What is ARIBA? - (2024)

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What is ARIBA? - (1)

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

On Demand

  • 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

On Premise

  • 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.

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What is ARIBA? - (2024)

FAQs

What is Ariba explained? ›

SAP Ariba is a cloud-based innovative solution that allows suppliers and buyers to connect and do business on a single platform. It improves the overall vendor management system of an organization by providing less costly ways of procurement and making business simple.

What is Ariba known for? ›

Ariba is a longtime leader in spend management software that was acquired by SAP in 2012. Today, the SAP Ariba spend management solution portfolio is empowering companies to move faster and spend better.

What is Ariba On Demand solution? ›

It allows buyers and sellers to exchange digital procurement documents among each other. These include quotations, order information and invoicing. A key factor for success is, of course, that the suppliers also need to be on the Ariba Network.

What is Ariba on premise? ›

On-Premise follows the process of connectivity to Ariba similar to ECC system, using BAPI(Business Application Programming Interface) calls or through IDoc(Intermediate Document).

What are the basics of Ariba? ›

Ariba in SAP is a tool that streamlines supplier selection, contract management, and payments for businesses. It aids in handling various procurement activities, including sourcing, contracting, invoicing, and spend analysis, and establishes a secure platform for exchanging information and documents with suppliers.

Is Ariba easy to use? ›

One-Stop for Vendors and Purchasing

Overall I like Ariba. It is fairly easy to use and navigate, and provides a one-stop SAP for it's clients. What I like most is that you can follow a job, from purchase order to invoice, in one place.

Who uses Ariba? ›

Which are the Top Companies Using SAP Ariba Software?
Company NameWebsiteLocation
BMW AGbmwgroup.comGermany
Deutsche Telekom AGtelekom.comGermany
Walmartwalmart.comUnited States
Lloyds Banking Grouplloydsbankinggroup.comUnited Kingdom
8 more rows

What is the difference between SAP and Ariba? ›

Ariba systems are more user friendly than SAP as SAP ERP does not have all the interactive functionalities that Ariba has, such as the approval flows, easy screen navigation etc. It is also much easier to train users to use Ariba system than it is to use SAP. Ariba is also more affordable than the SAP licenses.

Why do we need Ariba? ›

It enables companies to streamline the procurement process by reducing manual tasks, delays, and errors. SAP Ariba provides greater visibility into supplier performance and spending, while helping companies identify opportunities for process improvements and cost savings.

Who pays for Ariba? ›

Suppliers with an enterprise account who have High Usage Status in Ariba Network Fulfillment are required to pay fees. Alternatively, any supplier even without High Usage Status may voluntarily pay fees.

How does Ariba procurement work? ›

It involves requisition creation, supplier identification, negotiation, contract management, purchase order generation, and invoice processing. SAP Ariba streamlines these steps, enhancing collaboration between buyers and suppliers, ensuring compliance, and optimizing business procurement processes.

Is Ariba free to use? ›

The Standard account is always free of charge regardless of usage.

Is Ariba a SaaS solution? ›

SAP has taken SaaS functionality a step further, offering a unified cloud infrastructure based on SAP HANA, robust line of business (LOB) applications, and critical acquisitions of Ariba, Concur, Fieldglass, and SuccessFactors technology to further improve efficiency and collaboration across platforms.

How many customers use Ariba? ›

More than 4.6 million companies use SAP Ariba solutions to connect and collaborate around nearly US$3.2 trillion in commerce on an annual basis.

What are the advantages of using Ariba? ›

Advantages of Using SAP Ariba
  • Integration with SAP Supplier Relationship Management (SRM) and other enterprise resource planning software helps to streamline the procurement and sourcing process.
  • Offers visibility as well as scalability in the management of supplier risks, compliance, and sustainability.
Oct 12, 2022

How does Ariba pay work? ›

AribaPay works by combining the information about transactions that occur in the Ariba Network with the payment processing infrastructure of the financial partners, Discover and First Data.

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