SAP Ariba

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SAP Ariba is the most happening cloud base Procurement solution provider now a day. In this blog, we will discuss the business requirement & key benefits of Solution

SAP Ariba offers a powerful suite of solutions to help companies manage “spend” so that expenses fall faster than revenues in downtimes, and grow more slowly than revenues in uptime. Ariba Spend Management overall solutions remarkable improve the bottom-line results of a business expectation. It is now only selling the cloud version of the product in the market and calls it SAP Ariba On-Demand Suite of Applications.

This SaaS model allows for better availability, security and release management. Customers those are using the On-Premise versions of Ariba going forward needs to migrate to the cloud version.

It was founded in late 1996 by Steve Krach along with other 6people on the idea of using the internet to enable companies to improve the procurement process.

Ariba provides “Spend Management solution” which help companies to analyses and manage their corporate spending to achieve cost savings and business process efficiency. Ariba solution on backbone is Ariba network which is world largest B2BNetwork.

In late 2012 , SAP has acquired Ariba .

Key Benefts.

  • One of the key advantages of using Ariba solution on is that it simplifies procurement and sourcing process with easy synchronizing to SAP SRM and other ERP software.
  • It enhances supplier, buyers and user experience by bringing in a digital transforming to the supply chain process.
  • With the cloud-based solution, it can be accessed from different locations. It requires very low initial capital cost for setting up the solution
  • With this cloud-based solution, there is an easy setup of key procurement processes – Procure to pay (integration of purchase department with Accounts payable department), Procure to Order by maintaining shopping carts.
  • There is an easy transfer of master data. Organization structure, suppliers and GL data can be easily transferred to Ariba solution using an optimal way of integration.
  • Its enables easy transfer of transactional data. Invoice details, goods receipt, PO details can be easily transferred to Ariba solution with optimum integration.
  • We can use integration toolkit to connect ERP system with Ariba solution.
Ariba solution
Ariba solution

High level Process flow

High Level outlines integration steps / Process flow between SAP ERP and Ariba Solutions.
SAP Ariba
High level Process flow Ariba Solution

Payables Integration (19O)

Business Benefits:

  • Pay with more flexible terms
  • Use working capital better
  • Reduce inquiries about payments from suppliers
  • Increase productivity in accounts payables department

Key Process Flows:

  • Upon receiving supplier invoices in SAP S/4HANA Accounts Payable, automate negotiating new payment terms for early payment using SAP Ariba discounting capabilities
  • Forward updated payment proposal to your suppliers on the Ariba Network
  • Receive confirmation of new payment terms from your suppliers on the Ariba Network
  • Start payment run
  • Automatically send remittance advice to supplier via Ariba Network

SAP Ariba Commerce Automation Integration (J82)

Business Benefits:

  • Reduce transaction costs
  • Speed up procurement processes
  • Enforce compliance
  • Reduce manual process steps and achieve 98% touch-less invoice processing
  • Increase productivity of procurement and accounts payable staff

Key Process Flows:

  • Approved purchase orders are sent electronically to the suppliers you interact with via the Ariba Network
  • Automatically receive digital order confirmations from your suppliers
  • Electronically process digital advance shipping notices sent by your suppliers in the Ariba Network into inbound deliveries in SAP S/4HANA
  • Automatically send goods receipt notices to suppliers in the Ariba Network
  • Electronically receive invoices from suppliers in the Ariba Network
  • Digitally update suppliers in the Ariba Network on invoice status updates

SAP Ariba Sourcing Integration (1A0)

Business Benefits:

  • Enjoy fast time-to-value and low total-cost-of-ownership with cloud-based delivery
  • Improve project management and compliance with advanced, automated workflow and approval-routing
  • Integrate your SAP S/4HANA to SAP Ariba Sourcing by simple activation
  • Simplify and accelerate your configuration by taking advantage of built-in SAP Best Practices
  • Get predictable results fast as these best practices guide you through the integration process step-by-step

Key Process Flows:

