SAP Community - SAP Ariba Procurement, cloud edition

The Importance and Dynamics of a Well-Structured Procurement Process"

2025-01-27T11:31:53.040000+01:00

A well-planned procurement process is essential for every successful buying organization. Think of it as a bustling marketplace where every transaction is meticulously planned to satisfy both buyers and suppliers.

Imagine a high-tech manufacturing company that needs to procure specialized components for their cutting-edge products. Their procurement team works diligently to identify the best suppliers, negotiate favorable terms, and ensure timely delivery. This meticulous process not only keeps the production line running smoothly, but also contributes to the company's reputation for quality and innovation. Thus, the procurement process is not just about buying goods and services, but about building relationships and creating value that drives the organization's success.

The Nature of the Procurement Process

The procurement process is inherently linear, following a step-by-step progression from identifying needs to performance evaluation. However, it is also cyclical and repetitive. Once the final stage of performance evaluation is completed, insights gained are fed back into the identification of needs for future procurement cycles. This continuous loop ensures that the process is dynamic and responsive to changing organizational requirements and market conditions. Essentially, the procurement process can be seen as an infinite cycle of improvement and adaptation, rather than a one-time event.

Importance of Communication via a Business Network

Ensuring clear and consistent communication between the buyer and supplier is crucial for a successful procurement process. Effective communication helps in understanding needs, negotiating terms, and managing expectations.

Providing timely updates on order status, delivery schedules, and any potential issues helps maintain transparency and trust. Business networks facilitate real-time communication, ensuring both parties are always informed.

Quick resolution of any issues that arise during the procurement process is vital. Open channels of communication enable prompt identification and resolution of problems, minimizing disruptions.

Regular feedback from the buyer to the supplier and vice versa fosters continuous improvement. Constructive feedback helps suppliers refine their offerings and services, leading to better outcomes for both parties.

Conclusion

The procurement process is critical to a buying organization's success. By understanding and optimizing each stage, organizations achieve greater efficiency, cost savings, and strategic advantages. Best practices and technology enhance procurement effectiveness, contributing to growth and sustainability. As the business landscape evolves, a well-structured procurement process is key to long-term success.

SAP Finance and Spend Management - Cloud Onboarding Services

2025-02-13T20:08:36.655000+01:00

We are thrilled to announce the launch of a new Continuous Quality Check service (CQC) specifically for Customer Onboarding! Now all customers can request a 1:1 Onboarding session covering important topics such as initial system access and s-user setup, SAP for Me, SAP Support, learning and enablement options, implementation planning, and product innovation.

This offering will be extremely valuable both to new customers looking to kickstart their implementations as well as existing customers who need a refresher. The CQC is currently available for SAP Ariba, SAP Fieldglass and SAP Business Network. For more information, access the one pager on the CQC page.

The Procurement Monthly - Feb 2025

2025-02-19T08:58:15.131000+01:00

Summary

Reviewing this month’s reports, a narrative of transformation and adaptation emerges.

At the heart of this transformation is the rapid adoption of artificial intelligence and digital technologies. Procurement teams are increasingly leveraging AI-powered platforms to automate routine tasks, freeing up valuable time for strategic decision-making. This shift is not without its challenges, as organizations grapple with implementation concerns and the need for upskilling their workforce.

Cost reduction remains a cornerstone of procurement strategy, but it's no longer the sole focus. Teams are now expected to drive value creation across the business, balancing financial goals with sustainability and ethical sourcing. This expanded role has elevated procurement's strategic importance, with many teams now steering corporate strategy and collaborating closely with suppliers to fuel innovation.

The geopolitical landscape continues to shape procurement priorities, with supply chain resilience taking center stage. Teams are bracing for potential "black swan" events, adapting their strategies to navigate inflation, sustainability regulations, and talent gaps.

This focus on risk management has led to a shift in operating models, with many organizations centralizing their procurement functions and creating dedicated teams for supplier relationship management.

Technology investments are reshaping the procurement toolkit, with spend analytics, contract lifecycle management, and e-procurement solutions leading the way. The adoption of generative AI is accelerating, particularly in areas like contract management and risk analysis.

Reviewing these reports its clear that the success of procurement teams will hinge on their ability to embrace these technological advancements, prioritize sustainability, and develop agile strategies to navigate an increasingly complex business environment.

Procurious Next Level Procurement

According to the report a study of 137 procurement leaders globally, Procurement’s future hinges on three pillars: tech adoption (especially AI), supplier collaboration, and strategic agility. As teams juggle cost pressures with ESG demands, the winners will be those using AI-powered platforms to automate grunt work and focus on big-picture value creation.

The report identifies that while 51% still prioritize cost reduction, teams are now steering corporate strategy, balancing sustainability with financial goals. Over half (54%) are doubling down on ethical sourcing, and 77% expect procurement to drive value creation across the business.

60% of respondents say suppliers are their top stakeholders with the aim of building collaborative partnerships that fuel innovation and ESG wins. Half of procurement leaders plan to spend more time working directly with suppliers, especially as tariffs and geopolitical shifts force supply chain reshuffles.

45% of teams are already testing generative AI for tasks like contract management (44%) and risk analysis (57%). While 43% still hesitate about implementation, early adopters report efficiency boosts – 63% say it’s supercharging productivity. As one exec put it: “AI agents will fundamentally change how procurement pros spend their time.”

With 81% bracing for another “black swan” event, resilience is non-negotiable. Top pressures include:

Inflation (75%)
Sustainability regulations (63%)
Talent gaps (58%)

Most teams (74%) have overhauled strategies recently, but only 19% adapt quickly to sudden changes. The report suggests that the fix is more agile systems and tech investments that enable real-time pivots.

Procureability – future proofing procurement

According to the report, Procurement’s role in 2025 hinges on cross-functional collaboration, AI adoption, and agile risk management. Teams that invest in upskilling, interoperable tech, and sustainability frameworks will drive measurable ROI while future-proofing operations.

AI adoption is accelerating, with tools like contract clause analysis reducing cycle times by 30% . By 2027, 50% of organizations will use AI for supplier contract negotiations . Cybersecurity threats rose 30% in 2024 which procurement and organisations must seek to balance.

Cost reduction targets are increasing according to the paper, with hard savings targets of 7–10% which demand advanced strategies including:

Deploy should-cost modelling and game theory negotiations .
Collaborate with finance to define clear savings metrics .
Embed ESG practices across Tier 2/3 suppliers to unlock long-term value .

Amazon State of Procurement Data 2025

According to this study of over 3000 respondents, (2500+ procurement – from all levels) and 650+ remaining c suite (non-procurement), Procurement’s evolution hinges on balancing cost efficiency with sustainability, technology, and collaboration. By embedding data-driven decision-making and advocating for strategic influence, leaders can cement procurement’s role as a growth catalyst.

Procurement is now a growth driver, with 59% of teams expecting budget increases. Yet, only 46% of decision-makers feel fully included in strategic forums. 64% of leaders prioritize AI and analytics to streamline operations, yet adoption lags—42% use AI for purchasing decisions (down 5% YoY).

Supplier challenges surged, with 19% citing inadequate digital support (up 10% YoY). 65% of leaders prioritize talent retention, emphasizing skills in data analytics and strategic supplier management

The report suggests some interesting actions for procurement leaders including:

Invest in AI-driven demand forecasting and spend analysis tools while upskilling teams to bridge the tech-talent gap
Audit supplier capabilities and prioritize partners offering transparent communication, ESG compliance, and real-time inventory visibility
Develop rotational programs to integrate procurement with cross-functional teams, fostering strategic thinking

Hackett – Key Issues Study

This annual study, which is highly anticipated within the procurement community (at least by myself anyway!) which is put together both through a survey and discussions with a wide range of procurement leaders and also wider organisational leaders.

The future of procurement is digital, data-driven, and strategically aligned. Start preparing now to lead the charge in 2025 and beyond specifically:

Digital transformation is king: AI, automation, and real-time data visibility are set to revolutionize procurement. Embrace these technologies to stay competitive.
Skills gap alert: The procurement skill set is evolving. Invest in upskilling your team in areas like digital proficiency, data analytics, and sustainability.
Do more with less: Workloads are increasing, but budgets aren't keeping pace. Leverage technology to boost productivity and efficiency.
Gen AI is here: Early adopters are already seeing benefits. Explore embedded Gen AI solutions in core procurement tools.
Operating model shake-up: Centralization is on the rise. Consider dedicated teams for supplier relationship management and risk management.
Analytics maturity matters: Most teams are stuck in descriptive analytics. Push towards predictive and prescriptive capabilities, especially in spend analytics.
Sustainability takes center stage: ESG reporting is a top priority. Ensure your team can deliver on this growing demand.

Priorities

In terms of priorities spend cost reduction Remains the #1 priority as teams tackle economic uncertainty and inflationary pressures whilst Supply Continuity remains as the 2nd priority driven by geopolitical disruptions and shifting trade relations make securing supply chains a top focus.

Operating Model Transformation has risen to third place, this reflects the need to adapt to AI, stakeholder expectations, and process simplification and driving a digital transformation is 5th.

Sustainability & ESG Integration driven by stakeholder demands for environmental and social accountability push sustainability to seventh place, up from ninth in 2024.

The report identifies several areas for improvement as well, in areas including:

Gen AI Implementation: Pilots in PO processing, spend analytics, and CLM show early promise, but concerns around data quality (73%) and IP leakage (48%) persist. Intelligent Automation: RPA and Gen AI lead deployments, with predictive AI and agile orchestration emerging as high-investment areas.

Talent Upskilling was identified as a critical area as a growing skills gap in digital proficiency, analytics, and sustainability demands targeted training programs. Only 21% of organizations have dedicated procurement talent teams.

Operating Model Shifts, with 69% of resources are centralized, expected to rise to 71% by 2028, and dedicated teams building SRM, risk management, and COEs for analytics and supplier diversity.

Analytics Maturity. Whilst most teams rely on descriptive analytics. Priority areas for growth should include predictive capabilities in spend analytics (56% plan upgrades) and prescriptive tools for ESG reporting

Technology

When we look at the technology investment areas we can draw some good insights:

60–74% of organizations already use end-to-end tools like spend analytics, CLM, and e-sourcing with planned investments being:

Spend analytics: 61% plan upgrades (highest priority) .
CLM: 54% aim to enhance contract lifecycle tools despite 30% of deployments underperforming expectations .
E-procurement: 58% Favor embedded Gen AI solutions to streamline catalogue management .

Emerging technologies identified include:

Category management: 49% adoption, with 37% planning upgrades.
Sustainability/ESG tools: 40% adoption, but 43% report solutions fell short of goals.
Supplier collaboration: Low ROI (38% underperformance) driving re-evaluation of investment strategies.

Gen AI deployment:

PO processing: 26% already implemented, 47% using embedded solutions .
Spend analytics: 20% deployed, with 45% opting for custom-developed tools .

Investment focus:

Predictive AI: 56% plan new investments despite 33% underperformance .
RPA: 50% adoption, but limited expansion plans .

The report identifies that Organizations are doubling down on embedded Gen AI for CLM/e-procurement, custom analytics builds, and centralized operating models. Success hinges on addressing data quality gaps while scaling pilots in high-impact areas like spend analytics and supplier risk.

RS/CIPS Indirect Procurement Study

The 2025 Indirect Procurement Report, produced by RS and CIPS, reveals a challenging landscape for procurement professionals. Inflation remains the top concern, with 62% of respondents identifying it as a major issue. Supply chain risk management and global political uncertainty are also significant challenges. Managing risk in the supply chain (47%) and global political uncertainty (37%) are significant challenges.

The report highlights a growing focus on ESG initiatives, with 64% of respondents considering ESG important for company strategy. However, economic pressures have led to a decrease in willingness to pay premiums for sustainable products. Procurement teams are adopting strategies to improve efficiency, including supplier consolidation and driving value through partnerships.

The use of digital procurement systems is increasing, with 62% of professionals now using eProcurement or supplier punchout systems. MRO spend has increased by 20% over the past year, reflecting a trend towards maintaining rather than replacing equipment. The report also identifies areas for improvement, including a lack of knowledge about order processing costs and the need for better relationships with internal stakeholders.

Overall, the findings suggest that procurement professionals must balance cost pressures with sustainability goals while leveraging technology and strategic partnerships to drive efficiency.

Payments – Money Mobility Tracker

Check fraud remains a significant threat to businesses and consumers, causing substantial financial losses despite advancements in digital payment technologies. The report emphasizes the critical need for businesses to transition from paper checks to digital payment methods.

Despite security vulnerabilities, 68% of U.S. companies still use checks for B2B payments, accounting for nearly 40% of all U.S. B2B payment volume. Nine in 10 bankers have experienced higher levels of check fraud in recent years, with 28% of banks noting an increase of more than 50% in the past three years. Nearly 25% of small to midsized businesses (SMBs) fell victim to check fraud, compared to 15% of the general population

Digital payments offer enhanced security features, including encryption, multi-factor authentication, and real-time transaction monitoring powered by AI. These advanced systems significantly reduce fraud risks, lower processing costs, and provide improved transaction visibility and operational efficiency. 77% of companies utilized instant payment technology in 2024, up from 62% the previous year. Almost all respondents reported that digital treasury processes improved cash flow forecasting (97%), enhanced financial visibility and control (96%), and boosted profits (91%)

Beroe Category Forecast

This comprehensive report provides insights into key procurement categories for 2025, highlighting market trends, price forecasts, and strategic recommendations.

Engineering & Construction:

Global cement demand expected to increase by 3-4% in 2025
Structural steel market projected to reach 253 MMT in 2025, with prices rising 10-14% in North America and Europe
Modular construction market forecasted to hit $149.2 billion in 2025, growing 7.4% from 2024

Integrated Facilities Management:

IFM services prices expected to increase 4-5% in 2025
Key trends include focus on single-vendor partnerships, IoT integration, and Maintenance 4.0 adoption

Information Technology:

IT services spending projected to grow 7-9% in 2025
Enterprise software spending expected to increase 10-12%
Managed security services spending forecasted to grow 12-15%
Cloud computing costs predicted to rise 5-9% across various services
IT hardware prices expected to increase 3-9% depending on the category

Labor:

Global staffing industry revenue projected to reach $675 billion in 2025, growing 6% annually
US temporary staffing market expected to hit $177.8 billion
Salary increases forecasted at 3.9% in the US, 3.5-4% in EMEA, and 4-5% in APAC

Logistics:

Road freight operating costs expected to rise 1-2% in North America, Europe, and Asia, but up to 30% in Latin America
Driver wages and fuel remain primary cost elements in road freight

Key trends across categories include:

Increasing adoption of AI and automation technologies
Growing focus on sustainability and green initiatives
Rising labor costs and skills shortages
Geopolitical tensions impacting supply chains and pricing
Regulatory changes affecting various industries
To navigate these challenges, procurement professionals should focus on:
Diversifying supplier bases
Investing in technology and data analytics
Prioritizing sustainability in sourcing decisions
Developing flexible and resilient supply chain strategies
Enhancing workforce skills and adopting innovative hiring practices

As we move into 2025, organizations must stay agile and informed to effectively manage costs, mitigate risks, and capitalize on emerging opportunities across these critical procurement categories.

As always reach out to discuss more, and always happy to hear your thoughts!

