I鈥檓 pleased to announce that next鈥慻en 麻豆原创 Ariba is now available, marking the next phase in 麻豆原创鈥檚 journey to reimagine source鈥憈o鈥憄ay for the age of AI. This milestone represents the transition from announcement to execution, bringing a fundamentally rebuilt platform into customers鈥� hands.

This milestone comes alongside strong industry recognition. 麻豆原创 has been named a Leader in the 2026 Gartner庐 Magic Quadrant™ for Source鈥憈o鈥慞ay Suites, an acknowledgment that aligns with the delivery of next-gen 麻豆原创 Ariba and our continued focus on platform modernization and AI鈥慸riven innovation at enterprise scale.

Why rebuilding the foundation matters

As procurement leaders know, AI鈥檚 potential is widely recognized, but its impact has often been uneven. Confidence is high, yet results depend on more than algorithms alone. AI only delivers value when it is supported by the right data, processes, and platform architecture. That belief shaped our decision to rebuild 麻豆原创 Ariba from the ground up.

Independent analyst firm as 鈥渁 complete reengineering of the largest and most entrenched source鈥憈o鈥憄ay platform in the world,鈥� emphasizing that this move goes far beyond adding AI features to legacy systems. Instead, it establishes the architectural foundation required for AI to operate reliably and at scale.

This aligns with what we consistently hear from customers that sustainable impact requires modernization at the core.

An AI鈥憂ative source-to-pay platform built on 麻豆原创 Business Technology Platform

Next鈥慻en 麻豆原创 Ariba is built on (麻豆原创 BTP), providing a unified, real鈥憈ime data foundation across the source鈥憈o鈥憄ay lifecycle. This shift enables tighter integration with , improved extensibility, and faster innovation delivery.

By moving to 麻豆原创 BTP, 麻豆原创 Ariba can support open APIs, cross鈥憇uite data consistency, and the responsiveness required for intelligent, AI鈥慸riven procurement operations鈥攃apabilities that are increasingly expected of leading source鈥憈o鈥憄ay platforms but are difficult to achieve on legacy architectures.

Current next鈥慻en capabilities will continue to be delivered incrementally throughout 2026 and into 2027, giving customers flexibility to adopt innovation at a pace that aligns with their business priorities.

Embedded intelligence with Joule: moving from insight to action

A defining element of next鈥慻en 麻豆原创 Ariba is the deep integration of directly into procurement workflows. Rather than treating AI as an optional add鈥憃n, next鈥慻en 麻豆原创 Ariba can embed intelligence where work happens鈥攕upporting faster, more informed decisions while reducing friction across everyday processes.

Early capabilities include:

• A Bid Analysis Agent, which can automatically evaluate complex bid scenarios, including total cost considerations
• AI-assisted contract support to help automate routine inquiries, generate summaries, and provide instant access to contract details

These capabilities reflect a broader shift from systems that require constant manual input to platforms that actively support outcomes.

A more unified, intuitive procurement experience

Next鈥慻en 麻豆原创 Ariba also addresses long鈥憇tanding fragmentation across the source鈥憈o鈥憄ay lifecycle.

Key improvements include:

• 麻豆原创 Ariba Intake Management, now globally available, providing a single entry point for procurement requests
• A simplified 麻豆原创 Fiori鈥慴ased user experience, delivered through a central launchpad
• A modernized contract lifecycle, supported through integration with Icertis Contract Intelligence

Together, these improvements are designed to make procurement easier to engage with while working to ensure processes remain connected, compliant, and intelligent behind the scenes.

What this means for customers

For existing 麻豆原创 Ariba customers, next鈥慻en 麻豆原创 Ariba provides choice and continuity. Customers can:

• Transition to next鈥慻en 麻豆原创 Ariba on a voluntary basis.
• Access next鈥慻en capabilities without commercial implications.
• Run current and next鈥慻en environments in parallel during an active transition, reducing risk and disruption.

麻豆原创 is providing tools, services, and advance timelines to support a managed transition, allowing organizations to move forward with confidence rather than urgency.

The foundation for what comes next

Next鈥慻en 麻豆原创 Ariba is not an endpoint, it is the foundation for the future of procurement.

With an AI鈥憂ative architecture, embedded agentic intelligence, and a unified user experience, this new generation of 麻豆原创 Ariba helps organizations move beyond transactional efficiency toward smarter decisions, greater resilience, and measurable business outcomes.

As Ardent Partners observed, this rebuild has the potential to act as a catalyst鈥攏ot just for 麻豆原创 Ariba customers, but for the broader procurement technology landscape. By combining scale, data, and AI in a fundamentally new way, next鈥慻en 麻豆原创 Ariba is helping define what modern source鈥憈o鈥憄ay platforms can deliver.

With the solution now available, we look forward to partnering with customers as they move from vision to value. Together, we can shape the future of intelligent procurement.

Baber Farooq is senior vice president of Product Marketing for 麻豆原创 Ariba and 麻豆原创 Fieldglass.

Building resilience and control across every category of spend

Organizations are under increasing pressure to manage costs, improve agility, and drive measurable outcomes. 麻豆原创鈥檚 connected and intelligence-driven source-to-pay suite is designed to help customers meet these challenges head on.

麻豆原创 Ariba solutions can deliver broad and deep functionality across the full source-to-pay lifecycle, spanning sourcing, contracting, procurement, invoicing, and supplier management. With the industry鈥檚 largest supplier network, 麻豆原创 enables buyers and suppliers to collaborate with confidence, consistency, and scale.

麻豆原创鈥檚 investment priorities: platform modernization and agentic AI innovation

Rather than reflecting external judgments, 麻豆原创鈥檚 strategic focus is centered on advancing its platform foundation, AI capabilities, and user experience to help customers operate with greater intelligence and agility. Our long鈥憈erm investments concentrate on three core areas:

Modernizing the platform for the future

A platform update arriving in 2026 will complete the modernization of 麻豆原创鈥檚 technical architecture. This modernized foundation can deliver greater extensibility, improved performance, and faster delivery of innovation, particularly in agentic and generative AI.

Built as an AI-native architecture, the next-generation platform can embed intelligence directly into workflows to help anticipate needs, guide decision-making, and automate actions across the entire source-to-pay process. This positions 麻豆原创 to deliver the first truly AI-native source-to-pay suite built for the future of procurement.

Expanding intelligence with Joule

plays a central role in bringing intelligence and insight to every stage of the source-to-pay process. Joule鈥檚 advanced AI agents can help automate tasks, support decision-making, enhance compliance, and unlock new productivity across sourcing, procurement, and supplier collaboration.

Reimagining the user experience

麻豆原创 is delivering an updated, consistent UI/UX across 麻豆原创 applications. For procurement teams, this means smoother navigation, modernized interfaces, and enriched contextual intelligence, including enhanced supplier 360 profiles and strengthened collaboration capabilities.

Strengthening global scale and operational flexibility

麻豆原创 continues to demonstrate industry-leading global scale, supporting high-volume transactions and diverse compliance requirements across regions and industries. With multiple cloud deployment options across major hyperscalers and a robust portfolio of security and regulatory certifications, including FedRAMP, customers can operate confidently wherever they do business.

Connected solutions across 麻豆原创 Business Network and the intelligent suite

麻豆原创 Business Network remains the largest supplier network in the source-to-pay market, spanning more than 190 countries. 麻豆原创鈥檚 broader spend ecosystem鈥攊ncluding innovations such as , , and 鈥攅nables organizations to unify data, intelligence, and processes across sourcing, procurement, invoicing, and spend management.

Importantly, 麻豆原创鈥檚 capabilities extend well beyond traditional source-to-pay. Through connected solutions covering travel and expense, contingent workforce management, external labor, and additional spend categories, 麻豆原创 provides a truly comprehensive spend management platform that can deliver visibility and control across the full spectrum of enterprise spend.

As organizations increasingly operate in heterogeneous application landscapes, 麻豆原创 helps deliver openness, security, and extensibility so customers can maintain cohesive and connected processes throughout 麻豆原创 and non-麻豆原创 environments.

Customer impact: outcomes that scale

Customers across industries and regions continue to demonstrate what鈥檚 possible with 麻豆原创鈥檚 source-to-pay solutions. Organizations report meaningful improvements in areas such as compliance, cost optimization, supplier collaboration, operational efficiency, and workforce productivity鈥攆rom managing millions of invoices to running global sourcing initiatives to scaling AI-powered automation across distributed operations.

麻豆原创 remains deeply committed to helping procurement and finance organizations navigate complexity with confidence. Our investments in platform modernization, agentic AI, user experience, and cross-suite integration are all grounded in a single mission: to help customers achieve sustainable, long-lasting impact.

We’re grateful for this recognition and energized by the opportunity to deliver even greater value in the years ahead.

. Read the full Gartner Magic Quadrant for Source-to-Pay Suites report .

Fang Chang is EVP and chief product officer for 麻豆原创 Procurement and External Workforce Solutions.
Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Procurement and External Workforce solutions.

