ever faster and more integrated business applications, including the reunification of both online analytical processing (OLAP) and online transaction processing (OLTP) in SAP’s latest ERP production iteration, SAP S/4HANA.

In addition to the exponential growth and expansion of capabilities, the Internet has changed the way computing applications and interactions are leveraged by both customer and supplier. No longer are perpetual licenses and large, upfront investments in both hardware and software necessary to acquire enterprise-level applications. Now, customers can purchase SAP solutions, including SAP Ariba and SAP S/4HANA Cloud, like subscriptions and consume these solutions via web browsers on smartphones, tablets, and/or desktop computers.

SAP Ariba is a cloud-based innovative solution that allows suppliers and buyers to connect and do business on a single platform. It improves the overall vendor management system of an organization by providing less costly ways of procurement and making business simple. Ariba acts as supply chain, procurement service to do business globally. SAP Ariba digitally transforms your supply chain, procurement and contract management process.

In today’s world, there is a need to control your supply chain and to collaborate with your suppliers in an efficient way. To enable a healthy supply chain, you need to have suppliers with visibility to every part of the procurement process so that they can maintain an efficient supply chain and help organizations to grow their and own business.

The cloud-based innovative solution was first developed in 1996 by a company named Ariba and was later acquired by SAP in 2012 with a total acquisition cost of 4.3 billion USD with each share cost $45. Thus, the name SAP Ariba. At the onset, Ariba was a B2B company to do procurement over the Internet and was the first one to introduce IPO in 1999.

 

 

Benefits

  • Transformed spend management efficiency and control through an end-to-end source-to-settle solution suite integrated into the digital core of SAP S/4HANA
  • Increased savings through complete coverage for all spend and expense types, including direct, indirect, services, capital projects, and contingent labour
  • Improved satisfaction and adoption through a best-in-class user experience that makes it simple for employees to make smart, compliant purchases fast
  • Streamlined financial supply chain management to boost capture of early payment discounts, extend days payable outstanding, and enhance free cash flow
  • The reduced total cost of ownership for managing procure-to-pay processes through cloud-based automation and quick-to-deploy solutions that scale globally

In Ariba, they are 10 Sub Concepts 

Buy-Side Integration

Contracts

Integration

SAP Ariba Procurement

SAP Ariba Supplier Management

Sourcing

Spend Analysis

Supplier Enablement – Buy Side

Supplier Enablement – Sell Side

Supply Chain Collaboration

Compression between Ariba Vs S/4 HANA Vs SAP SRM Vs SAP MM

Hope Understood High-Level Introduction on SAP Ariba.

 

Please share, Like and Comment anything else you want to share or add points.

Thanks & Regards

Ruthvik Chowdary

SME – S/4 HANA Manufacturing & Procurement

SAP Ariba P2P

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