Want to be a Supply Chain Leader? Tap Ariba

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With nearly two million companies around the world using the Ariba Network to simplify inter-enterprise commerce, Ariba’s popularity among supply chain leaders is perhaps no surprise. To be sure, the Ariba Network is the largest trading network in the world and posts some impressive stats.

Ariba by the numbers:

  • Nearly 1.8 million suppliers in more than 190 countries
  • Over $850 billion annual transaction volume in Commerce
  • 74% of world Transactions
  • 102 million POs & Invoices processed annually
  • New supplier joins the network every 2 minutes
  • $822 K invoices discounted daily
  • Customers save a combined total of $82 million daily

The B2B eCommerce Craze

As consumerization permeates the workplace, and the promise of operational efficiencies, lower transaction costs, supply chain visibility, improvements in revenue, sales growth, and defensible competitive gain prove readily attainable, savvy B2B execs are stepping up their ecommerce efforts. Here’s what the experts have to say about B2B ecommerce growth:

  • Globally, by 2020 the B2B ecommerce market will be twice as large as the B2C market — $6.7 trillion vs. $3.2 trillion  — according to research provider Frost & Sullivan. Leaving the Site Icon
  • In the U.S., a major research firm predicts that B2B ecommerce sales will reach $1.3 trillion by the year 2020.

Ariba Brings Supply Chains into the 21st Century

Over the past decade, supply chain networks have increasingly become global and dispersed. A variety of factors—ranging from cost structures, tax laws, skills and material availability, new market entry and others—are driving companies to redesign and reconfigure their supply chains continually, often with disastrous results.

All too often operational centers and warehouses become geographically dispersed and technologically disconnected; software “bugs” become commonplace; vendors and suppliers find and exploit gaps; and disjointed legacy applications make certain that nothing along a company’s supply chain could ever be known with 100% certainty.

Another big change is the convergence into the SCM mix of myriad processes, such as procurement, that once operated in their own silos, wreaking havoc on accurate, real-time reporting and short-circuiting any meaningful attempt at predictive analytics.

Partner experience counts

According to the IDC Retail Insights' 2014 Supply Chain SurveyLeaving the Site Icon cost reduction, becoming more customer-centric, and improving product compliance are all top supply chain priorities.

Ariba solutions delivered by experienced partners such as NTT DATA have a significant, immediate and positive impact on all three fronts.

At NTT DATA we manage some of the world’s largest and most complex Ariba implementations and have been awarded by SAP and Ariba for our excellence in global implementations, particularly for our sourcing and e-procurement expertise and our exclusive global anti-corruption and anti-bribery solutions.

Here are just two examples:

  • We helped one of the largest pharmaceutical companies in the world standardize, streamline, and enhance various aspects of its indirect procurement process using the complete suite of Ariba modules. The result: $4B in savings since 2002 by retiring multiple legacy systems, including a 70% cost reduction by leveraging NTT DATA’s delivery solution.
  • For another client, NTT DATA was awarded a multi-year contract spanning all Ariba support services. We delivered cost savings of 70% by leveraging a lower cost delivery solution while making process improvements and achieving significant productivity and outcome gains.

Contact us today to learn more about our comprehensive portfolio of application services spanning the Ariba lifecycle.

Post Date: 11/20/2015

Baskar_Radhakrishnan Baskar Radhakrishnan

About the author

Baskar Radhakrishnan is a director of the Global SAP Ariba Practice at NTT DATA, with 18 years of IT experience. He has an extensive experience working with customers globally across various industries in the areas of indirect procurement, MRO, sourcing, spend and supply chain analytics and contract management solutions. He has successfully led several large global procure-to-pay transformation projects, which leverage SAP Ariba on-premises and SAP Ariba cloud technologies.

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