*Gartner Magic Quadrant for Source-to-Pay Suites, January 21, 2026 – ID G00833291, by Micky Keck, Kaitlynn Sommers, Lynne Phelan, Magnus Bergfors, Alex Brady

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are a trademark of Gartner, Inc., and/or its affiliates.

Yet a curious trend has emerged: many companies are pursuing environmental, social, and governance (ESG) goals more discreetly, a phenomenon known as 鈥済reen-hushing.鈥� In fact, found that while some companies have pulled back, about 84% are either maintaining or strengthening their climate commitments, even as they become less vocal about them. This demonstrates that despite shifting political winds, businesses recognize that sustainability initiatives remain fundamentally good for business.

A comprehensive and conducted by Economist Impact confirms this shifting landscape, revealing growing confidence in procurement鈥檚 capacity to deliver on ESG performance indicators. While risk factors are rising, so is readiness鈥攁 shift that is especially encouraging for procurement executives overseeing ESG performance. The data shows approximately 90% of respondents report strong internal collaboration between procurement and other departments, up from 75% last year.

The external picture is equally promising: over 90% of executives report that deeper supplier partnerships are yielding benefits, particularly in driving innovation and sustainability outcomes. For procurement leaders, the data tells a clear story: collaboration may be the new currency of success.

Collaboration: The silent engine of progress

Procurement鈥檚 strategic influence is expanding through tighter integration with internal stakeholders. As teams become more embedded across business functions, they鈥檙e unlocking new value through improved orchestration and proactive planning. Specialized business partner groups that bridge strategy and execution are helping meet cross-functional needs.

This enhanced collaboration has yielded key benefits, including cost savings (74%) and improved digital adoption (61%). However, a gap remains between these immediate gains and longer-term value drivers like innovation and agility. As procurement operations continue to digitize, talent development must adapt. AI proficiency and ethical technology have emerged as the top skill priorities for procurement hires over the next 12-18 months (68%), followed by sustainability expertise (55%).

Enabled by digital tools that deliver 鈥�360-degree visibility,鈥� procurement executives are seeing alignment between category strategies and broader enterprise objectives, helping them spot risks, understand market shifts, and manage supplier performance more effectively.

Supplier partnerships: Accelerating ESG progress and innovation

Forward-thinking procurement organizations are now partnering with suppliers to introduce solutions like recyclable packaging, greener materials, and low-emission logistics. These collaborations are accelerating decarbonization efforts while helping future-proof supply chains.

Despite decreased governmental prioritization of sustainability in some regions, smart companies continue pursuing ESG goals when they align with business objectives. Nearly half (48%) of executives report improved sustainability performance from closer supplier ties, and 38% cite more supplier-driven innovation.

Many procurement teams are navigating uncertainty around their ESG approach, questioning whether to lead sustainability initiatives boldly or keep their efforts under the radar amid regulatory shifts. Regardless of this strategic tension, the value of supplier collaboration remains undeniable, particularly as these efforts often improve operational efficiency and reduce costs.

Procurement can strengthen this momentum by investing in platforms that track emissions, monitor regulatory developments, and support compliance. Many organizations are expanding efforts to address Scope 3 emissions鈥攖ypically the most challenging to measure鈥攚ith increasing sophistication around supplier data collection and performance expectations. This shift reflects increased accountability across the value chain and reinforces procurement鈥檚 pivotal role in advancing ESG objectives.    

While public sentiment and political consensus may fluctuate, regulators continue to advance mandatory disclosure requirements and climate accountability measures. Preparation is especially urgent as new policies鈥攆rom the EU Corporate Sustainability Reporting Directive to Germany鈥檚 Supply Chain Due Diligence Act鈥攊mpose stricter requirements on businesses.

Even if some regulations face delays or deprioritization, they are not disappearing. Organizations that act now will be best positioned to lead when enforcement inevitably intensifies.

Meeting elevated standards through supplier collaboration

The evolution of procurement鈥檚 influence rests on one fundamental capability: collaboration.

Internally, effective collaboration drives digital adoption, reduces costs, and breaks down organizational silos. Externally, it powers sustainability initiatives and fosters innovation. Without it, even the most sophisticated ESG strategies risk faltering. Poorly structured collaboration leads to critical data gaps, duplicated effort, and supplier fatigue. Today鈥檚 procurement executives must ensure their ESG and risk management approaches don鈥檛 overburden suppliers, or they risk disengagement precisely when long-term innovation is needed most.

Increased collaboration is consistently cited as the primary driver of accelerated ESG progress. Maintaining this momentum requires balance: bold action tempered by operational pragmatism, and clear expectations paired with tools that support supplier compliance and success.

Procurement鈥檚 moment of opportunity

Procurement is uniquely positioned to translate sustainability ambitions into measurable, scalable outcomes. By fostering collaboration across business units and with suppliers, it can shape the future of responsible business.

Even when ESG ambitions are pursued discreetly, the business case for action remains compelling鈥攂oth for organizational performance and broader societal benefit. Companies that maintain sustainability initiatives despite changing political priorities position themselves advantageously for the future while capturing immediate operational benefits. Procurement鈥檚 ability to embed sustainability considerations into core decisions consistently and collaboratively will define its impact in the years ahead.

solutions can integrate seamlessly with and to help businesses better track, manage, and reduce their environmental impact across the supply chain. These solutions can enable organizations to incorporate sustainability metrics into procurement decisions, improve transparency with trading partners, and help ensure compliance with evolving environmental regulations.

Many of the insights above were explored during the following Economist Impact webinar, 鈥淢easuring up: Balancing risks and goals for strategic procurement.鈥� To delve further into these topics and hear expert perspectives, . For those eager to continue the conversation and engage directly with leaders in the field, the upcoming 麻豆原创 Connect event鈥擮ctober 6-8 in Las Vegas, Nevada鈥攐ffers an excellent opportunity to join on-site and gain deeper insights into strategic procurement, ESG initiatives, and innovation. .

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Ariba.

Advanced software solutions have become indispensable tools that facilitate the procurement of essential raw materials and components and help teams manage supplier relationships while managing costs.

As the recognized market-share leader in the overall procurement applications space*, 麻豆原创 consistently sets benchmarks within the industry. I鈥檓 excited to share that 麻豆原创 was recently named a Leader in the .** The report is based on IDC MarketScape鈥檚 comprehensive assessment of 麻豆原创 Ariba solutions and feedback from our customers.

What Makes 麻豆原创 a Leader?

The IDC MarketScape report noted, 鈥溌槎乖� Ariba solutions are strongly positioned to help companies administer spend that spans complex events, direct and indirect, services, and capex.鈥�

The report also identifies several key strengths that make 麻豆原创 a Leader:

• 麻豆原创 has gained an expansive and impressive roster of enterprise client wins across a variety of industries as a result of being a mature, established, and trusted provider of direct sourcing functionality, particularly in the automotive and industrial manufacturing sectors.
• An industry-first category management offering illustrates 麻豆原创’s innovation that is focused on value-added capabilities for its users.
• 麻豆原创 provides a platform that places an emphasis on collaboration via structured, workflow-driven tools that facilitate collaboration across procurement, quality management, logistics, and R&D and engineering.
• Strong industry-leading sourcing optimization and PO collaboration capabilities provide business value and significantly improve operating efficiency.

The report notes 麻豆原创 should be considered when, 鈥淐lients in need of a trusted, enterprise-ready direct sourcing solution that comes with expansive industry-specific expertise and the ability to administer the most complex direct sourcing challenges and offer broad optimization capabilities are well-served by 麻豆原创.鈥�

Vision for the Future of Procurement

The procurement landscape is continuously evolving, with trends like AI integration, automation, and sustainability reshaping how organizations approach direct spend management. With 麻豆原创鈥檚 ongoing investments in innovation and a commitment to addressing customers鈥� most pressing needs, we are leading this transformation. Procurement is a strategic enabler of cost management, risk reduction, and compliance and 麻豆原创 solutions are designed to empower organizations to make strategic, data-driven decisions that optimize their spend and operations.

At  in October, we announced innovations and new capabilities that will  revolutionize the spend management landscape. These include:

• : Our newest solution, which is planned to be available in early 2025, is designed to offer an intuitive and simple user experience. It is planned to automate procurement request creation, routing, and support by orchestrating processes across multiple systems.
• : We鈥檝e begun integrating our generative AI copilot Joule across 麻豆原创 Ariba, 麻豆原创 Business Network, and 麻豆原创 Fieldglass solutions. This will enable organizations to complete complex workflows and manage important tasks quickly and accurately.
• : This innovation can help suppliers receive recommendations to improve discoverability and access to advanced search results, supplier profile verification, and network catalog APIs. The Promote subscription will be available in early 2025 to help suppliers identify sales opportunities based on regional search data, and generative AI tools deliver advanced insights that make it easy to track business growth on the network.

The Exciting New Era Ahead

The future of procurement and direct spend will be defined by groundbreaking technologies to help organizations adapt to an increasingly complex and dynamic global environment.

