Business and procurement leaders use the word ‘efficiency’ constantly. However, the truth about contracting and sourcing is far from the word efficient. The reality is that it often contains untracked PDFs and missed dates that costs the organization a lot of money. SAP Ariba sourcing and contract management has become a strategic tool and engine in the word of procurement. Business in Saudi Arabia and Kuwait that are looking for scale and growth, this would be a great tool and a step to do so. so, what is SAP Ariba sourcing and contract management?
What is sourcing in SAP Ariba
Sourcing isn’t about just looking for the cheapest price but it is also about value and risk mitigation. It includes:
- Real-time auctions
- Standard templates
- Infinite suppliers
Now the details on each one and what they mean and how you can benefit from them:
Real-time auctions
Reverse auctions can be done in real-time by suppliers rather than taking weeks in this process and this shows the true market value.
Standard templates
Using a standardized template guarantees that the evaluation is in everything for the supplier and this removes any biases that can happen in the process of selection.
Infinite suppliers
SAP Ariba gives you an advantage that the customer is not limited to the number of suppliers they have in their database but they can also have access to thousands of international suppliers that are ready to work and with very high standards.
What is contract management in SAP Ariba
Discarded contracts offer no value and serve no purpose. However, SAP Ariba makes that contract an integral part of the procurement process and flow. It contains three integral parts which are:
- Digitalization
- Automated alerts
- Signature integration
Now the detailed version on each of them to understand the benefits better and what they can add to your company:
Digitalization
The supplier can now store and put all folders in one single, secure database and access them anytime.
Automated Alerts
Most companies continue to be billed every month and lose money due to not seeing that the contract has expired so SAP Ariba solved this problem by sending automated alerts months before the expiration date and that gives the team time to reconsider the contract and negotiate again.
Signature integration
The SAP Ariba and DocuSign integration cuts down legal execution times from weeks to just minutes.
The power of integration
The core engine here in SAP Ariba is the integration between modules. In manual systems, there is no integration so the team for sourcing finds the supplier and the team for legality makes the contract but the team for purchasing has no idea or information about what the terms were and that is a lack of integration.
SAP Ariba solves this problem. The system automatically updates the information so each team knows all the things that happened and the data they need to complete the process smoothly.
Data driven compliance
The truth lies in the compliance and visibility which is looking behind the automation and paperwork. In most organizations, there is a gap between what the procurement manager knows is being spent and what is really happening in the field and in reality. SAP Ariba creates an audit trail and everything is being tracked for better visibility and compliance. By getting this system, it protects the companies and organizations from fraud as well. The platform will act and be a gold mine of data for the company. This gives the company the way to identify the suppliers who are reliable and who are not overtime and to be able to negotiate better in the future.
The procurement process is easier with EcoTech
Knowing the software to get is just half the process but the implementation is the next half. EcoTech is a leader partner in SAP in Saudi Arabia and Kuwait which helps organizations and companies to transition and go from the manual process to the real-time, unified system of SAP Ariba. EcoTech’s team of experts are ready to help you to gain a comprehensive visibility of spending and protecting the business with better contract compliance.
Ready to redefine your digital boundaries? Reach out explore, innovate, and grow with EcoTech. Book your free demo now!



