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Procurement Process

Competitive Sourcing in Procurement

By Procurement No Comments

Effective sourcing in procurement is no longer a luxury—it’s a necessity.

For finance and procurement executives, understanding the intricacies of sourcing is crucial in ensuring a stable supply chain, mitigating risks, and ultimately achieving a competitive edge.

But what exactly is sourcing in procurement, and how does it unlock value for businesses?

Understanding Sourcing in Procurement

Sourcing is the process of finding the most suitable suppliers of goods and services for a company. It’s about balancing cost, profit margins, and competitiveness. The right supplier must offer a good enough price so that the acquiring business can make a profit margin by trading or using the product in their production process, all while considering the actions of competitors.

Although often used interchangeably, sourcing and procurement are distinct but related concepts. Sourcing involves finding, vetting, and onboarding suppliers, whereas procurement deals with the steady flow of goods through the supply chain.

The Importance of a Sourcing Strategy

In order to attain a stable supply chain, it’s important to develop a proper sourcing strategy. A sourcing strategy serves several purposes:

  1. Consolidating purchasing power: A strategic approach to sourcing allows a business to negotiate for lower unit prices through bulk purchases. This can result in higher profit margins or lower selling prices, thereby increasing the competitiveness of a company’s products.
  2. Risk mitigation: By conducting research on prospective suppliers, a company can avoid suppliers who are not a strategic fit, perhaps in terms of capacity, culture, or regulatory compliance. This can protect the company from possible disruptions arising from a supplier’s non-performance.
  3. Scouring the market for opportunities: Strategic sourcing is an ongoing process of searching the market for new opportunities. New suppliers with superior product quality, more competitive prices, or even new production technology may emerge. The role of the sourcing team is to establish contact, gather intelligence, and lay the groundwork for future contracts, helping the business stay competitive in the long term.

The Sourcing Process: A Step-by-Step Guide

The sourcing process can be broken down into seven key steps:

  1. Analysis of Internal Needs: This involves determining the goods and services the company needs to acquire, as well as how much of each item is required based on past requirements and activity growth projections.
  2. Researching the Market: The organization should research the market to find potential suppliers and their offerings. This includes considering logistical costs and the risks that arise from working with each of them.
  3. Developing the Sourcing Strategy: The company comes up with a method of determining which supplier to work with, ensuring both reasonable costs and supply chain stability.
  4. Requests for Proposals and Quotes: Once potential suppliers have been identified, the company will invite them to send in their bids to supply goods or deliver a service. These proposals need to be detailed enough for the sourcing team to assess the supplier’s capacity to deliver.
  5. Negotiating Contracts: After receiving proposals, the company will shortlist suppliers they want to work with based on an objective criterion. This often involves negotiations for adjustment of certain terms.
  6. Onboarding and Integration of the Suppliers: Once a contract is signed, the supplier undergoes a formal onboarding process, which involves setting up communication lines.
  7. Assessment of Results: Sourcing is an ongoing process, and for current suppliers, the company has to monitor their performance against predetermined standards continually. This is a critical part of supplier relationship management.

Sourcing Strategies to Consider

There are several types of sourcing strategies, including near-sourcing, insourcing, global sourcing, sub-contracting, captive service operations, manufacturing, vertical integration, and joint ventures. Each comes with its own set of benefits and challenges.

For instance, near-sourcing can save on cost and time in transportation but may require a higher initial investment. Conversely, offshoring can offer cost savings but often incurs additional time and costs in transportation.

The Power of Technology in Sourcing

The use of technology can help streamline sourcing activities. From gathering information about suppliers and sending requests for proposals to performance benchmarking and assessment, digital tools have revolutionized the sourcing and procurement process.

According to a Gartner survey, 85% of businesses have already implemented, or plan to implement, digital procurement solutions in the next two years.

 

With a proper understanding of sourcing in procurement and the use of strategic sourcing practices, finance and procurement executives can unlock significant value for their organizations.

By adopting efficient sourcing strategies and leveraging the power of technology, businesses can streamline their procurement processes, reduce costs, increase competitiveness, and ultimately drive growth.

 

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Best Practices to Open the Silo Between Accounts Payable and Procurement

3 Best Practices to Open the Silo Between Accounts Payable and Procurement

By Procurement No Comments

Summary: Accounts payable and procurement work hand in hand, although many departments remain uninformed about the goals, metrics, decisions, and communications of the other. Businesses can breach data silos among the two departments by implementing Intelligent Spend Management solutions, utilizing technology and automation to its fullest, generating shared goals among the two departments, and generating a culture of effective sharing and communication. Creating flow between AP and procurement reduces risk, opens usable capital, increases business agility, and supports better supplier relationship management.