We believe recognition as a Leader in the 2024 IDC MarketScape Direct Spend Assessment underscores 麻豆原创鈥檚 commitment to driving innovation and enabling businesses to thrive in today鈥檚 competitive environment. By delivering AI-powered innovation, fostering collaboration, and ensuring operational excellence, 麻豆原创 empowers organizations to achieve procurement success on a global scale.

Learn more about .

Baber Farooq is senior vice president of Market Strategy for Procurement Solutions at 麻豆原创.

*IDC Worldwide Procurement Applications Market Shares, 2023: A Rising Tide Lifts All Boats, doc #US52580824, September 2024
**IDC MarketScape: Worldwide SaaS and Cloud-Enabled Direct Spend 2024 Vendor Assessment, #US52734424e, December 2024

Now, I鈥檓 thrilled to share that 麻豆原创 was the only company that was positioned in the Leaders category of all three IDC MarketScape reports 鈥� (doc #US51740824, July 2024); IDC MarketScape: Worldwide Accounts Payable Automation Software for Midmarket 2024 Vendor Assessment (doc #US52378624, July 2024); and (doc #US52378824, July 2024). 麻豆原创鈥檚 accounts payable solutions, built with AI-first principles, continue to enable the accounts payable function to embrace its strategic role as it becomes a top priority for business operations in today鈥檚 challenging macro environment.

IDC analyst Kevin Permenter adds: 鈥溌槎乖�’s performance in the IDC MarketScape for Accounts Payable Automation Software reports across all three market segments is a testament to the breadth, depth, and reach of 麻豆原创 Ariba and 麻豆原创 Concur accounts payable offerings. 麻豆原创鈥檚 accounts payable offerings infused with AI-first principles, complemented with a strong ecosystem and the unique value proposition of 麻豆原创 Business Network as a frictionless mechanism for buyer and supplier collaboration, show 麻豆原创鈥檚 strength in this market. 麻豆原创 Ariba and 麻豆原创 Concur invoicing offerings help enable companies of all sizes to move to autonomous processing and enable accounts payable and procurement teams to leverage invoices as a strategic asset for growth and profitability.鈥�

Why 麻豆原创 Is a Leader

The IDC MarketScape reports are divided by market size, evaluating for large enterprise and upper midmarket and for small business and lower midmarket. I believe 麻豆原创鈥檚 positioning speaks for itself 鈥� this recognition showcases our role as a leader in the accounts payable automation space as we work to help our customers modernize critical business processes to transform the way they approach financial management. Here鈥檚 why I believe IDC MarketScape positioned 麻豆原创 as a Leader across all three markets:

Strong Ecosystem and Seamless Integration

The IDC MarketScape Worldwide Accounts Payable Automation Software for Large Enterprises report notes that vendors should 鈥渃onsider 麻豆原创 if you are looking for a well-established provider with a robust ecosystem of financial management products that can fit needs of any size business in virtually any industry.鈥�

麻豆原创 Business Network Is a 鈥淭rue Differentiator鈥�

Additionally, the report highlights as a 鈥渇rictionless mechanism鈥� for buyer-supplier collaboration. Our robust network of trading partners helps make it easier than ever for businesses to ensure invoicing accuracy and compliance while staying connected to their trading partners through our extensive network. The report further notes that, 鈥溌槎乖� Ariba source-to-pay suite combined with the network provides accounts payable teams an effective, intelligent, and near-touchless way to manage the invoice-to-pay cycle, helping buyers and suppliers digitize and modernize their source-to-pay processes.鈥�

麻豆原创 Helps Accounts Payable Run Better

The accounts payable function finds itself in a complex landscape of rising interest rates, tightening monetary policies, and supply chain disruptions. Among these challenges, many companies have become accustomed to curveballs that threaten their agility and future success. 麻豆原创 offerings can help accounts payable teams address core pain points:

• Reduce lengthy invoice approval times. With 麻豆原创鈥檚 AI-infused, end-to-end business processes across source-to-pay and ERP solutions, our customers can cut through cycle times with autonomous processing 鈥� from invoice submission to reconciliation. can capture header and line item data fields, finding patterns from historical data to help increase accuracy with each invoice capture.
• Minimize high percentage of exceptions. With global e-invoicing mandates on the rise, customers can reduce exceptions upfront while ensuring compliance. 麻豆原创鈥檚 business rules can validate invoices in real time against local government portals as needed. With 麻豆原创 Business Network, suppliers can submit invoices electronically, streamlining the process and reducing costs.
• Avoid late supplier payments. With working capital management and our early payment offerings within the portfolio, accounts payable teams can pay suppliers on time while leveraging invoices as a strategic asset for growth and profitability, strengthening their relationships with suppliers.

Customers Report Incredible Outcomes

Here are a few examples highlighting what customers have achieved after using 麻豆原创 Ariba and 麻豆原创 Concur solutions to help improve accounts payable processes:

• looked to 麻豆原创 Ariba solutions to reduce its average invoice approval cycle time to just 1.5 days with 50% of supplier invoices transacted electronically in the first year.
• achieved an 84% first-pass invoice-matching rate.
• processes 99% of invoices automatically for over 9,000 vendors.
• achieved 75% invoice-count compliance for 48,000 annual invoices.
• now completes its end-to-end invoice management process in half the amount of time.

I believe this recognition as a Leader in the 2024 IDC MarketScape reports for Worldwide Accounts Payable Automation Software for Small Business, Midmarket, and Large Enterprise markets emphasizes our commitment to driving a new era in redefining accounts payable automation.

Learn more about our accounts payable solutions at .

Baber Farooq is senior vice president for Market Strategy Procurement Solutions at 麻豆原创.

In a broad study sponsored by 麻豆原创, , interviewing 2,307 C-suite executives from January to March 2024, spanning multiple countries, regions, and industries. The report finds that external pressures have compelled procurement teams to break down silos and collaborate with other departments to deliver value toward organizational goals. This is not only enhancing cross-functional collaboration but also positioning procurement as a key function in shaping and executing business strategies.

The report, 鈥�,鈥� touches on what trends are impacting the growing expectations for procurement.

鈥淭he 2024 survey results unmistakably point to an expanding role for procurement in businesses and a growing perception of the function as a value generator,鈥� the report states. Interviewees cite lasting effects from the pandemic, inflation rates, and other supply chain disruptions as reasons for the increasing reliance on procurement.

Effective Collaboration with Chief Operating Officers

With macroeconomic conditions constantly fluctuating, procurement teams are increasingly reporting to chief operating officers (COOs) rather than chief financial officers (CFOs), reflecting the expanding scope of procurement beyond just cost reduction to operational risk management. According to the Economist Impact survey, 75% of respondents agree that procurement collaborates effectively with the rest of the organization to achieve the company vision, a significant increase from the previous year.

However, with only 18% of strongly agreeing, there is still room for improvement in procurement鈥檚 collaboration and value creation. 鈥淧rocurement has often operated in this bubble that was in service of its own goals as opposed to in service of the goals of the wider business,鈥� the report states.

Fortunately, the survey suggests that procurement executives are increasingly focusing on generating insights that align with the needs of various stakeholders, fostering cross-functional collaboration to improve outcomes across the organization.

AI as a Driver for Digitalization

AI has shown that it can increase efficiency across many business use cases. Within procurement, AI and generative AI can optimize spend, enhance supplier management, create cost savings opportunities, and allow procurement professionals to focus on value-adding activities.

The Economist Impact data suggests that AI is a significant driver of digital transformation. Accelerating digitalization is tied as the top procurement priority over the next 12-18 months, with 44% of respondents identifying AI as a crucial technology focus. Respondents anticipate that AI would bring about significant enhancements in two areas: the automation of procurement processes (48%) and improved guidance and optimization (45%).

Chief procurement officers (CPOs) are seeing direct impacts on business outcomes through increased technology investment. However, to realize the value of AI, procurement executives must create a road map for change management, adopt new ways of working, and invest in developing new skills for their workforce. The survey cites that 69% of respondents believe a lack of vision and business alignment poses a major change management challenge in procurement transformation.

Inflation鈥檚 Lasting Impact

Cost management continues to remain a high priority on procurement鈥檚 agenda, especially as high inflation rates become a growing concern for CPOs, with 49% of executives citing monetary uncertainty as their top priority compared to other procurement risks 鈥� a 29% jump from 2023. Even while inflation rates have dipped, costs for materials and items remain high.

It is no surprise that 71% of the CPO respondents identify macroeconomic risks as one of the primary external factors influencing their organizations鈥� strategic priorities over the next 12-18 months.

It is difficult to predict when and if the economic turbulence we are all experiencing will settle down. But, once it does, procurement executives expect to shift their attention to risk management, as 40% cite supplier diversification as a priority over the next three to five years. However, 鈥渄iversifying from suppliers is not as easy, especially if the supplier is the sole provider of the goods or service, or if they are deeply embedded in the supply chain,鈥� the report states.

Technology can help procurement teams easily identify alternative sources of materials, ensuring supply chain resilience and minimizing the risk of disruptions.

The Sustainable Buyer

As external pressure mounts from internal stakeholders and regulators for companies to act on environmental issues, procurement teams have placed a larger emphasis on sustainability.

