SAP® Ariba® Solutions and SAP S/4HANA®: The Path to Procurement Transformation

Benefits • Transformed spend management efficiency

and control through an end-to-end source-to-settle solution suite integrated to the digital core of SAP S/4HANA

• Increased savings through complete coverage for all spend and expense types, including direct, indirect, services, MRO, capital projects, and contingent labor

• Improved satisfaction and adoption through a best-in-class user experience that makes it simple for employees to make smart, compliant purchases fast

• Streamlined financial supply chain management to boost capture of early payment discounts, extend days payable outstanding, and enhance free cash flow

• Reduced total cost of ownership for managing procure-to-pay processes through cloud-based automation and quick-to-deploy solutions that scale globally

SAP Supplier Relationship Management (SAP SRM) has long served to streamline and standardize the sourcing and procurement functions within your organization, along with automating your processes to increase efficiencies. Now SAP is taking the next steps to enable companies to achieve a complete digital transformation in procurement, using SAP S/4HANA® as the digital core, along with the rich capa-bilities of SAP® Ariba® solutions.

With SAP Ariba solutions, SAP S/4HANA, and SAP Fieldglass solutions, SAP offers the most complete solution suite to manage the entire source-to-settle process:

• It has breadth: It can manage each step of this process – from sourcing, to procurement, to payments.

• It has depth: It can manage diverse spending and expense types – direct; indirect; services; maintenance, repair, and operations (MRO); capital projects; and contingent labor.

• It has reach: It connects and allows collaboration between you and a broad net-work of partners and trusted suppliers.

WHY MOVE TO SAP ARIBA?

• Digital transformation: Strategically transform your overall spend manage-ment with speed and innovation in the cloud. As an SAP customer, leverage the latest technologies SAP has to offer and capitalize on SAP Ariba and SAP S/4HANA as the go-forward solution, including the latest innovations in procurement, such as the guided buying capability and SAP Ariba Solutions for Direct Spend.

• User experience (UX): Benefit from the latest UX innovations, and increase user satisfaction and drive adoption with a best-in-class solution. Leverage an easy-to-use interface, broad functionalities, and a connected platform to make it easy for your employees to be guided through their buying process and use marketplaces for tail spend while staying compliant with corporate policies.

• Total cost of ownership: Reduce the total cost of ownership for your current source-to-settle process by moving to the cloud. Chief procurement officers around the globe embrace automation through shared service centers and lead digital transformation while continuously delivering savings. SAP Ariba solutions are easy to use, quick to deploy, and can scale globally.

Data Sheet | PUBLICSAP Ariba solutions and SAP S/4HANA | SAP Supplier Relationship Management

2017enUS (17/11)

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www.ariba.com

About SAP® Ariba® SolutionsSAP® Ariba® solutions support the marketplace for modern business, creating frictionless exchanges between millions of buyers and suppliers across the entire source-to-pay process. Our market-leading solutions enable companies to simplify collaboration with their trading partners, make smarter business decisions, and extend their collaborative business processes with an open technology platform. More than 3 million companies use SAP Ariba solutions to connect and collaborate around nearly US$1 trillion in commerce on an annual basis. To learn more about SAP Ariba solutions and the transformation they are driving, visit www.ariba.com.

TRANSITION OPTIONS

To help your company determine whether an on-premise or cloud solution best fits your SAP SRM scenario, you require a tailor-made plan based on your current business challenges, combined with your company IT plan and vision. You have several choices based on your as-is situation and strategy. The chart below summarizes the most common transition paths and SRM replacement scenario.

WHAT’S THE VALUE?

The integration of SAP S/4HANA with SAP Ariba solutions enables a tangible change in the performance, speed, visibility, and control of your procurement solutions. • Buy and pay at negotiated savings rates: Modern, easy-to-use SAP Ariba solu-

tions enable your users to follow the right policy to buy the right goods and ser-vices from the right supplier at the right price – enabling you to save more on what you already strategically source. Companies have saved at least 1-2% of target spend in contract leakage avoidance.

• Free up working capital: SAP Ariba and SAP S/4HANA integrate together to streamline your financial supply chain, helping you capture more early pay- ment discounts and extend days payable outstanding (DPO) to increase free cash flow.

• Lower operating costs: You can also reduce the cost of processing purchase orders, invoices, and payments and improve supplier onboarding time using the end-to-end solution suite offered by SAP Ariba along with SAP S/4HANA.

GET STARTED TODAY

To realize the benefits of procurement transformation in your organization, contact your local SAP or SAP Ariba sales/services representative. To learn more, you can: • Register to attend our free online course, “Procurement Transformation with

SAP Ariba and SAP S/4HANA,” at ari.ba/srm-course. • Visit our Web page at ari.ba/future-of-srm and complete the brief transforma-

tion survey. We’ll get in touch with you shortly.

1PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ

SAP Supplier Relationship Management

SAP S/4HANA + SAP Ariba Application Suite + Ariba Network

• You are driving a digital IT transformation agenda (including procurement transformation)

• Procurement will be tightly connected to the back end in a single end-to-end system

• The recommendation is to manage procurement processes in the SAP Ariba application suite integrated to S/4HANA for core processes

SAP S/4HANA + Ariba Network

• You are focused on transforming IT with an ERP suite and expect essential procurement process support as part of the core foundation

• Main focus is digital IT transformation

SAP Ariba Application Suite + Ariba Network

• Your primary business case is procurement transformation

• Strategic sourcing and supplier management are critical to the business goal; operational procurement scope is indirect, MRO, and services spend

• IT has no immediate plan to go to SAP S/4HANA; system landscape may be heterogeneous and have multiple ERPs across the globe

SAP SRM + SAP Ariba Application Suite + Ariba Network

• You want to benefit from the latest cloud innovations

• IT is not ready to transform core to S/4HANA in the near term – keep SRM in place as a stepping stone

• The recommendation is to complement SAP SRM by using SAP Ariba innovations like SAP Ariba Spot Buy Catalog, SAP Ariba Catalog, SAP Ariba Sourcing, and/or Ariba Network on top of SAP SRM while IT is preparing the SAP S/4HANA transformation

Stepping stone before moving to SAP S/4HANA

Your IT strategy drives SAP’s recommendation for either SAP S/4HANA or SAP S/4HANA Cloud.