SAP Ariba – Introduction, Modules, and Features

SAP Ariba is a cloud-based revolutionary solution that connects and conducts business between suppliers and buyers on a single platform. It improves an organization’s overall vendor management system by providing less expensive methods of procurement and making business simpler. SAP Ariba improves your supply chain, procurement, and contract management processes digitally.

SAP Ariba

What is SAP Ariba?

Sap Ariba is the most advanced cloud-based solution that allows buyers and suppliers to connect and do business globally on a single platform. Ariba was acquired by SAP in 2012. Ariba network has billions of suppliers doing business in day-to-day life.

It has visibility to every part of the procurement process to maintain an efficient supply chain and help organizations grow their business. It is easy to use and has standard out-of-the-box content. Ariba is designed to improve procurement efficiency, reduce costs, enhance supplier collaboration, and drive better decision-making through data analysis. Large organizations commonly use it to optimize their procurement processes and manage supplier relationships more effectively.

Modules in SAP Ariba:

• SAP Ariba Sourcing.
• SAP Ariba Discovery.
• SAP Ariba Buying and Invoicing.
• SAP Ariba Contract Management.
• SAP Ariba Spend Analysis.
• SAP Ariba Supplier Risk.
• SAP Ariba Supplier Lifecycle and Performance.
• SAP Ariba Invoice Management

Different types of Products in SAP Ariba:

• Sourcing and Contracts.
• SAP S/4HANA Cloud Sourcing and Procurement.
• SAP Business Network.

Key features of SAP Ariba:

• SAP Ariba is a B2B solution that connects you to the world’s largest network of vendors and suppliers, allowing you to improve business collaboration with the right business partners.
• SAP Ariba enables organizations to connect with the right suppliers while providing deep visibility into internal vendor and procurement management processes, resulting in error-free business transactions.
• The SAP Ariba network reduces overall complexity in the procurement process, allowing suppliers and buyers to manage all key vendor management terms on a single network.
• With the acquisition of SAP, Ariba can easily interact with various SAP ERP solutions such as SAP ECC and S/4 HANA, using simple workflows to automate various activities across the procurement cycle.

Uses of SAP Ariba Product:

• SAP Ariba Buying and Invoicing: SAP Ariba Buying and Invoicing provides a wide range of functional features to assist both parties in streamlining procurement outcomes and delivering strategic value to the organization. It automates and manages the complete indirect products and services procurement process, including purchase orders and requests, shipment alerts, invoicing management, tracking goods flows, approvals, and payments.
• SAP Ariba Guided Buying: Buyers may enjoy smart shopping while being guided to the proper items and chosen suppliers, as well as guaranteeing adherence to procurement policies and processes, using SAP Ariba Guided Buying.
• SAP Ariba Sourcing: Thousands of enterprises rely on SAP Ariba Sourcing to find cost-cutting possibilities, assess market dynamics, drive project collaboration, and build educated sourcing strategies. Source and manage direct and indirect goods and services on a single platform, integrate request-like technology, manage internal approvals, create transparent tender and workflow procedures, and simplify customized choice.
• SAP Ariba Supplier Management: When buyers select parameters that are relevant to them, SAP Ariba Supplier Management delivers broad capabilities to help them onboard, qualify, segment, and oversee supplier performance. Regular supplier reviews enable buyers to learn more about suppliers and successfully work with them.

Classification of SAP Ariba:

SAP Ariba is mainly classified into two different parts:

SAP Ariba Downstream:

• SAP Ariba Downstream includes Ariba Buying and Invoicing that is an end-to-end procurement process whereas upstream includes sourcing and contracts. The procurement process includes P2O and P2P i.e., Procure to Order and Procure to Procure to pay.
• Procure to Order scenario: Purchase Requisition->Approval->Purchase Order.
• Procure to Pay scenario: Purchase Requisition -> Approval -> Purchase Order -> Receiving -> Invoicing -> Payment.

SAP Ariba Upstream:

• SAP Ariba Upstream is the SAP Ariba platform module that focuses on strategic sourcing and supplier management parts of the procurement process. It assists organizations in streamlining and optimizing their procurement efforts prior to the start of the buy request and procure-to-pay (P2P) process.
• Includes SAP Ariba Sourcing, Contract Management,Supplier Risk,SAP Ariba Supplier Lifecycle and Performance.

Benefits of SAP Ariba

• Unified platform to manage all source-to-settle processes.
• Powerful process and workflow management with savings-tracking technology​.
• Comprehensive RFx management, forward and reverse auctions.
• Access to a wide user community​.
• Unified supplier experience and collaboration.
• Easy to adopt interface.
• Ability to deliver at scale​.

FAQ’s on SAP Ariba:

1. What is Ariba in Procurement?

Answer: The platform provides sellers with the ability to manage catalogs, bids, purchases and invoices and it provides buyers with the ability to search for suppliers, negotiate savings, procure goods and services, and track spending.

2. What is the difference between SAP Procurement and Ariba?

Answer: SAP Ariba focuses on supplier management, strategic sourcing, and procurement, providing a cloud-based platform for streamlined collaboration. SAP MM, as part of SAP ERP, provides a greater range of capabilities, such as inventory management and material valuation.

3. Is Ariba a Procurement Platform?

Answer: Yes,purely procurement platform.

4. What are the benefits of SAP Ariba Procurement?

Answer: Here are the benefits of SAP Ariba Procurement:

• Access to a wide user community​
• Unified supplier experience and collaboration
• Easy to adopt interface