Why Intelligent Procurement is Right for your Midsize Company (Part 2)


Why Intelligent Procurement is Right for your Midsize Company

The economics are undeniably good

Given the business impact of intelligent, digitally transformed procurement enabled by SAP S/4HANA and SAP Ariba solutions, you would think this solution would be outside the budget of most midsize companies. But SAP customers have shown repeatedly how the savings realized through SAP Ariba solutions and Ariba Network can fund digital transformation projects, such as an SAP S/4HANA implementation.

Source-to-pay digital transformation, for example, can deliver 4% in savings of addressable spend – with value starting within a few months and accelerating thereafter.Post-implementation calculations based on data from actual SAP Ariba solutions customers prove the value. For example, midmarket companies using SAP Ariba solutions report they are seeing :
• Cost savings from sourcing events of 4% to 15%
• Compliance savings of 2%
• Process efficiencies of 40% to 60% in payables function


These types of savings add up quickly, making the business case for SAP S/4HANA more compelling. And once in place, SAP S/4HANA delivers its own return on investment. For example, it drives finance and planning transformations that are not only strategic and foundational to long-term business health, but also deliver hard savings by reducing FTE workloads through faster financial closings, vastly accelerated A/R billing, data-driven insights, and more.

SAP S/4HANA and SAP Ariba solutions enable all this, while delivering intelligent technologies that bring forward insights to improve overall operating performance. For example, you can make simultaneous, data-driven decisions about when to recognize revenue or pay vendor invoices, while managing cash flow and profitability. Data flow seamlessly across SAP S/4HANA and SAP Ariba solutions, giving greater visibility into demand, supply, and cost. This creates the opportunity for real-time insights and guidance. Imagine managing your working capital by using real-time insights into your company’s spend, budgets, forecasts, and monetary aspects.

This is the future of business at work today.

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