Why Is Alignment Between AP And Procurement Important?

Accounts payable and procurement can be seen like the left and right hands of an organization. Unfortunately, in many businesses, neither hand knows what the other is doing—even if they both report to the same person—which results in unnecessary fumbling, inefficiency, and lost profits. In an ideal scenario, finance, procurement, and supply chain all need to work closely together, sharing data and common goals for the greater good.

Procurement and accounts payable are an obvious place to begin when breaking down information silos because procurement is tasked with buying goods and services while accounts payable is responsible for paying for those same goods and services. Procurement and payment need to be combined under one reasonable, cohesive procure-to-pay (P2P) strategy in order for both “hands” to bring the best value to an organization.

A cohesive P2P strategy offers the following benefits to businesses:

  • Positive working capital and achievable early payment discounts generated through realistic timelines between both departments
  • Sourcing that involves more depth and insight than procurement can achieve on its own
  • Better spend analytics based on data for more accurate cash flow predictions
  • Better supplier relationship management via sharing and communicating goals, updates, and information about interactions
  • Contract negotiation with suppliers that offers greater flexibility

Intelligent Spend Management: A Strong Plus

Intelligent Spend Management enables businesses to manage every source of spending across every category while aggregating spend data under a single, unified view.

SAP Ariba, the basis for our Premikati Marketplace, is a strong proponent and deliverer of Intelligent Spend Management solutions. Focus and agility are byproducts of “[understanding and using] data, transforming it from information into intelligence, and intelligence into value.” Intelligent Spend Management allows businesses to mitigate risks, collaborate effectively, automate their source-to-pay processes, and engage in rapid acceleration—toward fast-changing customer desires and new business models and revenue streams alike.

As it applies to AP and procurement, Intelligent Spend Management helps teams communicate and prioritize better, uncover hidden spend, and collaborate more effectively with suppliers and business partners.

Actionable Ways to Open the Silo Between Accounts Payable and Procurement

In order for a business to begin the process of integrating accounts payable and procurement in such a way to mitigate risks and unneeded spending, it must begin with a plan. The following are starting points for businesses to create a path toward open, effective procedures between AP and procurement:

Agree on Common Goals

It doesn’t how hard either side is working if they are each working toward conflicting goals. Both departments should agree on common metrics and goals that both work toward throughout the month and subsequently report to relevant executives. Cash flow goals should be shared and purchasing decisions made in accordance with these goals. One shared goal which can be acted upon immediately is to create and utilize a combined, up-to-date vendor master list that is devoid of duplicates and is clear about who maintains what responsibilities in regards to the list.

Use Technology To Its Fullest

Technology is the cornerstone of adaptable, agile businesses in the modern day. Not only can technology help mitigate risk through automated processes which reduce errors and fraud, it can also be a key factor in breaking down communication barriers between departments which previously maintained their own separate records and metrics. If both AP and procurement maintain data through technological means, then that data can be more effectively combined and utilized to make better business decisions and predictions.

One immediate way to opt in to technology to support effective processes between procurement and accounts payable is via adopting and Intelligent Spend Management system. Because data will be able to be viewed from a centralized dashboard, insights and intelligence quickly follow. Having this form of system in place can also guide other processes between departments such as which key metrics to prioritize.

Other disruptive technologies may also be of use during AP / procurement crossovers. SAP Ariba, basis of the Premikati Marketplace, utilizes the high-tech trifecta of AI, machine learning, and blockchain. These sorts of technologies can assist with safe record-keeping, automation, and predictive analytics.

Create A Culture of Sharing

Information hoarding is an ineffective approach in today’s business culture. Instead, opt for a sharing culture that understands boundaries—sharing at length, but efficiently.  In conjunction with creating shared goals, each department should also share information related to their key metrics and goals, their progress, and offer solutions surrounding how the two departments can work together for overall success.

AP and procurement should share relevant information regarding invoices—such as unpaid, late invoices—and recent interactions with suppliers. Similarly, any vendor info which has changed should be made promptly available to employees in both departments, perhaps through the combined vendor list. In terms of efficiency, an action businesses can take right away is to set aside a time for sharing and questions between the two departments. If questions can be saved for the end of the workday, then constant interruptions are less likely to throw off the flow of each side’s work, yet needed questions can be answered to better inform decision-making and priorities, offering fast adaptability on a day-to-day scale.

