What is ARIBA?
SAP ARIBA is an cloud based procurement solution that enables buyers and suppliers to come on to a common global platform and improve there procurement process. It all started in 1996 with an agenda of enabling use of internet to explore best possible procurement by the year 2000 ARIBA became market leader in e-procurement. In 2004 it launched sourcing module and it went on cloud in 2008 by rolling out 9r1 and 9s1. It expanded rapidly with few more key acquisitions and finally ARIBA became part of SAP with SAP’S vision to conquer business e-commerce networks
On Demand VS On premise
- ARIBA on demand is a cloud based procurement solution
- It is hosted by ARIBA and can be used by tenants
- End user customization is limited with this
- It is Enterpreise installed
- Hosted by customer and can only be used by one tenant
- Flexible for customization to a greater extent
key components of ARIBA procurment
Catalog : Catalogs will have complete list of goods that the suppliers have in marketplace. There are two different types of catalogs available SAP ARIBA
- Local Catalog : There are the catalogs that are created on SAP ARIBA platform
- Punch out catalog: These are hosted on suppliers premise (Online platform) and then the shopped goods were brought back to SAP ARIBA
Contracts: It is an agreement between the vendor and buyer for purchase of Goods/Services over a long period of time. ARIBA helps to track the fulfillment’s of contracts. It gives better power for repeated purchases with uncertain quantities
Requisitioning : A purchase request with levels of approval requirements will be created when the buyer adds items for procurement. Items that are in catalog can be directly added and other items can also be created and added but may require additional approvals while adding
Invoices: Invoices are added to ARIBA to check for the quantities and monetary values involved with contracts. The invoices can both be added manually or through the ARIBA network.