In fact, 70% of executives say legal and regulatory non-compliance is a key external risk. Procurement teams have responded accordingly, as 32% of executives list sustainability as a top priority, a 7% increase from 2023. Additionally, the top priority for sustainability among executives is compliance, demonstrating an increased focus on regulatory risks.

The increased attention on environmental, social, and governance (ESG) has been successful, as 68% of executives express confidence in procurement consistently meeting ESG goals, an increase of 21% from the 2023 survey. With long-term sustainability measures in place, procurement teams may serve as a model for regulatory compliance.

Shaping the Procurement Function of the Future

The Economist Impact research indicates procurement鈥檚 growing value within organizations, with CPOs and their teams gaining a seat at the table. However, to maintain this position, procurement must address critical areas for improvement, such as spend management and cost control capabilities, where a third of C-suite executives lack confidence in procurement’s abilities.

The survey points to deeper issues, including gaps in procurement鈥檚 visibility into stakeholder risks and priorities, limitations in creating accurate spend data, developing clear road maps, and forging deeper relationships with stakeholders. Collaboration and improved communication are crucial for building trust and sustaining engagement with procurement鈥檚 insights.

Investing in procurement technology, such as , can help address priorities and enhance the procurement function. These solutions can span various aspects of procurement and include new integrations and generative AI features to help automate and streamline processes. Additionally, enhancements to aim to reduce silos between and within organizations and can result in significant time and cost savings.

Through in-depth interviews and targeted research, the Economist Impact report provides a broad analysis of the state of procurement. View the and download the .

Baber Farooq is senior vice president for Market Strategy Procurement Solutions at 麻豆原创.

Yet, this has become a challenge for chief procurement officers (CPOs) who often lack information on the supplier base. In fact, found that suppliers are often reluctant to disclose privileged information, leading to miscalculated procurement decisions.

Against this backdrop, how can procurement professionals elevate their role and transform the depth of insights the function can offer? I believe this starts with three key actions.

1. Go Beyond Reporting

Environmental, social, and governance (ESG) initiatives have become a priority for procurement teams in recent years. Unfortunately, buyers often fail to receive accurate or complete sustainability information from sellers, according to the Procurement Leaders study. This lack of transparency can increase the potential for regulatory violations, especially as climate-focused laws like the come to fruition.  

While reporting should remain a key tactic, it is not sufficient to deliver on sustainability goals. Organizations must invest in software that fits within the organization鈥檚 scope, generates more touchpoints with sellers, and provides visibility into suppliers鈥� social and environmental impacts.

Software can help organizations increase regulatory compliance, reduce costs, and develop healthy relationships with sellers. Of course, there are limitations as suppliers can be reluctant to share information 鈥� like financial statements or internal regulatory policies.

However, software that is augmented with predictive analytics can deliver metrics and insights into supplier emissions and energy usage that enable organizations to evaluate suppliers against their sustainability objectives.

2. Take the Lead Through a Bold but Methodical AI Strategy

As procurement teams take on more responsibility in increasing transparency across the supply chain, they should be courageous but vigilant in efforts to uncover supplier insights. Consequently, many CPOs have opted for strategies involving AI.

AI can provide procurement teams with intelligent business data that can lead to more informed purchase decisions. Additionally, according to the , AI can reduce time spent on buying processes by up to 60% and reach cost savings of up to 40%.

Adopting AI throughout the source-to-pay process has obvious benefits, although many companies lack the internal skills needed to leverage the power of this technology. Organizations should take a holistic and careful approach, ensuring that internal and external stakeholders are 鈥渂ought-in鈥� and empowered through cohesive training and change management programs.

Similarly, CPOs should take steps to maintain rigorous data privacy policies to build trust with suppliers. Procurement teams should only implement AI technologies that are relevant, responsible, and reliable, ensuring that the implementation of AI follows guiding principles and protects the privacy of all users.

3. Select a Trusted Technology Partner

Leading procurement teams are realizing the importance of cultivating trusted and mutually beneficial relationships with suppliers, particularly those offering resources vital to business continuity. Identifying a technology partner who understands the needs of different industries and the power of developing connections can empower procurement teams to optimize decision-making.

This is where 麻豆原创 is in a unique position to help. We not only have unmatched access to business data, but we鈥檝e processed data responsibly and reliably for decades through , , and now . This makes it possible to help organizations counteract supplier reluctance, as 麻豆原创 Ariba solutions work with millions of trading partners to help develop connections and provide greater visibility.

In addition, 麻豆原创 Ariba solutions can provide guided recommendations for buyers, supporting internal compliance even if the user is unaware of regulations. This can enable deeper knowledge of spend management, helping to reduce redundancies and complexities and provide employees with more time to solve harder problems.

Procurement鈥檚 visibility into the supply chain is paramount for informed decision-making and mitigating risk. By moving beyond reporting, investing in AI methodically, and partnering with a trusted solution provider, procurement will not only achieve greater supply chain visibility but also lay the foundation for increased innovation and competitive advantage in today鈥檚 global economy.

Now is the time to rethink your procurement technology strategy.

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Ariba.

This is our long-standing strategy, and we have no plans to change something that clearly benefits our customers. No one knows this space better than 麻豆原创. The introduction of 麻豆原创 Ariba solutions more than 25 years ago revolutionized procurement processes for businesses. We鈥檝e taken the investment, innovation, and integration across our product line to deliver a complete portfolio of solutions. 麻豆原创 Ariba is the future of procurement, and everything procurement at 麻豆原创 is now 麻豆原创 Ariba.

麻豆原创 also understands that what works for one business, one industry, or one geography, may not play in another. Businesses need to choose the right source-to-pay solution partner 鈥� with a platform and ecosystem poised to ensure their procurement teams have the tools and actionable data they need to succeed in their increasingly essential and strategic roles.

As we鈥檝e listened to our customers and the market, here is what they have told us are their critical requirements:

• The ability to see and analyze spend across all categories
• Intelligence-driven category management that leverages analytics, spend data, and market intelligence
• Robust contract management functionality
• Automated management of external labor and services
• Practical AI use cases that drive efficiency across the procurement process

Within the source-to-pay landscape, 麻豆原创 delivers integrated solutions to help manage all forms of spend. Our solutions comprise a full suite of enterprise-level functionality spanning sourcing, category management, buying and invoicing, services procurement, supplier relationship management, contract management, and spend analytics. Additionally, we enable businesses to connect with suppliers across 190 countries via 麻豆原创 Business Network.

As you evaluate source-to-pay solution partners, consider the following:

• The source-to-pay landscape is changing quickly. Stay current. Today, everyone鈥檚 perspective on the source-to-pay technology landscape is vastly different than it was even half a year ago. Be mindful of how your business is evolving, and assess providers based on how their vision and road map align with your future needs.
• 鈥淏est of breed鈥� doesn鈥檛 always mean 鈥渂est for your business.鈥� 麻豆原创 has demonstrated that in addition to the breadth of our solutions for source to pay, we can enable businesses to address their global requirements, handle high transaction volumes, and integrate into many back-end ERP systems.
• 麻豆原创鈥檚 ecosystem of partners enables us to deliver advanced functionality to our customers. We remain committed to ongoing development of core, native capabilities across our source-to-pay portfolio. At the same, our strategy is to augment this development in some areas with innovation and advanced functionality through partners. This allows us to add significant value rapidly for our customers.
• Having access to a global network of suppliers is a game changer. 麻豆原创 Business Network, which can extend the source-to-pay process beyond the walls of any business, can give our customers unmatched access to a global marketplace of trading partners. In 2023, annual commerce on the network reached US$5.3T, with 746M B2B transactions.

Five Ways 麻豆原创 Is Addressing Customers鈥� Strategic Needs

麻豆原创 has demonstrated its ability to balance product modernization, innovation, and our larger vision to enhance procurement capabilities in 麻豆原创 S/4HANA with delivery of cutting-edge innovations that benefit our customers. Here鈥檚 how we鈥檙e addressing the critical requirements mentioned earlier.

The Ability to See and Analyze Spend Across All Categories

In our conversations with customers all over the world, this is one of their top asks. They are also asking for greater visibility into spend that impacts their sustainability goals.

Last fall we unveiled 麻豆原创 Spend Control Tower, which offers advanced AI features and the ability to see across all spend in 麻豆原创 cloud ERP solutions, 麻豆原创 Ariba solutions, and 麻豆原创 Fieldglass solutions. Visibility into data from 麻豆原创 Concur solutions, 麻豆原创 Business Network, and non-麻豆原创 solutions is also on our road map. This can enable businesses to uncover cost-saving opportunities and process improvements. 麻豆原创 Spend Control Tower is expected to be available in the second half of 2024. .

Intelligence-Driven Category Management

In our and research with Economist Impact, category management was ranked as a top driver of digital transformation in procurement. Driven by this and our extensive market analysis, 麻豆原创 released the solution last summer, empowering businesses to realize better results in this critical area.

The solution can streamline category strategy development, execution, and monitoring at scale. Additionally, it can enable organizations to optimize source-to-settle processes with embedded analytics enriched with spend data and market intelligence. .