SAP User Experience Q1/2025 Update – Part 4: SAP Ariba, SAP Fieldglass

2025-02-20T14:08:52.606000+01:00

This fourth post in my series gives an overview of latest UX innovations in SAP Ariba and SAP Fieldglass, products for managing your spend (procurement) and external workforce. For SAP Ariba: the new Intake Management application and news for Category Management. For SAP Fieldglass, the highlight is the new Home Page, but we’ll also look at further UX improvements.

SAP Ariba

The recent UX innovations I’d like to present here are:

The new SAP Ariba Intake Management application, with its great UX.
UX enhancements in Category Management: Initiatives Overview and allowing category managers to store attachments.

SAP Ariba Intake Management

Rather than having to go to many different systems to manage small and large procurement needs, from simple purchase requests to onboarding new service providers, SAP Ariba Intake Management gives you your “one stop shop” for all of a purchasers procurement requests. It provides a fast, simple, and intuitive single front door for all procurement requests, streamlining processes and shielding users from system complexity. This saves time, and avoids the frustration of dealing with multiple systems for ordering and tracking status.

Joule is also at hand to guide users, making it even easier.

Figure 1: SAP Ariba Intake Management. ALT Text: The image shows a screenshot of the “My Requests” overview, with a “Recently Requested” section at the top, with flat cards for “Request Software”, “Request Supplier”, “Request Sourcing Event”, “Return Items”, “Request Unlisted Software” and “…”. Below that an “Overview” section with subsections for “In Progress” with cards for Software Requests, showing status “In Progress” and IT Service with status “Pending” and “Completed”. Then a further subsection “Completed” with two rows of cards, the first four are “Purchase Requisition”, “Facility Service”, “Carfleet Service”.

There is much more to it than shown above in Figure X, so do have a look at it in action:

Video: SAP Ariba Intake Management (1:39 min.)
Video: Elevate user experiences with SAP Ariba Intake Management (6:51 min.)
Blog post: SAP Ariba Intake Management: A Seamless, User-Centric Solution with Powerful Extensibility.

SAP Ariba Category Management

Initiatives Overview

Management reporting of category management initiatives got easier with the Initiatives Overview application (Figure 2). Users managing or analyzing multiple categories can have a bird’s eye view of all initiatives in a single place. The customizable interface with multiple filters, interactive charts, and a Gantt chart view, can help users to gain insights for their tasks, whether they are strategic, like monitoring the benefits towards their procurement goals, or tactical, like planning initiatives execution order due to dependencies or balancing the team workload.

Figure 2: Initiatives Overview in SAP Ariba Category Management, with different visualization options. ALT Text: The image shows two screenshots of the Initiatives Overview. On the left a visualization with four vertical bar charts for the last four quarters showing planned, active, completed and obsolete in different colors. Below that a list of Initiatives, with category, region, assignee (including a photo), start and end date and status with coloured badges. On the right a Gantt chart visualization of the same initiatives, with a visual filter bar at the top, and below that the Gantt chart showing the time period from May to September.

Attachments

With attachments, category managers can upload files of different formats and add links to their category strategy and plan documents. The benefits of being able to do that are many, including: referencing an important source of information that drove some of their strategic decisions, ease the access to documents like policies, laws, and regulations, and even extend the SAP Ariba Category Management capabilities by adding their own analysis tools as slides, spreadsheets, or PDFs.

Figure 3: Attachments in SAP Ariba Category Management. ALT Text: The image shows two screenshots from the application “Develop Strategy and Plan”: on the left the mai page, with four steps shown as horizontal flow at the top (1. Category Analysis, 2. Market Analysis, 3. Strategy and Plan, 4. Attachments and Approval). Section 4 is selected, showing a card on the left with the Approval Flow, showing that the item is approved. On the right a card listing four attachments (Vendor List, a contract PDF,…). The screenshot on the right shows a popover with a preview of the contract PDF file, with buttons for “Download” and “Close”.

Get an overview of SAP Ariba Category Management, as well as What’s New:

SAP Fieldglass

I’m happy to introduce the new Home Page, along with the layout manager to ensure that each user sees what is relevant to them. Another recent innovation is the new characteristics tab for Statements of Work. Finally, we’ll look at some improvements for administrators.

New Home Page

The highlight here is the new home page. It uses UI5 integration cards which are designed to focus on what’s most important for the user, guided by insights from recent user research. Figure 4 shows what it looks like.

Figure 4: New SAP Fieldglass home page. ALT Text: A screenshot with a banner at the top saying “Hi, Jennifer! Welcome to SAP Fieldglass”, containing a “What’s New” button on the right and a settings button. Below that a section with tab “Pinned Links” selected, along with tabs for “Recently Viewed Items” and “Starred Items”. Below that the page is filled with cards relevant for the user, such as “My Work Items”, showing the type and number of items of that type, “Let’s help you get started”, “Announcement” with some internal information about important actions that need your attention, a card “My Workers” listing five workers with image, name, ID, end date and health indicator, and a card “My Job Posting” listing two postings (Senior Developer and Junior Developer), each with status “Submitted”, and showing the next steps (“Supplier needs to respond” and “Review Responses” respectively).

Layout Manager

The new layout manager allows administrators to customize the content visibility based on user roles, allowing for a tailored experience that aligns with each role’s specific needs and responsibilities. We provide default layouts, and customers can create their own ones, as you can see in Figure 5.

Figure 5: New Layout Manager in SAP Fieldglass. ALT Text: Two screenshots: top left the Layout List, showing four default layouts name and description (Administrator Layout; Finance and Reporting Layout; Hiring Manager Layout; PMO Layout). Bottom right the Hiring Manager Layout page configuration is shown, with a list of cards showing name and description (My Workers; My Interviews; My Job Postings; In Progress Items).

Characteristics Tab in SOW (Statement of Work)

By highlighting the status and payment details of line items, users can quickly assess project progress and spending. This makes it easier to track which items are completed, in progress, or pending, helping users make informed decisions, avoid overspending, and prioritize tasks effectively.

It also improves communication with stakeholders by providing clear financial and status insights.

Figure 6: The SAP Fieldglass characteristics tab for SOW (Statement of Work). ALT Text: A screenshot of the SOW Dashboard, for an item “Building #45 Renovation – Holdbacks”. The header shows the progress graphically (three of five steps are green), the status (Approved), ID, Period and Vendor. Below that the page has numerous tabs, the “Payment Line Items2 tab is selected, showing two cards at the top: “Committed Amount” and “Payment Line Items Status”, showing that there are 6 items in total, with one pending approval, two invoiced and three created. Below that a table is shown, displaying four items, one in each row, with columns for status, sequence number, name, owner, PO number, requested and final amount.

Improvements for Administrators

In addition to the new home page, we have introduced a pinned links section on the administrator pages. This new feature enables users to quickly access their “favorite” items, such as frequently used or particularly important items, streamlining their workflow and enhancing overall efficiency.

Figure 7: Pinned Admin Links in SAP Fieldglass. ALT Text: A screenshot of the “Admin Configuration” with a section at the to for “Pinned Admin Links”, containing three links (icon plus text): “Create Cost Center”; “View: Business Units”; “View: Cost Centers”. Below that the page shows a number of cards in four columns, each containing links. The cards shown are “User”, “Financial Data”, “Services”, “Report”, “Supplier”, “Integration” – each containing between three and more than ten links.

Administrators also benefit from the new self-service dashboard for company configuration changes (not visualized here). With this, buyers gain autonomy with expanded configuration options within their company setup, eliminating the necessity of reaching out to support for updates. This enhancement offers clients greater flexibility and control over their settings.

Continue Reading

I hope you enjoyed this fourth part, covering SAP Ariba and SAP Fieldglass.

Part 5 is now available, covering latest UX innovations for selling with SAP Customer Experience and SAP Industry Cloud – Retail:

SAP User Experience Q1/2025 Update – Part 5: SAP Customer Experience, SAP Industry Cloud - Retail.

Part 1 of the series lists all the parts, and links to those parts that have already been published:

SAP User Experience Q1/2025 Update – Part 1: Many New Innovations Available (AI, Joule and More).

Do keep posting your experiences and recommendations yourself in the SAP Community, with the SAP Fiori and/or the User Experience tag! In case you are wondering how to get a list of the most recent blog posts on SAP Fiori and User Experience in our new SAP Community, use these links:

For general information on design at SAP and SAP Fiori, check out:

Embracing the Future: Chatbots, Copilots, and Agents in Procurement

2025-02-26T16:01:46.146000+01:00

One of my earliest memories of advanced technology involves voice recognition software. I was home from college, getting ready to fly back to school, when I overheard my dad on the phone. He was struggling to communicate with the airline’s automated system. He repeated my airline's name twice, carefully enunciated my flight number, and then, in frustration, shouted "Operator!" multiple times.

Since then, we’ve moved from automated systems through the phone to in-home virtual assistants like Siri, Google or Alexa. These advancements have made our lives significantly easier, and they continue to evolve.

Technology has grown by leaps and bounds – and it’s not just limited to voice recognition. It’s also playing a crucial role in simplifying complex procurement processes and enhancing user experiences. Today, voice recognition is just one of the many tools helping to automate and streamline operations.

Among the most transformative technologies are AI-assisted chatbots, copilots, and agents, which are revolutionizing how procurement professionals interact with systems and data.

Chatbots have been around for a while. They started off by handling basic queries, but their capabilities have expanded significantly with the advent of generative AI (GenAI). Now, chatbots can understand and process natural language, which makes each interaction more intuitive.

Copilots offer sophisticated, conversational capabilities. They act as strategic assistants and help procurement professionals navigate complex workflows and make informed decisions based on business context.

Agents are designed to autonomously perform complex, multistep workflows. They use AI to plan, reason, and execute tasks, allowing procurement teams to increase activity levels while also focusing on strategic objectives.

How You Can Use Chatbots and Copilots

In procurement, chatbots can guide users through procurement processes with predefined rules. They often provide standard responses to frequently asked questions on policies, processes, and procedures.

SAP's copilot, Joule, integrates seamlessly across SAP applications, including SAP Ariba and SAP Fieldglass solutions, to enhance procurement operations and leverage business context with historical data to guide users conversationally. Joule can also help with tasks like approvals, running reports, and answering questions like:

Which suppliers have responded to our sourcing event?
Where are the time sheets I need to approve?
Who is the final approver for my high-profile project?

In addition to improving productivity, these technologies offer multiple benefits for procurement, such as:

Enhanced user experience. Intelligence is directly embedded into the user interface, ensuring interactions are part of everyday activities.
Streamlined processes. Automation of tedious and complex tasks like generating RFxs makes it easier to ensure compliance and maximize efficiency.
Better supplier management. Advanced insights help teams manage supplier performance data to reduce risks and strengthen critical relationships.

The Future of Agents

In many ways, the frustration my dad experienced with that early voice recognition system feels like a distant memory. Today, we have numerous apps to help track flights. However, in some ways, the frustrations still feel relevant because some of these systems remain a work in progress. Regardless, it’s clear that technology is advancing with a focus on making it more intuitive and user-friendly.

Agents will revolutionize procurement by autonomously executing complex, multistep workflows and accelerating cross-functional operations, which will continuously run and ultimately free up resources. These agents will work alongside you and your colleagues, ensuring collaboration and oversight while enhancing efficiency and accuracy in procurement processes.

As these technologies evolve, they will transform procurement from a process-driven function to a strategic enabler.

Take the Next Step

Learn more about how these innovations are shaping the future of procurement. Listen to our recorded conversation with Pierre Mitchell, chief research officer at Spend Matters, where we explore practical ways to use chatbots, copilots, and agents to drive procurement excellence in your organization.

Listen On-demand today

What’s New in Purchase Requisitions - SAP S/4HANA Cloud Public Edition 2502

2025-03-05T11:14:08.266000+01:00

Hi Friends, let us look at some of the exciting features in purchase requisitions for the SAP S/4HANA Cloud Public Edition 2502.

Order Acknowledgment and Advance Shipping Notification for a Purchase Requisition Item

Using the app My Purchase Requisitions - New, in the context of central requisitioning, you can now view the follow-on documents for a purchase requisition item such as Order Acknowledgment, which is a confirmation from a supplier to deliver specified quantities of products at specified prices within specified times, and Advance Shipping Notification, which contains information provided by the supplier about times of issue and receipt for specific quantities of ordered materials.

As an employee, in the My Purchase Requisitions – New app, you can now view the Order Acknowledgment and Advance Shipping Notification in the Status Details of the purchase requisition item.

For service items or enhanced limit, the order acknowledgment and advance shipping notification document is not supported and will not appear in the Status Details.

View Parked Invoice in the Status Details of a Purchase Requisition Item

Using the app, My Purchase Requisitions – New app, you can now view the parked invoice as a follow-on document for the purchase requisition item.

It can be viewed in the Status Details of the purchase requisition item. The parked invoice is a type of supplier invoice, where the already entered data is retained until the required information to post the invoice document is obtained.

Support of Advanced Purchase Order Scenarios in Process Purchase Requisitions (V2)

You can now create purchase orders for purchase requisitions with advanced fields from the Process Purchase Requisition (V2) app.

For instance, when you are creating a purchase order for a purchase requisition with purchase requisition item category U (stock transfer PR) or purchase requisition document type UB, a message is displayed with simulation check performed for Manage Purchase Orders, then the purchase order is automatically created and you are navigated to the Display Purchase Order - Advanced app to view the purchase order.

Process Purchase Requisitions

This app is deprecated and will be removed from the SAP Fiori Launchpad in a future release. We recommend that you switch to the successor app Process Purchase Requisitions (V2) at your earliest convenience.

CDS Views in Purchase Requisition

For the CDS view, I_PurchaseRequisitionItemAPI01, the following fields are now available

I_Purchaserequisitionitem.IsPurReqnCmplt
I_Purchaserequisitionitem.PurReqnItemBlockingReasonText
I_Purchaserequisitionitem.InventorySpecialStockType
I_Purchaserequisitionitem.QuotaArrangement
I_Purchaserequisitionitem.QuotaArrangementItem

OData V2 API: Purchase Requisition

The API service API_PURCHASEREQ_PROCESS_SRV is deprecated with the release SAP S/4HANA Cloud Public Edition 2402. We recommend you switch to the successor API service API_PURCHASEREQUISITION_2 as soon as possible.

Identity and Access Management

The following changes to identity and access management (IAM) objects have been delivered for Purchase Requisitions.

