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Procurement Transformation:
How to Make the Right Choice for Your Journey
© 2018 SAP SE or an SAP affiliate company. All rights reserved.
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Table of Contents
3 The Right Choice
17 Reimagine the Possibilities for Your Business with SAP Ariba Solutions
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Now that you have decided to start your procurement transformation journey, you need
to determine the best way to get there. Every customer situation and objective is different,
as is every IT strategy, existing infrastructure, and transformation timeline. SAP® Ariba™
solutions support a variety of deployment options, giving you the flexibility and choice
you need to support your digital transformations.
No matter where you are in your procurement “The key to success in this new
transformation, SAP Ariba solutions provide
a complete solution portfolio for managing
era lies in connected, digital
your source-to-settle process. solutions that support the
entire source-to-settle
By using SAP S/4HANA® as your digital core,
along with a variety of rich capabilities from
process and provide a
SAP Ariba Solutions, you can successfully: gateway for collaboration —
both within and beyond the
• Manage each step of the procurement
process – from sourcing through
enterprise — on a global scale.”
procurement to payment
• Handle diverse spend and expense types such
as direct; indirect; services, maintenance,
repair, and operations (MRO); capital
projects; and contingent labor
• Connect and collaborate with a broad
network of partners and trusted suppliers
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While each company takes a unique path, See Figure 1 to explore the landscape running
the ultimate end state is the same: to deploy on SAP S/4HANA and with SAP Ariba solutions,
the full landscape with SAP S/4HANA as the where full integration and innovative technology
digital core and to support supplier collaboration, can provide greater value to your business.
guided buying, and collaborative sourcing
with SAP Ariba solutions.
A Procurement Transformation Landscape with SAP S/4HANA and SAP Ariba Solutions*
Figure 1
SAP Ariba
Strategic Sourcing
SAP Ariba Buying SAP Analytics SAP Ariba Catalog SAP Ariba Supply
with Guided Buying Cloud SAP Ariba Spot Buy Chain Collaboration
Supply Chain
Finance
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Customer Story 1
Customer
A leading international material handling
equipment, warehousing, and material
flow engineering company
Company Size
15,000 employees
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Road Map
Based on the company’s initial starting point, a comprehensive road map
was developed for their specific procurement transformation journey.
1 2 3 4
SAP Ariba SAP Ariba Ariba SAP Ariba SAP Ariba Buying SAP S/4HANA
Strategic Sourcing Supplier Lifecycle Network Catalog with Guided Buying for central
& Performance procurement
SAP Ariba
Contracts SAP Ariba
Supplier Risk
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Transition Timeline
The key to road map success is understanding how long this process will take so expectations
can be set from the beginning. Below is the timeline for this procurement transformation project.
SAP SRM
TIME
1 Average time from project start to go-live: 10-12 weeks
2 Average time from project start to go-live: 3 months
Value Delivered
As a result of the actions taken and the solutions implemented, the company has seen some great success.
€1 million –
~16,000 €2 million
76%
suppliers added to addressable spend
the master vendor list saved in working capital managed strategically
per €1 billion of
impacted spend
37% 47%
more savings less maverick
on spend spend
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Customer Story 2
Customer
A leading global pharmaceutical company
with 150 affiliates worldwide
Company Size
50,000 employees
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Road Map
Based on company’s initial starting point, a comprehensive road map
was developed for their specific procurement transformation journey.
SAP Ariba
1 Ariba SAP Ariba
2 SAP Ariba SAP S/4HANA
3 Ariba Centralized
4 SAP S/4HANA
Buying with Network Supplier Lifecycle Strategic & Ariba Network Procurement & Ariba
Guided Buying & Performance Sourcing Integration Guided Buying
Integration
SAP Ariba SAP Ariba
Supplier Risk Contracts
Simplify End-User Improve & 360º Supplier Improve Strategic SAP S/4HANA Supply Chain Central SAP S/4HANA
Requisitioning Standardize Management Sourcing and Template Collaboration Requisition, Roll-out
Automation Contract Contract & Order
Management with Central
Analytics
Transition Timeline
A timeline was developed as part of the planning process to provide goals
and set expectations for what the transformation journey would look like.
