Ariba Quadrem: A Look Back at the Procurement Pioneer

In e-procurement, Quadrem once held a prominent position as a facilitator of streamlined business transactions, particularly within the mining industry. However, its journey has intertwined with another significant player, Ariba, with the latter acquiring Quadrem in 2011. Let’s delve into the background and legacy of Ariba Quadrem.

Quadrem’s Origins and Focus

Quadrem’s inception dates back to the year 2000. Its core mission was to revolutionize procurement practices in the mining industry. Here’s why Quadrem stood out:

• International Reach: Quadrem was designed with a global perspective, supporting procurement needs for mining organizations operating in remote locations worldwide.
• Industry Specialization: Quadrem’s focus on the mining industry enabled it to develop tailored solutions that addressed this sector’s unique procurement challenges.
• Standardization Champion: The company actively contributed to initiatives like the Electronic Commerce Code Management Association’s (ECCMA) Open Technical Dictionary (eOTD), championing communication standardization between suppliers and buyers.

Key Use Cases

Let’s highlight a few key areas where Quadrem made a difference:

• Strategic Sourcing: It provides tools and processes to identify and select the optimal suppliers for mining companies worldwide.
• Efficient Purchasing: Quadrem streamlined purchase order creation, approvals, and the exchange of invoices, saving time and resources.
• Supplier Management: The platform facilitated supplier registration, evaluation, and communication, contributing to a more organized supplier network.

The Ariba Acquisition and Transition

In 2010, Ariba, a significant name in business commerce solutions, announced its acquisition of Quadrem for $150 million. This strategic move aimed to:

• Expand the Ariba Network: Integrating Quadrem’s established supplier network significantly broadened the reach of the existing Ariba Network.
• Enhance Industry-Specific Solutions: Ariba could leverage Quadrem’s expertise to offer more specialized solutions for the mining industry and other sectors.

Following the acquisition, Ariba embarked on a process to transition Quadrem users onto the Ariba Network. In March of 2018, the Quadrem Network reached its official end-of-life.

Quadrem’s Legacy

Although Quadrem’s independent journey has ended, it left a notable mark on the e-procurement landscape.

• Early Global Network: Quadrem was among the pioneers in creating a global eMarketplace, paving the way for later, more extensive networks.
• Supplier Enablement: Quadrem played a role in bringing smaller, local suppliers in developing countries into the digital procurement fold, empowering them to connect with major mining companies.

The Evolution of Procurement

The story of Ariba Quadrem underscores the ongoing transformation of procurement practices. Cloud-based solutions, the rising importance of supplier collaboration, and the need for adaptability continue to reshape how businesses manage their sourcing and purchasing activities.