Robust Contract Management Functionality

麻豆原创 understands the importance of balancing risk and profitability within source to pay. To provide the additional advanced contract management capabilities our customers need, we entered into an expanded partnership with Icertis in 2022. This partnership helps ensure a joint product road map and deeper technological integration between 麻豆原创 and Icertis solutions.

For 麻豆原创 customers, integration with Icertis Contract Intelligence can allow them access to best-in-class innovations such as smart authoring, AI-assisted risk identification, obligation management, contract-driven insights for decision support, and the ability to have one contracting system for both sales and procurement 鈥� a capability no other source-to-pay solution offers.

Based on user evaluations, 麻豆原创 Ariba solutions received these leader badges from .

Automated Management of External Labor and Services

Sometimes overlooked within the source-to-pay discussion is services procurement. That鈥檚 changing. A 2023 report said 72% of enterprises plan to focus more extensively on ROI in their services procurement and statement-of-work management activities. The goal is to manage external labor and services strategically, applying the same process rigor there as with any other procurement category.

solutions can enable you to transform how you find, engage, and manage contingent workers and services providers to maximize business value.

Practical AI Use Cases

麻豆原创 is embedding AI throughout the spend management process to help eliminate the mundane and elevate the strategic. Current use cases range from auto-complete and recommendation engines leveraging traditional AI and machine learning, to generative AI functions that can automate complex procurement processes. In 2024, we will continue to develop 麻豆原创 Business AI use cases that help drive efficiency across spend management processes. .

In the Words of Our Customers鈥�

More confirmation that 麻豆原创鈥檚 source-to-pay strategy is sound can be seen in the results we鈥檙e delivering for our customers. Here鈥檚 what they鈥檙e saying:

鈥淸麻豆原创 Ariba] has no comparison in the market. No other software is even close. Best part is, once our supply chain executives get using it, they simply fall in love with it鈥avings are immense.鈥�

, via TrustRadius

鈥淸麻豆原创 Ariba] stacks up by being a great, user-friendly platform that is easy to use.鈥�

, via TrustRadius

麻豆原创 Ariba Sweeps the 2023 TrustRadius 鈥淏est Of鈥� Awards

Each year, TrustRadius issues awards to vendors who provide the best offerings in their category. In 2023, 麻豆原创 Ariba solutions won all four awards based on customer satisfaction ratings.

Leaning In to Our Source-to-Pay Strategy

As we鈥檝e seen in the input from our customers, as well as assessments from analyst organizations like IDC, 麻豆原创鈥檚 source-to-pay strategy is producing solutions that help businesses run better. And that is 麻豆原创鈥檚 mission, plain and simple. In 2024, we鈥檒l lean in to deliver solutions and innovations that continue to outpace the competition across the source-to-pay technology landscape.

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Procurement Solutions.
Salvatore Lombardo is senior vice president, chief product officer, and head of Engineering for 麻豆原创 Procurement.

Based on an IDC analysis and customer feedback, 麻豆原创 has been positioned in the Leaders Category of the .*

For those of us at 麻豆原创 who have been working to deliver that help organizations work more strategically and efficiently, this is another milestone as we continue to advance up the leader board. More significantly, it is gratifying to know that this positioning is not just based on the IDC MarketScape鈥檚 detailed examination of our solutions. It鈥檚 also based on the word of our customers.

According to the IDC MarketScape鈥檚 assessment report, 鈥溌槎乖� Ariba is a mature, established, and trusted brand鈥sers expressed that the integration with 麻豆原创 ERP and SCM products is a compelling feature.鈥�

The report highlights these 麻豆原创 strengths:

• Integrated sourcing functionality leverages capabilities across spend analytics, supplier identification, 麻豆原创 Business Network, analytics/reporting dashboards, and contract management to serve as a “force multiplier” and provides a view to total cost impact of sourcing decisions.
• Milestone/project view extends functionality beyond simple sourcing events and provides all impacted stakeholders with the ability to follow progress, achieve milestones, assess the sourcing strategy, and provide input.
• Complex sourcing capabilities are strong, providing the ability to plan and execute large and compliant global sourcing events that come with a myriad of deliverables and complex pricing. Client references noted and appreciated the ability to scale and support sourcing events often involving many thousands of line items.

The IDC MarketScape report says, 鈥淐onsider 麻豆原创 when you need a trusted, enterprise-grade sourcing application that can be utilized for large, complex, and global sourcing activities while also leveraging the capabilities of the full 麻豆原创 Ariba solutions.鈥�

Continuing Our Commitment to Customer-Focused Innovation

I believe one of the reasons 麻豆原创 continues to advance its leadership position is our commitment to steady innovation. However, this is not just innovation for innovation鈥檚 sake. We carefully study the day-to-day role that sourcing and procurement professionals play today and, importantly, how that role is evolving. With these insights, we build solutions that are designed to help sourcing and procurement teams play an increasingly valuable role within their organizations.

In just the past year, we have introduced a slew of innovations:

• empowers category managers to use data insights strategically to help identify trends, develop and implement strategies, and evaluate success relative to tangible business metrics. Just a few weeks ago at 麻豆原创 Spend Connect, we announced enhancements to 麻豆原创 Ariba Category Management with the power of generative AI to help procurement professionals build comprehensive and effective category strategies faster. We also highlighted Joule, which will be embedded across the 麻豆原创 portfolio and available in 麻豆原创 Spend Management solutions in 2024. Integration with large language models through 麻豆原创 Business AI empowers procurement professionals to jump-start category strategy development and planning. Generative AI enables us to enhance our market analysis tool, offering valuable, visual insights into supply and demand, risk, opportunity, and top suppliers. .
• The next evolution of the guided buying capability in 麻豆原创 Ariba solutions provides a personalized buying experience for today鈥檚 professional and casual buyers. It leverages AI to offer suggestions for specific work roles, and intelligent recommendations to help weigh the sustainability and environmental impact of a purchase. Much of this functionality is available today with more to come in future releases. .
• 麻豆原创 Spend Control Tower delivers comprehensive spend analysis capabilities. To make it easier for procurement professionals to make timely, informed decisions, new dashboards in 麻豆原创 Ariba Sourcing and 麻豆原创 Ariba Buying embed near real-time insights where they are most useful — within key process workflows. These capabilities are available today and built on a new architecture that helps create the foundation for future innovation. Beginning in the first quarter of 2024, can help uncover cost-saving opportunities with advanced AI features and the ability to see across all spend — in cloud ERP, 麻豆原创 Ariba, 麻豆原创 Fieldglass, and 麻豆原创 Concur solutions.
• With risk-aware procurement with AI-infused risk assessment in source-to-settle solutions, 麻豆原创 has embedded AI-powered supplier risk assessment capabilities into its source-to-settle solutions to help business users make smarter decisions faster. This can make it possible to assess risk profiles within the sourcing, contracting, and buying solutions as an integral part of these processes to determine third-party risk. Supplier risk assessment capabilities are available today in 麻豆原创 Ariba Sourcing, 麻豆原创 Ariba Contracts, and 麻豆原创 Ariba Buying.
• Supporting the future of supplier management, at 麻豆原创 Spend Connect Live we provided a sneak preview of a feature we refer to as “the new supplier 360,鈥� which can deliver instant access to risk data, AI-powered sustainability information, and operational evaluation to help track metrics like price variance. .

Want to read more about these innovations? Check out our announcement from 麻豆原创 Spend Connect Live 2023 that provides additional detail.

Why 麻豆原创 is a Leader

With our steady stream of innovations designed to help businesses solve their biggest sourcing challenges, I am not surprised that 麻豆原创 is once again a Leader in the . Of course, we don鈥檛 intend to stop here.

Looking ahead, we know that sourcing professionals are looking for an intuitive user experience that allows them to focus on strategic, value-added tasks. And as we have seen recently, they are eager to use generative AI, analytics, and to support them.

Of course, AI is only as effective as the quality and availability of data. A huge amount of data and transactions run through 麻豆原创鈥檚 and . This makes us uniquely qualified to help organizations — large and small — access the data they need, interpret it, and take decisive action.

As we have already shown, 麻豆原创 is in the best position to deliver the broad-based use cases that businesses will need to stay competitive as conditions evolve.

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Procurement Solutions.

*鈥淚DC MarketScape: Worldwide SaaS and Cloud-Enabled Sourcing Applications 2023 Vendor Assessment鈥� November 2023, IDC #US51215923e

These are among the findings of a new research study by Economist Impact, sponsored by 麻豆原创. The study surveyed 500 executives, including chief financial officers, chief operations officers, chief procurement officers, chief supply chain officers, and chief human resources officers.

The resulting report, , explores how businesses and industries are transforming procurement to meet existing and emerging challenges.

How Is Procurement Perceived in 2023?

As its title implies, the research report looks at how executives perceive the performance of procurement today and how it needs to evolve for the future. The results are mixed.

