04 October 2001 | Robin Parker
Ariba has upgraded its Sourcing application with a new tool to help buyers manage the entire sourcing and spending process.
Enterprise Sourcing includes tools to define purchasing requirements through a series of requests, manage supplier relationships, conduct sourcing events and rate suppliers by strategic sourcing factors such as innovation and quality.
Within Ariba's integrated system, purchasers can write requisitions on the procurement tool Ariba Buyer, handle the distribution and management of the bidding process on Enterprise Sourcing and send purchase orders directly over the Ariba Commerce Services Network of 20,000 suppliers.
"Organisations have not typically looked at overall spend management and many sourcing tools have concentrated on supplier negotiations and compliance issues," said John Watton, Ariba UK's marketing director. "With the new tool, we're addressing the upfront process of finding and managing the spend in the long term."
Ariba has piloted the solution with pharmaceutical firm Bristol-Myers Squibb in the past six months. It reported a six to eight-week reduction in request-for-quote cycle times and an 18 per cent saving on commodities compared with Ariba Sourcing.
Enterprise Sourcing features an integration framework so it can be used with multiple internal enterprise resource planning systems, and is offered both on a CD and as a web-hosted service.
* British Airways has announced it will use the Ariba business-to-business Commerce Platform for selected groups of goods and services, and intends to extend it to several thousand users by the end of the year.