SAP Ariba Central Procurement: A Single Solution for Your Procurement Needs
Get a quick overview of all the most frequently asked questions about SAP Ariba Central Procurement, private cloud edition. Find out how this unified solution gives procurement teams the ability to work across multiple ERP systems, global organizations, divisions, and channels and as a shared service. Read how the solution delivers the benefits of a single ERP system without requiring a massive shift in infrastructure or data. Download the DocumentFrequently Asked Questions | INTERNAL
SAP Ariba Central Procurement, private cloud edition
SAP® Ariba® Central Procurement:
A Single Solution for Your Procurement Needs
SAP® Ariba® Central Procurement, private cloud edition is a unified solution that
gives procurement teams the ability to work across multiple ERP systems, global
organizations, divisions, and channels and as a shared service. The solution
delivers the benefits of a single ERP system without requiring a massive shift
in infrastructure or data.
2 Overview
2 Features and Benefits
5 Implementation and Support
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SAP Ariba Central Procurement, private cloud edition
SAP® Ariba® Central Procurement:
A Single Solution for Your Procurement Needs
SAP® Ariba® Central Procurement, private cloud edition is a unified solution that
gives procurement teams the ability to work across multiple ERP systems, global
organizations, divisions, and channels and as a shared service. The solution
delivers the benefits of a single ERP system without requiring a massive shift
in infrastructure or data.
2 Overview
2 Features and Benefits
5 Implementation and Support
1 / 6
2 / 6
OVERVIEW
How does SAP Ariba
Central Procurement,
private cloud edition
work?
By creating a centralized software system that functions across buying
channels without reworking them, procurement teams can pull all their
disparate data sets into one place. Cloud, on-premise SAP software
systems, and third-party systems can be integrated. Systems can be added
or removed as transactions due to mergers and acquisitions occur, without
disrupting procurement operations.
FEATURES AND BENEFITS
What are the benefits
of SAP Ariba Central
Procurement, private
cloud edition?
Remote control for local procurement systems – Key steps and
information can be centrally managed to increase procurement productivity
and drive down cost of goods sold. Data can be shared back and forth
automatically to increase efficiency and job satisfaction.
Improved governance across systems – Important information and
procurement steps spread across your company can be governed from
one central place. Visibility across indirect or direct spending categories
reduces off-contract spending and brings consistency to key steps in the
procurement process. The solution also minimizes disruptions to the
day-to-day teamwork within each business unit.
Mitigated IT risk – The solution is designed to deliver the benefits of
a uniform, centralized procurement system across multiple back ends
without reworking individual ERP solutions – and without ERP prerequisites.
Transactions are processed within each back-end system for each individual
business unit. Aligning data to a centralized system allows the data to remain
local but be shared globally.
OVERVIEW
How does SAP Ariba
Central Procurement,
private cloud edition
work?
By creating a centralized software system that functions across buying
channels without reworking them, procurement teams can pull all their
disparate data sets into one place. Cloud, on-premise SAP software
systems, and third-party systems can be integrated. Systems can be added
or removed as transactions due to mergers and acquisitions occur, without
disrupting procurement operations.
FEATURES AND BENEFITS
What are the benefits
of SAP Ariba Central
Procurement, private
cloud edition?
Remote control for local procurement systems – Key steps and
information can be centrally managed to increase procurement productivity
and drive down cost of goods sold. Data can be shared back and forth
automatically to increase efficiency and job satisfaction.
Improved governance across systems – Important information and
procurement steps spread across your company can be governed from
one central place. Visibility across indirect or direct spending categories
reduces off-contract spending and brings consistency to key steps in the
procurement process. The solution also minimizes disruptions to the
day-to-day teamwork within each business unit.
Mitigated IT risk – The solution is designed to deliver the benefits of
a uniform, centralized procurement system across multiple back ends
without reworking individual ERP solutions – and without ERP prerequisites.
Transactions are processed within each back-end system for each individual
business unit. Aligning data to a centralized system allows the data to remain
local but be shared globally.
3 / 6
What are the key
differentiators of
SAP Ariba Central
Procurement, private
cloud edition?
Faster time to value – Our customers are sometimes hesitant to upgrade
because of the time, complexities, and costs associated with migration.
Procurement teams want to avoid disruption while still driving productivity
improvements, efficiency, and cost savings. Providing a centralized system
without a massive overhaul of existing infrastructure and master data is a
significant differentiator for our customers.
