SAP Ariba and Fieldglass: Optimizing Procurement and Workforce Management

Companies need robust technology solutions to manage their vast operational needs in today’s complex business environment. Two critical areas where streamlined processes are vital are procurement (the sourcing and purchasing goods and services) and external workforce management. SAP Ariba and SAP Fieldglass are industry-leading software solutions addressing these areas.

What is SAP Ariba?

SAP Ariba is a cloud-based suite of procurement tools. It helps businesses manage their entire source-to-pay process, offering solutions for:

• Spend Analysis: Analyzing spending patterns to identify cost-saving opportunities.
• Sourcing: Finding and evaluating potential suppliers.
• Contract Management: Creating, negotiating, and managing contracts with suppliers.
• Procure-to-Pay (P2P): Automating the purchase order, invoicing, and payment processes.
• Supplier Network: Connecting with a vast network of suppliers electronically.

What is SAP Fieldglass?

SAP Fieldglass is a Vendor Management System (VMS) that manages an organization’s external workforce. This includes all types of non-employee labor, such as:

• Contingent Workers: Temporary staff, freelancers, and contractors.
• Services Procurement: Managing Statements of Work (SOW) for project-based services.
• Compliance Management: Ensuring adherence to regulations and company policies for external workers.
• Worker Analytics: Gaining insights into workforce trends and optimizing contingent labor use.

The Benefits of Integrating SAP Ariba and SAP Fieldglass

When SAP Ariba and SAP Fieldglass work in tandem, organizations experience several significant advantages:

• Centralized Data: Integrating the two systems allows for a centralized view of all supplier and external workforce data, improving decision-making.
• Streamlined Processes: The integration enables seamless procurement and external workforce management workflows. For example, a service need identified in Fieldglass can trigger the sourcing and procurement process directly in Ariba.
• Reduced Costs: Optimized processes, improved data visibility, and better control over external workforce spending lead to significant cost savings.
• Improved Compliance: The combination of Ariba’s contract management and Fieldglass’s compliance features ensures adherence to regulations and reduces risks associated with suppliers and external labor.

Use Cases

Here’s an everyday use case demonstrating the power of integrating SAP Ariba and SAP Fieldglass:

1. Identifying a Need: A project manager realizes they need specialized consultants for a short-term project, which creates a requisition in Fieldglass.
2. Sourcing Approval: The requisition triggers an approval workflow that includes procurement.
3. Finding Suppliers: If approved, SAP Ariba is automatically used to find suitable suppliers through existing contracts or by launching a sourcing event.
4. Statement of Work: A Statement of Work (SOW) is drafted in Fieldglass and includes details from Ariba, such as negotiated rates and terms.
5. Onboarding: Once the supplier is selected, onboarding processes are initiated in Fieldglass, ensuring compliance.

Conclusion

SAP Ariba and SAP Fieldglass are robust solutions that bring efficiency, visibility, and compliance to procurement and external workforce management. Their integration further amplifies these benefits for businesses, helping to streamline operations and deliver better business outcomes.