SAP Ariba Supplier Risk
Global supply chains rely on supplier risk management
Data transparency that reflects supplier risk is key to keeping your supply chain moving as the threat of disruption grows. Proactive, ongoing monitoring and risk due diligence can inform your source-to-pay decisions to enable greater agility and resilience.
The SAP Ariba Supplier Risk solution can help you simplify your supplier management process, provide actionable insight into high-risk suppliers, and use focused risk alerts and third-party risk assessments to evaluate and mitigate risk exposure.
The SAP Ariba Supplier Risk solution can help you simplify your supplier management process, provide actionable insight into high-risk suppliers, and use focused risk alerts and third-party risk assessments to evaluate and mitigate risk exposure.
Key Benefits
Gain deeper insight into risk
Act fast with insight into the location of at-risk suppliers, the problems they face or will likely face, and the orders and shipments impacted by risk.
Drive compliance with embedded risk management
Improve compliance through third-party risk assessments for each supplier engagement while reducing the assessment cycle time from months to weeks.
Deliver business, environmental, and social impact
Find the causes of risk to enable compliance controls that make a difference and provide responsible plans for supplier selection, onboarding, and contracting.
See how customers are succeeding with SAP
Key Features
Assessment
Mitigation
Monitoring
Assessment
Mitigation
Monitoring
Build a business case
Apply best practices in supplier risk management
Gain the tools and intelligence to support your business today while bolstering your supply chain resilience in the future.
Mitigate risk with visibility and agility
Learn how to use today’s insights to support tomorrow’s supply chain and tackle supply chain risk for the future of your business.
Explore the top 10 priorities shaping procurement
Uncover key priorities for procurement and find out how to overcome supplier risk as it becomes an increasing challenge.
Technical Information
Use SAP Business Technology Platform with this cloud solution to gain visibility, extend applications, and integrate your source-to-pay processes.
Visibility
Unlock spend data with solutions that deliver total spend visibility, aid in planning and forecasting, and connect critical data from SAP and third-party sources.
Extensibility
Customize and extend the value of spend management solutions by eliminating inefficiencies, building new apps, enhancing existing apps, and providing personalized experiences.
Integration
Centralize data, remove silos, and create a connected enterprise with integration solutions from SAP, streamlining your source-to-pay process with prebuilt connections.
Get Started
Jump-start your SAP solution implementation and drive ROI by collaborating with industry experts, consultants, and support engineers throughout your journey.
Services
Transform your business quickly and effectively by taking advantage of our holistic service and support plans, expert consulting services, custom application development, proven best practices, and deep industry and technical knowledge.
Support
Explore the learning center, engage in discussion forums, and create service requests in SAP Ariba Connect for solution power users and digital support contacts.
Security and compliance
Focus on your business and customer relationships, while keeping your data safe and reliable. SAP takes a proactive, predictive approach to maintaining compliance and data security in the cloud and within an on-premise data center.
Frequently Asked Questions
Supply risk, or supplier risk, is any risk created by the processes and decisions of a supplier that could negatively impact your company. A supplier’s policies, financial well-being, and data security are all examples of potential supplier risks. Supply risk can also occur when your business relies on too few suppliers or lacks sufficient insight into its supplier network. Without a strong, transparent network of suppliers, businesses are ill-prepared to withstand disruption.
There are four primary dimensions of supplier risk to consider: financial, operational, environmental and social, and regulatory and legal.
- Financial risk: What’s the risk of your supplier going out of business? When you think about financial risk, consider how a particular supplier’s solvency will impact your ability to fulfil your own obligations to customers.
- Operational risk: Do your suppliers keep their operating locations, technology systems, and data secure? Operational risk spans the wide variety of risks that occur because of everyday operations. In many cases, these risks cannot be eliminated, but your business can reduce supplier risk by choosing suppliers who actively work to reduce their own operational risk.
- Environmental and social risk: What environmental events and social conditions are relevant to your suppliers, and how could they impact your business? For instance, a manufacturer with operations in a region with frequent earthquakes may be a higher-risk supplier than a manufacturer that does not often experience earthquakes or other natural disasters. Examples of social conditions that could disrupt your business include a supplier’s use of child labour or the likelihood of foreign invasion in a supplier’s country of operation.
- Regulatory and legal risk: Is your business aware of government regulations in your suppliers’ countries of operation? Regulations can change frequently and may disrupt your business if you aren’t prepared when a supplier can’t deliver or costs increase because of new regulations.
A high-risk supplier is a supplier whose actions could disrupt your own company’s operations and success. Financial instability, poor data security, and unethical business decisions are all examples of factors that could turn a supplier into a high-risk supplier. These factors vary by industry. For example, an international footwear enterprise probably won’t face disruption if one of its suppliers goes out of business. However, this business may suffer greatly if it’s revealed that a supplier relies on unethical labour practices. Similarly, a bank may not have to worry about suppliers’ labour practices, but it needs to ensure that its suppliers’ data management practices are secure to keep customer data safe.
You can manage supplier risk by creating a transparent and holistic view of supplier risk. This begins with supplier risk management, which is a strategy that can help your business prioritize supplier risk throughout procurement.
Supplier risk management is the process of evaluating supplier risk and managing it throughout the entire supplier lifecycle and all procurement processes. Supplier risk management helps your business ensure that the right checks and protocols are in place to keep your business resilient and safe from supplier risk. Increasingly, supplier risk management relies on software solutions that can help businesses perform these tasks faster and more accurately.
SAP Ariba Supplier Risk is a solution that helps remove the challenge from supplier risk management, so your business can focus on creating better relationships with suppliers and meeting the demands of customers. The SAP Ariba Supplier Risk solution empowers your business to work with suppliers that can keep business moving with less risk. It monitors aspects of supplier lifecycle management that you may not have considered and breaks down silos between your business and your suppliers to provide a transparent view of risk.