2 Replies Latest reply on Jun 22, 2014 7:30 PM by Lee Haas

    Risk Analysis Tool possible in Ariba?

    ecalle Expert

      We would like to model a Risk Assessment Tool, where we will have a list of provisions with their corresponding standard requirement and fallback positions. For example:

       

      Standard

      Required Elements

      Fallback Position

      Approval

      Payment to supplier within 50 days of receipt if invoice

      ·         SLB may halt payment due to: defectiveness in products; and (ii) invoice discrepancies

      ·         Payments made by SLB will not constitute: acceptance of the products or (ii) waiver of any rights.

      ·         Payment to be made within 30 days

      ·         Discount for early payment

      Controller

       

      Does Ariba has something to support this? The example is, a Contracts person will received the redlines from a supplier and compare them against a standard set of provisions and their required elements. Depending on the modifications made by the supplier, an approval may be triggered. Can someone different from the owner of a contract workspace select an option for instance: supplier is not in agreement with payment provision, and the Contracts person needs to select a fall back porovision? If there in no fallback prosition available, could they have a questionnaire to select, for e.g payment provision not accepted and then trigger and approval task? 

       

      Thanks in advance.

       

      Eva

        • Re: Risk Analysis Tool possible in Ariba?
          Leslie Martensen Master

          Eva,

           

          I have a lot of questions for you before answering.

           

          Can you email me directly so we can setup a time to talk through your questions?

           

          Leslie.Martensen@Sap.com

           

          Leslie

          Sr. Product Manager, Ariba Contracts

          • Re: Risk Analysis Tool possible in Ariba?
            Lee Haas Novice

            Hi Eva,

             

            I'm new to Ariba Exchange and just noticed your question.  We just implemented the Contract Management function and I have a similar need to convey risk to the appropriate stakeholders.   My first recommendation for you is to establish policy that allows your contract negotiators to counter with, or agree to, pre-approved fallback positions without having to obtain approval from the stakeholder each and every time.  This is a practice adopted at other organizations and it does require a certain degree of trust.  However, if there are pre-approved fallback positions for various contract terms, then the contracting process will be much more efficient.  Also, it is a good practice to prepare a contract summary that outlines major risks, and deviations from standard terms,  in the agreement so that the final approval authority will have the complete picture of the arrangement before approving and moving to signature.  That summary, along with the final contract, should be routed to all the affected stakeholders.  This process still provides the ability for those stakeholders to understand that you are agreeing to a fallback position and to weigh in with any objections.  There shouldn't be objections at this point, but it can happen if the fallback position is not optimal given other risks in the agreement. 

             

            - Lee Haas

            lhaas@primelending.com

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