Name of IAM Object	Object Type	Changes	Details	Relevant Scope Items
Materials Management - Purchase Requisition Completion (SAP_MM_BC_PR_COMPLETION_PC) Materials Management - Advanced Purchase Requisitions (SAP_MM_BC_PR_MANAGE_PC) Materials Management - Purchasing Document Display(SAP_MM_BC_PURCH_DOC_DSP_PC) Materials Management - Employee Self Services V2 (SAP_MM_BC_SSPPR_MANAGE_PC)	Business Catalog	Removal of Phase In	The phase in is removed and restriction is now enforced for the authorization object PROJ_BILLG.	18J (Requisitioning), O8J (Requisitioning), BMD (Purchase Contract), BNX (Consumable Purchasing), 1XI (Central Requisitioning)
Materials Management - Purchase Requisitions (SAP_MM_BC_PR_PROCESS_MC)	Business Catalog	Enable restriction for F4 and Read	The restriction types AUART (Sales Document Type), AUFART_WERKS (Order Type/Plant), BEGRU_MAT (Authorization Group for Product) and BEGRU_MATKL (Authorization Group for Product Group) are updated.	18J (Requisitioning)
Materials Management - Purchase Requisitions (SAP_MM_BC_PR_PROCESS_MC)	Business Catalog	Enable restriction for F4	The restriction types AUTYP (Order Category), BEGRU_MTART (Authorization Group for Product Type), and S4PPM_PR1 (Enterprise Project) are updated.	18J (Requisitioning)
Materials Management - Purchase Requisitions (SAP_MM_BC_PR_PROCESS_MC)	Business Catalog	Enable restriction for Read	The restriction types PP_MRP_CTRLR (MRP Controller), BEGRU_LFA1 (Authorization Group for Suppliers), KTOPL (Chart of Accounts) and KTOKK (Supplier Account Group), are updated.	18J (Requisitioning)

Guided Buying for Central Procurement with SAP Ariba Buying (3EN)

With this feature, the street fields, Street 2 and Street 3 from the 3EN (Guided Buying for Central Procurement with SAP Ariba Buying) purchase requisition are replicated and are available in the central system purchase requisition. When the Street 2 and Street 3 fields are replicated to the connected system, you can view them using the Create Purchase Requisition - Advanced app.

Well, that is all that we have for 2502! If you have any questions or thoughts, feel free to post in the comments section.

For more information on Purchase Requisitions - SAP S/4HANA Cloud Public Edition check out: All About Purchase Requisitions - SAP Community

SAP Ariba User Provisioning Using SAP Identity Provisioning Service (IPS)

2025-03-17T21:49:57.056000+01:00

This blog post explains how to provision users to SAP Ariba using the SAP Cloud Identity Services—Identity Provisioning Service (IPS). Typically, you can create and provision new users to SAP Ariba through various methods such as:

Self-registration
CSV file upload
Provisioning via IPS from existing user stores (e.g., Microsoft AD, AS ABAP, SAP SuccessFactors)

More information about Integrating SAP Ariba with SAP Cloud Identity Services can be found on SAP Help. While there are multiple options, this post focuses on using SAP Identity Provisioning to provision users from SAP Cloud Identity Service (Identity Authentication).

Note: For guidance on integrating Cloud Identity Services with SAP Ariba (for Single Sign-On and identity federation), see the blog post here:
Identity Federation & SAP Ariba SSO with SAP Cloud Identity Services

Use-Case Scenario

Integrating Cloud Identity Services with SAP Ariba is just one example of how enterprises can unify identity management across various SAP solutions (e.g., SAP SuccessFactors, SAP Business Network, SAP Category Management, SAP Fieldglass). Centralizing identities in SAP Cloud Identity Service is an essential part of an enterprise-wide identity strategy. It also aligns with future SAP initiatives such as SAP Task Center and Joule, which rely on users being managed in Cloud Identity Service.

Identity Authentication and Identity Provisioning play a critical role in integrating SAP Ariba and other SAP BTP applications. They enable the use of a Global User ID—an attribute that uniquely identifies a user across the system landscape—serving as a prerequisite for adopting tools like SAP Task Center.

Architecture Overview

The architecture diagram for this scenario primarily highlights how to provision identities to SAP Ariba via Identity Provisioning. Similar concepts can also apply to other SAP Ariba SaaS solutions such as SAP Business Network, SAP Category Management, and SAP Fieldglass.

In this blog, we will cover:

Creating Ariba users in SAP Cloud Identity Service using both ODM and a custom Ariba schema.
Setting up SAP Ariba as the target system and Identity Authentication as the source system.
Configuring the IPS transformation file to map Identity Authentication user attributes to SAP Ariba user attributes.
Configuring IPS jobs to provision users to SAP Ariba.
Planning the migration from the custom Ariba Cloud Identity Service schema to the standard SAP Ariba schema (once released).

Create Ariba Users in SAP Cloud Identity Service Using ODM and a Custom Ariba Schema

Beyond the standard/core user attributes in SAP Cloud Identity Service, SAP Ariba requires additional attributes (such as purchasing unit, purchasing organization, plant, etc.). To handle these, two extension schemas come into play:

ODM Schema: urn:ietf:params:scim:schemas:extension:sap.odm:2.0:User
SAP Ariba Schema: urn:ietf:params:scim:schemas:extension:sap:ariba:2.0:User

SAP Cloud Identity Service has recently released Open Domain Model (ODM) schema support, enabling additional business attributes (e.g., companyCode, purchasingOrganization) in the Cloud Identity Service user profile. The ODM schema and attributes can be found under Users & Authentication → Schemas in your Cloud Identity Service.

Note: As of this writing, the SAP Ariba Schema (urn:ietf:params:scim:schemas:extension:sap:ariba:2.0:User) is planned for release in Q2 2025 (subject to change based on the SAP Cloud Identity Service product roadmap). In the interim, a custom schema must be created, which you will later migrate to the standard SAP Ariba schema once it becomes available.

Steps to Create a Custom SAP Ariba Schema

You can create the custom schema either via Postman or directly in the Cloud Identity Service interface. Below are the steps for creating it through the Cloud Identity Service UI:

Navigate to Schemas

In the Cloud Identity Service console, go to Users & Authorizations → Schemas.

Create New Schema

Click Create or Add, and enter a name for your custom schema.

Important: The custom schema name (urn:ietf:params:scim:schemas:extension:vendor:ariba:2.0:User) must be different from the future standard schema name (urn:ietf:params:scim:schemas:extension:sap:ariba:2.0:User) to avoid conflicts once the standard schema is released.

Define Schema Attributes
- Add the additional attributes (e.g., currency, deliverTo, passwordAdapter, addresses).

Create an Ariba User Using ODM and the Custom Ariba Schema in Cloud Identity Service

Create a System User

In the Cloud Identity Service console, go to Users & Authorizations → Administrators → Add System.
Generate the Client ID and Client Secret, ensuring you have Manage Users permissions.

2. Prepare a User Payload in Postman

Use a sample JSON payload that includes ODM attributes and the custom Ariba attributes.
Ensure any attributes values you include must match valid SAP Ariba fields values so that the data correctly populates in SAP Ariba

3. Verify User Creation

After sending the request to create a user, check the Cloud Identity Service to confirm the new user.
The Extensions tab in the user record should display both ODM and custom Ariba attributes.

4. Assign the User to a Group

In Cloud Identity Service, assign the user to any necessary group(s) (for ex: ARIBA-USERS group) to manage their access permissions.

This completes the initial step of creating an Ariba user in Cloud Identity Service with both ODM and custom Ariba schema attributes.

Set Up Identity Authentication as the Source System and SAP Ariba as the Target System in IPS

Identity Authentication as the Source System

Navigate to Identity Provisioning in your Cloud Identity Service console.
Create a Source System and select Identity Authentication as the source type.
Modify default transformation file to map ODM and custom Ariba schema attributes.
- Download sample source transformation file from Github .
- Note that the schema references in the transformation file should point to the ODM attributes and your custom Ariba schema attributes.
- In the Source System Properties, you can set filters like ias.group.filter or ias.user.filter so that only specific users (e.g., aribacisuser1) are provisioned.

SAP Ariba as the Target System

In Identity Provisioning, navigate to Target Systems and create a new system of type SAP Ariba Application.
SAP Ariba user management is performed via SCIM APIs. Follow the SAP Help documentation to request access to the SAP Ariba SCIM API, after which you will receive OAuth client credentials.
Download and adjust the Target System Transformation File

Map your custom Ariba schema attributes to the standard SAP Ariba attributes.
For instance, ODM schema attributes can map to Accounting attributes in Ariba, while custom schema attributes might map to Shipping and Billing details.

Configure IPS Jobs to Provision Users to SAP Ariba

Once your source and target systems are set up:

Run the Provisioning Job in IPS.
The user you filtered (e.g., aribacisuser1) should be created in the SAP Ariba target system.
In the Ariba system, navigate to Manage → Core Administration → User Manager. Search for the user.
Additional business attributes (such as purchasing org, cost centers) appear under Other User Info in Ariba.

Note: As mentioned, ODM schema attributes are mapped to Accounting attributes, and custom schema (SAP:Ariba) attributes are mapped to Shipping and Billing attributes.

Custom Ariba Cloud Identity Service Schema Migration Plan

As of this writing, the standard SAP Ariba schema (urn:ietf:params:scim:schemas:extension:sap:ariba:2.0:User) is not yet available. Once SAP releases it (currently planned for Q2 2025(subject to change based on the SAP Cloud Identity Service product roadmap)), follow these steps to migrate from your custom schema:

Update Existing Users

Perform an Update operation on all Ariba users in Cloud Identity Service, replacing the custom schema (urn:ietf:params:scim:schemas:extension:vendor:ariba:2.0:User) with the standard schema (urn:ietf:params:scim:schemas:extension:sap:ariba:2.0:User).

Populate Attributes

Confirm that attributes are correctly mapped and populated in the new standard schema.

Adjust Source and Target Transformation Files

Replace all references to the custom schema with the standard Ariba schema.

Run IPS Jobs

Execute your IPS provisioning jobs again to ensure the updated schema references are correct and that data syncs as expected.

Conclusion

By following the steps outlined in this blog, you can successfully create and manage SAP Ariba users through SAP Cloud Identity Service, leveraging both the ODM schema and a custom Ariba schema (until the standard one is released). Identity Provisioning Service streamlines the process, allowing you to filter and transform user data from Identity Authentication into SAP Ariba. Once SAP releases the standard SAP Ariba schema, you can seamlessly migrate your custom Ariba schema, further simplifying your identity landscape and supporting broader initiatives like SAP Task Center and Joule.

Inside SAP's Own Procurement Transformation with SAP Ariba Category Management

2025-04-01T14:43:10.231000+02:00

By Lisa Heinrich, Senior Solution Value Advisor, Finance and Spend Management, SAP

I recently tuned in to the Procurement Leaders’ session, “Leveraging AI for Category Management,” featuring Nouh Abed Assad, COO of SAP’s Global Procurement Organization, hosted by Ian Lawless from Procurement Leaders and joined by Barri Horn, SAP’s Director of Product Marketing. I have to say—it was one of the most energizing and eye-opening sessions I’ve attended in a while.

What made it so compelling? It wasn’t a sales pitch. It was SAP pulling back the curtain on how we’re using our own SAP Ariba Category Management tools to transform procurement from the inside out. The honesty, the detail, and the practical insights captured and held my interest from beginning to end.

Nouh shared SAP’s journey methodically and with clarity, showing how a category-driven model supported by AI is helping SAP’s business shift from tactical execution to strategic impact. What resonated most with me was his emphasis on category management as a “living, breathing process”—not just a one-time exercise. It’s about aligning with business goals, understanding market shifts, and tracking outcomes that matter.

Any strong sourcing and procurement organization should have a category plan. But when Nouh described how AI-powered tools like generative segmentation and market dynamics analysis are now part of SAP’s daily procurement playbook, I got excited. These tools aren’t just flashy extras. They help category managers challenge assumptions, spot opportunities, and build smarter, faster strategies that they can share with their stakeholders. As Nouh put it perfectly: “Savings come from doing the right work; AI just helps us do it smarter.”

He also underscored a critical point relevant to adopting new tools: planning, change management, and procurement best practices are non-negotiables. Without structure and team buy-in, even the best tools often fail to gain traction with business users. His advice? “You should have implemented it yesterday.” That one stuck with me—I’ve wanted to say that to so many customers I’ve worked with over the years. Honestly, I’ve even thought about putting it on a bumper sticker!

As someone in SAP’s Solution Value Advisory team, I work closely with customers every day help them get the most out of SAP Ariba solutions to drive adoption. Seeing the very strategies and tools I champion brought to life within SAP itself was incredibly validating. Whether I’m leading workshops or helping businesses define their solution value road map, I often point to SAP Ariba Category Management as a critical addition for long-term procurement success.

Why This Matters

Category management—especially when powered by AI—isn’t just about cost savings. It’s about unlocking long-term value, supporting sustainability goals, and strengthening collaboration across the business. This session reinforced how real that value is and how accessible it can be when strategy, technology, and people align.

If you’re pondering where to begin, these tips may help:

Standardize your approach.
Invest in change management.
Start small—but start NOW.

SAP’s story isn’t just a vision—it’s already a rapidly evolving reality. And after watching this session, I’m more energized than ever to help others get there, too.

Now it’s your turn! Register here today to watch this informative session on demand.

How SAP Global Procurement Runs SAP: A Category Management Success Story

2025-04-28T18:24:49.627000+02:00

At SAP, we practice what we preach. Our Global Procurement Office (GPO) leads by example, embracing our own innovative solutions. The GPO has fully integrated SAP Ariba solutions – including our AI-assisted SAP Ariba Category Management solution – into SAP’s procurement processes from start to finish. By using our own tools, we're not just talking about innovation – we're living

In a recent webinar with Procurement Leaders on best practices for leveraging AI in category management, Nouh Abed Asaad, Chief Operating Officer at SAP's GPO, discussed why he and his team are proactively implementing digital tools across procurement, with an emphasis on AI.

Exploiting Technology to Streamline Processes and Meet Corporate Objectives

The GPO uses SAP technology to expedite procurement processes, foster close collaboration with stakeholders, and ensure alignment with corporate objectives.

Throughout the webinar, Asaad highlighted the power of digital tools to help break down data silos and build bridges across the organization. "In the past, everyone had their PowerPoint presentation, Excel files, emails, and his or her own story,” he said. “With our implementation of SAP Ariba Category Management, our goal was to bring everything to one standard to show the business units what they get when they work with procurement."

This unified approach isn't just about consolidation; it's about enhancing the decision-making process. Asaad explained, "We're bringing actionable insights and additional data to our category strategy definition, not only connecting our own data and making sure it's accurate and correct but also enriching it with external market data to make better decisions to improve our category."

Asaad also emphasized how procurement plays a crucial role in meeting real-world business needs, particularly in sustainability efforts. "We have a clear commitment toour net-zero strategy,” he said. “Our scope 3 emissions are 70-75% of our total emissions. Without procurement, you will never meet your sustainability targets."

SAP technology has been pivotal in helping the GPO achieve key corporate objectives, from data-driven decision-making to sustainability goals.

SAP Ariba Category Management with AI
The GPO operates in three regional hubs – the Americas, EMEA, and APJ – across 40 locations worldwide, overseeing the purchase of a wide range of products and services for SAP. Whether procuring IT hardware or automobiles for the car fleet, the team uses SAP’s suite of procurement solutions, including SAP Ariba Category Management with AI, and often serves as an early adopter of new technology.

Category management is implemented by sourcing champions who play a critical role in optimizing spend and driving value. This approach delivers benefits across four main areas, helping to:

Reduce system disruptions
Support data-driven decision-making
Ensure transparency and buy-in
Review progress against objectives

SAP Ariba Category Management transforms the team’s ability to collect and analyze operational data, enrich it with external market information, and use built-in frameworks to strengthen recommendations for budget owners.

Asaad explains, "I’ve always made decisions based on my expertise, but the Category Management tool allows me to support these decisions with Porter's 5 Forces and the Kraljic Matrix. I know what I'm doing, but my budget owner needs to see that. The tool shows them the deep-dive analysis of the spend and the breakdown with the Kraljic Matrix, along with the market analysis using Porter's Five Forces. I've defined an initiative to help you, the budget owner, get better value for your money. With that you will get better stakeholder buy in, really showing how professionally we can optimize their spend and drive value."

