2 Replies Latest reply on Mar 10, 2014 10:52 AM by Scott Corbett

    Being successful with Ariba Services Procurement when Suppliers refuse the use of the Ariba Network...

    Angela Winters Apprentice

      My company has embarked on the use of Services Procurement to manage ~$2B of annual labor spend. The bulk of this spend will be managed in Ariba using the Temp Labor & Consulting drivers. Today, that spend is spread across ~3,000 active suppliers. We intend to use the Time & Expense functions as part of this program.


      Obviously - an enormous challenge in front of us pertains to suppliers who refuse to participate in the Ariba Network. I am interested in any experiences you might be willing to share and/or lessons learned. I am VERY curious to hear your strategy for ushering services based purchases through the process when working with a non-Ariba Network supplier.

        • Re: Being successful with Ariba Services Procurement when Suppliers refuse the use of the Ariba Network...
          Ken Miklos Master



          In working with your suppliers, it is important to stress the value they will receive in transacting with you over the Ariba Network. With services spend, sellers tell us this value is often increased due to its specialized nature. Sellers go through long and arduous sales processes, and when they win the business, they need to capture the often complex details outlined in the statement of work. Services Procurement and the improved visibility the Network offers can help to facilitate this effort.


          Also, it should be noted that services spend continues to be one of the largest drivers of activity on Ariba Discovery. Network sellers get access to these opportunities to win more business meaning the more a seller becomes engaged in the Ariba Network, the more they will benefit.


          Hopefully you are planning to attend Ariba LIVE. There will be a number of sessions and networking opportunities to discuss these types of challenges/objectives including a Service Procurement Roundtable in the Customer Breakouts Track. Get all the details at www.aribalive.com.


          And finally, we have numerous Ariba Services Procurement references who would be happy to discuss their experiences and approach will you. Your Customer Engagement Executive will reach out to you to set something up.


          Ken Miklos
          Director, Customer Marketing

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          • Re: Being successful with Ariba Services Procurement when Suppliers refuse the use of the Ariba Network...
            Scott Corbett Master

            Hi Angela - there's a lot of variables at play that would impact this analysis.


            1. Do you plan on doing collaborative requisitioning with your vendors? If so, the collaborative requisitioning model Ariba has in place uses the Ariba Network for collaboration requests notifications and the punch-in process to your Buyer instance.


            2. Whether you're on the cloud based On-Demand version versus On-Premise will likely impact what you can and cannot do (meaning you have a lot more options On-Premise).


            I agree with Ken that there's a tremendous amount of value in leveraging the solution Ariba has developed via Ariba Buyer and Ariba Network integration for the collaboration phase and the PO/Invoice. However with 3000 vendors to deal with, I hear your vendor enablement pain.


            As for the T&E tie-in, are you referring to the Consultant Time Sheet Entry feature which is kind of like partial invoices, or the Ariba On-Premise T&E module? I'm not aware of any out-of-the-box solution with T&E module.


            In terms of working with non-Ariba Network suppliers, you'd have to consider what you're going to do about the collaboration component. It likely means this phase of the request may happen outside of the system. I've seen clients set up the contracts for temp labor and other services, and then leverage non-Ariba-PO Invoice against contract to capture the spend. This was done with the On-Premise software where there's a lot of control over how you integrate non-ariba POs. You could also look at handling the negotiations outside of the system, then have your requesters enter non-collaborative requisitions with an order method like email/fax. Again, not sure you can do that with the cloud version.

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