What is SAP Ariba

Cloud applications are dominating the world with their advanced features and operations. Most of the biggies rely on cloud applications to adhere to perform their day-to-day business activities in an effective way. In recent times we get to see a lot of cloud applications in the market, which are really empowering the benefits of the cloud across their organizations. One more ERP cloud application is added to this list, which is popularly known as “SAP Ariba”. In this SAP Ariba post, we will guide you through some interesting concepts such as a quick introduction, overview, benefits, features, and an architectural overview.

What is SAP Ariba?

SAP Ariba is a cloud-based procuration solution to perform business-related transactions on a single platform. SAP Ariba module easily integrates with other SAP ERP modules without using any middleware or is easy to customize as per the business requirements. The benefit of the SAP Ariba module as it offers out-of-the-box functionalities to buyers and suppliers to perform business-related operations and offers effective benefits to procurement management. In today’s world, we need a tool that controls supply chain management and enables us to collaborate with suppliers in an effective way. SAP Ariba digitally transfers your supply chain and helps the organization to grow its business globally. The Ariba solution was first developed in 1996, and in 2012 the SAP was acquired at a total cost of 4.3 billion USD, thus we call it SAP Ariba. 

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Overview On SAP Arbia :

SAP Ariba defines how companies connect to get business done, using the marketing leading solutions for the collaborative commerce and Ariba network. Ariba application also helps buyers and suppliers from more than 2 million businesses and 190 countries discover new opportunities, collaborate on transactions, and grow their relationships. Selecting an Ariba implementation partner is perhaps the most important thing about jumping on the Ariba ship. With several Ariba partners out there it becomes difficult in choosing the right one that suits your business. 

What is SAP Ariba is used for?

We said it in the beginning, SAP Ariba is a cloud-based solution that helps to perform business transactions (buy, sell or purchase) efficiently. It also maintains the supply chain management solutions and integrates with other SAP ERP functions. 

We would like to list a few advantages of SAP Ariba;

  • Ariba is how companies connect to get business done, using the marketing leading solutions for collaborative commerce and Ariba network.
  • Ariba helps buyers and suppliers from more than 2 million businesses and 190 countries discover new opportunities, collaborate on transactions, grow their businesses.
  • Selecting an Ariba implementation partner is perhaps the most important thing about jumping on the Ariba partners out there, it becomes difficult choosing the right one that suits your businesses.
  • SAP Ariba helps to manage the project for the implementations in the organizations.
  • Responsible for project schedule, development, testing, execution, and delivery.
  • Helps users to utilize the features included in your subscription and functional tips on how to optimize features and reporting tools.
    Responsible for a successful Go live.

Types of SAP Ariba :

The following are the types of SAP Ariba:

  • Ariba collaborative sourcing : sourcing and contracts in the cloud.
  • Ariba spends visibility : Data enrichments and spends visibility in the cloud.
  • Ariba procurement on demand : On-demand requisitions to invoice solutions.
  • Ariba collaborative finance : Network efficiency for finance.
  • Ariba collaborative commerce : Extending network efficiencies to all B2B trading partners.

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What makes SAP Ariba is different from SAP on-premise applications?

The following are the major differences between the SAP Ariba and SAP on-premise solution.

Before beginning with explaining the differences between these two functional modules, we would like to explain a few things about SAP on-premise solution;

Note :

SAP On-premise : 

  • On-premise is an Enterprise business planning suite that is based on in-memory database management.
  • On-premise is an internal platform so that it will run from the company’s servers when users access it.
  • Most of the large companies prefer to implement on-premise SAP ERP edition this is because offers a full range of functionalities and highly monitoring customer applications.
  • The industries which use on-premise SAP ERP applications are financing, accounting, material management, supply chain management, marketing, and sales industries.
  • The features of on-premise editions include are;
  1. Database-driven 
  2. Networking 
  3. Customization.

Let’s know the differences between SAP Ariba and SAP on-premise solution based on the few features;

Spend Analysis:

  • The on-premise solution offers SAP spend performance management.
  • Whereas SAP Ariba spends visibility.

