The hybrid model takes the shopping cart of SAP SRM and leverages the Ariba Network for catalogs. Advantages of a Hybrid Modelįor many organisations on the Ariba Network, a hybrid procurement deployment that integrates Ariba solutions with an on-premise SAP Supplier Relationship Management (SAP SRM) implementation has been the interim entryway in the cloud, providing access to the cloud and the Ariba Network while retaining existing front-end requisition processes. Regular meetings with suppliers to monitor mutual key metrics lead to collaboration beyond performance. Beginning at supplier registration, documents that include pertinent seller information such as certifications are forwarded to buyers, which facilitates the qualification process and offers visibility into the catalogs of preferred vendors. New lines of communication between buyers and suppliers start to open with the onboarding process through the Ariba Supplier Information Performance Management solution.
Buyers have ROI concerns: Are they generating enough spend through the system to make it worthwhile? Are they taking full advantage of automation possibilities? Having helped onboard many suppliers as an implementation alliance of the Ariba Network, PwC knows full well the concerns from both buyers and suppliers. Suppliers, especially smaller ones, can be put off by new transaction fees. Migrating to a cloud-based procurement system, though, is not without its challenges. Supplier concerns are trending downward as suppliers are starting to understand that the benefits of moving their catalogs to the cloud outweigh the transaction costs.
Therefore, cloud procurement is an increasingly popular option to bring buyers and suppliers together in a shared network, and helps to explain why the Ariba Network has onboarded more than one million suppliers. For the supplier, purchase order (PO) and invoicing automation are as beneficial as the cost advantages from being a preferred vendor in a large supplier network. On the buyer side, maverick spending can be greatly reduced and greater visibility into the entire procurement process can be achieved. This a great article exploring how a hybrid procurement model (Ariba and on premise SRM) help to mitigate modern procurement challenges.įor buyers and suppliers, the cloud offers a host of benefits to mitigate some of the biggest challenges in the procurement space.
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