Centralize Supplier Information and Manage Performance

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1 SAP Brief Ariba s Ariba Supplier Information and Performance Management Objectives Centralize Supplier Information and Manage Performance

2 Get the most value from your suppliers Get the most value from your suppliers When it comes to effectively managing business commerce, a good start is locating the best suppliers and negotiating the best agreements. But it s only the beginning. Success requires the constant discovery, assessment, and onboarding of new trading partners, assurance that information is accurate and up-to-date, and continuous performance measurement and improvement. Many buyers and suppliers struggle to gain full visibility into supplier information and may try to manage supplier information manually, which is extremely costly. And without accurate data about suppliers, it s nearly impossible to effectively manage supplier performance for example, to drive improvement in key metrics such as price, on-time delivery, quantity, and service level. Given executive mandates to reduce supplier risks, growth in outsourcing, the instability of supply markets, and regulatory mandates, few companies can afford failures in this area. With Ariba Supplier Information and Performance Management from Ariba, an SAP company, you can get the most value from your supplier network with less time and effort. Delivered on the Ariba Network, this solution allows you to maximize supplier engagement with streamlined registration and onboarding; cut costs and risks with high-quality supplier information; and monitor, manage, and improve supplier performance. 2 / 9

3 Managing supplier performance and risk requires accurate, up-to-date, and easy-toaccess supplier information for all trading partners. But without the right solution, it s hard getting your hands on the right information especially if you have hundreds or thousands of relationships. Thankfully, Ariba Supplier Information and Performance Management provides an online portal that lets you register and manage supplier information and facilitate collaboration. You simply give sellers access to a single-page registration form. Sellers enter their information prior to their official acceptance as an approved supplier, and once accepted, they can centrally manage user account and company profile information across all Ariba supplier solutions. The solution synchronizes RFX-supplier profiles; by pushing buyer questionnaire responses in requests for information and requests for proposal directly into seller profiles, it keeps information current and reduces rekeying of information. Through this supplier information portal, buying organizations can also manage custom supplier profile questionnaires, certificates, diversity status, green status, and risk metrics. Supplier search functionality helps you find just what you need in seconds. 3 / 9

4 It s no secret: companies that get more value from suppliers while reducing overall costs and risk can realize significant competitive advantage. But it doesn t happen by accident. The first step is to establish consistent, integrated processes that are easy for your employees to adopt and can be extended to all of your suppliers for transparency and efficient collaboration. Supplier management solutions from Ariba help you establish these processes. The solution organizes supplier performance management activities into dedicated workspaces where you can: Define performance management processes by category or supplier or region Specify activities, tasks, documents, analyses, and team members Schedule recurring tasks or phases Create one or many scorecards by supplier and category Collaborate with suppliers and stakeholders on scorecard results and action items Automate action item alerts triggered by out-of-threshold scores Collaborate more quickly and easily using a paperless, automated, workflow-driven environment your entire supplier network can use. 4 / 9

5 To manage supplier performance effectively, you need a way to define, capture, measure, aggregate, and act upon performance information. This means bringing together qualitative and quantitative information something most organizations struggle with today. Data is often inaccurate, out-of-date, and fragmented, offering limited visibility into supplier performance and risk exposures. Ariba Supplier Information and Performance Management provides a 360-degree view of supplier information performance and risk. Using a variety of visualizations and reports, you can quickly turn information into actionable intelligence. For example, you can create and schedule comprehensive stakeholder surveys on supplier interactions, mapping survey questions to specific key performance indicators (KPIs) on a scorecard. At any time, you can automatically pull survey results onto the scorecard and average all stakeholder feedback for each supplier or scorecard. In addition, scorecard templates can be created by supplier and category and include specific KPIs. You maintain full control over who can see sensitive supplier information. To populate KPIs within templates, you simply pull in data from surveys or transactional systems. You can also map legacy transaction data into KPI grades and identify out-of-threshold scores for each KPI to trigger alerts. Continued on next page 5 / 9