Sourcing : 

  • SAP on-premise solution performs SAP sourcing and SAP SRM.
  • SAP Ariba performs Ariba sourcing and Ariba discovery.

Contract management : 

  • The on-premise solution provides SAP contract lifecycle management and SAP SRM.
  • Whereas SAP Ariba provides contract management too.

Operational procurements : 

  • SAP on-premise solution offers operational procurement services to the modules like MM (material management), SRM, and SAP commodity procurements.
  • SAP Ariba procure-to-pay, service procurements, and procurement contents.

Invoice management :

  • SAP on-premise solution performs invoice management by open text.
  • Ariba offers invoice management, payment management, and discount management.

Supplier information management : 

  • SAP on-premise solution offers entire Supplier information lifecycle management.
  • Ariba also provides supplier information and performance management.

Salient features of SAP Ariba :

Below are a few key features of the SAP Ariba;

Fast time-to-value : 

  • Get underway quickly in the cloud, enjoying lower TCO and anyways current versions with minimal demands on IT.
Easy-to-use : 
  • Creates contracts quickly and easily using Microsoft Word and Pre-approved templates and legal clauses. 
Controlled processes : 
  • You will be alerted if the pre-approved format or language is modified, helping you control non-standard agreements.
Efficient Collaboration :
  • Work quickly and effectively with all stakeholders via a shared workspace on a multi-tenant, and web-based platform.
Complete visibility : 
  • Stay informed throughout the contract cycle with automatic alerts handy dashboards, and configurable reports.  
Central repository : 
  • Never lose track of a contract with secure, electronic storage, and powerful search tools for access on demand.
On-time renewal : 
  • Receive notification well in advance of the key milestone dates, and make the most of your business opportunities. 
E-signature savings :   
  • Eliminate the time and expense of shipping and signing the multiple contracts copies by adding e-signature capability.
Stronger compliance : 
  • Stay informed about any off-contract activity with controlled processes, automated tracking, and a full audit trail. 
End-to-end commerce : 
  • Integrate your contract processes with additional SAP Ariba solutions, your ERP, or other third-party systems for unrivaled compliance and control.

Frequently Asked Questions SAP Ariba Interview Questions 

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SAP Ariba architecture : 

In this section, we are going to explain the overall architectural overview, its work nature, and the data connectivity. SAP Ariba is the world’s leading B2B solution, this architecture is designed to perform world-class procurement business transactions.

SAP Ariba architecture

SAP Ariba delivers intelligent solutions that enable users to combine data with the latest technologies to improve the procurements and also SCM (supply chain management) services. SAP Ariba architecture is a suite of spend management solutions that is a key component of SAP’s strategy to help organizations to become intelligent enterprises.

 The core infrastructure of the SAP Ariba architecture:

  • Semantic search : the semantic search approaches enhance the user experience by applying the latest machine learning technologies to analyze each query, deliver higher results, and higher quality results.
  • Security : SAP Ariba provides everything from multi-factor authentication to data encryption with numerous security standards and audits. So SAP Ariba offers a high degree of protection for your business.
  • Microservices : the SAP Ariba platform evolving to a microservices-based architecture that simplifies the building tasks and maintains the applications to meet business requirements with greater productivity, and flexibility.
  • Master data service : SAP Ariba integrates with various ERP modules, with respect to that SAP HANA helps to manage master data easily with a centralized data store.

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Final words :

We believe that after reading this SAP Ariba post, you might have gained knowledge and skillsets. SAP Ariba is considered to be one of the primary cloud applications that we can see in today’s ERP. application. With the help of this post, you would have become a master with respect to the SAP Ariba fundamental concepts. We have been trying our best to develop all the posts under the experts' guidance to keep you updated with the recent developments. 

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Kavya Gowda
Kavya Gowda
Research Analyst
Kavya works for HKR Trainings institute as a technical writer with diverse experience in many kinds of technology-related content development. She holds a graduate education in the Computer science and Engineering stream. She has cultivated strong technical skills from reading tech blogs and also doing a lot of research related to content. She manages to write great content in many fields like Programming & Frameworks, Enterprise Integration, Web Development, SAP, and Business Process Management (BPM). Connect her on LinkedIn and Twitter.