How to improve purchasing processes with SAP Ariba modules
Most companies are aware of the importance of good management of all their processes. From the design and implementation of the general business plan to communication with suppliers, companies need to be in control of everything that happens as each of these activities is carried out.
However, there are very few tools in the world of business management technology capable of solving all these problems. Many focus on only one aspect of the process: the creation and management of an offer, the management of procurement contracts or the quality control of suppliers. The market has long been demanding a tool in which all steps of the process could be managed in a unified, easy and simple way, that would also allow direct communication with the supplier. And it’s in this context that the SAP Ariba management modules emerge.
The benefits and functions of SAP Ariba
Why does a company need SAP Ariba? To answer this question, it’s necessary to understand how these types of solutions work. SAP Ariba solutions are organised into modules, among which all the management processes of a company are divided, from identifying the need to collaborate with a supplier until the purchase of goods or services is finally completed and invoiced. All of these modules are interconnected, facilitating the exchange of data and information between all functions of the organisation.
They have another, additional advantage: they allow the supplier to actively participate in the entire purchasing process, both strategic and operational.
Some companies decide to implement only the financial module on their SAP ECC/SAP S/4HANA system, so implementing SAP Ariba with all its purchasing modules would not be so relevant. However, when a company draws the SAP ECC/SAP S/4HANA procurement module on its roadmap, native integration with SAP Ariba becomes especially important.
In this context, SAP Ariba offers a series of modules related to the different purchasing processes, both strategic and operational. Here are some of the most important ones:
In the area of strategic purchasing management:
- The supplier management module (SAP Ariba SLP & Supplier Risk), in which the obtaining of quality certificates from suppliers or their quality control can be managed.
- The SAP Ariba Sourcing module, which encompasses the negotiation and creation of requests for proposals.
- The contract management module (SAP Ariba Contracts), which allows for the administrative management of contracts. Its advantages include the ability to upload a contract to the platform and send it to the company’s legal department to check if its clauses are correct.
In the area of operational purchasing management:
- The management of purchase orders using the SAP Ariba Buying module.
- Catalogue management from the SAP Ariba Catalog module.
- The invoicing module (SAP Ariba Invoicing), in which the supplier manages their own invoice, thus reducing the amount of time that many companies spend manually registering their invoices.
Why choose SAP Ariba as a cloud tool?
Another advantage of SAP Ariba is that it is a service model. SAP Ariba is made up of a set of modules that the customer or the specific company can purchase depending on their needs. For example, a company may decide to implement the Ariba SLP module for supplier management, but not implement any other additional modules. Each module manages a very specific part of the purchasing process and, therefore, all or none of them may be needed.
Until now, many companies have operated without having to use all of these tools. For example, supplier management can be done through the creation of a very simple database. However, as the market evolves, many organisations’ systems may need improvementsto provide easy access to different aspects of management. This increases the company’s efficiency and chances of success.
In the specific case of supplier management, for example, a company may want to establish approval flows for its approvals, request quality certificates, etc. For this purpose, this function’s specific module is needed.
Many world-leading companies use other SAP Ariba modules that have high customer-satisfaction ratings. NTT DATA is a trusted SAP Ariba implementation partner for leading companies from different sectors, and our experts can help you make module integration a simple and efficient process. Get in touch with us and discover the advantages of incorporating SAP Ariba in your company with our advice.
