Thus, the purchasing agent in this interaction holds a powerful position, as the purchasing agent can influence or even decide the outcome of this situation in favor of a particular supplier. Under this pressure to win, suppliers are tempted to create an “edge” wherever possible to win the bid. Procurement transactions typically operate as zero-sum games, whereby a supplier either wins the deal and does business with the purchasing company or doesn’t. SAP Ariba (Overcoming the Principal-agent Problem)Īlso known as the agency problem, the principal-agent problem refers to a conflict of interest that can occur when an agent acts on behalf of an organization. In the following sections, we’ll discuss the SAP Ariba tools that help businesses overcome these challenges. The main considerations and challenges for the procurement process include the following: the principal-agent problem, demand planning, suppliers, purchase agreements, consumption of goods, invoicing, and analysis. SAP Ariba Overcomes These Procurement ChallengesĪs with any process, procurement’s complexity arises in the steps and details. In this blog post, we’ll cover the basics. You will then be re-directed to the SAP Ariba Discovery Network.SAP Ariba offers a comprehensive array of tools and solutions to cover core procurement activities and challenges.

Any buyer can post their immediate sourcing needs and any supplier can respond to show they can deliver. SAP are offering the use of the Ariba network for free up to the end of June 2020. Minimise shipment delays and respond to consumer demand. With free access to SAP Ariba Discovery, you can post your sourcing needs and get quick responses from suppliers who can deliver - from all across the world. With the largest business network in the world, SAP wants to help ensure that your supply chain remains unbroken. These problems mean that organisations are finding existing sourcing channels maybe are unavailable are having to rapidly adapt and find new sourcing opportunities. Supplier staffing shortages and restrictions caused by illness and new working practices.Constrained logistics processes with fewer resources available and restrictions on logistics movements caused by border closures.COVID-19 is creating an unprecedented set of sourcing problems for organisations.

Ariba discovery network