An Intelligent Spend Management system is one way to combine effective, efficient sharing culture with technology for easily-accessible data for all.

Feel free to share your best practices or pain points below…we love to hear comments from those in the field!

top 3 procurement strategies for SMBs

Top Three Procurement Strategies for SMBs

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For SMBs, procurement can be the largest area of spending, often representing 50 percent of sales revenue. For companies looking to send value to the bottom line rather than take it away, optimizing the procurement workflow can help.

In many cases, SMBs tend to focus more on overall operations rather than more specific processes. However, targeting areas like procurement for process improvement can help accomplish goals that go beyond dollars and cents – it can also improve productivity throughout the organization, leading to greater efficiency from end-to-end.

Build bottom-line value with these procurement strategies

To help you chart a new, more profitable course forward, here are our top strategies in procurement for SMBs:

1.  Choose your supplier partnerships more strategically

If you have several buyers who tend to purchase from a range of different vendors, think about consolidating that spending into a smaller pool. Purchasing from fewer suppliers will help to streamline resources from many angles as it will reduce time you spend on sourcing and help you avoid excessive delivery fees.

Additionally, the more buying power you have with a specific vendor, the better the relationship may become over time, and it may be possible to negotiate bulk discounts based on the volume of business you do with them – a mutually beneficial situation that you could work to your advantage.

2.  Optimize procurement processes

Within smaller business operations, there is often less attention paid to purchasing from department to department. There may not be dedicated personnel or a finance department to oversee PO’s, so purchasing is done ad hoc without much regard to the availability of funds, pacing, or cost of sale implications.

In the enterprise, these functions are consolidated, and often evaluated and substantiated by technology and data, providing buyers with oversight and the tools they need to make informed decisions. Without this valuable financial data, a company runs the risk of overextending themselves by over-purchasing or overspending on the items they need.

Implementing a system to govern and consolidate all spending decisions is critical to achieving this goal, but if done manually, with spreadsheets and through other methods, error does occur, and an inordinate amount of time is spent in managing the process. An appropriate technology solution should be applied, as it will provide immediate value, reduce error, and allow employees to focus on higher-value tasks.

3.  Apply the latest procurement technology and tools

Today, SMBs have the advantage of being able to access enterprise-grade procurement technology and tools, giving them the same financial and strategic advantages as major industry players.

Procurement technology has many advantages, including:

  • Cloud-based systems are easy to manage and always available, assuring real-time insight into procurement activities.
  • The analytics delivered by procurement technology provides stakeholders with the ability to make data-driven decisions and optimize costs, improve processes, and streamline reporting workflows.
  • An e-procurement strategy removes silos within the organization, enabling collaboration between departments and consolidating efforts, resulting in cost reduction and process improvement.
  • Automation delivers great value to SMBs as repetitive tasks are accomplished efficiently and accurately, eliminating errors and improving the quality and voracity of internal data. Many SMBs spend an inordinate amount of time backtracking to find mistakes and often overlook small errors that add up over time. Automating these baseline processes improves accuracy and allows employees to devote their time to advancing business goals.
  • Another great advantage to applying an e-procurement strategy is the ability to predict trends in spending. Analytics deliver a clear picture of spending patterns and help the organization prepare for what’s to come based on actual data rather than just conjecture and instinct. Companies can be better prepared for the future and will be able to provide leadership with more accurate projections on the road ahead.
  • E-procurement also enables better risk management as it reduces overspending, redundancy, and costly errors in administration.
  • Compliance, whether related to company policy or regulatory mandates, is easily managed with e-procurement. If this is a priority for your business, an e-procurement solution will support your needs.

Premikati Marketplace: Procurement Solutions for SMBs

Premikati Marketplace runs on the SAP Ariba™ Buying and Invoicing platform. Developed specifically with SMBs in mind, it provides a way for small-to-medium sized companies to take advantage of enterprise-grade procurement strategies that will help them grow and scale.

To learn more about what Premikati Marketplace can do for your organization, visit www.premikati.com/marketplace or call us directly to get started.

intelligent spend management

What is Intelligent Spend Management?

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Intelligent Spend Management: Why it Exists, and Why you Need it

Between global sourcing initiatives, product lifecycle management, supplier diversity milestones and more, the procurement operation in any sizable company is tasked with processing immense volumes of data.

And with the immense popularity of lean and tech-oriented skill sets in the discipline, no data is more relevant to procurement than the things that impacts company spend.