The team tracks success and progress through KPIs like cost savings and supplier performance. By measuring and reporting on these metrics, they demonstrate procurement's impact on the bottom line and justify continued investment.

The Implementation and Change Management Process

The GPO’s journey demonstrates the power of thoughtful implementation and execution. From the initial three- to four-month rollout to ongoing usage, they've seen firsthand how strategic planning can drive transformative change.

To enhance awareness and adoption of the new solution, the team hosted several training sessions and worked closely with key stakeholders and budget owners. "We started category days where we brought the GPO organization together with key stakeholders, and each category presented their key strategy,” Asaad says. “Since then, we have done this on a six-month basis, showing the changes over time for each category and getting everybody onboard."

Through SAP Ariba Category Management with AI, the GPO can easily:

Connect processes, data, and user experiences across systems
Share recommendations based on supplier fragmentation, price variances, tail spend, supplier diversity, and more
Make data-driven decisions with actionable insights and enriched supplier data
Ensure transparency and stakeholder buy-in to manage change proactively
Review progress against key objectives and clear metrics

AI enhances the team’s efficiency in understanding market dynamics and supporting optimal pricing strategies with key suppliers.

Adopting AI: Strategic Considerations

Many practitioners are hesitant to adopt AI due to lack of understanding or trust in the technology. "In my organization, 90% are really afraid of the solution and 10% are absolutely excited,” Asaad says. “It's changing the way we have to think in the future. The earlier you adopt, the better you will manage it."

And regarding whether organizations should implement AI solutions now or wait, Asaad advises, "You should have implemented it yesterday. If you wait until the tool is more mature, the challenges of adopting AI will increase. At this point, we're still smarter than the AI advancements and recommendations, so we can correct, interact, and learn and grow with the tool. If we wait, it will overwhelm us."

By starting now, teams can gradually develop AI expertise and help shape how the technology is integrated into key processes within the organization. Delaying adoption may result in a steeper learning curve and less control or understanding for how AI works.

Conclusion

By using SAP solutions, the GPO is not only optimizing procurement processes but also sharing valuable insights that drive product development and enhance customer value. This “SAP Runs SAP” approach demonstrates the real-world impact of our AI-powered procurement solutions and sets a high bar for excellence.

Listen to the Procurement Leaders webinar on demand to learn more about, Leveraging AI for Category Management.

Category Management in Procurement: A Comprehensive Guide (Part 1 of 3)

2025-05-14T06:00:45.416000+02:00

Definition

Category management in procurement is a strategic approach that organizes procurement resources to focus on specific areas of spend. This method divides products and services into categories which are managed as a whole, rather than individually.

By grouping similar items, organizations can streamline processes and develop targeted strategies for each category. It fosters a deeper understanding of procurement needs, supplier relationships, and market trends, resulting in a more efficient and effective procurement process.

Why Is It Important?

Transitioning from the definition, it is essential to understand the unique advantages that category management offers.

Cost Savings

Category management enables organizations to leverage their buying power by consolidating purchases within specific categories. This strategic approach helps in negotiating better prices and terms with suppliers, leading to significant cost savings.

Companies can identify and eliminate inefficiencies, reduce waste, and achieve more favorable pricing structures.

For example, according to a Deloitte Global CPO Survey, organizations implementing category management have reported cost reductions of up to 15% (Deloitte, 2023).

Improved Supplier Relationships

Focusing on specific categories allows procurement professionals to develop closer and more collaborative relationships with key suppliers. This fosters trust and cooperation, leading to improved quality, reliability, and innovation. Strong supplier relationships also provide the opportunity for joint problem-solving and long-term partnerships, enhancing overall supply chain performance.

As a real-time example, consider the automotive industry. According to a study conducted by McKinsey & Company, companies that implemented category management strategies reported a 12% improvement in supplier reliability and an 8% increase in innovation through collaborative efforts (McKinsey, 2022). These numbers highlight the significant impact that focusing on specific categories can have on supplier relationships and overall industry performance.

Enhanced Market Insights

Category management involves thorough market analysis and understanding of industry trends, which helps organizations stay ahead of the curve. By continuously monitoring the market, companies can identify emerging opportunities, mitigate risks, and adapt to changes more effectively.

This proactive approach enables better decision-making and strategic planning. Market intelligence gathered through category management supports organizations in responding swiftly to market shifts.

As a real-time example, consider the retail industry. According to a study conducted by KPMG in 2021, companies that implemented category management reported a 10% increase in market responsiveness and a 7% reduction in risks associated with supplier partnerships. These figures highlight the substantial impact of market insights gained through category management on overall business performance.

Additional Reasons

Risk Management: By having a comprehensive view of each category, organizations can better assess and manage risks associated with suppliers and market fluctuations.

Efficiency: Streamlining procurement processes within categories leads to more efficient operations, reducing time and resources spent on managing individual transactions.

Compliance: Ensuring that all procurement activities within categories adhere to regulatory requirements and company policies.

Innovation: Encouraging suppliers to bring innovative solutions and ideas by fostering strategic partnerships.

Sustainability: Promoting sustainable practices and sourcing by focusing on specific categories and collaborating with suppliers who adhere to environmental standards.

Who Is the Target Group?

Understanding the target audience for category management within a procurement organization is crucial for ensuring successful implementation and achieving the desired benefits.

Both primary and secondary audiences play significant roles in driving the initiative forward. Recognizing these audiences helps tailor communication and training e@orts, which is essential for organizational alignment.

Primary Audience

Chief Procurement O0icers (CPOs): Responsible for overall procurement strategy and performance, CPOs benefit from category management by gaining a streamlined approach to procurement, enabling better decision-making, and achieving significant cost savings.

Category Managers: They directly manage specific categories of spend. Category management empowers them with deeper market insights, better supplier relationships, and improved negotiation power, allowing them to deliver enhanced value to the organization. By equipping category managers with robust analytical tools and frameworks, organizations enable more strategic sourcing and supplier management.

Procurement Analysts: These professionals analyze data and trends to support procurement decisions. With category management, they can focus their analyses on specific spend areas, leading to more accurate and actionable insights. This specialization enhances their ability to identify cost-saving opportunities and drive process improvements.

Secondary Audience

Finance Teams: They benefit from the cost savings and budget predictability that category management offers, assisting in more accurate financial planning and reporting.

Operations Managers: Operations benefit from improved procurement processes and supplier reliability, leading to smoother operations and reduced disruptions in the supply chain.

IT Departments: As procurement increasingly leverages technology, IT departments support the infrastructure and tools needed for effective category management. They benefit from clearly defined procurement categories that align with organizational goals. Their involvement ensures that digital solutions are tailored to procurement’s evolving needs.

In summary, category management in procurement is a strategic initiative that benefits various stakeholders within an organization. By understanding the needs and roles of both primary and secondary audiences, procurement professionals can ensure successful implementation and maximize the advantages of this approach. This interconnectedness is crucial for building a resilient and agile procurement function.

Configure Single-Sign-On for SAP Ariba with SAP Cloud Identity Services

2025-07-10T15:28:29.020000+02:00

See as well:

Abstract

With the introduction in 2505 release of the feature 'Configure Authentication with SAP Cloud Identity Services for SAP Ariba Solutions in Intelligent Configuration Manager (CFG-324)' , Single-Sign-On (SSO) configuration for SAP Ariba with SAP Cloud Identity Services (CIS) is simplified and further automated, as detailed in this blog post.

Prerequisites

SAP Ariba user of type Third Party Enterprise User (Ariba)
Customer Administrator group membership
S-User ID in SAP for Me

Note: It is strongly recommended to use https as the SAP Ariba SSO SAML 2.0 Issuer, for security reason and for alignment with the auto-generated configuration described below. A support ticket requesting PS-1444 Feature Toggle is required to enable the use of https in the issuer.

Note: The below process is superseding the pure SAML Metadata exchange that was available for SAP Ariba SSO configuration before the release of the CFG-234 feature. While still available in for legacy purpose, this process is obsolete and should not be used for any new implementations.

Process

1. Access SAP Ariba Intelligent Configuration Manager (ICM)

Access the SAP Ariba tenant using the Third Party Enterprise User (Ariba) created as part of the prerequisites.

Build the login URL appending '?passwordadapter=ThirdPartyUser' to use Third Party User authentication. For example for US Datacenter: https://<SAP Ariba tenant id>.procurement.ariba.com?passwordadapter=ThirdPartyUser
Open ICM - Navigate to Manage > Core Administration (for SAP Ariba procurement tenant) / Administration (for SAP Ariba sourcing tenants) > Intelligent Configuration Manager > Manage Configurations > Click Continue button
Open the Authentication tab of ICM

Note: In case of configuring the SSO setup for SAP Ariba Sourcing, SAP Ariba Contracts, SAP Ariba Supplier Lifecycle and Performance for suite-integrated tenants the SSO setup needs to be executed on the SAP Ariba procurement tenant.

In case of SAP Ariba Multi-ERP configuration setup (f.k.a Federated Process Control FPC) the SSO configuration needs to happen for the parent tenant.

2. S-User ID configuration

The S-User ID must be linked to the same organization as the SAP Ariba tenant (and CIS tenant to use if already provisioned), this can be verified by opening the System & Provisioning section of the SAP4Me portal, connected with the S-User and validating that the SAP Ariba tenant (and CIS Tenant if already provisioned) appear as in the below example with SAP Ariba Procurement and provisioned CIS Tenant.

Enter the S-User ID and click Validate - The validation process takes around a minute and requires page refresh to update the status

Once validated, use the Enable button to enable the site for CIS configuration

3. CIS Tenant selection

Depending on the landscape two paths are available :

CIS tenant Provisioning - In case no CIS tenant is available, provisioning of a CIS tenant is done from ICM and then auto-configured.
CIS tenant Selection - In case CIS tenants are already available, tenant selection is needed for the auto-configuration.

3.a. CIS Tenant Provisioning

Validate and submit the tenant provisioning form generated from the S-User information data.

3.b. CIS Tenant Selection

Select the appropriate CIS tenant for auto configuration from the list and submit.

Note : Landscape tier alignment is required ie: If SSO is configured on a Test SAP Ariba tenant, selection of CIS with tenant type Test is required, and similarly with Production.

4. Approval

Upon CIS tenant provisioning request (3a) or CIS tenant selection (3b) an approval is required to trigger auto-configuration.

5. Auto-Configure CIS

Auto configuration process runs upon tenant provisioning / selection showing 'Provisioning in Progress' status, it takes several minutes and generates several artefacts in CIS:

SAML Applications Configuration with the SAP Ariba tenant for user authentication over SSO
OpendID Applications Configuration with the SAP Ariba tenant for app-to-app connectivity
Source and Target systems in Identity Provisioning Service for user and group provisioning

Note : Auto-configuration leverages by default the Login Name attribute of the CIS user as NameID for the SAML assertion, therefore it needs to match the UniqueName attribute of the SAP Ariba user.

Note : The Configuration step creates several applications in the CIS tenant with dedicated pattern. In case of a Suite Integrated tenant with Multi-ERP the applications are defined as below:

Parent Realm :

Application for SSO on the Parent realm with normalized name <Customer name><SAP Ariba Procurement parent realm name>
Applications for app-to-app authentication with normalized names: Sourcing-<SAP Ariba Sourcing realm id> and Procurement-<SAP Ariba Procurement parent realm id>

Child Realm :

Application for SSO on the Child realm with normalized name <Customer name><SAP Ariba Procurement child realm name>
Application for app-to-app authentication with normalized name : Procurement-<SAP Ariba Procurement child realm id>

6. Configuration Review

At this step all auto-configuration CIS artefacts have been created but are not yet active and therefore are available for review and potential modifications.

The configuration of a corporate identity provider in CIS for SAP Ariba user authentication or any other customization to fit company-specific requirements should be applied at that stage.

Note: Configuration modifications should be in alignment with the System Integration Guide and Reference Architecture provided guidance.

7. Activate Configuration

The system is in 'Ready to Activate' state since Step 5, once completed the review and validation of Step 6, click the Activate button to enable SSO.

Confirm configuration acknowledgements.

Note: Once Activated, SSO configuration cannot be deactivated from ICM, in case deactivation or configuration change is required, a support ticket needs to be raised.

Note: In case any of the SSO setup steps from S-User validation (Validate or Enable), from Approval (Approve) or from Auto-Configuration activation (Activate) takes more than 3 hours, an incident needs to be created against the BNS-ARI-RSK-ICM component.

8. Test Configuration

Once activated, the SSO configuration is enabled and can be tested:

8.a ICM

ICM configuration should show Activated CIS as well as Enabled SAML Authentication.

8.b SAP Ariba web interface access

Access SAP Ariba tenant via its URL in a web browser - for example for US Datacenter: https://<SAP Ariba tenant id>.procurement.ariba.com

Redirection to the configured CIS tenant login page validates correct setup.

Redirection to the SAP Ariba login page denotes an issue with SSO configuration.

Note : In case of SAP Ariba Multi-ERP configuration setup, test both the Parent and Children accesses.

Remarks

Note: In case Third-Party SAP Ariba users need to be authenticated by the Identity Provider setup for SAP Ariba SSO, PLAF-1869 Feature Toggle needs to be enabled via a support ticket. Ensure you have the proper Third-Party SAP Ariba users setup in your Identity Provider setup for SAP Ariba SSO as your existing SAP Ariba credentials for Third-Party SAP Ariba users will not be working after the Feature Toggle is enabled. In case of issues accessing SAP Ariba for Third-Party SAP Ariba users via Identity Provider setup for SAP Ariba SSO ask to disable PLAF-1869 Feature Toggle to revert back to the SAP Ariba authentication of Third-Party SAP Ariba users.

Note: In case SSO was configured on the SAP Ariba tenant with CIS prior to the CFG-324 feature release, it is currently not possible to leverage this process, this blog will be update when more information will be available.

See as well:

Joule in SAP Ariba Applications

2025-07-28T14:42:49.867000+02:00

Joule is the SAP AI copilot - a virtual assistant that uses a conversational interface to help users of SAP business applications complete tasks more efficiently.

The conversational interface is brought to life with the help of these 4 interaction patterns:

With informational interactions we are providing our users knowledge-based results. All SAP applications in which Joule is available make their knowledge-base available via Joule, e.g. SAP Help Documentation. This is managed by SAP and offered to every Joule user out of the box.
We‘re also bringing in Document Grounding with which we enable our customers to upload their customer-owned content, e.g. HR-policies, travel-policies, FAQs, and others, so that their users can ask questions based on these documents.

Navigational Pattern - Easily navigate SAP applications by simply asking via natural language. Joule offers you a navigational link which opens the respective application and UI in a new browser tab. In the destination, a user can open Joule again and continue where they have left with the same conversation history.

Transactional interactions provide our users with a direct entry point to the backend system. Triggering and influencing business processes with the power of natural language and AI. E.g. purchase orders which need to be reviewed and approved, job positions which are created or any other CRUD-interaction (create, read, update, delete) within SAP cloud applications.

And a 4th, Analytical pattern to enable analytical interactions based on JustAsk and SAP Analytics Cloud, enabling customers to leverage Joule for analytical queries. This is currently not implemented in Ariba.