Researchers found that that 69.6% of respondents believe the procurement function鈥檚 insights are essential for implementing an organization鈥檚 strategy 鈥� a clear vote of confidence. However, only half (53.2%) of the respondents agree that procurement is effectively collaborating with the rest of the organization to meet the company vision; the figure was less than half (47%) among chief operating officers (COOs), arguably the position best placed to make this assessment given their operational oversight. COOs were also the most likely reporting line for procurement teams in 2022, at 33.5%, giving them deeper insights into the function鈥檚 performance.

If you dive further into the survey, you鈥檒l see that procurement has work to do to gain the confidence of the many respondents who aren鈥檛 confident in its ability to handle internal risks.

When executives were asked about their confidence in procurement鈥檚 ability to manage internal risks, a solid 34% strongly agreed. However, the middle responders 鈥� the 鈥渟omewhat agrees鈥� and 鈥渘either agree nor disagrees鈥� 鈥� present reason for concern. Let鈥檚 call this group the 鈥渇ence sitters.鈥� About 64% of all respondents were on the fence about procurement鈥檚 ability to manage risks internally.

Earning the C-Suite鈥檚 Confidence

At a time when procurement is trying to raise its profile within the C-suite, confidence is essential. As procurement works to gain the confidence of its executive stakeholders, here are five key strategies to consider.

Collaboration Is Key

I would argue that for procurement to earn the confidence of fence sitters, the best thing it can do is collaborate proactively with its executive stakeholders. Traditionally, the procurement function has been very good at collaborating externally with the suppliers that are seeking their business. But it doesn鈥檛 pay as much attention to the internal teams that rely on its services and expertise. Procurement needs to be as internally focused as it is externally focused.

Meet the Business Where It Is, and Don’t Wait to Get Involved

Too often, we hear complaints from procurement that it鈥檚 brought into the process too late 鈥� after internal stakeholders have defined scope and specifications and identified a preferred supplier. This limits the function to being a price reducer, rather than a value driver. Think proactively about how procurement can engage earlier with the business, not how the business can engage earlier with procurement.

Make it a priority to get close to the business units you support and understand their needs. Reach out to your stakeholders and meet them face-to-face. Explain how they can engage with procurement, and ask how stakeholders would like to be engaged.

Break Down the Barriers

Oftentimes, a stakeholder executive鈥檚 first introduction to procurement is a Web site filled with policies and rules. The reality is that the procurement process necessarily involves a series of approvals and sometimes rejections.

For their part, procurement professionals need to work with stakeholders to understand how this process impacts business results. You can鈥檛 change rules and policies on the fly. But you can work with your stakeholders to find ways to break down barriers and make the process more seamless to achieve the best possible outcomes for the business.

Engage with the Business Early to Address Internal Risks

Work collaboratively with your executive stakeholders to address the internal risks procurement typically manages. These include:

• Strategic initiatives: What are the business unit鈥檚 plans for the next 12 to 18 months? How will they impact what the business needs to procure? How will plans evolve over the next few years? Can external markets keep pace with the needs of the business?
• Organization alignment: Business units may have differing priorities around cost saving, risk reduction, compliance, sustainability, and efficiency. How are they reconciled, and what does this mean for procurement?
• Insourcing and outsourcing strategies: The and Economist Impact surveys, sponsored by 麻豆原创, identified changing business operating models as a key priority. Understanding how insourcing and outsourcing help address these priorities is critical.
• Internal relationships: How do differing departments impact each other? What are their relationships, and who are the influencers?
• Forward-looking views: Which projects are up next, and which projects are being stopped?

Improve the Procurement Experience for Internal Buyers

Until now, we鈥檝e focused on ensuring confidence through collaboration with executive stakeholders. But the opinion of everyday internal buyers can have a significant impact on the attitudes of the C-suite. These are the people who purchase business supplies or a new laptop, or secure printing services.

The Economist Impact survey found that improved user experience (UX) was the number one area in which respondents planned to use emerging technologies, such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT), with 34% of respondents selecting this option. At the same time, half the executives cited people/relationship management as vital to UX improvement for procurement.

These days, buyers like this are familiar with how easy it is to buy online, and they want that same experience for their business purchases. Procurement technology, such as the guided buying capability in 麻豆原创 Ariba solutions, can deliver this experience. And now, the buying 360 capability, , is bringing new services to make purchasing more predictive, personalized, and sustainable. These capabilities can be configured to incorporate procurement policies to ensure internal buyers are purchasing items that comply with corporate policies 鈥� in a way that鈥檚 transparent to the buyer.

To increase confidence within the C-suite, procurement must show it can work within the business to address internal risks and create value. It all starts with collaboration. Procurement teams need to meet their internal stakeholders where they are and break down the barriers that prevent them from achieving the best outcomes for the business.

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Procurement Solutions.

Long a leader in facilitating the transformation of procurement, 麻豆原创 has also been named a Leader in the .*

What鈥檚 most gratifying about this latest report is that 麻豆原创 is being recognized for the significant progress we鈥檝e made since the last IDC MarketScape for procurement applications, released in 2021. We鈥檝e worked hard to evolve our vision, focusing on delivering a complete suite of solutions that enables our customers and their trading partners to manage spend with total visibility 鈥� while never losing sight of the people who use these solutions.

From sourcing and supplier networks to supplier relationship management, contract lifecycle management, spend analytics, procure-to-pay, and sustainability, 麻豆原创 provides a that help businesses solve problems at every point in the procurement process. And, as noted within the IDC MarketScape report, 鈥溌槎乖� Ariba solutions are strongly positioned to help companies administer spend that spans complex events, direct and indirect, services, and CAPEX.鈥�

The report also cites these strengths:

• 麻豆原创 Ariba is a mature, established, and trusted brand. Brand perception is high, and users expressed that the integration with 麻豆原创 ERP and supply chain management products is a compelling feature.
• The guided buying capability and the guided sourcing capability for 麻豆原创 Ariba Sourcing were cited by all reference clients as extremely useful. One client reference even referred to the capabilities as “lovely.” 麻豆原创 has continued to innovate in this space with multiple enhancements and next-generation offerings currently in the works.
• 麻豆原创’s exceptional industry expertise, particularly in fields such as energy and natural resources, banking, chemicals, and automotive, is cited as a differentiator by multiple client references. 麻豆原创’s experience and offerings in the direct sourcing space drives significant buyer interest.

True to Our Roots

Procurement transformation is nothing new to 麻豆原创. It鈥檚 in our DNA. The electronic catalogs and material requirements planning processes that changed the game started here. Additionally, has revolutionized the way goods are bought and sold. It is used by more buyers and sellers to connect and collaborate across procurement, supply chain, logistics, and asset management than any other network on the planet.

Committed to Innovation

For 麻豆原创, innovation is about assessing the business environment and listening to our customers, then responding with powerful tools to help them combat their business challenges. Building on an established, trusted product portfolio and clear road map, we continue to deliver innovations that help organizations address the procurement challenges of today and prepare for tomorrow.

Here are two procurement innovations we鈥檙e introducing this year, along with a sneak preview of an innovation we have in the works:

• The next evolution of guided buying: The guided buying capability in 麻豆原创 Ariba solutions is the gold standard for purchases of goods and services. Its next evolution provides a buying experience that is personalized for today鈥檚 professional and casual buyers and their roles. It is predictive, leveraging artificial intelligence to offer suggestions for specific work roles as well as intelligent recommendations to help them make the right decisions and weigh the sustainability and environmental impact of their decisions. Many of the capabilities will be included within the guided buying capability this year, as well as in future releases.
• A new category management solution: Today, category management consists of highly manual processes, leaving almost no time for category managers to develop or implement effective strategies. Our new category management solution, which we鈥檒l roll out this year, provides actionable market intelligence and category insights. It empowers category managers and procurement professionals to make strategic category decisions for direct and indirect spending. Additionally, it offers intuitive scenario analysis to help visualize opportunities.
• Total spend reporting: While we can鈥檛 reveal too much right now, stay tuned to hear more about what we have in store to enable total spend visibility for your business.

Focused on Users

Every person across the procure-to-pay process has a different role to play. We鈥檝e made it our mission to understand the needs and priorities of every user persona and to deliver unique, intuitive tools that each can use to reach their goals. For example, an employee doing material requirements planning (MRP) for the procurement of direct materials will have a different experience than someone purchasing a laptop or managing contingent labor.

Risk Management and Sustainability

Given the supply chain disruptions of the past few years, business leaders understand the importance of risk management. In fact, in a 2022 sponsored by 麻豆原创, respondents said risk reduction was the second most important area to focus on to deliver increased value in procurement. In the same survey, nearly a quarter of the executives identified sustainability and environmental, social, and governmental (ESG) concerns among the top priorities for organizational risk.

Social responsibility legislation is only adding to the pressure. For example, Lieferkettensorgfaltspflichtengesetz (LkSG) is an act that took effect in Germany this year. It requires companies to report on the ability of their risk management system to address violations in their supply chain to the German government no later than April 2024.

Businesses need a single source of truth across the entire supply base to support risk-aware core processes. 麻豆原创 innovations can help facilitate risk management and sustainability requirements with the newly enhanced solution and , along with additional extensions to address company-specific requirements.

