Ariba Knowledge Nuggets
41. Establish and manage jointly developed success plans42. Work to understand your business goals and proactively measure success against said goals43. Serve as single point of contact for the solutions you have subscribed to within Ariba44. Provide knowledge content, leading practices and info to aid you in your spend management journey45. Manage the Ariba internal organization for you -responsible for getting you connected to the right resources
- Define “success” as it relates to the deployment of your Ariba solution(s)
- Identify the drivers that will help you achieve “success”
- Lay out your goals, objectives and timelines
- Translate these into action items
- Define KPI’s that will help monitor progress against the plan (examples below)
eSourcing xx % of total spend
Running xxxx # of events in Ariba
Reduce time in contract (re)negotiation
Effective User Adoption
Monitor progress (actual results vs plan)
Identify and resolve issues
Report progress to senior management
What it means: This measure reports the various activities within the purchasing department that are automated.Desirability: The more activities that are automated, the more effectively and productively the purchasing department operates. Therefore measures greater than the median are more desirable.Why track this measure: Companies that automate data communication of purchasing information reduce processing time and improve accuracy.
What it means: This measure identifies then number of suppliers that undergo a Supplier Performance Review process within benchmark companies.Desirability: In general measures larger than the median are preferred.Why track this measure: This measure enables organizations to determine the way in which other organizations actively manage their suppliers. It also provides insight into the approximate percentage of suppliers that are being reviewed.
What It means: Measures the amount of dollars that are monitored and managed by the procurement organization.Desirability: In general, measures larger than the median are more desirable than smaller measures.Why track this measure: Identifies opportunity for improvement. In the event a company is seeking to manage spend through a central procurement organization, this measure will assist in identifying how well the organization is performing
What It means: Number of Electronic Invoices / Total number of Invoices.
Desirability: In general, measures larger than the median are more desirable than smaller measures.
Why track this measure: The number of electronic Invoices vs.total Invoices will give a good indicator of how well the company is utilizing eprocurement to drive transaction volume. The invoice and reconciliation process within an Accounts Payable department is the most laborious, time-consuming, and error-prone step of the procurement cycle. Employing e-procurement for Invoicing can produce significant process savings.