With the Q3 2025 release, Joule is being made available in the SAP Ariba applications of Guided Buying, Guided Sourcing and Supplier Management.

Please note that AI copilot Joule in the aforementioned products will be in Early Access until September 19th, 2025 at which time it will be made generally available to customers.

Below is the complete list of Transactional and Navigational Joule skills which are available per application area.

1. Guided Buying

Available Transactional Joule Skills

Get Status of Purchase Requisition – Displays the status of a specific PR
Show recent purchase requisitions – Displays a list of the last 10 PRs
Show Approvers of PR
Show Shipping Details
Show PR Details – Displays line item information of a specified PR

Available Navigational Joule Skills

View Requisition

2. Guided Sourcing

Available Transactional Joule Skills

List Sourcing Events - Displays the list of sourcing events created within a specified number of past days.
Return RFx status of a sourcing event – Displays the status of a specific event ID
Return approval status of a sourcing event – Displays the status of an approval task for the specified event
Send reminder email to Suppliers
Retrieve Supplier Invitation Details
Retrieve Event Timing or Event Rules
Display pending approvals
Approval Processing
Sourcing Approval Status Check
Retrieve Supplier Bids
Retrieve Supplier Bid Details

Available Navigational Joule Skills

Go to My Tasks
Go to For You page
Go to Sourcing Event
Go to Request Creation page

3. Supplier Management

Available Transactional Joule Skills

Show Primary Contact Information of Supplier – Displays contact details of Supplier
List Suppliers ‘In Registration’ status - Displays a list of suppliers that have started the registration process but haven't submitted questionnaires for a specific number of days.
List Suppliers ‘Invited’ status – Displays a list of the Suppliers that have been invited to register but haven’t responded to the invitation for a specific number of days

Available Navigational Joule Skills

Navigate to get Suppliers in Registration status
Navigate to get Suppliers in Invited status

Additionally, the Informational pattern is also available for the 3 applications which means Joule can assist users with your product-related questions by finding answers in the product documentation published on the SAP Help Portal. Along with an excerpt, it provides direct links to the relevant source documents, allowing you to explore the details further.

COSTING

All the above mentioned Joule skills are part of Joule base, which means you will not be charged any AI units for these.

You should have enabled either of the below Joule SKUs from SAP store

Joule Base SKU: 8019544
Joule Premium SKU (includes AI Units): 8019164

MULTI-LANGUAGE SUPPORT

Joule will be able to understand and respond to queries in the following languages - English, German, French, Spanish, Portuguese, Japanese, Korean, Chinese, Vietnamese, Greek, Polish.

PREREQUISITES

Joule leverages the SAP Business Technology Platform to simplify complex integration landscapes. So the very first prerequisite is a BTP account.

1. SAP Ariba applications license : You have a license for one or more of the aforementioned SAP Ariba applications in one of the supported data centers supported by Joule, as Joule is an embedded application that is integrated with SAP products. The currently supported data centers are listed here.

2. SAP BTP : Joule leverages the SAP Business Technology Platform to simplify complex integration landscapes, which makes it the next prerequisite. You should have an enterprise global account on SAP BTP. If you already have a global account in SAP BTP, Joule entitlements can be added in the same global account.

To activate or setup Joule, you need to have the following BTP services.

3. SAP Cloud Identity Services : SAP Cloud Identity Services are a group of services of SAP BTP which enable you to handle provision and integrate identity and access management between systems, providing you a seamless SSO experience across systems with the security. SAP Cloud Identity Services are bundled with an SAP cloud solution, which means you are entitled to one productive and one test tenant preconfigured with the SAP cloud solution (Refer this link). You should have integrated the SAP Ariba application with Identity Authentication as Joule leverages the IAS setup of the SAP product for user login. (Refer this blog for details on SAP Ariba SSO with SAP Cloud Identity Services.)

4. SAP Build Work Zone, Standard Edition : To support navigation to different applications from Joule and handle role based access scenarios, you need to configure the navigation service of SAP Build Work Zone. Joule uses the navigation service component of SAP Build Work Zone, standard edition to resolve intent based navigation targets and configure additional content providers.

5. You have created a subaccount in your global account using the SAP BTP cockpit for provisioning Joule. A single Joule subscription can be integrated into multiple SAP products like SAP SuccessFactors, SAP S/4HANA Cloud Private Edition, or SAP Build Work Zone. However, one subscription of the Joule application can only be integrated with one tenant of an SAP product. This means you cannot include multiple systems of the same product in one Joule formation. You must ensure that there is one IAS tenant per single independent entity and operate every single independent entity from its own dedicated SAP BTP sub-account.

LIMITATIONS AS OF Q3 2025 RELEASE

Buyer Parent-Child MERP (Multi-ERP) realm setup issue in Guided Buying : Joule does not currently support multi-tenant consolidation. To overcome this limitation Customers must run Joule Booster in every child realm. This also means there will be no data consolidation across the realms

SAP Ariba 2508 Release Key Innovations Preview

2025-07-31T12:39:50.411000+02:00

Highlights of Enhancements across Procurement

Joule, Your AI Copilot

As you may know, Joule is the SAP AI copilot - a virtual assistant that uses a conversational interface to help users of SAP business applications complete tasks more efficiently.

The conversational interface is brought to life with the help of these 4 interaction patterns:

With informational interactions we are providing our users knowledge-based results. All SAP applications in which Joule is available make their knowledge-base available via Joule, e.g. SAP Help Documentation. This is managed by SAP and offered to every Joule user out of the box.
We're also bringing in Document Grounding with which we enable our customers to upload their customer-owned content, e.g. HR-policies, travel-policies, FAQs, and others, so that their users can ask questions based on these documents.

Navigational Pattern - Easily navigate SAP applications by simply asking via natural language. Joule offers you a navigational link which opens the respective application and UI in a new browser tab. In the destination, a user can open Joule again and continue where they have left with the same conversation history.

Transactional interactions provide our users with a direct entry point to the backend system. Triggering and influencing business processes with the power of natural language and AI. E.g. purchase orders which need to be reviewed and approved, job positions which are created or any other CRUD-interaction (create, read, update, delete) within SAP cloud applications.

And a 4th, Analytical pattern to enable analytical interactions based on JustAsk and SAP Analytics Cloud, enabling customers to leverage Joule for analytical queries. This is currently not implemented in Ariba.

With the Q3 2025 release, Joule is being made available in the SAP Ariba applications of Guided Buying, Guided Sourcing and Supplier Management.

Please note that AI copilot Joule in the aforementioned products will be in Early Access until September 19th, 2025 at which time it will be made generally available to customers.

For a complete list of Transactional and Navigational Joule skills which are available per application area, view our new blog: Joule 2508 Release Key Innovations

SAP Ariba Category Management Highlights

Ability to Set an Initiative as Obsolete in SAP Ariba Category Management (ARBCATA-463)

Keeping your workspace organized is essential for focus and efficiency. With this feature you can now manually mark outdated initiatives as obsolete, easily closing those that are no longer relevant. This means your team will see only initiatives that matter, reducing clutter and helping everyone prioritize more effectively.

Additionally, the Initiatives Overview page now allows you to filter by multiple phases—including the Obsolete phase—so you can quickly get the view you need and keep data clean and actionable.

Standardized and Detailed Category Risk Assessment (ARBCATA-489)

Risk management is fundamental to strong category strategies. With this feature , the risk assessment tool has been enhanced so administrators can define standardized risk types for evaluation across all purchasing categories.

The new Risk Types page on the Strategy and Plan tab

Category managers can now identify, score, and qualify each risk in detail, with information like cause, impact, and mitigation strategies.

The New Risk page that appears when you click Create on the Risk Assessment page now includes 3 sections: Assessment, Details, and Mitigation. These scores contribute to an overall risk score at the strategy and plan level, which reflects the combined risk across category, timeframe, business unit, and region. This gives category managers a structured, repeatable approach to assessing category supporting informed decision-making at every level.

The Risk Assessment page now displays a Risk Assessment Matrix and Risks table.

Ability to Select Tool Documents for AI-generated Category Strategy Recommendations (CATMAN-16)

Now that it’s possible (with the above feature) to create multiple Cost Structure and Market Dynamics documents, this new AI-driven strategy recommendations allows you to choose which Cost Structure and Market Dynamics documents to include, ensuring the insights you receive are tailored to your specific business needs. This accelerates the development of effective strategies, minimizing revisions and aligning recommendations with your goals.

You can now choose specific Cost Structure and Market Dynamics documents when generating recommendations for category strategy details, in cases where multiple tool documents are linked to a strategy and plan document

For further details on these innovations and more, view our new blog: Category Management 2508 Release Key Innovations

Highlights from Source-to-Contract

SAP Ariba Contracts Integration with WalkMe (SCONTR-1444)

This feature facilitates the integration between SAP Ariba Contracts and the WalkMe Digital Adoption Platform. Through this integration, buyers receive on-demand guidance from WalkMe for several commonly used workflows within SAP Ariba Contracts.

This enables organizations to accelerate user adoption of technology, boost productivity, and maximize the value of enterprise software investments.

Smart walk-throughs powered by WalkMe are available for the following workflows within SAP Ariba Contracts:

Creating a contract workspace
Importing line items into a contract workspace using the Simplified Excel Import functionality
Creating contract workspace templates

Managing Baseline and Supplier Contracts for Pre-Award Negotiation in Icertis Contract Intelligence for SAP Ariba Solutions (SCONTR-1499)

If your organization uses Icertis Contract Intelligence (ICI) alongside SAP Ariba, you can now manage both baseline and supplier contracts directly in Icertis during pre-award negotiations.

We've also improved the APIs so that developers can easily copy data from one contract workspace to another.

Display Remaining Time for Line Items in Bid Console for Guided Sourcing Auctions and Competitive RFPs (SOURCE-2544)

This feature enables buyers to view the remaining time for line items and lots within the Bid Console page and is applicable to guided sourcing events such as English forward auctions, English reverse auctions, and competitive RFPs.

Timing matters! The bid console now clearly shows how much time is left per line item (or lot) during auctions and RFPs.

The changes are applicable for competitive RFP, Auction, Reverse auction bid console screens. For Japanese, dutch auctions the new column Time remaining will not show and the watch screen timer values will not change.

For further details on these innovations and more, view our blog: Source-to-Contract 2508 Release Key Innovations

Highlights from Procure-to-Order

AI Copilot Joule in Guided Buying (GUIDEB-1163) - GA September 19th

AI copilot Joule in Guided Buying features a conversational interface designed to help users complete tasks efficiently. It leverages generative and other AI technologies to understand natural language requests, identify user intent, perform actions, and provide valuable insights.

With Joule, you can easily access information such as:

Requisition approval status
Requisition details
Recent purchases

You can find the Joule panel by clicking on the icon at the top of your screen. This release is just the beginning of our journey to harness AI across buying processes, driving significant efficiency gains and more for our entire user base.

Please note that AI copilot Joule in Guided Buying will be in Early Access until September 19th, 2025 at which time it will be made generally available to customers

For more detailed information please see this blog: Joule in SAP Ariba Applications

Enhancements to WalkMe in Guided Buying (GUIDEB-1266)

We were excited to announce the first iteration of WalkMe in Guided Buying in the last release (2505), now to build on this momentum with an important user experience enhancement.

The WalkMe Digital Adoption Platform is now enabled for all Guided Buying customers and the WalkMe panel can now display content from SAP Companion also through some subtle UI changes.

If both WalkMe and SAP Companion are enabled, the walk me panel now displays a separate tab for each respectively:

Previously, WalkMe was disabled by default, and SAP Companion content displayed in a different panel.

This innovation offers more flexibility, allowing you to use the right resources and support at the right time in the most suitable way. It will help guide you seamlessly through your desired procurement processes and drive better outcomes.

For further details on these innovations and more, view our blog: Procure-to-Order 2508 Release Key Innovations

Highlights from Central Invoice Management

Enriched Filtering Capabilities for the Invoice List (CIM-2270)

We know that dealing with large volumes of invoices can be challenging, especially when you need to find that one specific invoice or group relevant data for reporting and analysis. With our latest release, we’re streamlining this process even further.

Within the invoice list you can use the Adapt Filters button to add several new filters to the filter bar. For additional information on how to adapt filters in the invoice list, see Adapting Filters and Creating Variants. The following filters are now available:

Company Code Country/Region
Supplier Country/Region
Purchase Order

The new filters allow you to search the invoice list more precisely and accurately as seen in the image below:

Posting Date Automatically Updated During Automatic Processing (CIM-2920)

For organizations that use automatic processing for invoices in SAP Ariba, you likely set a default posting date—often the current date—when invoices are automatically submitted. With our new enhancement, if you have defined the default posting date as the current date, the system now dynamically updates the posting date to the exact current date right before the invoice is submitted.

We understand that sometimes, there may be a delay between when automatic processing starts and when an invoice is actually submitted. In the past, this gap meant an invoice could end up with a posting date that was out of alignment with the real submission time, potentially causing confusion or even issues with financial reporting or compliance.

With the new enhancement, the posting date will always reflect the true date of submission—even if the process experiences minor delays. This change can have a major impact for finance and accounting teams.

Submission of Invoices Enriched by Data Attribute Recommendation (CIM-2965)

With this feature, changes have been made to the automatic submission process for invoices enriched by data attribute recommendation. Now, when the confidence threshold for fields enriched by data attribute recommendation is between 0.5 and 0.7, the automatic submission is stopped, and you can review the fields within the invoice on the invoice detail page. You can then manually submit the invoice or adjust the invoice before submitting.

Data attribute recommendation can automatically enrich and complete the following fields in draft invoices:

G/L Account
Cost Center
WBS Element

Data attribute recommendation is a machine learning service that is trained with a set of invoices that you select. Once data attribute recommendation is trained and activated, SAP Ariba CIM can automatically complete missing fields in draft invoices using the data learned during the training.

For further details on these innovations and more, view our blog: Central Invoice Management 2508 Release Key Innovations

Highlights from Supplier Management & Risk

Supplier Management Integration with WalkMe (SLP-2265)
This feature integrates SAP Ariba Supplier Lifecycle and Performance and SAP Ariba Supplier Information and Performance Management (new architecture) with WalkMe Digital Adoption Platform. Users can take advantage of easy-to-understand guidance powered by WalkMe.

Supplier Management WalkMe integration includes several standard smart walk-throughs from SAP Ariba for common workflows. Customers can also choose to develop their own content by first purchasing WalkMe Premium for SAP Ariba solutions. For more information about WalkMe Premium for SAP Ariba solutions, see https://walkme.com

If you have an SAP Companion help system enabled, its help content remains available.

View implementation details and more here.

AI Copilot Joule in Supplier Management (SLP-2258)
Joule, SAP's generative AI copilot, is now available in supplier management. Joule uses a conversational interface to help users complete tasks efficiently. It leverages generative and other AI technologies to understand natural language requests, identify intent, perform actions, and provide insights. Using generative AI, it can execute tasks, deliver tailored responses, and summarize information effectively.

(IMPORTANT: AI Copilot Joule in SAP Ariba Supplier Lifecycle and Performance will be in early access until September 19th, 2025, at which time it will be made generally available to customers.)

View implementation details and more here.

For the list of tasks that you can perform using Joule, refer to the topic Joule Capabilities in Supplier Management.

