LEADING COMPANIES UNIFY PROCUREMENT WITH SAP ARIBA

Global organisations embrace end-to-end solution to drive integrated, intelligent process that delivers results 

A few years ago, procurement automation was the name of the game, and point solutions were seen as a fast, easy way achieve it. But procurement isn’t a discreet function performed in silos. To do it well requires a connected approach. Leading companies recognize this. And during the third quarter ended September 30, they continued to embrace solutions from SAP Ariba to fuel a simple, intelligent process for managing all of their spend and trading relationships from end-to-end on a single, integrated platform.

Connecting the Dots

Ferrero, the world’s third-largest chocolate manufacturer, for instance, chose SAP Ariba solutions to drive efficiency and compliance across its source-to-settle process and operate an integrated platform which consolidates all spend and drives collaboration with a global network of partners from sourcing and orders through invoicing and payment.

“For years we tackled procurement using different systems and applications,” said Jane Scott, Ferrero Group CIO. “We are sure that now, through an integrated platform on which we can consolidate all of our spend and collaborate with a global network of partners on everything from sourcing and orders through invoicing and payment, we will better achieve our goals.”

And The Whirlpool Corporation, a multinational manufacturer of home appliances, selected Ariba® Collaborative Supply Chain, an innovative and intelligent collaboration platform that enables companies to connect with partners and manage all of their direct materials procurement activities in one place.

Getting Smarter

In addition to unifying procurement, companies around the globe are also turning to SAP Ariba to make the function smarter. As of September 30, more than 750,000 users have turned on SAP Ariba’s guided buying capabilities, a market-leading innovation through which procurement organisations can create a contextual experience that automatically leads users to the goods and services they need to do their jobs, then guides them through making purchases in compliance with company policies and processes. These users are logging in more than 15,000 times per day and managing over $5 billion in spend.

Among the companies that got on board with guided buying in the third quarter: Faurecia, a global leader in automotive seating, interior systems and clean mobility solutions with a presence in 35 countries, which will use the capabilities as a key element of its procurement strategy to achieve spend compliance and significant cost savings.

Fueling Global Commerce

Already the world’s largest, most global business-to-business marketplace with more than 3 million connected companies in 180 countries, the Ariba® Network continues to grow, and beyond simply listing goods and services for sale, make commerce happen. During the third quarter, more than 150,000 new selling organisations – or more than one per minute – connected to the Ariba Network where nearly 3,000 opportunities worth more than $7.5 billion were posted through SAP Ariba Discovery. And the amount of commerce transacted on the network on annual basis soared to nearly $1 trillion.

“Like any small business, our first question before signing up was ‘what is this process going to cost and will it be worth it?’,” said Mitchell Ross, CEO of  Sydney-based Muru Office Supplies. “But we were familiar with SAP Ariba and knew it was a reputable platform, so we jumped right in.”

The move paid off. Muru won 100 percent of the office supply business for one of Australia’s largest companies. And according to Ross, this is just the start of things.

“SAP Ariba gives us a lot of freedom,” he says. “We have more opportunities to sell to our customers, which produces more revenue and profits to give back to the community.”

Simplifying Collaboration

And connecting to these customers has never been easier thanks to offerings like SAP Ariba Light Account, a new, simple way for companies to digitise all their suppliers and with a few clicks, bring them onto the Ariba Network where they can collaborate around unlimited purchase orders, invoices and more free of charge.

As of the end of the third quarter, more than 200,000 purchase orders and invoices worth over $40 billion in spend has been managed using the service.

“Leading companies around the world have fully embraced digital procurement,” said Alex Atzberger. “And SAP Ariba is fully committed to delivering solutions that enable them to transform their businesses and make procurement awesome.”

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