Baker Hughes: Streamlining Procurement with Ariba

Baker Hughes, a leading energy technology company, has strategically partnered with Ariba to revolutionize its supply chain and procurement processes. Ariba, a cloud-based procurement platform, functions as part of SAP’s Business Network, providing powerful tools to streamline and optimize Baker Hughes’ interactions with its vast network of suppliers.

Critical Elements of the Baker Hughes-Ariba Integration

The Baker Hughes-Ariba integration offers many advantages. Here are some core elements:

• Centralized Supplier Management: Ariba helps consolidate supplier information into a single, easily accessible repository. This enables Baker Hughes to maintain comprehensive supplier profiles, track performance, and streamline communication with its supply base.
• Digitized Procurement: The platform automates various procurement tasks, such as creating purchase orders, approving them, and processing invoices. This minimizes manual intervention, reduces errors, and accelerates procurement cycles.
• Strategic Sourcing: Ariba provides tools for conducting online auctions, RFQs, and RFPs. This empowers Baker Hughes to identify the most competitive suppliers, negotiate favorable terms, and make informed sourcing decisions based on data-driven insights.
• Supplier Collaboration: The SAP Business Network, Ariba’s foundation, offers a secure environment for real-time collaboration between Baker Hughes and its suppliers. This facilitates seamless information exchange, enhances supply chain visibility, and minimizes potential disruptions.

Benefits for Baker Hughes

The Baker Hughes-Ariba partnership has yielded substantial benefits for the company, including:

• Cost Savings: Automation, process efficiency, and improved price negotiations lead to significant cost reductions for Baker Hughes throughout its procurement processes.
• Enhanced Compliance: Ariba’s built-in controls help reduce contract and regulatory compliance risks, ensuring Baker Hughes adheres to internal policies and external regulations.
• Improved Decision-Making: Ariba provides valuable analytics and reporting capabilities. This gives Baker Hughes access to data-driven insights for better decision-making regarding supplier selection, spending analysis, and performance metrics.
• Supply Chain Resilience: By fostering better partner collaboration and visibility, Baker Hughes can proactively identify and mitigate potential supply chain risks, leading to a more resilient and agile supply network.

The Future with Ariba

This partnership marks Baker Hughes’ commitment to a future of digitized and optimized procurement practices. As Ariba continues to evolve, Baker Hughes will remain positioned to benefit from emerging technologies and innovations designed further to enhance procurement efficiency, collaboration, and data-driven insights.

In Conclusion

Integrating Ariba into Baker Hughes’ procurement processes showcases the critical role digital transformation plays within complex supply chains in the energy sector. By leveraging Ariba’s power, Baker Hughes has achieved substantial improvements in cost efficiency, compliance, decision-making, and overall supply chain resilience.