The focus of my professional career was working for a tech
company that offered Spend Management Software for Supply Chain Management -
Ariba. I was fortunate enough to touch
about every piece of the suite they offered; Supplier Network, Sourcing,
Visibility, Contracts, etc. I’ve ran
everything from a major Visibility implementation to several Reverse Auctions a
day.
The software started off as a CD version that clients and
suppliers would install locally on their servers or desktops. I think we all remember getting a CD in the
mail and having to put in on our desktops. Or not, I grew up in the 1990s and
could be dating myself. This piece of
software simply allowed buying organizations to upload and store files they
needed to use to run an event - Request for Proposals, technical drawings, and
pricing temples among others. Suppliers
would then download them, view, modify, bid, and upload the same way. It was one of the first times suppliers did
not have to receive a paper bid package and mail the proposals back.
The next version was a bidding tool that reacted in real
time. It was also installed locally, but
was functional enough to allow the suppliers to update pricing as needed in
real time. This was a huge step in the
technology space at launch. It allowed
for competitive, global markets and the advantage fell towards the buyer. Clients were realizing savings quickly and
could implement a new, cheaper vendor for bottom line cost reductions. I should note that suppliers did not suffer
either. It allowed them to revisit their
margins to compete with an international supply base. However, most domestic suppliers lost
business as outsourcing became popular globally.
As the tech boom happened around the country in the late
1990s and early 2000s many companies were popping up online and ecommerce took
off. It took a while, but Ariba
eventually moved away from CD versions of these tools to more advanced online
versions. By the time I started working
there in 2006 clients had a dedicated url to log into with a username and
password (something we are all familiar with today). We could then work as a team to create
processes, approvals, and online events.
The suite started to expand from both ends of the sourcing process. Ariba developed a tool to analyze client
spend that created a pipeline for projects to source. Then they created a couple more on the back
end, Contracts Management (to get an agreement in place) and Supplier
Management (to monitor activity through the contract). Now everything is in the cloud and stored on
Ariba servers.
Ariba is known as the industry standard when it comes to
Spend Management software for your supply chain. They acquired some competitors along the way
and even sold off a services division to a large consulting firm to concentrate
on the technology side. I worked for the
services end and we were acquired by Accenture in the fall of 2010. It was a great run to understand all of these
tools and how they fit into the traditional supply chain process of
sourcing/procurement. I actually just
saw a job posting the other day for a manufacturing company looking for
procurement managers that had Ariba software experience.
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