Delivering Solutions for the Future

Procurement has changed significantly in the last two decades. 麻豆原创 is pleased to be recognized as a leader in driving this change, and we remain committed to delivering next-generation applications that help our customers transform their business for continued success.

Baber Farooq is senior vice president and head of Market Strategy for 麻豆原创 Procurement Solutions.

*鈥淚DC MarketScape: Worldwide SaaS and Cloud-Enabled Procurement Applications 2023 Vendor Assessment鈥� March 2023, IDC #US48785722

Gartner evaluated 16 procure-to-pay software vendors, naming 麻豆原创 a Leader based on 鈥渃ompleteness of vision鈥� and 鈥渁bility to execute鈥� in procure-to-pay suites. 麻豆原创 was also the only vendor to score in the top three of every critical capability use case described in the research, a deep dive into procure-to-pay solution offerings.

Vision Taking Hold

We believe our improved overall position in this year鈥檚 Gartner Magic Quadrant is recognition of our complete solution suite, which enables customers and their trading partners to manage spend with total visibility across procure-to-pay. We especially appreciate that Gartner has recognized our 鈥渕arket defining vision.鈥� Introduced about two years ago, our vision is based on extensive research and has, to be candid, forced us to change the way we approach development of our solutions.

We believe Gartner recognition is proof that this vision is starting to take hold on the solutions we deliver. Here are three key areas where changes to our approach are delivering significant value to our customers.

• We understand all personas across every spend category. Our vision has been to offer solutions that are complete and holistic, addressing the unique needs of every user 鈥� whether you are doing material requirements planning (MRP) for the procurement of direct materials, or if you are in the corporate office purchasing a laptop, or managing your contingent workforce.
• Our products are open to innovation across the ecosystem. Not long ago, it was fair to say procure-to-pay solutions from 麻豆原创 were 鈥渃losed.鈥� The perception was that only 麻豆原创 developed these solutions, and it was 鈥渉ands off鈥� for everyone else. Knowing this is not the best way to serve our customers, we have made the dramatic shift to offer solutions that invite ecosystem collaboration and innovation. We鈥檝e launched important partnerships with leaders like Icertis and , enabling us to support specific, niche use cases needed by our customers.
• We are hyper-laser-focused on user experience. A person working on the shop floor will have very different experiences than the corporate office employee. We have made it our mission to dig into the all the personas involved in the procure-to-pay work processes and understand their unique experiences. Beyond that, user attitudes and priorities are constantly changing. For example, most users care more about sustainability than they did just a few years ago, so we are incorporating that into our end-to-end solution landscape. Likewise, many workers want the flexibility to work from anywhere, and the launch of the new 麻豆原创 Ariba Shopping mobile app provides a best-in-class experience to this end.

Dominant Force in Procurement Innovation

We believe Gartner recognition also highlights 麻豆原创鈥檚 position as a dominant force in delivering innovations to address the procurement challenges of today and tomorrow.

With our 麻豆原创 Procurement offering, consisting of 麻豆原创 Ariba, 麻豆原创 S/4HANA for Procurement, and 麻豆原创 Business Network, we have a proven track record of providing innovative solutions to solve unique challenges at every point step in the procure-to-pay process. Many improvements to procurement processes originated at 麻豆原创 — including things we now consider fundamental, such as electronic catalogs or MRP processes. In addition to that, 麻豆原创 leads the way with integrating risk and diversity scores in the guided buying capability, or the work order integration from 麻豆原创 S/4HANA into Guided Buying and 麻豆原创 Fieldglass, allowing the maintenance persona to add items and services to its work order.

and help businesses gain agility and visibility into contingent labor spend and build relationships with trading partners. 麻豆原创 was recognized for its 麻豆原创 Fieldglass solution, based on its Ability to Execute and Completeness of Vision. 聽麻豆原创 Business Network enables trading partners to connect and collaborate across procurement, supply chain, logistics and asset management to improve efficiency, mitigate risk and disruption and drive sustainability.

Additionally, the latest release of 麻豆原创 Central Procurement helps customers enjoy a better user experience as they look to digitalize and simplify procurement. With 麻豆原创 Central Procurement, customers can improve procurement processes in a multi-ERP (including non-麻豆原创 ERP) environment with greater visibility and control.

As we look to the future, customers can expect 麻豆原创 to deliver next generation applications that enable personalization, predictability, and sustainability as the foundation for delivering value in the procurement process.

Bringing Procurement Professionals Center Stage

The last few years have proven that the procurement role is critical to operational success. Ongoing global supply chain disruptions make it imperative for enterprises to be proactive in implementing risk mitigation, process automation, and data-driven intelligence in procurement. 麻豆原创 helps companies to be more resilient by equipping them with the insight and tools to react to unexpected shifts in supply chains. We do all of this while supporting environmental, social, and governance (ESG) goals that organizations increasingly expect from their business partners.

Today, procurement professionals are in a strong position to take center stage in tackling the biggest challenges businesses face. You can seize the moment by helping your organizations tackle inflation, productivity challenges, and supply chain disruptions. And, as we strive to help you do this, 麻豆原创 is also working hard to maintain our recognition as a Leader. First out of the box in 2023 will be important announcements about category management.

Our vision has taken us this far, and it鈥檚 set us on a path to deliver even greater things. The best is yet to come.

Baber Farooq is senior vice president of 麻豆原创 Procurement Solutions.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from 麻豆原创.
Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner鈥檚 research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a registered trademark and service mark of Gartner and Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved.
Gartner, Critical Capabilities for Procure-to-Pay Suites, by Lynne Phelan, Micky Keck, Balaji Abbabatulla, Patrick Connaughton, 28 November 2022
麻豆原创 was referred to as Ariba (麻豆原创) in the 2015 report and 麻豆原创 (Ariba and Fieldglass) in the 2016, 2018, and 2019 reports.
The Gartner report was renamed from 鈥楳agic Quadrant for Procure-to-Pay Suites for Indirect Procurement鈥� to 鈥楳agic Quadrant for Procure-to-Pay Suites鈥� in 2016.

In a wide-ranging study sponsored by 麻豆原创, Economist Impact looked at this ongoing transformation, interviewing 430 C-level executives between January and February 2022. The interviews went beyond conversations with procurement leaders. The team also spoke with their peers across functions and reporting lines, offering a more nuanced perspective on the future of procurement and where leaders should focus their efforts.

The resulting report, 鈥�,鈥� reveals how events in recent years have elevated expectations for the role of procurement within the business.

鈥淭he importance of procurement in supporting changing business strategies, managing risks and costs, and ensuring continued access to key resources and inputs has magnified given the disruptions that have roiled the globe over the last two years,鈥� the report states. It cites , geopolitical developments, and shifts in consumer behavior as key catalysts for the disruption.

Reimagining Procurement as a Value Center

Given current global economic conditions, it鈥檚 not surprising that business leaders consider cost control an imperative. In fact, according to the Economist Impact survey, more companies will focus on maximizing cost savings (39.8%) to bring value to their businesses 鈥� the strategy of choice for chief procurement officers (45.1%).

The second-most-selected strategy in the top three to deliver increased value to procurement is reducing risk (37.9%), an issue that has grown in importance due to the dependence of the U.S. and Western Europe on Asian manufacturing.

Additionally, the Economist Impact survey offers hints about other directions procurement leaders are taking as they look to increase business value. These include a shift away from just-in-time inventories, an evolving focus on category management, and movement toward decentralized or hybrid operating models.

Just-In-Time Gives Ground to Inventory Management

In the Economist Impact report, the third-most-selected strategy for driving value through procurement was inventory management (19.3%). It points out that this mostly applies to developed economies like Japan, the U.S., and Western Europe.

鈥淪upply chain disruptions in the wake of COVID-19 have helped puncture the glittering promise of the existing 鈥榡ust-in-time鈥� philosophy that allowed companies to reduce waste by minimizing or eliminating superfluous inventory,鈥� the report offers.

In its analysis, Economist Impact observes that managing inventory through long-term strategies like nearshoring or backup supply chains enables companies to protect their operations from future supply shocks. That said, it finds that nearshoring has not yet taken off as a strategy because of high expenses, limited access to labor, and significant lead times to relocate factories.

In terms of building up inventory to hedge against disruptions, the report finds industries that depend on reliable and available supplies 鈥� like healthcare (30.8%) and manufacturing (26.2%) 鈥� are more likely to have an increased focus on inventory management.

An Evolving Focus on Category Management

According to the Economist Impact report, category management has emerged as the second-biggest driver of digital transformation and the fourth focus area for procurement value (18.6%). The report attributes this to the 鈥渋ncreased use of digital technologies like smart contracting platforms that leverage sophisticated indices for identifying risks and opportunities.鈥�

鈥淐ategory management is undergoing a subtle evolution thanks to the increased use of digital technologies like smart contracting platforms that leverage sophisticated indices for identifying risks and opportunities,鈥� the report observes.

