Spend Management Solutions
Industrial manufacturing companies face distinct direct-sourcing challenges. SAP Ariba Direct Materials for Automotive & Industrial Manufacturing, in SAP S4/HANA Private Cloud transforms procurement by comprehensively addressing the nuances that surround unique sourcing requirements for highly engineered products. The solution and add on capabilities enable you to create products that not only costs less to produce but are also innovative, sustainable and high quality, accelerating time to market. Accelerate complex product launches with structured, multilevel procurement project management : Align sourcing with engineering, finance, and manufacturing milestones to ensure every part is sourced on time—before production begins. Drive innovation through deep supplier collaboration : You can collaborate securely with suppliers to co-develop components, share design files, and track material sustainability—empowering early supplier involvement and better product outcomes. Optimize costs via global demand aggregation and streamlined sourcing : The solution consolidates sourcing needs across ERPs and plants. This unified demand view gives you leverage to secure volume pricing, manage commodity volatility, and renegotiate efficiently. Ensure compliance with negotiated terms, without system complexity: Unlike disjointed S2P suites that don’t integrate to ERP, SAP Ariba enforces pricing, delivery, and index-based terms natively—without duplicating master data or relying on spreadsheets to monitor compliance. Advance sustainability goals through carbon-aware sourcing decisions : As sustainability becomes a procurement mandate, our suite enables you to evaluate carbon footprint alongside cost and quality when selecting suppliers. Seamless integration with SAP ERP—unlike traditional indirect procurement solutions The solution is purpose-built with the fundamental understanding that in the automotive and industrial manufacturing sectors, direct procurement is deeply intertwined with engineering, supply chain, and operational procurement processes—all of which are embedded in the ERP system. Unlike third-party solutions such as Ivalua or Jaggaer, which lack native integration with SAP ERP, SAP Ariba shares a common data model and codebase with SAP S/4HANA. This enables a seamless user experience, real-time visibility, and unlocks new possibilities to apply AI in the most effective and scalable way.
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