Innovation in Expense Management with SAP Ariba
It’s not necessary to be an expert in economics or business management to know that effective expense management is vital to the sustainability of any company. What has always been essential has become even more critical today due to ongoing market changes and new regulations related to sustainability and risks, such as the recent “Corporate Sustainability Due Diligence Directive” (CSDDD) and the “Create and Grow” law regarding invoice visibility for suppliers.
If managing a ledger or spreadsheet was enough a few decades ago, today it’s no longer enough to maintain comprehensive expense control. Furthermore, nowadays it’s important to have access to a quick and comprehensive view of spending, enabling the detection of patterns or anomalies and facilitating informed decision-making. SAP Ariba is the solution to manage the entire process: in a single place integrated into the SAP ecosystem, companies obtain a detailed view of their expenses and automated workflows.
An Expense Management Tool That Goes Beyond
A company’s expenses can be numerous and diverse, and as the company grows, its complexity increases. This situation can lead to overlooked areas where the organization’s capital is being lost. When operations are running smoothly and growth is evident, there is a tendency to assume that everything is being managed effectively. However, a careful study of how much is being spent on what and for what reason often makes it clear that expense management can be easily improved.
This is where most specialized expense management software solutions fall short; they fail to cover the full complexity and specificities of real business situations. This creates two additional problems. First, if you want to control the entire process, you must use several specific applications, which reduces agility and flexibility and increases the margin for error. Second, these solutions typically can’t place expenses within the global context of the company, resulting in incomplete analyses.
SAP Ariba bypasses these problems by including the entire expense control process in one place, from purchase needs to invoice management. Additionally, by being integrated into the SAP suite, it connects seamlessly with the rest of the company’s processes. The result is a complete, reliable, and updated vision.
The Unique Value of SAP Ariba
The digital transformation of companies has long been an essential process that nearly all organizations have initiated to some extent. During this transformation, the purchasing department ceases to be purely administrative and becomes part of the company’s overall strategy. There are three key points that, thanks to the implementation of SAP Ariba, become easier to achieve:
1. Optimization of Operational Processes
SAP Ariba facilitates the flow of information within the company both externally and internally. Externally, it improves relationships with suppliers by streamlining the exchange of transactional documents. Internally, it enhances efficiency by managing occasional user purchases through guided buying. This ensures that logistical and purchasing activities run smoothly without delaying the normal pace of the supply chain.
2. Expense Reduction
How can you identify where to cut or detect unnecessary expenses the company is incurring? SAP Ariba offers a comprehensive view of all the company’s capital outflows, categorized for quicker analysis and more informed decision-making. Additionally, approval workflows with control points can be established, more competitive prices can be sought, and demand from different areas can be aggregated.
3. Management of Strategic Relationships
These relationships with suppliers and customers are crucial for the company’s success. Within the SAP ecosystem, SAP Ariba SLP (Supplier Lifecycle and Performance) manages them, monitoring suppliers’ activities in the company (onboarding, qualification, risk assessment, etc.). In addition, the SAP Business Network supplier network acts as a meeting point with suppliers. By moving all communication and activity to this single platform, both agility and communication with the company are improved. From this network, you can negotiate contracts, participate in tenders, or manage the entire purchasing process.
NTT DATA can accompany companies in this strategic transformation, elevating the purchasing function to a more professional level thanks to the implementation of SAP Ariba. With our experience and specialized methodology, we will help the company unlock this new level.
It’s not necessary to be an expert in economics or business management to know that effective expense management is vital to the sustainability of any company. What has always been essential has become even more critical today due to ongoing market changes and new regulations related to sustainability and risks, such as the recent “Corporate Sustainability Due Diligence Directive” (CSDDD) and the “Create and Grow” law regarding invoice visibility for suppliers.
If managing a ledger or spreadsheet was enough a few decades ago, today it’s no longer enough to maintain comprehensive expense control. Furthermore, nowadays it’s important to have access to a quick and comprehensive view of spending, enabling the detection of patterns or anomalies and facilitating informed decision-making. SAP Ariba is the solution to manage the entire process: in a single place integrated into the SAP ecosystem, companies obtain a detailed view of their expenses and automated workflows.
An Expense Management Tool That Goes Beyond
A company’s expenses can be numerous and diverse, and as the company grows, its complexity increases. This situation can lead to overlooked areas where the organization’s capital is being lost. When operations are running smoothly and growth is evident, there is a tendency to assume that everything is being managed effectively. However, a careful study of how much is being spent on what and for what reason often makes it clear that expense management can be easily improved.
This is where most specialized expense management software solutions fall short; they fail to cover the full complexity and specificities of real business situations. This creates two additional problems. First, if you want to control the entire process, you must use several specific applications, which reduces agility and flexibility and increases the margin for error. Second, these solutions typically can’t place expenses within the global context of the company, resulting in incomplete analyses.
SAP Ariba bypasses these problems by including the entire expense control process in one place, from purchase needs to invoice management. Additionally, by being integrated into the SAP suite, it connects seamlessly with the rest of the company’s processes. The result is a complete, reliable, and updated vision.
The Unique Value of SAP Ariba
The digital transformation of companies has long been an essential process that nearly all organizations have initiated to some extent. During this transformation, the purchasing department ceases to be purely administrative and becomes part of the company’s overall strategy. There are three key points that, thanks to the implementation of SAP Ariba, become easier to achieve:
1. Optimization of Operational Processes
SAP Ariba facilitates the flow of information within the company both externally and internally. Externally, it improves relationships with suppliers by streamlining the exchange of transactional documents. Internally, it enhances efficiency by managing occasional user purchases through guided buying. This ensures that logistical and purchasing activities run smoothly without delaying the normal pace of the supply chain.
2. Expense Reduction
How can you identify where to cut or detect unnecessary expenses the company is incurring? SAP Ariba offers a comprehensive view of all the company’s capital outflows, categorized for quicker analysis and more informed decision-making. Additionally, approval workflows with control points can be established, more competitive prices can be sought, and demand from different areas can be aggregated.
3. Management of Strategic Relationships
These relationships with suppliers and customers are crucial for the company’s success. Within the SAP ecosystem, SAP Ariba SLP (Supplier Lifecycle and Performance) manages them, monitoring suppliers’ activities in the company (onboarding, qualification, risk assessment, etc.). In addition, the SAP Business Network supplier network acts as a meeting point with suppliers. By moving all communication and activity to this single platform, both agility and communication with the company are improved. From this network, you can negotiate contracts, participate in tenders, or manage the entire purchasing process.
NTT DATA can accompany companies in this strategic transformation, elevating the purchasing function to a more professional level thanks to the implementation of SAP Ariba. With our experience and specialized methodology, we will help the company unlock this new level.
Helle Bo Nielsen
Senior Sales Manager at NTT DATA