Prep SAP Ariba Buying/ Roll Out SAP Ariba Buying/ SAP Ariba SAP Ariba SAP Ariba
Guided Buying Guided Buying Strategic Sourcing1 Contracts1 Catalog1
SAP SRM
TIME
1 Average time from project start to go-live: 10-12 weeks
2 Average time from project start to go-live: 3 months
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Value Delivered
The procurement transformation produced great results and happy users.
30% 47%
reduction in lower maverick
compliance costs spend
>50%
global indirect spend 50%
processes through fewer exceptions
a centralized, easy- and disputes
to-use goods and
services catalog
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Customer Story 3
Procurement Transformation
Starting with Ariba Network
Customer
A large consumer products manufacturer
of personal-care products and pressure-
sensitive adhesives
Company Size
20,000 employees
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Road Map
Based on the company’s initial starting point, a comprehensive road map
was developed for their specific procurement transformation journey.
Ariba
1
SAP Ariba SAP Ariba
2
SAP Ariba SAP Ariba Buying
3 SAP S/4HANA
Network Strategic Sourcing Supplier Lifecycle Supply Chain with Guided for central
& Performance Collaboration Buying procurement
SAP Ariba
Contracts SAP Ariba
Supplier Risk
Improve Improve Strategic 360º Supplier Improve Supplier Simplify End-User Establish
Automation Sourcing and Management Collaboration Requisitioning SAP S/4HANA
Contract for central
Management procurement
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Transition Timeline
Understanding the timing upfront in the planning process helped set expectations for all stakeholders.
SAP Ariba SAP Ariba Prep SAP Ariba Buying/ Roll Out SAP Ariba Buying/
Sourcing1 Contracts1 Guided Buying Guided Buying
SAP SRM
TIME
1 Average time from project start to go-live: 10-12 weeks
2 Average time from project start to go-live: 3 months
Value Delivered
The procurement transformation produced great results and significant cost and time savings.
1,000 40%
vendors eliminated for reduction in
one-time purchases operating costs
4x
6% higher process efficiency
fewer accounts by reducing touch points
payable errors in the source-to-pay
process
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Customer Story 4
Procurement Transformation
as Part of a Broad Digital Initiative
Customer
A global plastics and chemicals
manufacturer that delivers products
used in a wide variety of applications,
including food and electronics packaging
Company Size
3,000 employees
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Road Map
Based on the company’s initial starting point, a comprehensive road map
was developed for their full transformation journey.
SAP Ariba
Strategic Sourcing
1 Success SAP Ariba
2 Success Ariba
3 SAP Ariba
4
SAP S/4HANA
Factors Supply Chain Factors Talent Network Buying with & Ariba
SAP Ariba Contracts
Employee Collaboration Management Guided Guided Buying
SAP Ariba Supplier Central Buying Integration
SAP Integrated
Management
Business Planning
Improve Strategic Enhanced Improve People Improve Simplify End-User SAP S/4HANA
Sourcing and Contract People Supplier Development in Automation Requisitioning Roll-out
Management Management Collaboration the Cloud
360º Supplier
Management
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Transition Timeline
Managing the transformation timeline and setting expectations
was an important step for the company’s success:
TIME
1 Average time from project start to go-live: 10-12 weeks
2 Average time from project start to go-live: 3 months
Value Delivered
The manufacturer’s procurement transformation produced
great results and funded its broader IT digital transformation.
€45 €10
million 60% million
forecasted to be saved increase in invoice saved annually
to self-fund a automation through an integrated
complete business sourcing solution
transformation
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SAP Ariba
SAP S/4HANA SAP S/4HANA SAP SRM
Application Suite
+ + + +
SAP Ariba SAP Ariba
Ariba Network Ariba Network
Application Suite Application Suite
+ +
Ariba Network Ariba Network
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You can also learn more about your procurement transformation with
these great resources:
• Complete our brief transformation survey to get in contact with the right
person who can help you achieve your procurement transformation vision.
• Visit our resource center for details on how we’re helping SAP Supplier
Relationship Management (SAP SRM) customers achieve complete
digital transformation in procurement, by combining the rich capabilities of
SAP Ariba and SAP Fieldglass solutions with the digital core of SAP S/4HANA.
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www.sap.com/contactsap
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