6 Replies Latest reply: Feb 27, 2013 1:55 AM by dersteffler123 RSS

Difference between Ariba Network and Ariba Discovery

dersteffler123 Apprentice
Currently Being Moderated

Hello Ariba experts!

 

I am a student from Germany writing on my Master Thesis about Ariba.

 

Could you tell me the difference between Ariba Network and Discovery?

 

Second question concerns the buying process. I found the following picture:

aribacom_procurement.png

What does this mean for the buying process using Ariba and SAP. Where are the differences? How can I pay with Ariba? What means receive & reconcile? What does this mean for my ERP system? For example at the Procure-to-Pay level I don't need an ERP System or does it that Ariba can support me in the whole P2P process but I still need my ERP system. Sorry for the probably easy question but I couldn't find detailed information for the picture above. I only found those documents for each way but they gave me not enough information.

 

Thanks for you help!

 

Best regards!

  • Re: Difference between Ariba Network and Ariba Discovery
    Ceylan Thomson Ariba Contributor
    Currently Being Moderated

    Thank you for your questions. I’m glad to see that you are interested in Ariba and making it the focus of your Master’s Thesis. I can address your question regarding the difference between the Ariba Network and Ariba Discovery.

    If you take a process viewpoint of the collaboration touch-points between a buyer and a seller in a B2B transaction as illustrated below, you see there are several phases of the cycle that involve different parties on both the buyer and seller sides of the business.

    Collaborative Commerce.pngAriba Discovery addresses the very first part of the Market-to-Cash cycle, being “Market.” Ariba Discovery is a matching service that matches buyers and sellers to each other based on the buyer's needs and the seller's capabilities. The way it works: A buyer posts their buying need as an RFI or RFP on Ariba Discovery, and Ariba Discovery matches them with sellers who can provide the products or services needed. It's a way for buyers to discover new suppliers and for sellers to discover new business leads. Through Ariba Discovery, buyers can save time and resources identifying new suppliers, compare bids easily, and select the seller that fits best. And sellers can save time and resources identifying new leads and build relationships with many of the large buying organizations using Ariba Discovery - it's a win-win situation for both sides of the business.

    Once a buyer has discovered a seller through Ariba Discovery, they can invite the seller to a sourcing event hosted on Ariba Sourcing or award the business directly on Ariba Discovery.

    The Ariba Network is a network of over 1 million sellers where more of the operational aspects of the Market-to-Cash cycles happen. After a seller wins business and is receiving purchase orders and delivering invoices, these activities happen on the Ariba Network.  Sellers join the Ariba Network to transact with their customers. For example, trough the Ariba Network, sellers can send their customers invoices, and buyers can pay them through the Ariba Network - all electronically, without touching paper. 

    Many sellers on the Ariba Network also use Ariba Discovery to find new leads and build relationships with buyers. For a buyer that represents another benefit: When they discover a new seller through Ariba Discovery who's already on the Ariba Network, the buyer can save time and resources on-boarding the seller and can start doing business with the seller much faster. And for the seller that means, another buyer who sends payments faster through the Ariba Network.


    I hope this helps. Feel free to reach out with any other questions you might have.

    • Re: Difference between Ariba Network and Ariba Discovery
      dersteffler123 Apprentice
      Currently Being Moderated

      Hey!

       

      First of all, thank you so much for those great answers! This will help me a lot to understand the procurement process via Ariba.

       

      I have some more questions, maybe you can help me out again:

       

      You talked about the Ariba Buyer. What is the Ariba Buyer? Is it just the solution for buyers on the Ariba Network? I mean, You have the Ariba Network, with on the one hand suppliers who login on the Ariba Supplier website and on the other hand you have the buyers who login on the Ariba Buyer website. So is it just a part of the Ariba Network or is it a totally seperated Ariba solution?

       

      Thanks for the information about Ariba Discovery, now everything is clear!