Procurement Takes Center Stage as Operating Models Change

In an interesting turn of events, the Economist Impact survey reveals a two-way trend in how businesses are choosing to operate their procurement functions. 鈥淲hile four in ten companies are seeing procurement move towards increased centralization or a center-led model, half are going the other way, seeing increased decentralization or a move towards a hybrid model.鈥�

This is having an impact on staffing, including staff increases and the use of the external workforce. And changes in the operating model are expected to continue. According to the Economist Impact survey, three in ten (31.2%) companies list it as a priority item on their agenda, just below supply chain risk (34.4%). It concludes, 鈥減rocurement is going to be central to changes in organizational models over the next one to two years, given its centrality in all business operations.鈥�

Procurement Powered by Digitalization

Through interviews and extensive research, the Economist Impact report provides a forward-looking snapshot of procurement and the impact of digitalization on this key business function. and .

Baber Farooq is head of Market Strategy, Procurement and External Workforce, for Marketing and Solutions at 麻豆原创.

The coronavirus pandemic is likely the greatest global disruption we have seen since World War II. According to the , following the 聽global financial crisis of 2008, the overall global GDP impact, because emerging economies were not as affected, was a reduction of 0.1 to 0.2 percent. This year we are seeing a five percent GDP impact globally, which is much more significant.

I recently wrote about and have spoken with and about how they are innovatively adapting to their 鈥渘ew normal.鈥� We are relying more on technology, diversifying our suppliers, and digging into data for answers.

But if we take a note from history, we see that periods of crisis often lead to and innovation. Even amid such chaos, the lessons of 2020 present a unique opportunity for procurement professionals to impact their businesses company-wide鈥攑erhaps a once-in-a-lifetime opportunity.

Fail to Prepare, Prepare to Fail

Last year taught us that events with a two to three percent chance of happening can and do happen.

As the head of Product Strategy for 麻豆原创鈥檚 , my team and I are focused on how technology can help close the gap between what is and what could be. We cannot ignore the prospect of future disruption; we can only plan for it. And one way to address disruption is to build fail-safes into our technology.

Another less immediate, but no less important, component of our work is supporting our customers鈥� moves to automation and digital transformation.

Beyond COVID-19, macroeconomic trends including declining productivity growth, rapid digital economic expansion, and increasing 鈥攖he slowdown in globalization due to trade wars and nationalistic tendencies鈥攁re forcing companies to reevaluate their supply chain solvency.

This is where procurement can have an enormous impact. By utilizing technology to automate back-office functions such as the day-to-day processes of running reports and reviewing transactional events, we can empower individuals to leverage their skills to drive more impactful and innovative outcomes.

, vice president of Procurement at 麻豆原创 customer , put it best:

鈥淲hen I look at the system now as the head of procurement, I am not looking at features and functions. I am looking at the problems that I need to solve through a system that enables us to drive the resiliency that the company needs.鈥�

She went on to say: 鈥淣ow we are all thinking about preempting. How is the technology going to help me [in the future]? I need to have the basic explanation at my fingertips, fast, in order for me and my team to concentrate on the real, strategic, creative kinds of analysis.鈥�

Procurement teams, until very recently, were primarily responsible for cost savings. While this is still important, the natural move to automation through digitalization and intelligent technologies has helped eliminate repetitive tasks, effectively shifting the focus to actual business outcomes. As a result, individuals are free to lean into the strategic and creative components of their roles; those elements that require true human ingenuity and cannot be replicated by machines.

We can expect this trend toward the digital economy to continue and further accelerate. Procurement has a clear role in supporting that transformation and the incorporation of intelligent technologies such as artificial intelligence (AI), machine learning, and the Internet of Things (IoT) into our daily lives.

Solving for 10%

The challenge that companies like 麻豆原创 face as a technology provider is ensuring our solutions drive clear, beneficial outcomes for our customers. When we talk about incorporating intelligent technologies into our products, we must consider how those technologies will be used.

By incorporating AI into your product or solution, you can make it 90% effective; but who is going to trust their business with a robotic or computational process that鈥檚 only 90% effective? Making it 100% effective is the real challenge.

Take self-driving cars: They work great in laboratories; they work great on test tracks; they work great when driven around deserts; but they are not 100% effective. Even with so much advancement, we struggle to finish the last mile of true innovation. And, perhaps ironically, the amount of data needed to get through that last mile is greater than it is for the first 90%.

The burden on companies like 麻豆原创 is to solve the problem of 鈥渢he last mile鈥� for our customers, sustainably and predictably. Getting to 100% requires data, strategic thinking, and creativity.

In this, to support our customers. More than $3.75 trillion in commerce flows across annually, representing millions of transactions. Over the years, that adds up. We are just at the beginning of our data journey, one that will benefit our customers and trading partners alike.

If we can make procurement more productive and innovative as a function, then procurement organizations can make entire companies more productive and intelligent.

Turning the Page

Living with the coronavirus pandemic and planning for a future with increasing uncertainty have many organizations watching global supply chains and taking stock of their own risks in the market.

Supply chains need to be structured differently moving forward to remain resilient and adaptable. Spend management organizations are going to play a pivotal and central role in leading that change.

Our top priority remains helping our customers weather ongoing disruption with intuitive tools to drive more profitable, efficient, and sustainable outcomes.

Like so many, I鈥檓 cautiously optimistic for 2021. I鈥檓 hopeful that this new year, and the next 10 years, will bring a resurgence of the 鈥淩oaring 20s鈥� of the early 1900s, as companies tap into the power of the intelligent technologies they have invested in and finish the last mile of their transformation journeys.

If organizations are going to operate differently, if supply chains are going to be structured differently, and if procurement services are going to be engaged differently, expect procurement to play a pivotal and central role.

Baber Farooq is head of Product Strategy for Procurement Solutions at 麻豆原创.

It was an honor and listen as he shared his three greatest ambitions for the world:聽zero poverty, zero unemployment, and zero net carbon emissions.

Professor Yunus has dedicated his life鈥檚 work to championing microcredit financing for the poor. By loaning small amounts of money to impoverished individuals, Professor Yunus posited that they would make good on the loans and become self-employed or grow small businesses. And they did. But today such programs are in jeopardy and their , leaving millions hanging in the balance.

It is hard to imagine anyone predicting 鈥� let alone preparing for 鈥� the global coronavirus pandemic. COVID-19 has dramatically affected every aspect of our lives, with stay-at-home orders effectively shutting down economies and supply chain disruption limiting the delivery of both critical and basic goods and services. COVID-19 is actively challenging Professor Yunus鈥� goals.

COVID-19 Conundrum

Underemployment, unemployment, and poverty rates are increasing rapidly, especially among minority groups. The World Bank鈥檚 shows that when compared with pre-crisis forecasts, COVID-19 could push 71 to 100 million people into extreme poverty in 2020, representing the first increase in global extreme poverty since 1998, and effectively wiping out progress made since 2017.

Net carbon emissions are down and projected to be seven percent less in 2020 than in 2019, but this is only due to the coronavirus pandemic halting trade and travel. To date, no global initiatives or governmental interventions have resulted in even this modest level of decline.

We should not expect this trend to continue nor to set us on the recommended path of from 2010 levels by 2030. , carbon emissions following global crises tend to rise quickly upon economic recovery.

Shareholder Versus Stakeholder Value

The Business Roundtable, members of which are CEOs of major U.S. companies, in 2019, 鈥渁 strong and sustainable economy, innovation, a healthy environment, and economic opportunity for all.鈥� However, , too few of the organization鈥檚 members have adopted policies and procedures that would benefit the marginalized of society.

Whether businesses like it or not, the public is holding them to a higher standard, and demanding their participation in the collective good. Corporations hold tremendous power to drive real change.

Knowing that Professor Yunus鈥� goals cannot be achieved in a vacuum, nor in only prosperous times, how can we ensure that we fall on the right side of history as we personally and professionally aim to come out stronger as a global community?

Getting to Zero

All of us 鈥� who are global citizens first, and then corporate citizens 鈥� should challenge our employers and those whom we give our business to address the very real challenges surrounding global poverty, unemployment, and carbon emissions. Action, not words, is needed to advance a true purpose agenda at the world鈥檚 largest companies.

As a service provider and partner, 麻豆原创, like so many other corporations, should be held to the highest standards. And to the company鈥榮 credit, we have launched several programs and engaged in many discussions with customers to during this difficult time.

However, I encourage customers, partners, and employees to challenge us, ask us how we are measuring up against our promises, and demand that we do more. We need to look beyond the corporate social responsibility pages of our website and truly understand our carbon footprint, our global giving, and our focus on the environment to be able to develop economically sustainable products and services.

Corporations should also engage employees in a conversation about causes they care about, empowering them to build ideas into the corporate policy and driving real change at the board level.

Finally, where appropriate, businesses can support the launch of social enterprises through partnership with local communities and advocacy groups, helping to identify problems and collaborating to build innovative solutions.

Professor Yunus is an inspiration because he took a stand and saw it through. He has effected meaningful change. What I remember most from our interview is how he talked about having the courage to achieve his goals, even when everyone said he would fail.聽It is about time the corporate world did the same.

Baber Farooq is senior vice president of Product Strategy for 麻豆原创 Procurement Solutions at 麻豆原创.