Option to Join the SAP User Research Panel (SRISK-1771)
This feature provides you an option to join the SAP User Research Panel, where you can share your thoughts and ideas to enhance SAP Ariba Supplier Risk and other SAP products you currently use.

View implementation details and more here.

Risk Exposure Summary Report Displays Overall Residual and Inherent Risk Levels (SRISK-1763)

This feature provides information about the inherent and residual risk levels of suppliers in the Risk Exposure Summary report. This crucial information aids in making informed decisions when engaging with suppliers.

In addition to the existing risk exposure information, the Risk Exposure Summary report now includes two additional columns to provide inherent and residual risk level information for the suppliers you monitor in SAP Ariba Supplier Risk.

Changes to the User Interface - Currently, the Risk Exposure Summary report summarizes the overall risk exposure, and category-wise risk exposure such as legal and regulatory, environmental and social, and operational risk exposure. This enhancement introduces two additional columns to display overall inherent risk level and residual risk level information for the suppliers you monitor in SAP Ariba Supplier Risk.

View implementation details and more here.

For further details on these innovations and more, view our blog: Supplier Management & Risk 2508 Release Key Innovations

These innovations aim to significantly enhance your procurement and sourcing capabilities, leading to improved efficiency, data-driven insights, and strengthened supplier relationships.

Stay connected with our community for more insights and updates:

Register for the Early Release Series for 2508 release (August 12-14, 2025)
Resources

Feature related materials:

SAP Ariba Connect - Release Readiness (Customers except CIM)
Readiness Community page (For CIM customers)

SAP Community for Intelligent Spend Management page
SAP Help Portal pages - Procurement and Network
What’s New
SAP Products and Services YouTube channel - https://www.youtube.com/playlist?list=PLWV533hWWvDk7zRbhOsWQkF5BGWokhHYH
"Spend Management and Business Network" playlist - https://youtube.com/playlist?list=PL3ZRUb1AKkpSPtGOGv41NrN_6_WwyiYrF&si=29zqqpUPaRoKUvU4
Make sure to check out our other blogs and subscribe to all of our authors to keep up-to-date with the latest and greatest innovations!

Transform Procurement with the SAP Ariba Business AI Accelerator

2025-08-12T07:24:42.409000+02:00

Gordon Donovan's, Global Vice President Research, Procurement & External Workforce at SAP, recent conversations with the Procurement Leaders, clearly states that we are currently living in a world of "Polycrisis" - a mix of geopolitical, environment and macroeconomics risks, where Procurement is right on the front lines. Instead of just focusing on cost savings, the role of procurement has become one of Risk Management and Strategic Value Creation and AI plays a critical role in making this shift possible.

These conversations emphasis that AI is a not a buzz word but is a critical tool for facing today's reality. The procurement leaders have pointed out the few key areas where AI plays a major role:

Enhanced Risk Management and Resilience
Strategic Decision-Making and Optimization
Automation and Productivity
Data-Driven Supplier Management

Ultimately, Donovan's discussions show that AI is not just about efficiency; it's about giving procurement leaders the intelligence and agility they need to thrive in a world full of interconnected risks. The real power of AI lies in its ability to transform procurement into a function that can anticipate and respond to change, rather than simply reacting to it.

We have the McKinsey's 2024-2025 research which supports these conversations. AI is set to drive and redefine how the procurement operates, arrive at decisions and deliver value in an Organization. Their findings show that organizations where AI has been adopted early, they are seeing:

Up to 30% faster sourcing cycles
5–10% reductions in spend
Over 20% improvements in contract compliance
Significant reduction in manual exception handling

These Research also identifies four important areas where adopting AI can make a major impact:

Spend analysis and bundling strategies
Supplier performance evaluation and ESG monitoring
Automated RFP creation and negotiation
Reducing value leakage across the Source-to-Pay cycle

Source (https://www.mckinsey.com/capabilities/operations/our-insights/revolutionizing-procurement-leveraging-data-and-ai-for-strategic-advantage

https://www.mckinsey.com/capabilities/operations/our-insights/where-is-procurement-heading-in-the-next-ten-years

https://www.mckinsey.com/capabilities/operations/our-insights/procurement-2025-reimagining-the-function-for-success)

SAP Ariba's embedded capabilities align closely with these areas, and it goes beyond when supported by SAP Joule and the Business AI Accelerator Service in Preferred Success.

Where AI Is Already Delivering Value in SAP Ariba

SAP Ariba was already into the AI Journey before generative AI became the focus in the technology world. The Solution was enabling meaningful automation through traditional Machine Learning AI. The functionalities are already live and in use today.

Guided Sourcing

Smart Event Creation helps sourcing leads get started faster by recommending event templates based on historical data
Supplier Recommendations suggest relevant, qualified suppliers using profile matching and past performance insights

The result: shorter sourcing cycles, better supplier outcomes, and more informed decisions.

Guided Buying

Personalized Product Recommendations surface the most relevant items for each user based on behaviors and role
Catalog Item Matching offers compliant alternatives when users search for off-catalog or non-preferred items

The result: increased compliance, reduced maverick spend, and a better buying experience overall.

These use cases represent just a portion of what’s possible. SAP’s AI in Procurement site offers a more comprehensive view for teams looking to explore beyond the basics: Visit SAP AI for Procurement

The Business AI Accelerator Service: What it is and why it matters?

The Business AI Accelerator Service in the Preferred Success isn't about introducing the Organizations to the new technology that is available in the solution. It’s a structured service which is designed to help organizations to start their journey with AI along with their SAP Solutions. It helps them to put AI into action by starting with the embedded capabilities and extending more strategic use cases through custom use case ideation.

Why customers use it:

To align AI initiatives with business goals
To identify use cases with measurable value
To understand how to implement AI responsibly
To support users through the transition with change enablement

What it includes:

SAP Business AI Essentials

We start with foundational education: What AI is (and isn’t), how it’s already embedded in SAP solutions, and how our Co-Pilot, SAP Joule enhance procurement operations.

Governance and Ethics Enablement

We provide a framework to ensure that AI initiatives are compliant, transparent, and aligned with SAP’s global principles for ethical AI. That includes privacy, fairness, and human oversight.

Change Management Support

Success with AI isn’t just about data—it’s about people. We provide guidance on how to prepare procurement teams for AI-driven workflows and address the common challenges in adoption

Use Case Discovery Workshop

In this session, we work with your team to identify pain points, assess feasibility, and prioritize use cases that deliver near-term ROI. This is a highly interactive, business-first discussion.

Where to Start:

You don’t need to perfectly define the plan to start the AI journey, our Business AI Accelerator service is designed to meet you on wherever you are in the AI Journey. Whether you're just brainstorming potential use cases or you've already got some ideas you want to validate, this service provides the clarity and expert guidance you need to move forward with confidence.

If you already have Preferred Success subscription for SAP Ariba, then starting with the service is easy. Reach out to your Customer Success Manager to learn more and schedule the sessions to help you unlock and start your AI Journey.

If you are not a Preferred Success Customer yet, simply get in touch with your SAP Partner or Account Representative. They can walk you through the available options to join the program and unlock this, and many other, valuable services.

Learn more about SAP Preferred Success and how it helps customers accelerate outcomes and reduce transformation risk

What’s New in Purchase Requisitions - SAP S/4HANA Cloud Public Edition 2508

2025-09-29T17:00:08.166000+02:00

Hi Friends, let us look at some of the exciting features in purchase requisitions for the SAP S/4HANA Cloud Public Edition 2508.

Renamed Apps in Purchase Requisition

As of SAP S/4HANA Cloud Public Edition 2508 release, please find the details of renamed apps in purchase requisition:

Predecessor App – Previous Name	Predecessor App – Current Name (as of SAP S/4HANA Cloud Public Edition 2508 release)	Successor App – Previous Name	Successor App – Current Name (as of SAP S/4HANA Cloud Public Edition 2508 release)
Process Purchase Requisitions	Process Purchase Requisitions - Deprecated	Process Purchase Requisitions (V2)	Process Purchase Requisitions
Create Purchase Requisition	Create Purchase Requisition - Deprecated	My Purchase Requisitions - New	My Purchase Requisitions
My Purchase Requisitions	My Purchase Requisitions - Deprecated	My Purchase Requisitions - New	My Purchase Requisitions

For more information, please check:

Renamed Apps in Self-Service Requisitioning | SAP Help Portal

Renamed App in Purchase Requisition | SAP Help Portal

Configuration of Message for Service Performer

With this release, you can configure the message for the Service Performer while creating a service item or limit service item for a purchase requisition in the Manage Purchase Requisitions – Professional app.

DMS Header Attachments in Purchase Requisitions

With this release, you can now use DMS (Document Management Service), in the Manage Purchase Requisitions – Professional and Create Purchase Requisition – Advanced apps, when HDM (Harmonized Document Management) is activated.

Requisitioner Name in Process Purchase Requisitions

With this release, you can now view the Requisitioner Name field for a purchase requisition in the Process Purchase Requisitions app.

The Created by User Description and Description fields are removed and now both the Created By and Requested By fields display ID and description.

Configuration in Central Procurement

With this release, using the new SSCUI, Activate Central Requisitioning Approval, you can enable approval of a central purchase requisition when any modifications are made in the connected system. Accordingly, a relevant workflow is triggered in the hub system.

Extensibility in Central Procurement

With this release:

The service, Purchase Requisition - OData V4 (API_PURCHASEREQUISITION_2), is enhanced by a new distribution indicator, Distribution by Amount = “3” in the item node for the MultipleAcctAssgmtDistribution field.

The service Purchase Requisition - Send Status Update Notifications (PurchaseRequesitionStatusNotification_Out), is enhanced by a new service node, LogMessage.

The business object interface, I_PURCHASEREQUISITIONTP, is enhanced with the following business events enabled for local consumption:

CREATED
CHANGED
APPROVED
REJECTED
ITEMCREATED
ITEMCHANGED
ITEMAPPROVED
ITEMREJECTED

The BAdI, Setting of Default Delivery Address of Self-Service Purchase Requisition (MM_PUR_SSP_DEF_DEL_ADRS_SIMPLE), is enhanced with two new fields Street 2 and Street 3 in the delivery address of a purchase requisition.

The importing parameter of this BAdI has been enhanced with custom fields of a purchase requisition.

Deprecation Details:

The API service API_PURCHASEREQ_PROCESS_SRV is deprecated in a previous release. We recommend you switch to the successor API service API_PURCHASEREQUISITION_2 as soon as possible.

For changes to identity and access management (IAM) objects, please check: Identity and Access Management (IAM): Change Overview | SAP Help Portal

This is a brief overview of the new features available in SAP Ariba Central Procurement for SAP S/4HANA Cloud Public Edition 2508. I hope you found this blog post insightful.

Click here for the complete release highlights of SAP S/4HANA Cloud Public Edition 2508.

Click here for a recap of SAP S/4HANA Cloud Public Edition 2502 release highlights.

Share your feedback and thoughts in the comments section, and in case you have further questions, please post them on the community page using the link below:

Ask a question

For more information on Purchase Requisition in SAP S/4HANA Cloud, public edition, check out the link: SAP Help Portal Product Page

SAP Spend and Finance Point of View: Growth Through Technological Progress

2025-10-23T16:08:38.547000+02:00

Last week's Nobel Prize announcement included the Economics award to Joel Mokyr, Philippe Aghion, and Peter Howitt for their groundbreaking insights into how technological innovation fuels sustained economic growth. Their research highlights a previously - i.e. only since the industrial revolution - rare phenomenon in human history: persistent economic advancement, fueled by a cycle of innovation and creative destruction. As these economists illustrate, technology plays a pivotal role in elevating global living standards and driving economic progress.

The transformation described by Mokyr, Aghion, and Howitt resonates well with SAP's vision is to help the world run better and improve people's lives with our technology our long history of business innovation. SAP Spend and Finance Management solutions have an especially rich offering in that regard. Our portfolio embraces the principle of innovation as an enabler of growth. Organizations can leverage our solutions in a number of ways. For example: Aghion and Howitt's concept of creative destruction is mirrored in the agile adaptation fostered by SAP solutions. As companies face the inevitable cycles of technological refinement, SAP Spend and Finance Management solutions help organizations manage the conflicts associated with shifting paradigms. By offering tools for strategic decision-making, they enable businesses to navigate the challenges of innovation, ensuring that established practices do not stifle progress.

Three recently announced examples of innovation include:

AI-enabled streamlining and simplification of procurement processes

In today's complex procurement landscape, end-users often face a maze of systems and steps, leading to frustration, delays, and inefficiencies. Learn how technology can address common intake challenges, such as navigating multiple systems, chasing stakeholder approvals, and ensuring compliance. learn more here

New Levels of Agility and Resilience in Spend Management

Supply shocks, shifting regulations, cost volatility, and talent constraints are constant. The pressure to deliver more impact is rising, yet resources rarely keep up. Yesterday’s systems weren’t designed for today’s challenges, let alone tomorrow’s which is why we will help our customers leverage the Power of Procurement with Next-Gen SAP Ariba. read more here

Tariff Analysis and Insight using value analytics

Underpinned by Intelligent Performance Indicators and populated with ERP data our offering can help customers better understand and manage tariff uncertainty meaning that they can make better decisions faster at the material, plant and location level using lead-time and on-time & in-full and tariff rate metrics. understand more here

In today's fast-paced global economy, the lessons imparted by the 2025 Nobel laureates offer inspiration and guidance. Through the strategic implementation of technologies like SAP Spend and Finance Management, organizations can harness the power of sustained growth and innovation, ultimately contributing to a more prosperous and dynamic future.

From Tactical to Strategic: The Future of Procurement and Accounts Payable

2025-11-19T15:48:15.956000+01:00

From Tactical to Strategic: The Future of Procurement and Accounts Payable 🚀

In today’s rapidly evolving business landscape, the transformation of procurement and accounts payable (AP) functions is more than just a technological upgrade—it’s a strategic imperative. The recent episode of SAP’s “The Future of Procurement” podcast, featuring Mike Jasper, Director of Transformation Product and Client Success at Extropy Advisors, dives deep into how organizations can shift from tactical operations to strategic value creation. Here’s what you need to know.

Shifting the Paradigm: From Manual Tasks to Strategic Impact 🔄

Historically, procurement and AP have been viewed as transactional, paper-pushing departments. Mike highlights that while procurement has evolved from “purchasing agents” focused on bids and POs, AP is still often stuck in manual, tactical activities. The key to unlocking strategic value? Automation. By automating invoice processing and data entry, AP teams can redirect their efforts toward activities that drive cost savings and business growth. This shift not only increases efficiency but also empowers AP to contribute to broader financial strategies.

The Power of Collaboration: Breaking Down Silos 🤝

A recurring theme in the discussion is the importance of collaboration between procurement, AP, and finance. Mike and the panel emphasize that working together uncovers opportunities for working capital improvements, such as payment term extensions and early payment discounts. When departments align their KPIs and share data, they can collectively optimize supplier relationships, reduce late payments, and negotiate better terms. The creation of shared dashboards and procurement intelligence platforms fosters transparency and mutual understanding, driving both operational and strategic benefits.

Overcoming Resistance: Building Trust in Automation and AI 🛡️

Change management is a critical challenge. Many AP professionals fear that automation and AI will lead to job loss or errors in financial reporting. Mike suggests a gradual approach—automate in stages, track accuracy, and build trust by demonstrating that technology can handle routine tasks reliably. By quantifying success and focusing on exceptions, organizations can help AP teams see the value in shifting their focus from manual checks to strategic initiatives. AI is poised to revolutionize AP by enabling smarter data validation, predictive coding, and holistic financial insights—provided that organizations invest in clean, integrated data.

