+91 72003 39650
info@insoftinnovations.com

At Insoft Innovations, we proudly stand as the preferred ERP solution provider in India. Our forte lies in delivering tailor-made ERP services and solutions to businesses of all sizes, streamlining operations, boosting efficiency, and fueling growth.

  • Address

    No 29, Tulasi Enclave Apartments, Ramappa Nagar, Perungudi, Chennai - 600 096

  • Call Us

    +91 72003 39650

  • Email Us

    info@insoftinnovations.com

Why we need SAP – Ariba?

Home > Blog > SAP > Why we need SAP – Ariba?

Procurement gets scant attention in some companies and great focus in others,but has always been a necessary function of just about every company and government. Corporate procurement departments focus on efficiencies,supplier optimization and partnerships, and , above all, cost savings.

The future for SAP’s procurement solutions is in the cloud,an industry shorthand for internet-based,multi-tenanted solutions accessed via a customers browser and internet conection. As the leading provider of software and solutions supporting business processes, SAP has defined a wide portfolio of procurement solutions in the cloud, which was enhanced with the acquisitions of Ariba and Fieldglass.

Ariba is a Spend Management solution used to drive savings, negotiate better agreements, have better control and visibility over the spend.

SWOT ANALYSIS ON ARIBA

Strengths

  • Rich Sourcing and Contract Lifecycle functionalities
  • Functionality coverage OOTB*
  • 97.05% for Demand Determination & Sourcing
  • 96% and 89% in contract creation
  • Contract Management & Deployment
  • 99% OOTB reporting functionalities
  • 90% in Catalog Management
  • Sourcing and Contracts module tightly integrated
  • Good integration capabilities with ERP (SAP, JD Edwards, Passport etc…)

Weakness

  • Language Interface not available for Russian, Romanian, Czech and Polish
  • Third party tool is required for trans-codification / harmonization of material codes

Opportunities

  • License Costs are cheaper than SAP ARIBA
  • Minor customization required (Approx. 3%~11%) to align with Procure-2-Pay process
  • Easy integration with disparate ERP systems and back-office systems at regional and plant level
  • To have Global solution for pre-contracting and Contracting (including demand determination and Contract deployment) can be achieved
  • Global Support model available

For more ellaborate reasons on why we need SAP Ariba ?

Companies continue to face many issues in the Req to Pay space

  • Tool usability issues
  • Lack of functionality
  • Manual communication with Suppliers
  • Multiple procurement tools (front-end vs. back-end)
  • No on-line catalogs

Companies are experiencing catalog problems

  • Paper based catalogs
  • Multiple Catalog Tools
  • No Central Catalog Tool
  • Inflexible Authorizations
  • Inflexible Authorizations
  • Varying Business Rules
  • Duplicate Data
  • No Audit Trail

Strategic direction for procurement solutions

Many customers are moving their procurement processes to the cloud wherever possible to achieve good ROI and the improved innovation velocity that a true cloud solution delivers.

In response, SAP offers the following guidance:

  • Ariba Network should always be incorporated to improve e- commerce, collaboration and business insights whether the solutions are on premise or cloud.
  • For new procurement implementations, SAP recommends Ariba cloud procurement solutions as the primary option for SAP customers.
  • SAP will continue to sell, support, and innovate the on- premise procurement solutions for customers who have requirements that are not currently addressed by the cloud solutions.
  • SAP will also support hybrid scenarios, enabling customers to enhance and extend their existing investment in on-premise procurement solutions with Ariba cloud solutions.

Categories