The Problem: Data Islands

Often, supply chain data is kept on systems that don’t talk with each other. Some systems may be deprecated, while others exist only on certain peoples’ machines.

In operations like this, the company is said to lack something called business intelligence– the ability to efficiently analyze data with technology and derive actionable information.

Introducing business intelligence to a company typically involves change management processes with long time horizons, affecting the bottom line. The growing pains required to become a business intelligence-enabled company may require a major culture shift, too, even while dropping large amounts of money on new ERP systems and consultants.

For those procurement operations that do have all their data efficiently accessible in one place, they’ve still only ach

  1. Procurement Strategy

ieved half the battle. Approaching the data with informatics, or the science of how to use data, poses another challenge altogether.

Intelligent Spend Management: How it Works

Thankfully, for small and medium-sized procurement operations, it doesn’t take a reverse auction guru, enterprise software wiz, and sourcing strategist all in one to enhance the unit’s business intelligence with technology. The traditional methods of enhancing business intelligence have been tailored for procurement professionals in a new, simplified process called Intelligent Spend Management.

First and foremost, Intelligent Spend Management (ISM) streamlines your software suite into a centralized hub. From there, ISM allows the supply chain professional to anticipate threats, understand their market, and work across business units to deliver efficiencies that were virtually impossible before.

SAP Ariba, the most comprehensive ISM software suite, generates more data from across the source-to-pay cycle than any other network. As the company website notes, “SAP Ariba’s vast repository of data has been aggregated from millions of companies conducting trillions of dollars in spend over the course of more than 20 years.”

Thanks to the flexibility of SAP Ariba, third-party solutions and custom flexibility can be easily integrated into the software. Efficiency-oriented solutions like Premikati Marketplace fit squarely into the suite without disruption to the end user.

Intelligent Spend Management: Starting the Conversation

With any change management process, the business needs executive buy-in for the initiative to be truly successful. Achieving that buy-in can be a challenge to procurement professionals, who may face pushback for introducing disruptive, new ideas.

Thanks to the presence of consulting companies specializing in the process, like Premikati, the conversations over how best to introduce ISM to one’s own business can take place in a guided, easy-to-understand manner.

Intelligent spend management is as much a philosophical approach to the procurement operation as it is a function of corporate business intelligence. Reach out to the folks at Premikati, who offer an SAP Qualified Partner-Packaged Solution, to start the intelligent spend conversation.

supplier diversity

Supplier Diversity: How it Improves Business, and How it Works

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Supplier Diversity: How it Improves Business, and How it Works

Diverse spend is an ongoing goal for companies large and small alike. For government contractors and their subcontractors along the supply chain, the goal of supplier diversity can even stand as a requirement to doing business.

Exacerbating the search for diverse spend, suppliers often don’t even realize their potential to benefit from formal recognition of their diverse supplier qualities.

Supplier diversity can therefore feel like an onerous goal at times, imposed on supply chain professionals and business owners who already face manifold compliance requirements and boxes to check elsewhere.

Fortunately, in almost any industry, supplier diversity initiatives can be successful on both the buy and the supply sides with an all-encompassing approach that utilizes business intelligence, researches outside knowledge, and takes proactive measures. (You’ve already made a good first step coming to this page!)

The benefits of supplier diversity

Most large companies have been striving to increase supplier diversity for decades. But just what is a diverse supplier?

In the case of supplier diversity where the U.S. government is concerned, the OFCCP – Office of Federal Contract Compliance Programs – provides the following major small business subcontractor categories:

  • Disadvantaged
  • Woman-owned
  • Veteran-owned
  • Service-disabled veteran-owned
  • HUBZone (Small Business Administration-designated “Historically Underutilized Business Zones”)

With the U.S. federal government requiring those contracting in excess of $700,000 ($1.5 million in construction) on a deal to pursue subcontract according to certain percentages with the above small business categories, it becomes crucial for these businesses to know their supplier bases inside and out.

There are other categories outside of or overlapping with the above, too, such as foreign businesses and National Institute for the Blind (NIB) or National Institute of Speech and Hearing (NISH) affiliate businesses.

Supplier diversity’s benefits are not limited to satisfying government contracting requirements. Having achieved supplier diversity – either as a buyer, or as an entrepreneur who has attained diverse certification (more on that below) – one’s business becomes more attractive to outside companies looking to improve diverse spend overall.

Moreover, from a marketing perspective, the potentially unique approaches of diverse suppliers can bolster a company’s ability to navigate the U.S.’s increasingly diverse demographics.