Forward-Looking Insights: The Road Ahead for AP and Procurement 🌐

Looking to the future, Mike offers a bold prediction: AP and procurement may eventually merge into a single, strategic department. As automation and AI continue to advance, the boundaries between these functions will blur, enabling seamless collaboration and more impactful contributions to corporate strategy. The move toward digital payments, such as ACH and virtual cards, is accelerating, with the U.S. finally surpassing the halfway mark for non-check payments. However, there’s still work to be done to fully digitize and optimize payment processes.

Conclusion: Embracing Change for Lasting Value 💡

The journey from tactical to strategic in procurement and AP is ongoing, but the destination promises greater efficiency, stronger supplier relationships, and enhanced business outcomes. Organizations that embrace automation, foster collaboration, and build trust in new technologies will be well-positioned to lead in the future of spend management. As Mike and the podcast panel remind us, the goal isn’t to eliminate jobs—it’s to make them more impactful and rewarding. Now is the time to clean your POs, accelerate approvals, and realize those cost savings. Are you ready to be a change agent in your organization?

What are your thoughts on the future of procurement and AP? Share your experiences and join the conversation! Send your feedback, questions and topic ideas to TheFutureofProcurement@SAP.com

🌐 OpenSAP: https://podcast.opensap.info/future-of-procurement/

🍎 Apple Podcasts: https://podcasts.apple.com/us/podcast/episode-23-from-tactical-to-strategic-with-mike-jasper/id1764078646?i=1000736234046

Spotify: https://open.spotify.com/show/5twXP1NehSqgCAznTnzQ5H

The Procurement Monthly - December & January

2026-01-23T06:58:51.546000+01:00

Summary. 1

State of Flux 2025 Global SRM Research Report. 1

McKinsey State of AI 2025. 2

Gartner. 2

RPA Relevance in the AI Era. 2

AI and Jobs Report. 3

Top AI Strategic Predictions 2026 and Beyond. 3

World CC Contract Management Benchmark 2025. 3

Sphera Geopolitical Disruption Survey. 4

Economist Impact- Enterprise AI blueprint. 4

MHI Top Supply Chain Trends. 5

ProcureTech100 Yearbook 2025/26 – Art of Procurement & McKinsey. 5

Gartner - Predicts 2026: Procurement. 6

2026 Procurement Agenda and Key Issues Study – The Hackett Group. 6

Summary

Several themes appear consistently this month. First, AI adoption is widespread but scaling remains elusive. Organizations experiment extensively yet struggle to achieve enterprise-level impact.

Second, internal barriers outweigh external challenges. Budget constraints, competing priorities, and organizational change block progress more than market volatility or geopolitical disruption.

Third, supplier relationships require fundamental reframing. Suppliers deliver customer experience, employ the workforce indirectly, and hold innovation potential. Treating them transactionally sacrifices competitive advantage.

Fourth, technology fragmentation undermines transformation. Excel dominates where purpose-built solutions should operate. Integration gaps prevent the visibility and automation organizations need.

Fifth, workforce impacts demand attention now. AI will transform millions of jobs annually. Organizations focusing on layoff announcements miss the larger challenge of redesigning roles and building capabilities.

State of Flux 2025 Global SRM Research Report

Supplier relationship management maturity continues to decline globally. Only 6% of organizations have mature supplier management capabilities, down from 8% in 2023. The research surveyed 484 respondents across 335 companies and reveals a concerning disconnect: CEOs spend just 1% of their time with suppliers despite suppliers delivering 50% of customer touchpoints and employing more than half the workforce indirectly.

Organisations that achieve customer of choice status with suppliers gain priority access to innovation, better pricing, and improved service during disruptions. 90% of Leader organizations report suppliers bring their best people when the relationship is strong. 81% of Leaders engage in joint account planning, compared to only 17% of Followers.

The primary barriers to SRM progress remain internal. Competing business priorities, organizational change, and budget constraints outweigh external challenges. Technology remains fragmented, with 87% of organizations relying on Excel or office tools to manage suppliers. Only 10% of Leaders have tools prioritizing value and innovation creation.

The report argues procurement must reframe conversations from efficiency to enterprise value. Suppliers are brand ambassadors who directly influence customer experience. Treating them as transactional vendors undermines competitive advantage. Investment priorities should include purpose-built SRM technology, capability building for supplier-facing roles, and governance models embedding SRM into business rhythms.

McKinsey State of AI 2025

According to the report, AI adoption is now nearly universal, with 88% of organizations using AI in at least one business function. Yet most remain stuck in experimentation. Only 32% have begun scaling AI across the enterprise. The gap between adoption and impact persists, with just 39% reporting EBIT impact at the enterprise level.

AI agents have emerged as a significant focus area. 62% of respondents are experimenting with agents, and 23% are scaling agentic systems somewhere in the enterprise. Technology, media, telecommunications, and healthcare sectors lead agent adoption. IT, knowledge management, and software engineering functions show the highest scaling rates.

High performers differentiate themselves through ambition. They are 3.6 times more likely to pursue transformative business change with AI, not just incremental efficiency. They redesign workflows fundamentally, achieving 2.8 times the rate of workflow transformation compared to peers. High performers invest over 20% of digital budgets in AI, compared to 10% for average organizations.

Workforce impacts vary. 32% of respondents expect workforce decreases from AI in the next year, 43% expect no change, and 13% expect increases. Larger companies are more likely to anticipate workforce reductions. Each year, AI will significantly transform 32 million jobs, requiring upskilling or complete role redesign.

Gartner

RPA Relevance in the AI Era

RPA remains the optimal solution for rule-based processes involving high volumes of structured data. AI and intelligent automation suit complex, dynamic, or unstructured tasks but require higher investment, strong data quality, and organizational readiness.

The report maps specific RPA use cases across source-to-pay processes. Sourcing benefits from automated request monitoring via standardized email forms. Contract management gains from data cleansing and expiry monitoring. Supplier management improves through automated documentation requests and pricing updates. Procure-to-pay functions benefit from requisition validation, purchase order maintenance, and three-way matching automation.

AI is enhancing RPA rather than replacing it. New capabilities include reduced bot development timelines, improved exception handling, and self-healing bots. Organizations should monitor RPA performance continuously and reassess automation strategies as AI matures. The recommendation is clear: use RPA for high-volume repetitive tasks delivering immediate gains while selectively deploying AI where it provides strategic value.

AI and Jobs Report

AI will create more jobs than it eliminates beginning in 2028-2029. However, 32 million jobs will transform significantly each year. Daily, 150,000 jobs will evolve through upskilling while 70,000 will require complete redesign. Job transformation demands 20 times more organizational effort than layoffs or hiring.

Industry impacts vary dramatically. Technology sector faces the most severe disruption but represents less than 2% of the global workforce. Asset-intensive industries show lower AI exposure due to physical work requirements. Services and public sectors will experience more job losses than gains due to weak adaptability despite high automation pressure.

The analysis reveals critical nuances. Less than 1% of announced layoffs in early 2025 were attributable to AI productivity gains. 79% had no AI connection whatsoever. Acting on layoff hype will create strategic errors. Financial services and public sector organizations will face severe skills shortages as expectations outpace feasibility.

Top AI Strategic Predictions 2026 and Beyond

By 2027, 75% of hiring processes will require AI proficiency testing. Half of GenAI performance gains depend on prompt quality. Job postings mentioning AI skills command 28% salary premiums. Organizations should integrate AI proficiency assessments into talent management immediately.

Critical thinking skill atrophy will force 50% of organizations to require AI-free assessments through 2026. Overreliance on AI degrades inherent abilities. Staff beginning their careers face the highest risk, skipping validation steps that build cognitive capabilities.

By 2028, 90% of B2B buying will be AI-agent-intermediated, affecting over $15 trillion in spend. Multiagent AI systems will dominate customer-facing processes. Organizations must shift from optimizing for human persuasion to enabling autonomous agent interaction. Verifiable operational data becomes essential currency in this new ecosystem.

World CC Contract Management Benchmark 2025

This years report identifies that 87% of organizations face high uncertainty levels, yet contracting capability remains neglected. 88% of executives acknowledge contract management excellence matters, but a massive gap separates recognition from action. Only 10% execute successfully on improvement plans while 50% struggle to formulate any response.

48% of respondents acknowledge no clarity exists over who owns contracting process quality. Analysis reveals the true figure is 70-80%. Contract management suffers from superficial shared responsibility without genuine ownership. The report states that this governance failure undermines all other improvement efforts.

Buy-side organizations operate with greater rigidity, processes designed for compliance rather than flexibility.

AI adoption accelerates. 40% of organizations use AI in approved forms, with 23% under review. High-performing organizations show 80% interest in AI and machine learning versus 57% for those with less integrated processes. The Global Contract Management Standard, launched June 2025, offers a framework for sustained improvement.

Sphera Geopolitical Disruption Survey

A study of over 200 global CSCO and CPOs identified that 95% of CPOs and CSCOs express concern about geopolitical instability impacting supply chains in the next 12-24 months. 64% are very concerned. Macroeconomic volatility follows closely at 95.5% concern. Regulatory uncertainty affects 88.5%, and supplier financial health concerns 88%.

Geopolitical tensions represent the single most disruptive risk for 35.5% of respondents, followed by macroeconomic instability at 24.5%. Organizations are responding with geographic supplier diversification (52.5% already implemented), nearshoring production (40% completed), and increased inventory buffers (55.5% in place).

Barriers to resilience remain substantial. 55% cite supplier engagement challenges, 50% report budget constraints and ROI justification difficulties, 45% lack accurate supply chain data, and 39% have limited visibility beyond Tier 1 suppliers. Only 10% report no current barriers.

Investment priorities for the next 12-18 months focus on tariff and trade uncertainty (27% of resources), geopolitical disruption (25%), regulatory compliance (23%), and climate-related risks (19%). Organizations relocating supply chains cite geopolitical instability (26%), tariffs (26%), macroeconomic volatility (18%), and regulatory uncertainty (15%) as primary drivers.

Economist Impact- Enterprise AI blueprint

This article states that business leaders face a troubling disconnect. Executives from 57% of S&P 500 companies discussed AI during Q4 2025 earnings calls, yet only 10% of employees have used AI in recent weeks. Erik Brynjolfsson, director of the Digital Economy Lab at Stanford University, offers four critical recommendations for closing this gap.

Organizations must first acknowledge the productivity J-curve. AI requires substantial complementary investments in restructured workflows, employee skills and new processes. These supporting investments can significantly exceed actual AI technology spending. Returns will not appear immediately. Input costs surge before output materializes, creating temporary productivity declines. Brynjolfsson notes that electrification only delivered productivity gains after factories were redesigned around distributed motors, a transformation spanning nearly three decades. AI's J-curve may be shorter because the technology can sometimes address its own implementation challenges.

Brynjolfsson advises structuring work around tasks rather than job titles and using AI to amplify human judgment rather than replace it. The largest gains flow to organizations building centaur teams where humans and AI learn from one another and leaders measure results rigorously. One Stanford study of 5,172 customer support agents found AI assistance increased productivity by 15% on average, with largest improvements among less experienced workers who benefited from AI capturing best practices of top performers

MHI Top Supply Chain Trends

MHI has released its annual forecast of forces shaping supply chain operations. The 2026 report identifies nine critical priorities reflecting a shift from reactive fixes toward proactive preparation. These nine trends share a common thread. Successful supply chains require technology adoption, proactive risk management and cross-functional collaboration

The first trend is workforce and talent gap. AI and automation require tech-savvy professionals, prompting organizations to invest heavily in reskilling programs and workplace cultures that foster innovation. Talent shortages directly limit the pace at which companies can adopt new technologies.

Artificial intelligence and real-time data form the second priority. Generative AI and predictive analytics have moved from optional to essential. Companies use these tools for demand forecasting, supplier evaluation and real-time decision-making that improves customer service. AI-driven decision-making will become mainstream in 2026

Automation and emerging technology rank third. Robotics and automated systems build flexible operations that counter workforce shortages and sudden demand shifts. According to MHI data, 41% of supply chain organizations have already adopted robotics and automation, with another 42% planning adoption within five years

Trade and tariffs occupy the fourth position. Shifting geopolitics force companies to rethink sourcing through supplier diversification and reshoring work to reduce risk exposure.

Uncertainty, inflation and rising costs represent the fifth trend. Economic volatility delays some deals while accelerating others as companies hedge against price increases.

Cybersecurity and risk management rank sixth. Greater connectivity expands cyber threat exposure. Companies are building stronger cybersecurity frameworks and deepening supplier relationships to protect data collaboratively. Forbes survey data shows 38% of supply chain leaders perceive cyber threats as significant.

E-commerce and inventory pressures come seventh. Customer expectations shifted rapidly. Inventory visibility, accurate forecasting, faster logistics and tighter quality control are now essential.

Agility and resiliency form the eighth trend. Agile supply chains use technology to adjust quickly when challenges arise. Digital transformation, cross-team collaboration and detailed contingency planning anchor rapid recovery strategies.

Environmental sustainability closes the list. Electric vehicles, route optimization and local fulfillment centres cut emissions and costs. However, AI's growing energy and water consumption creates tension with environmental goals.

ProcureTech100 Yearbook 2025/26 – Art of Procurement & McKinsey

The Yearbook is a practitioner‑led benchmark for the 100 most impactful digital solutions reshaping procurement, rather than another pay‑to‑play ranking. It highlights a market in rapid convergence, where category boundaries between sourcing, CLM, analytics, S2P, risk, sustainability and SRM are blurring into composable, AI‑enabled ecosystems.

As part of the yearbook, there were a number of roundtables and some key trends emerged:

Category convergence and the rise of connected S2P stacks demand a deliberate architecture, not opportunistic tool buying. Tech strategies now need to define what is “platform”, what is “specialist”, and how data and workflows are orchestrated end‑to‑end.

“Real‑world AI” and agentic systems shift the focus from experimentation to measurable outcomes – productivity, risk, speed and experience – with McKinsey suggesting potential 20x productivity uplift where agent factories are properly designed.

Connected intelligence and embedded analytics move insight from after‑the‑fact reporting into the flow of work (sourcing, contracting, supplier discussions), making data quality and governance a board‑level concern, not a clean‑up exercise.

CLM is being reimagined around meaning and trust, with modular, AI‑enabled tools for clause analysis, deviation detection and obligation tracking, changing how legal and procurement partner.

Human‑centred procurement, hybrid operating models and orchestrated ecosystems underline that tech alone will not deliver; process design, skills, and operating model are now as strategic as category strategies

Gartner - Predicts 2026: Procurement

Five predictions emerged:

data/process maturity,
real‑time supplier evaluation,
multitier visibility,
AI‑driven roles, and
orchestration.

Through 2027, only about 20% of procurement organisations will have the data and process maturity to really exploit multi‑agent systems – and they will gain a clear competitive edge. Poor data quality, fragmented processes and legacy tech are identified as the primary drag on agentic AI, not algorithms.

By 2028, 20% of teams are expected to use AI to continuously evaluate suppliers in real time, doubling coverage and extending metrics into collaboration, innovation and sustainability, using unstructured data from emails, chats and tickets.

