Running a business means running live.
But what does that mean?
Creating an Active, Adaptive Supply Chain in a Digital World
Business is still a numbers game.
But all the numbers are ones and zeros.
The digital economy is the new market reality. It’s the evolution of technology and information that
That’s what it means to
allows real-time connections between businesses, individuals and society as a whole.
run live. And you should
This digital transformation means infinite opportunities for every part of business. In the digital
see what it can do for
economy, you can create new products, services and entirely new business models. You can rethink
your supply chain.
how every fundamental part of business works. You can adapt, respond and, more importantly,
anticipate what your business and your customers need.
You can run live or run blind.
Your success in the digital economy depends on a digital supply chain. And, when you
run with SAP Ariba, you’re not running on yesterday’s ideas and information, you’re
running digital, running in the now.
You can instantly sense, predict, respond and adapt to customer demands, so you can
perfectly tune everything from your decision-making and supply chain to your people
and products.
When you run live, you can:
Live in the moment with your
customers and keep your supply
chain as nimble as their whims.
Collaborate with customers
and instantly respond as their
requirements change.
This is your living, breathing supply chain.
And that’s why running live matters.
The digital world hosts instant connections between companies and
Obstacles turned into
If you want to succeed in the digital
their vendors and customers. It’s where buyer/supplier relationships are
opportunity: a few examples
economy, you need to be as dynamic
managed in real life, in real time.
of what it means to run live.
as your customers. In the examples
So whether you’re managing a supply chain or a sales team, you can
that follow, we’ll look at a fictitious
find each other. You can work together. You can plan, forecast, react and
manufacturer’s relationship with
respond. You can do it all. Instantly. And dynamically.
suppliers as they encounter the very
This is the digital marketplace. This is where you now work. This is where
SAP Ariba comes in.
You can instantly sense, predict, respond and adapt to customer demands,
so you can perfectly tune everything from your decision-making and supply
chain to your people and products.
real business issues of changing
timelines, orders and customer
demands. And you’ll see how
SAP Ariba changes things.
We need to ramp up production, can you keep up?
One of our manufacturer’s customers has a larger-than-normal demand. SAP Ariba instantly readies the supply.
The Manufacturer needs to up production
SAP Ariba facilitates collaboration on pipeline and
The Supplier meets the request instantly,
10% to fit customer demand and reaches out to a
key supplier for vital raw materials.
sales forecasts, so changes aren’t such big surprises.
This helps everyone know what’s planned and where
they stand.
because they were ready to react. They then
confirm the order, which inspires confidence
in a key customer.
SHIP+
The Cash Effect of Collaboration
When companies and their suppliers collaborate on the
SAP Ariba Network, the entire business benefits. On-time
customer deliveries go up. Inventory turns go up. And, as a
result, you can bill your customers faster and improve DSO.
Is it okay if we pay you now?
Our manufacturer wants better control over cash flow and our supplier needs cash. SAP Ariba makes it work for everyone, right away.
The Manufacturer has fluctuating cash and
SAP Ariba allows the manufacturer to selectively
The Supplier invoices the manufacturer
extends payment terms as much as possible. They
want a return when they have cash on hand, and
they choose to always accelerate payments for a
key supplier.
accelerate payments to suppliers. They offer thirdparty financing as a payment option and gives the
supplier a view into the sales pipeline and payment
timeline.
with net-60 terms and actively monitors days
sales outstanding. They see that the invoice is
eligible for early payment, so they make a few
clicks and the cash comes in.
Use Financing Terms
to Your Advantage
By offering quicker-payment financing options
to your suppliers through SAP Ariba, you can put
your cash-on-hand to work—delivering as much
as 78% higher DPO1.
1
SAP Value Lifecycle Manager 2016
$ $ $
$
PAYMENT
OPTIONS
FASTER
PAYMENT
The procurement predicament.
Buying things for work can make more work for our manufacturer. SAP Ariba simplifies things in an instant.
The Marketing Manager needs giveaways
SAP Ariba matches the bid request to five suppliers
The Supplier gets active alerts
for an upcoming tradeshow and uses the SAP
Ariba mobile app to request a purchase. The
Procurement Specialist takes over to make sure
the process and purchase meet policies.
and sends proposals to the Marketing Manager. They
get the marketing team the giveaways it needs—right
away—and gives the procurement team visibility into
and control over spending.
to new opportunities and opens
a new sales channel with a new
customer.
RFP
Tap New Sources of Supply
When your business needs materials, suppliers or
a service outside the norm, you can’t afford to wait.
With SAP Ariba, you can quickly find the things you
need—from new markets and new suppliers—all
while meeting your quality and cost standards.
PURCHASE
AGREEMENT
Oooh, that’s not on our list.
When a purchase is out of the norm, SAP Ariba makes sure it still falls within policy.
The Marketing Manager needs a flat-screen for
SAP Ariba pulls options together from
The Supplier connects to customers
the tradeshow booth—it’s not in the corporate catalog,
but she needs it right away. She uses SAP Ariba to
quickly shop for the best deal.
leading internet marketplaces, following the
manufacturer’s procurement policies. This makes
purchasing as easy as a few quick clicks and frees
procurement from one-off requests.
(and sales!) it otherwise wouldn’t have had.
RFQ
More Options Lead to More Compliance
With SAP Ariba, you can give buyers a simple way to
get anything they need—whether its in your corporate
catalog or not—you contain maverick spending, tighten
policy controls and ensure you’re hitting your target
rates for virtually any kind of purchase.
SHIP
OVERNIGHT
Two steps ahead are better than one.
Our manufacturer can’t afford interruptions, so SAP Ariba keeps an eye on the companies that supply the
companies that supply its supply chain. Then offers instant alerts and information.
The Commodity Buyer focuses on the highest-
SAP Ariba alerts the manufacturer to a potential
The Supplier outlines the
level quality, performance and delivery of the most critical
commodities that go into our manufacturer’s products. In this
case, if steel valves aren’t available, on time or up to quality
standards, the business will suffer. So the Commodity Buyer
uses SAP Ariba to manage backup sources of inventory,
eliminating fears of production disruption.
concern in the steel market, updating commodity
buyers that a typhoon has damaged the distribution
site of the valve supplier’s primary steel supplier.
They keep the manufacturer two links ahead in the
supply chain—helping it predict, react, adapt and keep
business moving.
backup plan with the manufacturer.
INVENTORY
FORECAST
Protecting Everything from
Revenue to Reputation
Disruption of critical supplies has a far-reaching impact on any
business—from customer satisfaction to top-line revenue and
the very brand you’ve worked so hard to build. SAP proactively
monitors risks across your extended supply chain, so you can
detect warning signals early and minimize costly disruptions.
Run live. Run simple.
Run SAP Ariba.
The Ariba Network is where companies come together to get things done. It’s a
dynamic, digital marketplace where buyers and suppliers can find each other,
work together, and conduct more than $1 trillion in transactions every year.
It’s where the supply chain and supplier/buyer relationship come to life. It’s
where you work in sync with the ever-evolving needs of your customer.
For more information, visit sap.com/livebusiness-procurement.