Identifying diverse suppliers

For many corporations, supplier diversity is nothing new. To illustrate, CVM Solutions found in a 2017 report that 75% of supplier diversity programs have been in place for more than 3 years. In the same survey, however, only 25% of supplier diversity professionals rated their programs as “very effective,” signaling a gap between those who knowwhat supplier diversity is and those who achieveit.

Of acute relevance to small and medium-size companies is to know how to demonstrate supplier diversity. Luckily, doing so is a relatively simple affair thanks to the existence of Supplier Diversity Certification.

Major national-level certifying agencies include the National Minority Supplier Development Council (NMSDC), Women’s Business Enterprise National Council (WBENC), and the U.S. Department of Transportation DBE Program, and the SBA Woman-Owned Small Business (WOSB) Program. Other major certifications exist, with even the state of Ohio operating its own Disadvantaged Business Enterprise (DBE) certification program.

Knowing about certifications is only half the battle. Suppliers may not realize the business benefits of certification, and their customers may not think to ask. Procurement supplier business surveys should always ask in plain terms about suppliers’ knowledge of diverse supplier certification beforeestablishing whether they have any! This simple question can save lots of time, money, and calories for all parties involved.

For small and medium businesses especially, the art of sourcing diverse spend can still seem excessively time-consuming, cost-intensive, or just overwhelming to approach. Easy-to-use tools exist to streamline this process.

Integrating diverse suppliers

Dun & Bradstreet (DNB) is meanwhile known for its deep supplier sourcing database, and assigning a D-U-N-S identification number is free for all businesses required to register with the U.S. Federal government for contracts or grants.

New networks and databases are cropping up to meet the unique demands supply chain professionals face, like in supplier diversity. Premikati Marketplace, an SAP Partner-Packaged Solution, enables diverse supplier sourcing with ease.

SAP Ariba is a major software suite that supply chain professionals use to drive all sorts of business decisions.  Using SAP Ariba in a turnkey, in-browser navigation system, Premikati Marketplace connects suppliers (including diverse) with buyers. It is free for suppliers to set up, with no costs or fees to maintain.

With Premikati as a WBENC-certified woman-owned business, enhancing users’ supplier diversity connections is a key function of its Marketplace. New suppliers have the opportunity to connect with potential buyers, and potential buyers to new suppliers, thanks to the low barrier to entry design of the network.

From electronic requisition processing to supplier information queries, Premikati’s Marketplace solution is easily tailored to diverse supplier integration.

Every supply chain initiative poses unique opportunities and challenges, and supplier diversity efforts are no exception. For a more personal touch to your unique supply chain initiatives, contact Premikati’s experts for a real human’s ideas and insights on how you can improve supplier diversity and enhance other efficiencies in your company’s supply chain now.

About PREMIKATI

Founded in 2009, Premikati, Inc. is a WBENC certified woman-owned Supply Chain Business Process Outsourcing (BPO) firm, providing cost savings and financial, contractual and supplier risk mitigation services to purchasing organizations for mid and large enterprises while leveraging best-in-class purchasing processes and technology. Premikati has partnered with SAP and is one of only five companies globally to have been granted the most exclusive partnership level with SAP Aribaas a BPO Partner.

SAP Ariba SNAP! FAQs

SAP Ariba Snap Frequently Asked Questions

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As one of only eight companies in North America that have the ability to implement SAP Ariba Snap solution that is targeted at mid-market companies, we at PREMIKATI have compiled a list of frequently asked questions and their answers to help you decide if your organization is ready to take the next steps into solving your procurement obstacles and meeting your business objectives.


Overview and Key Differentiators:

What exactly is SAP Ariba Snap and how does it differ from standard SAP Ariba?

Snap is an implementation of SAP Ariba Buying and Invoicing and encompasses the critical elements of a procurement foundation at a minimum of complexity.

What is the process of implementation?

PREMIKATI is able to take your business live with SAP Ariba Snap in under 12 weeks. You will get best practices on Day 1 out-of-the-box which can be adjusted during implementation and over time.  In order to maximize the return on investment, we recommend that SAP Ariba’s Spot Buy marketplace be turned on immediately.  We want you to be transacting in 2 weeks or less!

(See more about the incredible SAP Ariba Spot Buy Marketplace!)

Supplier enablement of the initially targeted suppliers are performed by Premikati.  This is a critical aspect of the successful implementation and has been fully integrated into the implementation process.  We train your team so you can be self-sufficient as you add suppliers over time.


