Ariba, which changed the face of procurement for ever, celebrates 10th anniversary

Says Ariba chairman and CEO Bob Calderoni: “Ten years ago, procurement was largely viewed as a backroom function. Today, it is a critical business imperative that is top of mind in boardrooms around the world. “As we look back on the past decade, what makes us most proud is not our own accomplishments, but those of our customers. Through their vision and willingness to accept and drive change, we have been able to create a new paradigm for business in the global economy.” Among Ariba’s most notable achievements was the first online catalogue for procurement. That was followed by software to conduct reverse auctions for direct and indirect goods and services, and then the creation of its global, cross-industry network through which buyers and suppliers collaborate and conduct business in real time online. “What Ariba was talking about in 1996 was a revolutionary concept,” says Shelley Stewart, senior vice president at Tyco International, and a long-term Ariba user. “We took a big chance in embracing online sourcing and procurement, but Ariba provided the necessary technology, expertise and services to ease the transition and help us achieve our goals.” Companies using the Ariba Supplier Network now manage more than $170bn in annual procurement spend. With over 140,000 registered suppliers in 115 countries transacting some $95bn a year, it’s now one of the world’s largest online business networks, covering everything from sourcing to orders, invoices and payment. More than 25 million purchase orders and invoices were carried across the network in 2005, and today it is used to process one purchase order every two seconds. “Ariba was the first to automate the sourcing process and made the reverse auction a formidable tool for buyers. But they knew this wouldn’t be enough, so they provided category experts to assist companies in their strategic sourcing efforts to ensure that identified savings actually reached the bottom line,” says James Polak, purchasing director at PPG Industries. “Leveraging Ariba’s integrated offerings, PPG moved away from antiquated paper-based processes and manual communications to automated ordering, sourcing and communication with suppliers that generated substantial savings and efficiencies. Our transformation continues as we work to make the supply chain a virtual entity with seamless communication and just in time deliveries.”