By 2029, regulation and technology will push 40% of organisations to Tier‑3 visibility, making supply‑chain transparency a licence‑to‑operate issue rather than a “nice to have”.

Looking out to 2030, Gartner expects roughly 20% of procurement professionals to be in new AI‑driven roles, and AI to orchestrate procurement in 30% of organisations – routing work between humans and agents based on strengths, context and risk.

2026 Procurement Agenda and Key Issues Study – The Hackett Group

Hackett’s 2026 study captures how senior procurement leaders are setting priorities in an uncertain macro environment.

The 2026 “top 10” is led by: ensuring supply continuity, improving spend cost reduction, deploying AI‑enabled technology, and transforming the operating model. Digital transformation, third‑party risk visibility, agility, analytics and organisational velocity complete the list.

Workload is expected to rise by about 8% in 2026 while FTEs and operating budgets fall slightly, creating productivity and efficiency gaps of around 9% and 8% respectively – gaps leaders clearly expect technology (with tech spend up c.6.1%) and AI to close.

Savings expectations have moderated: more organisations now expect flat purchase cost reduction and cost‑avoidance performance versus 2025, even though a significant share still targets increases. The top value levers remain very traditional – supplier negotiation, strategic sourcing, category management, contract review and demand management – highlighting that AI is being layered onto, not replacing, core commercial disciplines.

Technology adoption is already high across S2P suites, analytics, CLM and e‑sourcing, with further investment planned in spend analytics, CLM, e‑sourcing, advanced analytics and supplier performance management.

71% of respondents report some level of GenAI adoption and 56% for agentic AI (mostly in pilot stages), with strongest reported benefits in cycle‑time reduction, productivity and quality; value from FTE reduction and spend savings is emerging but less mature. Join me and Elizabeth Zucker for a webinar looking at these issues. Register here

As always reach out to discuss more, and always happy to hear your thoughts!

SAP Ariba is now integrated with Microsoft Sentinel Solution for SAP

2026-02-09T13:34:21.343000+01:00

Quick link to GitHub.

Supply chain is a critical topic in almost every industry these days. We live in times where a controversial social media post and actions of government officials can disrupt factory operations almost the next day. See this Reuters (2025) article that sheds light on car production halt in Germany caught in the crossfire of political turmoil in 2 other countries. SAP Ariba helps diversify the risk between buyers and suppliers in tightly interconnected supply chains.

What a juicy target for cyber criminals one might say 😉

Therefore, meet the new kid on the blog when it comes to Microsoft Sentinel for SAP integration – SAP Ariba.

This cloud-native integration adds real-time threat detection, investigation, and response to your SAP Ariba environment and puts it into the context of your wider IT estate.

The bigger picture

Attackers use the easiest way in. Each month the SAP Security Patch Day starts a new race between hackers and defenders despite responsible disclosure obligations to allow a head start to defenders on reported vulnerabilities etc.

This race wears down defenses eventually – a gap is deemed to happen. Therefore, you need to be prepared to identify attackers in your IT landscape and be quick to lock them out again before they reach valuable targets.

Seeing the context and trail of the interconnected signals that the attacker leaves behind are key to identify compromise.

How It Works

Create an application on your Ariba Developer portal to allow access to the audit-search api and collect your API key.
Deploy the latest Microsoft Sentinel integration package in SAP Integration Suite. See this video for a similar scenario for guidance. Ignore the ERP specific settings on Cloud Connector etc. They don’t apply to Ariba.

3. Configure a Destination on SAP BTP for your Ariba instance and the audit search api.

Property	Value	Description
Name	Ariba-[TenantId]	Destination name (e.g., Ariba-p2pTeSap-2)
Type	HTTP	Connection type
URL	https://[region.]openapi.ariba.com/api/audit-search/v2/[prod or sandbox]	SAP Ariba Audit Search API URL (Find your base URl under Configuration Details)
Proxy Type	Internet	Always internet because of the cloud nature of the SAP service
Authentication	OAuth2ClientCredentials	For productive use
Client ID	[ClientId]	if applicable
Client Secret	[ClientSecret]	if applicable
Token Service URL	[TokenEndpoint]/v2/oauth/token	Ariba OAuth token endpoint

Additional Properties	Value	Description
tenantId	[TenantId]	SAP Ariba tenant ID
apiKey	[apiKey]	Api key for your SAP Ariba tenant

4. Deploy the agentless data connector for the Microsoft Sentinel Solution for SAP. See this video for a walk-through of the first steps and the official Microsoft Learn page here. Ignore the ERP specific settings on Cloud Connector etc. They don’t apply to Ariba

5. Connect your Ariba flow on the data connector pane to start ingesting SAP Ariba logs.

6. On the Advanced section supply the path “/community/SAPAribaAuditSearch” to point at the default route of the Ariba iFlow on SAP Integration Suite.

Observe the message flowing on Cloud Integration and Microsoft Sentinel. You can use the following query to verify the Ariba logs. Filter by AgentGuid in case you have multiple connections:

SAPAuditLog
| where AgentGuid == "Ariba"

Congratulations, you have successfully onboarded SAP Ariba to Sentinel for SAP 😎

There is one more thing!

Many of you are fronting Ariba with the SAP Cloud Identity Services. When you consult the attack graph from the beginning of this post, you already know that this is an important signal in the attack story. Identity compromise remains the number one attack path even in 2026. Have a look at the Digital Defense Report 2025 for more details.

Onboard your SAP Cloud Identity Service amongst your SAP BTP subaccounts to Sentinel for SAP from here to close that loop.

What you see is what you get

AI enabled unified Security Operations

Correlate SAP Ariba events with enterprise telemetry in Microsoft Sentinel Solution for SAP and Microsoft Defender XDR ready for Microsoft Security Copilot.
Use prebuilt analytics rules, workbooks, and SOAR playbooks to detect and respond to threats like:

Privilege escalations
Unauthorized configuration changes
Suspicious transactions

Compliance-Ready Log Retention

Store SAP logs cost-efficient in Microsoft Sentinel Data Lake for up to 12 years.
Support threat hunting involving SAP on the Sentinel Data lake through KQL jobs.

What’s Next

Enriching the mapping of the Ariba logs further to activate the remaining analytic rules provided by the SAP ERP private cloud offering.
Adding further Ariba specific detections. Which ones are top of mind for you? Reach out to me.

Final Words

That's a wrap 🎬 you saw today how simple SAP Ariba integration with your SIEM product can be. Remember: bringing SAP apps under the protection of your central SIEM isn't just a checkbox - it's essential for comprehensive security and compliance across your entire IT estate.

Quick link to GitHub.

#Kudos to Syed Ammad Hussain Shah for his contributions during the early preview.

Feel free to reach out to talk more SAP Ariba.

Cheers, Martin

The Procurement Monthly - Feb 2026

2026-02-18T02:19:38.779000+01:00

Summary. 1

Closing the procurement value gap – World CC. 1

The 2026 ProcureCon CPO report. 2

Gartner - Leadership vision 2026 – CPO priorities. 2

Procurement application predictions for 2026 – IDC. 2

2026 supply chain outlook – S&P Global Market Intelligence. 3

Proxima 2026 CPO report. 3

Agentic AI in procurement – Kearney. 3

Interos 2026 predictions – key trends for procurement. 4

Summary

Reading these reports, to me I think that Procurement is impacting and being impacted by three forces in 2026: AI moving from pilots to production, supply risk growing more complex, and contract value quietly leaking out of the business.

Across the research, AI is now a default expectation, not a differentiator, but few organizations feel fully ready to use it at scale.

Contract value leakage averages around 11 percent of spend, supply chains face persistent tariff and trade volatility, and AI costs and risks are starting to bite. With all of this, I see three constant themes emerging:

Treat contracting and post‑award governance as a core commercial capability, not an administrative step.
Redesign roles so humans and AI agents work as a single operating model, especially in sourcing, contract management, and supplier risk.
Shift procurement performance from “savings only” to a balanced view of risk, resilience, growth, and realized contract value.

Closing the procurement value gap – World CC
World CC finds organizations lose on average 11 percent of contract value after signature through missed savings, unmanaged price changes, weak handovers, and dormant innovation clauses. A business with 500 million in contracted spend can easily leak 15–75 million each year. The core issue is structural: procurement and legal focus on pre‑award work, then exit just as value delivery starts. Roles, governance, and data do not support continuous contract management, and standard templates are too rigid for volatile markets.

The procurement function can reduce leakage by redesigning the operating model so accountability for outcomes is explicit, adopting adaptive contract terms (indexed pricing, clear change controls, structured renewal triggers), and using AI‑enabled CLM to track obligations, price adjustments, and performance at scale. This needs investment in post‑award capability, supplier relationship management, and a culture where contracts are treated as live commercial instruments, not static PDFs.

The 2026 ProcureCon CPO report
According to the report, CPO influence continues to grow: 89 percent of respondents say their CPO plays more of a role in high‑level decisions than in prior years, and 82 percent expect that influence to increase further. Yet only 11 percent see their CPO as a core executive peer today.

Top strategic priorities for 2026 are strengthening supplier partnerships (55 percent), implementing AI‑driven automation (45 percent), and supporting growth through strategic sourcing (42 percent), while key challenges include securing digital talent (54 percent), balancing cost and growth (52 percent), and rising sustainability demands (46 percent).

AI is funded mostly as part of broader digital programs, with only 11 percent of organizations claiming to be fully ready and already seeing measurable AI impact. Barriers include data privacy and compliance concerns, poor data quality and integration, and cultural resistance to AI. For the procurement function, this points to four moves: build a talent pipeline with analytics skills, fix data foundations before scaling AI, invest in integrated cloud platforms and supplier risk tools, and develop board‑ready storytelling that connects procurement outcomes to growth, risk, and ESG.

Gartner - Leadership vision 2026 – CPO priorities
Research for 2026 highlights three pressures on CPOs: productivity expectations, complex supplier risk, and rising AI costs. AI usage has grown, yet productivity gains remain trapped because roles have not been redesigned; teams still bolt AI onto old job designs. CPOs are urged to create roles that treat some tasks as “AI‑native,” centralize risk intelligence so experts act on a filtered view rather than raw feeds, and put discipline around AI commercial models so usage‑based fees do not outstrip value.

For the procurement function, that means moving from isolated AI pilots to a coordinated operating model where agents handle monitoring, drafting, and first‑level analysis, while humans decide, negotiate, and manage relationships. It also means treating AI spend like any other major category: clear unit economics, demand governance, and regular reviews of model usage and value delivered.

Procurement application predictions for 2026 – IDC
2026 is set to be a “show me” year for procurement AI. After broad experimentation in 2025, CFOs now want clear ROI and predictable pricing, and will resist AI offers that create volatile monthly costs. On the application side, several trends stand out:

Headless and modular procurement apps are emerging, with API‑first designs that plug into wider business workflows.
Source‑to‑pay suites are pushing back with broader coverage and AI‑infused features, while contract lifecycle management remains an active area for analytics and obligation management.
Sourcing and direct spend get renewed focus, with AI‑supported scenarios, market intelligence, and multi‑tier visibility.
Vendors are testing API and token‑based charging models, which raises budgeting complexity for procurement.

The technology roadmap for procurement should stress integration readiness, strong APIs, and clarity on AI features that genuinely improve sourcing quality, supplier risk decisions, or contract performance, rather than adding another dashboard. Pricing structures for AI features need to be negotiated upfront with clear guardrails.

2026 supply chain outlook – S&P Global Market Intelligence
Supply chain leaders face persistent tariff volatility alongside a more supportive trade environment. Firms absorbed an estimated 907 billion in tariff‑related costs in 2025, with many planning successive price increases into 2026 and attempts to share costs with suppliers. Trade deals across Europe, Asia, and Latin America are expected to support real export growth over the next five years, yet US sectoral duties and export controls, including those affecting AI‑enabling technologies, still create uncertainty.

Reshoring remains a focus, though it no longer guarantees growth for emerging markets as automation reduces the simple advantage of low labour cost. For procurement, this means category strategies must account for shifting tariff regimes, the trade footprint of AI supply chains, and the fact that supplier financial resilience directly affects margins when shocks hit.

Across the report there are consistent themes of persistent global disruptions, the importance of financially healthy suppliers, and the need for better risk sensing across supply tiers. Digitalization of supply chain visibility is advancing, but many teams are still stuck in reactive mode, drowning in risk signals without synthesized views.

Procurement can respond by tightening collaboration with supply chain and risk functions around shared metrics on resilience, on‑time performance, and supplier health, and by investing in tools that integrate external risk data with contract and spend data. This supports faster decisions on reallocation of demand, contract renegotiation, or dual‑sourcing.

Proxima 2026 CPO report
Proxima’s 2026 CPO research shows AI at the top of every CPO conversation, with most organizations rolling out a small number of defined use cases and productivity guardrails rather than chasing full automation. Resilience and operating model redesign follow closely: CPOs are seeking board support to justify paying a premium for continuity of supply, and many are reframing procurement’s primary metric from cost to risk.

A key insight is that AI is no longer seen as a differentiator on its own; it is expected. Advantage will come from making deliberate choices about where AI solves real problems end‑to‑end, for example linking demand forecasting, should‑cost, negotiations, and supplier monitoring in one flow. Underpinning all of this is leadership: CPOs are being asked to provide commercial judgement on risk, guide AI adoption, and act as connectors across functions.

Agentic AI in procurement – Kearney

Kearney describes agentic AI as the shift from tools that support people to digital workforces that can decide and act across the procurement cycle. Confusion is common, with many leaders still equating it with generative AI or simple automation. Early adopters report significant cost reductions in some processes and much faster decision cycles when agents handle tasks such as tail spend negotiations, supplier qualification, or risk monitoring.

For the procurement function, the near‑term opportunity lies in targeted use: agents that orchestrate sourcing events, monitor contract obligations, or run “always on” tail spend sourcing, while humans handle strategy, exceptions, and supplier relationships. This model depends on comprehensive, well‑governed data and strong oversight so agents act within clear commercial and ethical boundaries.

Interos 2026 predictions – key trends for procurement
Interos positions supply chains as the front line of a new economic battlefield in 2026, shaped by converging geopolitical, technological, financial, and labour shocks. For the procurement function, the report signals a shift from managing isolated supplier incidents to managing systemic, multi‑country, multi‑tier disruption as standard operating conditions.

Key points from the report include

Supply chains as geopolitical targets
State conflict and sanctions are expected to focus more directly on supply routes, logistics hubs, and key suppliers, including in technology and critical industries. Procurement must treat geopolitical exposure as a core sourcing variable, not a side consideration.
Data weaponization and AI sovereignty
Governments and blocs are tightening rules on where data lives and how AI is trained, creating “AI sovereignty” zones. Data flows, cloud providers, and AI infrastructure choices now carry political and compliance risk that procurement needs to assess when awarding contracts.
Rare earth and critical mineral constraints
Constraints on rare earths and other strategic materials will create bottlenecks across electronics, automotive, and clean energy supply chains. Procurement will need deeper visibility into upstream mining, refining, and geopolitical exposure, along with contingency sourcing strategies.
AI data centre bottlenecks
AI infrastructure is capacity‑constrained, from chips to power and cooling. Suppliers that depend on cloud and AI services may face performance or cost shocks. Procurement should treat data centre location, power security, and cloud concentration as core risk criteria in major deals.

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