What Is SAP Ariba? Modules, Ariba Network and Use Cases

SAP Ariba is a cloud-based procurement platform that connects buyers and suppliers on the Ariba Network to manage sourcing, contracts, purchasing, invoicing and supplier relationships end to end. SAP acquired Ariba in 2012, and the Ariba Network now links millions of buyers and suppliers worldwide.

Supply chain management and purchasing management are critical in today's business world. As competition increases, businesses focus on improving efficiency in their supplier processes to stand out from competitors. For this reason, digitizing supplier relationship management is a priority for many companies. This guide explains what SAP Ariba is, its modules, the Ariba Network, and when it fits your procurement setup.

What Is SAP Ariba?

SAP Ariba is a business network that connects buyers and suppliers to manage their supply chains. Ariba, Inc. was founded in 1996 and SAP acquired the company in 2012. SAP Ariba is now an intelligent, cloud-based platform for strategic sourcing and procurement.

SAP Ariba optimizes procure-to-pay processes end to end. It covers the entire process from source to pay, including sourcing, purchasing, invoicing, supplier management and spend visibility. With SAP Ariba, businesses can:

• Visualize workflows and make business processes more efficient.
• Increase supply chain collaboration and strengthen relationships with suppliers.
• Automate routine processes such as invoicing and payment, improving cash flow.
• Unify sourcing, supplier management, procurement and supply chain processes on one platform.
• Let suppliers bid on contracts before they are awarded through the core commerce platform.
• Create standardized contracts and offers that buyers share with multiple suppliers at once.

What Are the SAP Ariba Modules?

SAP Ariba is organized into modules that buyers and suppliers can use separately or combine on the core commerce platform. The table below summarizes the main ones.

SAP Ariba also allows buyers to manage supplier catalogs, view purchase orders and invoices, and receive purchase order approvals from suppliers. Buyers can create contracts, manage supplier ratings and reviews, and track shipments and delivery status. Mobile apps for Android and iOS cover request, approval and monitoring processes on the go.

Supplier Relationship Management (SRM)

Supplier Relationship Management (SRM) helps companies manage supplier relationships through collaboration tools such as marketplaces and e-auctions.

Purchasing & Procurement

Purchasing and procurement provide real-time visibility into spending data, so teams can make informed decisions about where to spend money.

Payments & Collections

This area manages payment terms between buyers and suppliers.

JetSRM Supplier Portal

Why Choose SAP Ariba?

SAP Ariba suits businesses with complex procurement and purchasing systems. In a fast-changing business environment, staying competitive and keeping customers satisfied depends on a strong supply management system.

Procurement and Transformation

• Automates the entire purchasing and payment lifecycle and gives customers a single platform to search for and find goods and services.
• With guided buying, employees analyze preferred suppliers, policies and processes to make more compliant purchases.
• Helps create cost-saving sourcing for indirect goods and simplifies costly, time-consuming purchasing processes.
• Helps centralize spend management and adapt to the market.
• Shares data securely and collaborates with business partners.

Sourcing and Contracts

• Reduces costs and supplier risk by integrating sourcing with contract and supplier lifecycle management.
• Eliminates manual, paper-based processes by digitalizing contract management, shortening contract durations.
• Organizes spending data across different systems, making it easier to identify savings opportunities.

Supplier Management

• Collects supplier information in one place and improves the timeliness and accuracy of data.
• Integrates with procurement for lifecycle and performance management, increasing compliance across the supply base.
• Helps you procure the right products from the right suppliers at the right price and time.

Invoice and Payment Management

• Increases invoice accuracy to speed up invoice processing and payment, reducing transactions with missing or incorrect information.
• Automates the processing of invoices, including PDF invoices and non-order invoices.
• Saves teams from time-consuming manual work through automatic receipt, processing and payment.
• Offers a seamless source-to-pay process by integrating trading partners and back-end systems.

Integration with ERP Systems

• SAP Ariba integrates with SAP ERP products to enable data flow between different departments of the business.
• Businesses using SAP Ariba with SAP S/4HANA transmit instant data from the procure-to-pay (P2P) process to departments such as sales and finance.

What Is Ariba Network?

Ariba Network is a business-to-business (B2B) digital marketplace for procurement. It offers buyers and suppliers an online network where they connect, share information, make commitments and exchange payment, largely in real time.

Ariba Network runs across industries including transportation, retail, food and beverage, manufacturing and healthcare. It offers global sourcing, supplier management, spend analysis, contract management and more. According to SAP PRESS, Ariba Network connects more than four million customers and suppliers and manages more than $3.2 trillion in transactions annually; figures like these change as the network grows, so check SAP's own materials for the current numbers.

Ariba Network also offers additional services, including:

• Negotiation management: Helps improve negotiation outcomes with a structured process for managing negotiations from start to finish, plus tools for managing contracts after they are signed.
• Supply chain optimization: Gives visibility into supplier performance, inventory management and forecasting.
• Financial management: Provides financial forecasts based on historical data and tools for managing inventory.

What Is SAP Ariba Discovery?

SAP Ariba Discovery is a global B2B matching platform that connects businesses with new opportunities among large companies on the Ariba Network. It is a cloud-based solution you can access from anywhere, at any time, and it helps you build relationships with new partners through a simple interface. Capabilities include:

• Matchmaking: Matches buyers and suppliers based on criteria such as industry, geography and size.
• Demand forecasting: Uses data from the Ariba Network to forecast future demand.
• Market intelligence: Gives access to competitive information to help identify new opportunities and risks.

What Should You Check Before Adopting SAP Ariba?

SAP Ariba fits companies with complex, high-volume procurement, but it is not the only option. Before you commit, consider:

• How well SAP Ariba integrates with your existing ERP, especially if you run SAP S/4HANA versus a non-SAP system.
• Whether your suppliers are already active on the Ariba Network, since onboarding new suppliers takes effort.
• Licensing and network transaction fees, which vary by module and volume.
• Your implementation partner's experience with the specific modules you need, such as sourcing, contracts or invoicing.

SAP Ariba Integration

At MDP Group, we offer end-to-end service for the integration needs of businesses, with a team experienced in SAP and non-SAP integration. Contact us to learn how we can support your SAP Ariba integration project.

SAP Ariba Integration

Frequently Asked Questions

What is SAP Ariba used for?

SAP Ariba is used to manage sourcing, purchasing, contracts, supplier relationships and invoicing on one cloud platform, connected to suppliers through the Ariba Network.

Is SAP Ariba the same as the Ariba Network?

No. SAP Ariba is the suite of procurement applications (sourcing, contracts, procurement, invoicing). The Ariba Network is the B2B marketplace that connects the buyers and suppliers who use those applications.

Does SAP Ariba integrate with SAP S/4HANA?

Yes. SAP Ariba integrates with SAP S/4HANA and other SAP ERP products so procurement data flows into finance, sales and other departments automatically.

Do suppliers have to pay to use Ariba Network?

Ariba Network offers both standard (free) and enterprise (paid) supplier accounts. The enterprise tier adds capabilities such as ERP integration; check current terms with SAP or your buyer's requirements.

Conclusion

SAP Ariba brings sourcing, contracts, procurement, supplier management and invoicing together on one platform, connected through the Ariba Network. Check your ERP fit, supplier readiness and licensing model before you adopt it. Contact MDP Group to discuss your SAP Ariba integration project.

References

• What Is SAP Ariba? (SAP PRESS)
• SAP Ariba (official site)
• SAP Ariba (Wikipedia)