![]() ![]() Indirect procurement is the purchase of items that are consumed by the purchasing company (office supplies, furniture, etc.). Ariba is very prominent in procurement software, but they are prominent in indirect procurement. “To those who are only familiar with the procurement software market, Ariba may at first glance appear to make some sense. We started this in the article How SAP is Acquiring Itself Into the Cloud. However, Ariba always has been very light on direct procurement, which is the procurement that goes into finished goods at a company. Ariba is one of SAP’s favorite applications to discuss because it is undeniably cloud. SAP has frequently promoted the synergies with Ariba. What is the Truth About Ariba and Direct Procurement? Unlike nearly every other article you will find from Google on this topic, it has had no input from any company's marketing or sales department. Second, no one paid for this article to be written, and it is not pretending to inform you while being rigged to sell you software or consulting services.This is published by a research entity.Lack of Financial Bias Notice:We have no financial ties to SAP or any other entity mentioned in this article. ![]() If you want to see our references for this article and other related Brightwork articles, see this link. ![]() You will learn how accurate SAP was in their claims around Ariba for direct procurement. SAP proposed Ariba for direct procurement to customers. Yes, and what is that network? Virtually entirely indirect procurement items. Or a billion dollars worth of trade, frankly. Oracle, IBM, and Microsoft do not have a network where a trillion dollars worth of trade happens annually. ” Steve Lucas stated that quote – No enterprise software company has a business network like Ariba. SAP acquired Ariba in 2012, and it was touted as a major coup for SAP, as we covered in the article Problems with Diginomica, Steve Lucas on HANA, Oracle, IBM, AWS, Azure. ![]() Text Introduction (Skip if You Watched the Video) ![]()
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