Global visibility with local control – Large enterprise customers will
often have multiple ERP systems, sometimes dozens or even hundreds.
These systems frequently remain unconnected, and the information is
siloed. SAP Ariba Central Procurement, private cloud edition provides an
opportunity to monitor information and act without the need for massive
data harmonization projects, whether indirect or direct spend is involved.
This puts our solution ahead of the competition.
Native integration – SAP Ariba Central Procurement, private cloud edition
is natively integrated with the SAP ERP application, SAP ERP Central
Component (SAP ECC), and SAP S/4HANA®. This means SAP Ariba Central
Procurement, private cloud edition is the only solution that is natively
integrated to systems touching 77% of GDP transactions. Additionally,
SAP Ariba Central Procurement, private cloud edition can leverage
procurement data from third-party systems.
Handling of mergers and acquisitions – Large enterprises will often
acquire and divest companies, resulting in the need to integrate and
disconnect their ERP application systems. SAP Ariba Central Procurement,
private cloud edition helps to accelerate procurement integration into the
parent company while avoiding disruption.
What are the key
differentiators of
SAP Ariba Central
Procurement, private
cloud edition?
Faster time to value – Our customers are sometimes hesitant to upgrade
because of the time, complexities, and costs associated with migration.
Procurement teams want to avoid disruption while still driving productivity
improvements, efficiency, and cost savings. Providing a centralized system
without a massive overhaul of existing infrastructure and master data is a
significant differentiator for our customers.
Global visibility with local control – Large enterprise customers will
often have multiple ERP systems, sometimes dozens or even hundreds.
These systems frequently remain unconnected, and the information is
siloed. SAP Ariba Central Procurement, private cloud edition provides an
opportunity to monitor information and act without the need for massive
data harmonization projects, whether indirect or direct spend is involved.
This puts our solution ahead of the competition.
Native integration – SAP Ariba Central Procurement, private cloud edition
is natively integrated with the SAP ERP application, SAP ERP Central
Component (SAP ECC), and SAP S/4HANA®. This means SAP Ariba Central
Procurement, private cloud edition is the only solution that is natively
integrated to systems touching 77% of GDP transactions. Additionally,
SAP Ariba Central Procurement, private cloud edition can leverage
procurement data from third-party systems.
Handling of mergers and acquisitions – Large enterprises will often
acquire and divest companies, resulting in the need to integrate and
disconnect their ERP application systems. SAP Ariba Central Procurement,
private cloud edition helps to accelerate procurement integration into the
parent company while avoiding disruption.
4 / 6
What are the key
features of SAP Ariba
Central Procurement,
private cloud edition?
Central requisitioning – Central requisitioning provides centralized
self-service requisitioning across a multi-ERP landscape. This capability is
enhanced with our market-leading guided buying capability for SAP Ariba
solutions to drive adoption and improve user experience.
Central purchasing – Central purchasing provides visibility and actionability
on purchase requisitions across indirect and direct spend channels. Follow-up
actions can be triggered from the central layer, converting requisitions into
purchase order transactions executed in the back-end ERPs.
Central sourcing – Central sourcing enables central purchasers to aggregate
purchasing demands across various ERPs and plants and to drive central
sourcing events. This optimizes the procurement process and increases
savings. The result of central sourcing is the processing of purchase orders in
the back-end ERPs.
Central contract management – With central contract management,
you can match what you’re buying against a centrally held contract, track
global compliance with local specifications, and apply appropriate pricing
and terms to regional POs. You can also manage and distribute contracts
across multiple ERP systems.
Central purchasing analytics – Central purchasing analytics provides
users with insights into procurement operations across multiple ERP
landscapes. Strategic buyers can analyze the consumption of central
contracts across organizations, as well as identify where global contracts
are not being properly adhered to. Additionally, monitoring global
purchasing spend using drill-down capabilities pinpoints the spend
volume across the organization.
What are the key
features of SAP Ariba
Central Procurement,
private cloud edition?
Central requisitioning – Central requisitioning provides centralized
self-service requisitioning across a multi-ERP landscape. This capability is
enhanced with our market-leading guided buying capability for SAP Ariba
solutions to drive adoption and improve user experience.
Central purchasing – Central purchasing provides visibility and actionability
on purchase requisitions across indirect and direct spend channels. Follow-up
actions can be triggered from the central layer, converting requisitions into
purchase order transactions executed in the back-end ERPs.