       

      I have still questions about the payment part in Ariba. Which ways of payment do I have when I pay via Ariba? I think it won't be easy to pay big orders because a bank will be probably involved in case of big amounts of money. I can't imagine that I can pay easily via bank wire, credit card or for example services like PayPal when I talk about big orders 500.000 $?

       

      Of course, I have to point out the pros and cons integrating Ariba into my ERP system and involving into my procurement process. I read a lot about the pros like faster procurement process, saving cost, broadening my supplier base. But there must be some cons, too. Maybe you can help me find pros and I know, probably you work for Ariba in any way but maybe you can tell me some of the risks or problems concerning integration of Ariba. Would be huge help for me!

       

      Thanks for your help! It is really amazing how this Ariba Exchange plattform works!

       

      PS: Dear Pranesh, I would provide you my thesis immediatly but it is in German, so probably there is no use for you!?

  • Re: Difference between Ariba Network and Ariba Discovery
    Pranesh Mehta Expert
    Currently Being Moderated

    Hi,

     

    I guess the diagram is more about Ariba Buyer than Ariba Network and Ariba Discovery,

     

    The Diagram shows the various types of setup you can have in Ariba Buyer (On - Demand)

    1. Complete Procure to Pay module

    2. Procure to Order in Ariba and send the Order to back end ERP system to continue the Invoicing and Payment There

    3. Use Ariba just for Procurement Content ( i.e only for catalogs) send the item to ERP and create Requisition,Order,Invoicing and Payment there.

    4. Buy and Pay Service item in Ariba

    5. create Procure to Order in ERP and use only Invoicing and Payment

     

    On your second question, yes Ariba allows you to do Procure to Pay if you go with the 1st option i listed above, however, in real time scenario's Ariba is mostly integrated with an ERP system, because customers usually manage Accounting, Budgetings, Taxation, Asset Management, Inventory Management in the ERP system and consider that as the source of truth, thereby sending updates depending on individual cusomter requirement back to the ERP.

     

    Good to know that you are writing thesis on Ariba, will be able to share it with me, ofcourse this will be for reference purposes and I wouldn't use it anywhere, my ID is pranezmehta@gmail.com

    • Re: Difference between Ariba Network and Ariba Discovery
      dersteffler123 Apprentice
      Currently Being Moderated

      Hey!

       

      First of all, thank you so much for those great answers! This will help me a lot to understand the procurement process via Ariba.

       

      I have some more questions, maybe you can help me out again:

       

      You talked about the Ariba Buyer. What is the Ariba Buyer? Is it just the solution for buyers on the Ariba Network? I mean, You have the Ariba Network, with on the one hand suppliers who login on the Ariba Supplier website and on the other hand you have the buyers who login on the Ariba Buyer website. So is it just a part of the Ariba Network or is it a totally seperated Ariba solution?

       

      Thanks for the information about Ariba Discovery, now everything is clear!

       

      I have still questions about the payment part in Ariba. Which ways of payment do I have when I pay via Ariba? I think it won't be easy to pay big orders because a bank will be probably involved in case of big amounts of money. I can't imagine that I can pay easily via bank wire, credit card or for example services like PayPal when I talk about big orders 500.000 $?

       

      Of course, I have to point out the pros and cons integrating Ariba into my ERP system and involving into my procurement process. I read a lot about the pros like faster procurement process, saving cost, broadening my supplier base. But there must be some cons, too. Maybe you can help me find pros and I know, probably you work for Ariba in any way but maybe you can tell me some of the risks or problems concerning integration of Ariba. Would be huge help for me!

       

      Thanks for your help! It is really amazing how this Ariba Exchange plattform works!

       

      PS: Dear Pranesh, I would provide you my thesis immediatly but it is in German, so probably there is no use for you!?

  • Re: Difference between Ariba Network and Ariba Discovery
    Ceylan Thomson Ariba Contributor
    Currently Being Moderated

    Ariba Buyer is the solution for buyers on the Ariba Network. 

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