Reviewing Supplier Lifecycle & Performance in Portfolio Supplier Management Solution

Procurement Challenges:

• Large number of suppliers to manage
• Fragmented onboarding process, poor vendor data, no transparency into qualification, segmentation and reporting
• Unable to scale risk management across all suppliers

Category Management Challenges:

• Supplier qualification process not linking back into supplier status in sourcing and procurement system
• No single view of the supplier
• No risk insights to provide early warning signals

Manufacturing Challenge:

• Supply chain disruptions and product quality issues that could have been avoided with better risk insights and supplier performance visibility

IT Challenges:

• High cost and difficulty of integration with ERP
• Reactive, after-the-fact risk management may lead to costly business disruptions

SAP Ariba Supplier Lifecycle and Performance is a unique supplier lifecycle management solution. Its capabilities are integrated with your procurement processes to help you drive spend to preferred suppliers and scale compliance for your entire supply base. These capabilities are designed to manage procurement and sales contracts, IP licenses, internal agreements, and more.

• A solution that provides comprehensive tools to help organizations onboard, qualify, segment, and manage supplier performance more effectively
• Integrated into procurement processes to drive spend to preferred suppliers and scale compliance for the entire supply base
• Supplier self-service in the cloud makes it easy for suppliers to maintain their own information
• Flexible matrix allows for supplier qualification by segment based on category, location, and/or business unit
• With bi-directional synchronization between SAP Ariba and ERP, vendor data is kept up to date and consistent

A matrix is a combination of Region and Commodity dimension. Using the matrix, supplier management processes can be applied to a specific combination of dimensions. This ensures business specific requirements are captured during the supplier qualification and the segmentation processes.

• Customized supplier segmentation and qualification processes based on category and location dimensions
• Hierarchical questionnaires and logic to aggregate from different levels in hierarchy
• Built-in alignment with SAP Ariba procurement solutions, and SAP Ariba Sourcing and Contract Management solutions to leverage supplier qualifications and preferred status in procurement and sourcing activities