Supplier Performance Management From Ariba

New module is for companies seeking to meet enterprise spend management objectives

Ariba Logo 2

New module is for companies seeking to meet enterprise spend management objectives

Sunnyvale, CA — July 16, 2003 — Enterprise spend management (ESM) solutions provider Ariba Inc. this week introduced the Ariba Supplier Performance Management (SPM) module. According to the company, Ariba SPM, a new addition to the Ariba Spend Management solution, is designed for companies to reach ESM objectives through performance measurement, collaboration and improved supplier relationships.

Ariba said SPM is a business process whereby buyers define, measure and improve the performance of suppliers through communication in order to meet business goals. Many companies today have cumbersome manual SPM processes due to poorly defined metrics, fragmented purchasing systems and ineffective automation. Ariba explained that this problem becomes critical when thousands of suppliers are managed across different business units throughout an enterprise.

Ariba said its SPM module links the setting of performance expectations (at the sourcing and contracts stage) and performance delivery (procurement and payment stage) with processes for gathering, analyzing and improving performance in a single spend management solution. This enables buyers to monitor supplier performance, ensure suppliers conform to contract terms and improve their mutual relationship.

"Ariba believes that what is measured is improved, and this is especially true when it comes to managing the hundreds of suppliers that companies transact with on a daily basis," said Michael Schmitt, executive vice president, Marketing, Ariba. "Ariba SPM enables companies to ensure that objectives are being met, savings goals are realized and suppliers are able to become an even more integral part of the companyÕs overall ESM strategy."

The provider said its SPM module features pre-delivered best practice key performance indicators, scorecards and survey templates; analysis templates; a collaborative workspace with best practice SPM activity templates; and performance monitoring.

"As a leading IT supplier, HP has always taken a customer-centric approach to business. We are constantly working with customers to understand their requirements and better meet those needs," said Colin Donnelly, director, worldwide B2B integration, HP. "Ariba SPM facilitates this by offering early visibility into customer issues and enabling us to measure success against targeted goals in a timely manner. HP can now work collaboratively with customers to improve the procurement process, maximizing spend management savings while building better customer relationships and improving satisfaction."

Ariba said its solutions have been upgraded in the latest version of the Ariba Spend Management solution set, which includes the new Ariba SPM module, and will be generally available at the end of July 2003.