Central sourcing – Central sourcing enables central purchasers to aggregate
purchasing demands across various ERPs and plants and to drive central
sourcing events. This optimizes the procurement process and increases
savings. The result of central sourcing is the processing of purchase orders in
the back-end ERPs.
Central contract management – With central contract management,
you can match what you’re buying against a centrally held contract, track
global compliance with local specifications, and apply appropriate pricing
and terms to regional POs. You can also manage and distribute contracts
across multiple ERP systems.
Central purchasing analytics – Central purchasing analytics provides
users with insights into procurement operations across multiple ERP
landscapes. Strategic buyers can analyze the consumption of central
contracts across organizations, as well as identify where global contracts
are not being properly adhered to. Additionally, monitoring global
purchasing spend using drill-down capabilities pinpoints the spend
volume across the organization.
5 / 6
IMPLEMENTATION AND SUPPORT
If a customer has
multiple instances
of SAP ECC or
SAP S/4HANA, how
do they interact?
SAP Ariba Central Procurement, private cloud edition can be deployed
alongside — and integrated with — multiple instances of SAP S/4HANA
Cloud or SAP S/4HANA on-premise software as well as with SAP ECC.
How does the private
cloud edition relate to
SAP S/4HANA for
central finance?
There is no technical integration between the central finance software and
SAP Ariba Central Procurement. However, some customers currently using
SAP S/4HANA for central finance would like to use the solution to standardize
their finance process across multiple disconnected back-end ERPs. For
other customers who are thinking about this, the same business case would
apply as that of a CPO looking to standardize the procurement process
across multiple disconnected back-end ERPs.
Where do master data
records get created,
and where are they
stored?
Master data records are created and stored in local back-end systems.
SAP Ariba Central Procurement, private cloud edition can access records
from across systems and present them in a single view. SAP recommends the
SAP Master Data Governance application to manage and govern master data
in source systems.
How large and complex
should a customer’s
ERP system be to
benefit from SAP Ariba
Central Procurement,
private cloud edition?
SAP Ariba Central Procurement, private cloud edition is particularly valuable
for large global enterprises that are running multiple instances of SAP ERP
or third-party ERP instances. It would be beneficial to include the solution in
the offering if a customer is dealing with any of the following challenges:
• No procurement visibility across multiple ERP instances
• Diverse ERP landscape with different brands, versions, customizations,
workflows, and processes
• Off-contract spend due to contracts tied to individual ERP instances
• Lost savings due to missing out on economies of scale and leveraging
procurement across all ERP instances
• Limited spend analytics
• Difficulties integrating newly acquired business units and their back ends
IMPLEMENTATION AND SUPPORT
If a customer has
multiple instances
of SAP ECC or
SAP S/4HANA, how
do they interact?
SAP Ariba Central Procurement, private cloud edition can be deployed
alongside — and integrated with — multiple instances of SAP S/4HANA
Cloud or SAP S/4HANA on-premise software as well as with SAP ECC.
How does the private
cloud edition relate to
SAP S/4HANA for
central finance?
There is no technical integration between the central finance software and
SAP Ariba Central Procurement. However, some customers currently using
SAP S/4HANA for central finance would like to use the solution to standardize
their finance process across multiple disconnected back-end ERPs. For
other customers who are thinking about this, the same business case would
apply as that of a CPO looking to standardize the procurement process
across multiple disconnected back-end ERPs.
Where do master data
records get created,
and where are they
stored?
Master data records are created and stored in local back-end systems.
SAP Ariba Central Procurement, private cloud edition can access records
from across systems and present them in a single view. SAP recommends the
SAP Master Data Governance application to manage and govern master data
in source systems.
How large and complex
should a customer’s
ERP system be to
benefit from SAP Ariba
Central Procurement,
private cloud edition?
SAP Ariba Central Procurement, private cloud edition is particularly valuable
for large global enterprises that are running multiple instances of SAP ERP
or third-party ERP instances. It would be beneficial to include the solution in
the offering if a customer is dealing with any of the following challenges:
• No procurement visibility across multiple ERP instances
• Diverse ERP landscape with different brands, versions, customizations,
workflows, and processes
• Off-contract spend due to contracts tied to individual ERP instances
• Lost savings due to missing out on economies of scale and leveraging
procurement across all ERP instances
• Limited spend analytics
• Difficulties integrating newly acquired business units and their back ends