  • As purchaser, create a request for quotations (RFQ) for SAP S/4HANA purchase requisitions that do not automatically find a single source of supply
  • Send the RFQ to the SAP Ariba Sourcing application; this triggers a sourcing request
  • As sourcing manager in SAP Ariba Sourcing, access your worklist and convert sourcing requests into sourcing projects
  • As sourcing manager, monitor sourcing projects that result in (reverse) auctions, or requests for quotations, and provide these to suppliers on the Ariba Network. Monitor suppliers’ responses.
  • As sourcing manager, award one or more bids in SAP Ariba Sourcing
  • Awarded bids are automatically sent to SAP S/4HANA where for awarded bids purchase orders or operational contracts are created.

SAP Ariba Sourcing Integration (2GW)

Business Benefits:

  • Source your materials and simple services from millions of suppliers in the Ariba Network
  • Automate repetitive process steps with integrated workflows
  • Improve project management and compliance with advanced, automated approval-routing
  • Integrate your SAP S/4HANA to SAP Ariba Sourcing by simple activation
  • Simplify and accelerate your configuration by taking advantage of built-in SAP Best Practices
  • Enjoy fast time-to-value and low total-cost-of-ownership with cloud-based delivery
  • Get predictable results fast as the best practices guide you through the integration process step by step

Key Process Flows:

  • As purchaser, create a request for quotations (RFQ) for SAP S/4HANA purchase reqs that do not automatically find a single source of supply
  • Send the RFQ to the SAP Ariba Sourcing app; this triggers a sourcing request
  • As sourcing manager in SAP Ariba Sourcing, access your worklist and convert sourcing requests into sourcing projects
  • As sourcing manager, monitor sourcing projects that result in (reverse) auctions, or requests for quotations and provide these to suppliers on the Ariba Network. Monitor suppliers’ responses.
  • As sourcing manager, award one or more bids in SAP Ariba Sourcing

Awarded bids are automatically sent to SAP S/4HANA where for awarded bids purchase orders or contracts are created

Ariba Sourcing suite
Ariba Sourcing suite

SAP Ariba Guided Buying Integration (2NV):

Business Benefits:

  • Increase employee performance with simple guided user experience
  • Apply procurement policies automatically through the guided process, enforcing compliance during the purchasing process, not afterwards
  • Use flexible configuration to allow line-of-business-specific definition of forms, permissions, and system behavior at field level and for workflows, so each persona in the process only needs to fill in their respective data, avoiding clerical errors and streamlining purchasing for each LOB

Key Process Flows:

  • Access customized guided buying app and searches for items across catalogs, including partial items, forms, and suppliers in a single search box
  • Get policy guidance as items are added to the shopping cart
  • Perform budget checks in SAP S/4HANA Cloud before submitting the shopping cart
  • Approve decisions as per the configured workflow
  • Replicate approved shopping carts into SAP S/4HANA Cloud as purchase requisitions
  • Automatically create purchase orders from those requisitions
  • Receive and account for items in SAP S/4HANA Cloud with Goods Receipt app
  • Receive and post supplier invoice in SAP S/4HANA Cloud
  • Update the SAP Ariba shopping cart with follow-on document record IDs for traceability

SAP Ariba Buying and Invoicing Integration (1ZM)

Business Benefits:

  • Get a simple and elegant shopping experience that helps employees buy goods and services compliant with your procurement guidelines
  • Experience optimized control and transparency of purchasing data (for example, commitment updates)
  • Manage processes, budgets, approvals, and payments for operations anywhere in the world
  • Integrate easily with SAP S/4HANA Cloud to improve the speed, usability, and performance of your procure-to-pay process
  • Leverage the supplier community on SAP Ariba Network to reduce your costs and risks
  • Connect and collaborate with your suppliers more efficiently

Key Process Flows:

