Reducing Supplier Risk using SAP Ariba and 3rd Party Integrations

Sustainability is an important priority for companies today not only because of regulations and compliance requirements but also because consumers are interested in purchasing products and services from companies that are both sustainable and environmentally friendly. Sustainability is especially important in procurement and other supply chain operations as the impact of sourcing and supplier choices can greatly influence a company’s environmental footprint and social responsibility. Adopting sustainable procurement practices helps companies meet stakeholder expectations, enhance resilience, and earn good-will and reputation.

SAP Ariba is an End-to-End Procurement solution for SAP which supports comprehensive cloud-based procurement and supply chain management. SAP Ariba helps companies efficiently manage sourcing, contracting, purchases, and payment. SAP Ariba Supplier Risk uses data to assess and select suppliers based on their sustainability performance. When SAP Ariba Supplier Risk is integrated with other SAP solutions and third-party systems, it enables enhanced supplier collaboration and close monitoring of suppliers’ sustainability.

IntegrityNext is one such solution that provides detailed ESG ratings and sustainability data on suppliers. Integrating this data into SAP Ariba allows businesses to incorporate real-time sustainability insights into their procurement processes leading to enhanced evaluation of suppliers’ ESG practices. With its advanced AI capability called supplier monitoring AI, IntegrityNext scans over 1 billion messages every day from various sources to continually monitor the sustainability of suppliers. The status of every supplier can then be checked within SAP Ariba Supplier Risk interface.

Benefits of IntegrityNext and SAP Ariba Supplier Risk

IntegrityNext helps source suppliers that are aligned with the company’s sustainability goals. With IntegrityNext’s ESG data, businesses gain better visibility into suppliers’ current practices, which improves the accuracy of supplier evaluations. This also helps ensure compliance with sustainability commitments and reduces risk.

Automated risk alerts and continuous monitoring of suppliers’ ESG performance help in managing risks associated with identifying unsustainable practices and compliance issues.

These solutions help make sustainability a core focus for companies and, as a result, help build more resilient supply chains and ultimately result in increased reputation.

CNT Management Consulting, an experienced SAP partner can facilitate straightforward and accelerated implementation of SAP Ariba solutions. CNT’s expert SAP consultants will customize SAP Ariba solutions based on the company’s needs and help integrate third-party solutions like IntegrityNext to realize the most benefits, building future-ready and sustainable enterprises.