Unleashing the Power of SAP Ariba Solutions for Optimized Procurement and Risk Management
Supplier management has become a critical aspect of business operations for procurement and supply chain executives in interdependent businesses and complex supply chains.
In fact, according to a report by Ponemon Institute, 53% of organizations have experienced at least one data breach caused by a third party in the past two years. This statistic alone underscores the urgent need for robust supplier lifecycle and risk management.
Fortunately, innovative solutions are available to help professionals navigate this challenging landscape. For instance, SAP Ariba’s Supplier Lifecycle and Performance solution offers various benefits that help streamline supplier management and optimize procurement processes.
Enhancing Supplier Relationships
A strategic procurement process starts with strong supplier relationships. SAP Ariba solutions provide a unified and comprehensive view of supplier information, which helps businesses work effectively with suppliers and withstand disruptions. This increased visibility can drive spend to preferred suppliers, allowing businesses to manage suppliers based on specific parameters and integrate this information with other SAP Ariba solutions.
Maximizing Savings
SAP Ariba’s solutions can also help eliminate savings leakage. With enhanced visibility and control, businesses can ensure employees buy the right products at the right price, allowing negotiated savings to reach the bottom line.
Simplifying Risk Management
Understanding supplier risk is essential in today’s complex business landscape. 2021 data breaches increased by 17% from the previous year, and it’s predicted that supply chain attacks would quadruple in 2021 over the number of 2020 attacks. SAP Ariba’s Supplier Risk solution simplifies supplier risk management by providing actionable insight into high-risk suppliers and focused risk alerts.
Gaining Deeper Insight
With SAP Ariba Supplier Risk, businesses can act fast with insight into the location of at-risk suppliers, the problems they may face, and the orders and shipments impacted by risk. This solution also allows for intelligent control assessments based on suppliers’ inherent risk, enabling businesses to identify suppliers of greatest concern.
Driving Compliance with Embedded Risk Management
Embedding risk management in the procurement process can significantly improve compliance. SAP Ariba Supplier Risk helps reduce the assessment cycle time from months to weeks, improving compliance through third-party risk assessments for each supplier engagement.
Delivering Business, Environmental, and Social Impact
Businesses today are increasingly held accountable for their operations’ social and environmental impact. With SAP Ariba Supplier Risk, companies can find the causes of risk to enable compliance controls that make a difference and provide responsible plans for supplier selection, onboarding, and contracting.
Proactively Mitigating Risks
SAP Ariba Supplier Risk enables businesses to generate and execute issue management and action plans to mitigate risks proactively. This solution also connects to the source-to-pay process to improve compliance.
Receiving Personalized Risk Alerts
The SAP Ariba Supplier Risk solution automatically tracks more than 200 risk incidents, helping businesses proactively monitor financial, operational, environmental, social, regulatory, and legal risks.
In an era where 65% of businesses find it hard to manage cybersecurity risks associated with third parties and 74% believe that third-party vendor selection overlooks potential key risks, SAP Ariba Supplier Risk removes the challenge from supplier risk management. It empowers businesses to work with suppliers that can keep business moving with less risk, monitoring aspects of supplier lifecycle management that may not have been considered before.
The Future of Supplier Management
As businesses continue to evolve, so does the complexity of their supplier networks. An estimated 60% of organizations work with over 1,000 third parties, which is growing as business systems become more complex. Additionally, 71% of businesses expect to become more reliant on third parties in the next two years.
Given these trends, it’s clear that effective supplier lifecycle and risk management are more critical than ever. Advanced solutions like SAP Ariba’s Supplier Lifecycle and Performance and Supplier Risk solutions can help businesses navigate this increasingly complex landscape, enabling them to make better buying decisions, maximize savings, scale compliance, simplify risk management, and more.
With robust supplier management solutions, businesses can turn procurement and supplier management from a challenging task into a strategic advantage. By harnessing the power of SAP Ariba solutions, businesses can mitigate risks and unlock opportunities for growth and innovation. It’s time to reshape the procurement landscape and transform how we manage supplier relationships.
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