Spot Buy:

Does the SAP Ariba Spot Buy Marketplace come with SAP Ariba Snap?

Yes, Spot Buy is included and can be ready for transacting early in the implementation process.

One great thing about Spot Buy is that you can control content by commodity. For example, the administrator has the ability to toggle on and toggle off what content your users are allowed to see.  In addition, approval workflows and cost center information can be added to any purchase.  These are unique value props to Ariba Marketplace. You choose the content for your users, no matter the number or location – a feature that NO competitor has.

Do users in countries such as Brazil, Argentina, Mexico, UK, Germany, and Australia have access to Spot Buy content immediately or is that limited to the US only?

The marketplace is growing fast! SAP Ariba Snap has up to 60 million SKU`s from sustainable, and vetted suppliers. It is available for users in US, Canada, UK, and Germany today.  Mercateo is the marketplace provider for EMEA.  Recently, SAP Ariba signed agreements with Mercado Libre that will make the marketplace available in Latin America.


Guided Buying:

Does Guided Buying come with SAP Ariba Snap, and if so, can you configure other categories to the guided buying landing page?

Yes, Guided Buying is included. While you can easily add additional categories that are specific for your business, with Snap you get pre-built categories with content and forms for:

  • IT & IT Services
  • Office Supplies
  • Advertising & Printing
  • Marketing Services
  • Financial Services
  • Legal & HR Services
  • Facilities / Maintenance
  • Travel

(See more about SAP Ariba’s Guided Buying)
 


Technical:

How do approval processes work? What do they look like?

You will receive SAP Ariba’s best practice approval workflow out-of-the box. You can approve via the application, via email, or by mobile device.  Approval workflows have tons of flexibility. There are parallel approvals to accelerate process. There is a concept of a watcher, and user approval groups.  Out of the box approvals include role, dollar value, special situation. This helps to minimize the need to build customizations.

How does Ariba & ERP’s integrate? Is there a standard set of integration scenarios for each process within Procure-to-Pay that no special development is needed if SAP best practices are followed?

Perhaps the most valuable aspect of Snap is the pre-determined flows, processes, and approvals out of the box. The structure is both robust and complete, essentially eliminating the need for customized integration. There are few instances where the custom integration justifies both the up front and ongoing maintenance costs.  With SAP software, there are 170 native integration points. The number of integrations is 8x of any competitor and covers the entire Source-to-Settle process.

Does this apply to non-SAP customers as well?

Yes. Ariba Snap is ERP Agnostic and will deploy in <12 weeks. 42% of Ariba customers are non-SAP.

Essentially all ERP systems can now be integrated to Ariba.

Are analytics provided? If so, how is reporting presented and managed?

Yes, analytics are provided which are focused on the P2P lifecycle.  As part of Snap, SAP Ariba has provided end to end capabilities to support the entire procure to pay process.  All of the basics are reported on (approvals, spend by categories, invoices exceptions, accruals, etc.) It is possible to set it up to have a weekly report sent to your stakeholders directly from the tool, or you may download in Excel.  Additionally, any data element captured can be reported with an unlimited number of customized reports that your team can create easily.

 


Upgrades:

If our company outgrows SAP Ariba Snap, do we have to redeploy/repurchase SAP Ariba?

Absolutely not!  SAP Ariba Snap is the same full Buying and Invoicing solution deployed at Large Enterprise customers but the focus is on the features and functionality that are critical to growing businesses and deploy only those features.  If you need additional features in the future, these are already included in your license and you can toggle them on at any time.

The beauty of SAP Ariba Snap is that it is a solution that is built to grow in complexity as your business matures. With implementation, we start with the key foundations that will give you the fastest time to value in key spend categories.  Once the foundation is set you can add those features and functionalities that best meet your needs while minimizing cost and operational risk.

What does SAP Ariba Snap cost?  Is the price determined by Spend Volume? by PO? Or transactions? Or connections?

Pricing is done by volume of Spend and the of the number of documents (PO and Invoices per year). Unlimited users are allowed so everybody in your company to have flexibility to access the tool without additional cost.

  


My Suppliers:

What is the process for suppliers to join the Ariba Network?

Suppliers can join the network at discovery.ariba.com but they are also invited to the Ariba Network from the buyer in their Ariba site. This can be done as an invitation or when a PO is sent to supplier prompting the invitation. Suppliers are considered customers too. SAP Ariba has used many UX principles to dramatically ease supplier interaction on the network.

