Procurement abroad coming to SMEs

Smaller manufacturers can now procure goods, materials and services, with management and automation from Ariba, following its launch last month of lower cost hosted software and services. Ariba marketing director Paul Hampton says: “We’re offering new packaging and pricing for our spend management systems, going from the global 500s to attract the global 12,000.” It’s a big development from a company that hitherto has aimed its services at the $b-plus market, proudly claiming 10 of the top 14 automotive manufacturers as customers. It follows release of research from the European Business School, commissioned by Ariba, showing significantly increasing numbers of companies planning to source more production materials and services from low cost countries. “Everyone says they are protecting their own countries, but actually most want to outsource to low cost economies,” says Hampton. But he also points to the survey’s finding that manufactures are concerned over social responsibility and brand respectability. “If companies haven’t visited the region [they’re buying from] how can they validate not just that they can supply the right goods, quality etc, but whether they’re buying from a sweatshop? They can’t do that from a one-off visit either, and a lot of companies have a potential problem here.” Part of Ariba’s service is to run regular visits and to take companies on location to experience the environment. And indeed the company also offers a Top 10 Tips to steer companies out of harm’s way. . “Any company can now make savings on their sourcing and contribute to profitability,” advises Hampton. “We’re launching re-architected applications served in an on-demand web browser environment. So users will get packaged access to the software and our expertise.” He describes three levels of solution – entry, mid and enterprise. “Now companies can start at departmental level and get up and running very quickly and get quick ROI,” he says. And he points to the global Ariba supplier network: “It’s one of our competitive advantages – 128,000 pre-qualified suppliers transacting over our network.”