Why Intelligent Procurement is Right for your Midsize Company
Procurement is fast becoming involved in the core business of companies, from finance and manufacturing to supply chain. Why? Because enabling a customer-centric digital supply chain is a top strategic priority today. Consider the following KPIs that procurement officers are – or soon will be – using to measure their performance:
• New product lead time: Procurement is working with product development to competitively negotiate component prices during engineering and to harness supplier innovations.
• Supply chain resilience: Procurement is working with supply chain and manufacturing executives to orchestrate electronic supplier collaboration that optimizes planning, manufacturing execution, and inventory levels, while reducing supplier risk.
• Asset uptime: Procurement is working with predictive maintenance teams to enable sensor-driven ordering of spare parts to ensure the right parts are always available for critical assets.
In our work with midsize companies, we’ve found that the fastest path to intelligent procurement is to extend SAP S/4HANA, intelligent cloud ERP software from SAP, with SAP Ariba solutions and Ariba Network – the world’s largest business commerce network. Let’s take a closer look at why this is a winning combination for midsize companies.
It’s the future of how companies run
Competitive companies look at the whole picture from demand planning to buying and sourcing to managing data – which is what SAP Ariba solutions and SAP S/4HANA enables. These proven technologies help you safely and securely extend your sourcing and procurement processes beyond the four walls of your organization and into the cloud. There, you and your suppliers can exchange information, improve visibility, and collaborate with greater efficiency and effectiveness. For example, you can manage the entire purchasing process – all while controlling spending, finding new sources of savings, and building a healthy supply chain.
At the same time, you can automate commerce and build new supplier relationships through Ariba Network – a dynamic, digital marketplace where millions of buyers and suppliers, operating in more than 190 countries, transact US$3 trillion in business commerce each year. When Ariba Network is connected to SAP S/4HANA, where sales and production plans and inventory are managed, plan data can drive procurement sourcing so you always have what you need, when you need it, and where you need it. In addition, you can bring greater simplicity, compliance, and cost savings to user-driven procurement, such as MRO and indirect procurement.
The automation powered by SAP S/4HANA and SAP Ariba solutions enables leaps in productivity across your organization. For example, guided buying functionality offer buyers within lines of business a consumer-simple interface to quickly and easily buy goods and services from preferred suppliers – all with minimal support from procurement. In addition, guided buying includes approval workflows that increase compliance with purchasing policies.