Engine for digital purchasing

Data manager, networker, systems specialist: These are the roles that buyers will have to master in the future in order to meet the challenges.

In procurement, too, digital transformation is leading to an exponential increase in data, creating new opportunities for real-time decision-making and strategic planning.

"Purchasing organizations have the opportunity to actively intervene in the management of the supply chain and make an additional contribution to overall value creation through digitalization"

is how Sebastian Asshauer, Associate Partner at Apsolut, sums it up.

However, this requires a targeted collection and analysis of Big Data - with expert use of state-of-the-art technologies and methods for data warehousing, data mining and forecasting.

Increased networking required

As an important part of the value chain, purchasing must become increasingly networked so as not to be an obstacle to digital transformation. This affects its relationships both with suppliers and with the other departments in the company.

In concrete terms, this means that the role of the purchaser will have to change in the future. Whereas in the past it was a matter of procuring the required resources with a high degree of reliability at low cost, the purchaser is now becoming a networker who maintains strategic partnerships with selected suppliers.

It is no longer just a matter of a supplier providing special services at favorable conditions. A key criterion for inclusion in the circle of "preferred vendors" is a supplier's ability to be equipped for digital transformation itself.

With the holistic view of procurement processes across departmental and company boundaries, there is a growing need for support from IT systems that integrate seamlessly with purchasing solutions.

Consistent IT support

The aim is to reduce the interface problems that are still common in many places. For users of SAP-based purchasing solutions, such as Supplier Relationship Management (SRM), Supplier Lifecycle Management (SLC), Materials Management (MM) and S/4 Hana, a combination of SAP-based Ariba cloud solutions is an option.

These so-called hybrid solution scenarios usually cover the needs of most companies.

Sebastian Asshauer from Apsolut:

"By integrating the Ariba network, SAP users can quickly and easily access digitization benefits in an established system landscape."

For example, Ariba provides users with a range of services via standard interfaces that digitize the entire purchasing process: from finding new suppliers to tendering and contract management to exchanging purchase orders and invoices in the Ariba network. This significantly increases efficiency while reducing error rates.

One example is the new "Ariba Guided Buying" solution, which enables employees to handle procurement processes with no or minimal involvement from the purchasing department.

"Ariba Guided Buying" maps company-specific purchasing rules, for example for budget limits, minimum bids for certain transactions or preferred suppliers.

Instead of having to spend time dealing with these complex specifications, employees are automatically directed to the suppliers, items and services that meet internal specifications and preferences.

In addition, ad hoc purchases can be made with "Spot Buy". In this case, an employee can make purchases from suppliers without his company having concluded a framework agreement with these suppliers.

Through a partnership with eBay, SAP Ariba expanded procurement capabilities to the world's largest online marketplace. Ariba solutions ensure compliance with individual purchasing policies and overall processing.

Dark bookings save time and money

Another example of the high efficiency gains from Ariba's cloud solutions is digital invoice processing, keyword: dark bookings.

Companies that work with their suppliers via the Ariba network can completely automate invoice processing. A workflow matches the invoice data with the transmitted purchase order data and goods receipt information from the ERP system.

If there are no control deviations, the workflow transfers the data record to the SAP financial accounting module without human intervention. The usual scanning process is eliminated because the data is already available digitally. The invoice verification processes are significantly streamlined and companies thus save a considerable amount of time and money on invoice processing.

Furthermore, Ariba integrates seamlessly with SAP VIM by OpenText and similar solutions. Suppliers are paid on time, discount periods are respected, so this means an advantage for both sides.

The examples show: SAP-based purchasing organizations can consistently drive digitization with the Ariba network and other Ariba components. However, companies that want to take advantage of these benefits should plan their Ariba implementation strategically, as Ariba expert Sebastian Asshauer from Apsolut emphasizes:

"A structured and efficient approach determines project success."

Ariba connection

The first step is to connect SAP-based purchasing solutions to Ariba so that a company can handle supplier communications over the network.

Although SAP provides various connection options - in the form of add-ons or transport requests - customer-specific requirements may necessitate adjustments or enhancements.

In any case, it is advisable to bring on board an SAP consulting firm that specializes in process and IT consulting in electronic purchasing and has in-depth Ariba project experience. In this way, the consultants can support the customer not only in the technical implementation of the new hybrid scenarios, but also in change management, which must involve both employees and suppliers.

SAP SRM and SAP ERP users who want to use Ariba's cloud services need not worry about the future security of their purchasing landscape. This is because the new SAP S/4 Hana solution also natively integrates Ariba. Along the way, customers can take a number of intermediate steps to complete the transition in a planned manner.

SAP Purchasing goes mobile

The SAP user interfaces have also adapted to the expectations for intuitive user guidance and have been given fresh, new designs. With the SAP Fiori apps and Ariba apps, purchasing organizations already have technology available today that creates another important prerequisite for mobile digitization.

This means that buyers can access the applications and evaluations they need from any end device via the intuitive user interface - and are thus networked with their suppliers, business partners and colleagues at any time and from anywhere.