  • Select items from punch-out catalog or simple forms and add them to your shopping cart
  • Submit shopping cart for approval
  • Create purchase requisition in SAP S/4HANA Cloud (Status: In Release)
  • Confirm or reject shopping cart as approver
  • Release purchase requisition (Status: Active)
  • Create purchase order in SAP Ariba Buying and Invoicing
  • Transfer purchase order to SAP S/4HANA Cloud
  • Confirm goods receipt in SAP Ariba Buying and Invoicing
  • Create supplier invoice in SAP Ariba Network
  • Receive supplier invoice in SAP Ariba Buying and Invoicing
  • Forward invoice to SAP S/4HANACloud for payment after comparison with goods receipt and purchase order in SAP Ariba Buying and Invoicing

SAP Ariba Quote Automation Integration for Procurement (32P)

Business Benefits:

  • Reduce spend by reducing the cost for your purchases
  • Increase price transparency with frequent digital quote requests
  • Increase your purchaser’s productivity by automating the quote request process via Ariba Quote Automation
  • Use your Ariba Network subscription for Quote Automation at no additional cost
  • Implement this SAP S/4HANA scope item integration by following the SAP Activate methodology and SAP Best Practices, and reap benefits within days

Key Process Flows:

  • Create request for quotation (RFQ) of type Price Request from S/4HANA purchase requisition or from scratch
  • Automatically send RFQ to suppliers on Ariba Discovery for submitting their quotes
  • At submission deadline automatically receive supplier quotes in SAP S/4HANA
  • Award supplier quotes in SAP S/4HANA automatically after a deadline you set
  • Automatically create purchase orders from awarded quotes
  • Automatically update purchasing info records from awarded quotes

SAP Ariba Purchase Order to Invoice Integration with Procurement (24Z)

Business Benefits:

  • Reduce transaction costs
  • Speed up procurement processes
  • Enforce compliance
  • Reduce manual process steps and achieve 98% touch-less invoice processing
  • Increase productivity of procurement and accounts payable staff

Key Process Flows:

  • Approved purchase orders are sent electronically to the suppliers you interact with via the Ariba Network
  • Automatically receive digital order confirmations from your suppliers
  • Electronically process digital advance shipping notices sent by your suppliers in the Ariba Network into goods receipts in SAP S/4HANA
  • Automatically send goods receipts to suppliers in the Ariba Network
  • Electronically receive invoices from suppliers in the Ariba Network
  • Digitally update suppliers in the Ariba Network on invoice status updates
SAP Ariba Procurement
SAP Ariba Procurement Process

SAP IBP – Business Network Collaboration – Supplier Commit with Ariba (2P2)

Business Benefits:

  • Share information with your business partners and react to changes in supply and demand quickly and efficiently
  • Reduce inventory carrying cost by enhancing supplier visibility and interactivity while automating replenishment processes at a lower cost
  • Reduce IT spend by minimizing the effort needed for the onboarding of new partners and connecting many suppliers with technology at a minimal cost

Key Process Flows:

  • Copy Initial Stock and Unconstrained Forecast
  • Generate Component Forecast
  • Review & Release Component Forecast
  • Review Forecast
  • Publish Supplier Commits
  • Check Alerts
  • Analyze Supplier Committed Forecast

SAP Ariba Quote Automation Integration (1L2)

Business Benefits:

  • Reduce spend by reducing the cost for your purchases
  • Increase price transparency with frequent digital quote requests
  • Increase your purchaser’s productivity by automating the quote request process via SAP Ariba Quote Automation
  • Use your Ariba Network subscription for SAP Ariba Quote Automation at no additional cost
  • Implement this SAP S/4HANA scope item integration by following the SAP Activate methodology and SAP Best Practices, and reap benefits within days

Key Process Flows:

  • Create request for quotation (RFQ) of type Price Request from S/4HANA purchase requisition or from scratch
  • Automatically send RFQ to suppliers on Ariba Discovery for submitting their quotes
  • At submission deadline automatically receive supplier quotes in SAP S/4HANA
  • Award supplier quotes in SAP S/4HANA automatically after a deadline you set
  • Automatically create purchase orders in SAP S/4HANA from awarded quotes
  • Automatically update purchasing info records in SAP S/4HANA from awarded quotes
SAP ARIBA Spot Quote & Discovery
SAP ARIBA Spot Quote & Discovery

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