6 You can create performance reports and set up alerts. The solution comes with automated, prebuilt reports for 360-degree views of suppliers across all spend management activities. At any time, you can easily create quick, ad hoc reports across suppliers or categories. These reports help you track supplier performance over time and identify areas of improvement. To accelerate time to action, you can also automate the creation of action item tasks and alerts when out-of-threshold scores occur, so nothing gets overlooked. Using a performance management dashboard, you can access all supplier or category-specific performance data in one view. From this dashboard, you can: Quickly see alerts and tasks related to out-of-threshold performance Manage overall supplier performance management tasks in calendar view View progress of watched supplier performance management projects Drill further into any data for more detail The Ariba Supplier Information and Performance Management solution also supports built-in integration with the Ariba Sourcing Pro, Ariba Contract Management, and Ariba Spend Visibility solutions. The result is a closed-loop process and efficient information transfer along the entire strategic sourcing and supplier management lifecycle. 6 / 9

7 Supplier management is a two-way street. Installing the necessary supplier information and performance management process sets the foundation for effective supplier management. However, deriving sustainable value from these efforts means that your suppliers also must adopt the supplier management solution. The seller collaboration console allows suppliers to manage their company information centrally across all connections, thus eliminating duplicate effort and enabling a unified seller experience. Through the seller collaboration console, suppliers can establish a many-to-many, network-centric, informationsharing model with their buyers and eliminate the need for point-to-point connections. Key benefits include: Single sign-on across all Ariba solutions and customer relationships Intuitive seller registration and single terms of use for all Ariba solutions Flexibility for suppliers to centrally manage their Ariba profiles across all customer relationships Linking of multiple supplier user IDs to a single ID with multiple roles assigned Streamlined supplier onboarding, and more complete and consistent information across all relationships Eliminate supplier fatigue and improve solution adoption through a network-centric and collaborative supplier management approach. 7 / 9

8 Realize the benefits Realize the benefits Now you can manage supplier qualification and onboarding, measure and analyze supplier performance, and identify supply base risks using a single cloud solution that integrates with other Ariba offerings. You can: Reduce overall supplier management costs by 60% to 80% Quicken seller assessment and qualification times by automating the information collection and new seller approval process Gain additional insights into seller information and ratings Get a 360-degree view of all aspects of sellers, including contracts, quotes, performance, certificates, internal stakeholders, seller contacts, and detailed seller profiles Protect against supply chain risks and disruptions When information enabled by technology becomes visible across your organization, costs per supplier go down dramatically. 8 / 9

9 Objectives Summary To be successful, you need to constantly find, assess, and onboard new trading partners; maintain accurate and up-to-date information about them; and measure and improve their performance. With Ariba Supplier Information and Performance Management from Ariba, an SAP company, you can do all this and more. Use this cloud solution to streamline registration and onboarding; cut costs and risk with high-quality supplier information; and monitor, manage, and proactively improve supplier performance. Objectives Capture and maintain supplier information in one place Manage supplier qualification and onboarding processes Define, measure, and analyze supplier performance Assess and mitigate supply chain risk exposure Automation of supplier information collection and search Workflow-driven new seller approval and onboarding processes Deeper insights into seller information and ratings Dedicated workspaces that organize supplier performance management activities 360-degree view of supplier information performance and risk, using analytics, visualizations, and reports Reduce supplier management costs by 60% to 80% Access and qualify suppliers more quickly Get a 360-degree view of supplier information Protect against supply risks and disruptions Learn more Call your SAP representative today, or visit us online at /supplier-management. 9 / 9 Studio SAP 31356enUS (14/11)

10 No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP SE or an SAP affiliate company. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. Please see for additional trademark information and notices. Some software products marketed by SAP SE and its distributors contain proprietary software components of other software vendors. National product specifications may vary. These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or warranty of any kind, and SAP SE or its affiliated companies shall not be liable for errors or omissions with respect to the materials. The only warranties for SAP SE or SAP affiliate company products and services are those that are set forth in the express warranty statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document or any related presentation, or to develop or release any functionality mentioned therein. This document, or any related presentation, and SAP SE s or its affiliated companies strategy and possible future developments, products, and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in making purchasing decisions.

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