What are the fees for Suppliers with SAP Ariba Snap?

Your suppliers can transact for free on the Ariba Network. They have the ability to send PO`s, Invoices, Order Confirmations, Ship Notices, and more. (Learn more about Light Enablement from SAP Ariba) 

Why should we buy SAP Ariba instead of a competitor’s product? Here are a few highlights:

  • Fast time to value (<12 weeks)
  • Best practices built in
  • Access to Spot Buy marketplace (content engine) that you control by commodity
  • UPGRADE Path without having to “upgrade”!!!
  • Local Resources – local language support and real-delivery expertise
  • Integration is simple and easy
  • Commercial flexibility i.e. Unlimited users and low subscription price
  • Suppliers can transact for free on the Ariba Network via Light Enablement

 


About PREMIKATI

Founded in 2009, PREMIKATI is a WBENC certified woman-owned Supply Chain Business Process Outsourcing (BPO) firm, providing cost savings and financial, contractual and supplier risk mitigation services to purchasing organizations for mid and large enterprises while leveraging best-in-class purchasing processes and technology.

Ariba Snap procurement implementation

Procurement with a Purpose – SNAP! Implementation

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Marisol Buchanan, CEO of Premikati, Inc., had the pleasure to speak in NYC at SAP Ariba’s Business with a Purpose Summit – along with Step Up for Students (SUFS) COO, Anne White.  The challenges faced by SUFS and and solutions of implementing SAP Ariba’s Guided Buying and SNAP! tools are highlighted below.

The Problem

At a high level, Premikati had been tasked with giving parents and guardians access to their children’s scholarship funds AND providing easy access to the things they are allowed to buy including tuition, provider services and school supplies.

If we asked to partner on this project a few years ago it would have been very difficult from a change management perspective and we would not have recommended Ariba due to the complexity and all of the massive capabilities of the software, which is a good thing for large corporations but rather confusing for a basic consumer who may not even know what the word “Procurement” or “advance ship notice means”.

The Solution

Now, through the innovations made by SAP Ariba to the user interface and adding Guided Buying, along with the simplicity of SAP Ariba SNAP!, the implementation end user training has been drastically simplified.

This is imperative considering the landscape of the situation:

We have:

  • 100,000 families
  • not using corporate devices with standard operating systems
  • limited access to email
  • low user experience with business support technology like WebEx for training
  • multiple languages
  • many families with multiple children
  • 2000 schools which now are “Suppliers” who have limited experience with “e-Invoicing”

With this said, Premikati, Inc. has developed a robust and creative Change Management Strategy.  In addition to standard business communication vehicles, we are leveraging social platforms such as text messaging, YouTube, Facebook and twitter to engage and interact with these families in a way that easy and common for them.

So, essentially, we are taking complex procurement technology and best in class business processes and applying them in a way to make a positive impact on families, because that is what really matters.  That is truly procurement with purpose.

SAP Ariba Buying and Invoicing Tips

SAP Ariba Buying and Invoicing Tips

By Procurement No Comments

Having been an SAP Ariba customer, employee, and now SAP Ariba BPO partner, I have seen many of the pain points of the implementation of this module.

Granted, this list is only three of the major roadblocks we at Premikati have come across, and there are many more challenges that are company specific that we will address via this medium in the near future.

Alas, for now – let’s hit the top 3:

1. Have a solid change management strategy and plan.  

When initiating a top down project, without buy-in, you are at risk for people not adopting the new processes, technology, and communications.

This lack of buy-in decreases your early adoption level and end user acceptance of the new technology and processes – therefore diminishing your success and what should be – a rapid ROI.

2. Develop a strategic supplier on boarding wave plan.

Start with matched SAP Ariba Network suppliers. They are already transacting over the network making for an easy connection.

Next, remember the 80/20 rule. Let’s get the suppliers you do the highest spend with on immediately. This will allow for quick visibility and spend control for the majority of your purchase orders.

Your next target should be strategic commodities.

As far as tail spend, remember that SAP Ariba Spot Buy will revolutionize the way you have dealt with the tail spend that everyone struggles with and should have been “turned on” immediately and effortlessly.

3. Develop a strong compliance message for your suppliers.

Require all suppliers to receive PO’s and submit invoices through the Ariba Network. With Light Enablement, the historical complaints about fees are simply invalid.

Companies who follow this recommendation experience quicker supplier enablement which in turn allows for increased visibility and control of your company’s spend.

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Premikati is a certified Woman Owned Management Consulting and Legal Process Outsourcing firm, and an SAP Ariba Silver Partner, that is specifically tailored to Procurement and Supply Chain.

SAP silver partner

Changing the Game in Education with Step Up for Students and SAP Ariba

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Non-profit to launch digital marketplace for simple, efficient administration of scholarships to low-income and special needs students

PALO ALTO, Calif.–(BUSINESS WIRE)–Back to school can be a stressful time for parents and students – particularly those with financial and special needs. Step Up For Students is out to change this. The non-profit, which is expected to provide scholarships this fall to about 110,000 qualifying students in the state of Florida, today announced plans for a digital marketplace powered by SAP Ariba through which recipients will be able to purchase education along with associated services and supplies in a simple, consumer-like way.

“Premikati has particular expertise in simplifying complex challenges like these which will be key for a successful program.”

“At Step Up For Students, we don’t believe that quality education should be determined by financial means or disability, and we have made it our mission to give children from lower income families and those with special needs a chance at a brighter future through the scholarships we help to manage,” said Doug Tuthill, President, Step Up For Students.

Fueling Equal Opportunity

To advance this mission, Step Up For Students will leverage SAP Ariba’s cloud-based applications to provide an easy and efficient way for parents and caregivers of scholarship recipients to pursue and engage in the most appropriate learning options for their children. The nonprofit will begin to introduce the platform during the 2017-2018 school year with the goal of full implementation by 2018-2019.

“Education is the great equalizer,” said Alex Atzberger, President, SAP Ariba. “Yet there remains a significant divide in the ability for everyone to capture opportunities to learn. Technology is powerful tool that can change this and we are pleased to be supporting Step Up For Students in their mission to innovate with the purpose of closing this gap.”

Using SAP Ariba® Buying and Invoicing™ and SAP Ariba Commerce Automation™, Step Up For Students will create online catalogs through which scholarship recipients can find, buy and pay for tuition at schools of their choice along with educational services and school supplies with just a few clicks.

Bridging the Digital Divide

The solutions will be accessible anywhere, anytime via any device, including mobile phones – a key factor in Step Up For Students’ selection.

“Many of those we serve lack access to technology in their homes and it was critical that we remove this as a barrier,” said Scott Massey, Chief Information Officer, Step Up For Students.

Enter SAP Ariba partner Premikati. “Step Up for Students has high user counts where the users are not actually employees but rather students and their families,” said Premikati CEO Marisol Buczynski Buchanan. “Premikati has particular expertise in simplifying complex challenges like these which will be key for a successful program.”

SAP Ariba offers a range of solutions that help organizations of all sizes digitize the source to settle process and run faster, simpler and smarter than ever before. To learn more about the them and the value they can deliver, visit www.ariba.com.

About Step Up For Students

Step Up For Students is a nonprofit organization that helps manage the income-based Florida Tax Credit Scholarship Program. Students who qualify for the national free or reduced-price lunch program, or those who are homeless or in foster or out-of-home care, may qualify. The scholarship program provides tuition assistance to the private school of their parents’ choice or financial assistance to offset the transportation cost to an out-of-district public school. Since 2001, Step Up has awarded nearly 580,000 scholarships.

Step Up also helps administer the state-funded Gardiner Scholarship Program for Florida students with certain special needs. With the Gardiner Scholarship, recipients may use the funds for a variety of approved services including private school tuition and fees, private tutoring, occupational therapy, instructional materials and other services. For more information, visit: http://www.StepUpForStudents.org.

About Premikati

Premikati is an Indianapolis-based WBENC certified WBE Management Consulting and BPO firm that utilizes SAP Ariba solutions as a key component of its service offerings. Premikati helps its clients with all facets of Procurement and Contract Management, focusing on simplifying complex processes and challenges. To learn more about the company, visit www.premikati.com.

About SAP Ariba

SAP Ariba is how companies connect to get business done. On the Ariba Network, buyers and suppliers from more than 2.8 million companies and 190 countries discover new opportunities, collaborate on transactions and grow their relationships. Buyers can manage the entire purchasing process, while controlling spending, finding new sources of savings and building a healthy supply chain. And suppliers can connect with profitable customers and efficiently scale existing relationships – simplifying sales cycles and improving cash control along the way. The result is a dynamic, digital marketplace, where nearly $1 trillion in commerce gets done every year.

To learn more about SAP Ariba, visit www.ariba.com.

About SAP

As market leader in enterprise application software, SAP (NYSE:SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device – SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 355,000 customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap.com.

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