TRANSITION TO SAP ARIBA CLOUD FOR BUSINESS PROCESSES MANAGEMENT

Zircoo migrated the legacy system to SAP Ariba Cloud, unifying procurement and logistics management.

Transition To SAP Ariba Cloud For Business Processes Management

Customer

A leading forest products manufacturer, boasting its own logging enterprise and renowned for its diverse range of high-margin products.

Challenge

Experiencing exponential growth, the company faced mounting difficulties in effectively managing its business processes.

Solution

Partnering with Zircoo experts, our client successfully tackled management challenges by streamlining procurement management and optimizing logistics processes. Leveraging Zircoo’s expertise, the legacy system was seamlessly migrated to SAP Ariba Cloud, aligning with the company’s objectives and ensuring efficient operations.

Challenge

In October 2019, the client encountered the following challenges:

1. Multiple errors and inefficiencies in procurement stemming from fragmented processes.
2. Absence of standardized practices in logistics management, resulting in diminished productivity and communication hurdles.

To address these issues and leverage the capabilities of SAP Ariba Cloud, the client aimed to:

1. Enhance overall business productivity, paving the way for innovative commercial propositions.
2. Mitigate human-related risks within operations.
3. Trim labor expenses while augmenting the efficiency of procurement workflows.
4. Expand the pool of suppliers to foster a more competitive market landscape.
5. Explore international market opportunities by harnessing the SAP Ariba Network for customer outreach and engagement.

Our Contribution

  • Execution of a comprehensive deployment initiative encompassing SAP Ariba Sourcing and SAP Ariba Supplier Lifecycle and Performance solutions seamlessly integrated with SAP S/4 HANA and SAP BW.
  • Engagement with the client’s primary stakeholders and IT personnel for meticulous requirements elicitation.
  • Tailoring solution configurations to precisely match identified requirements.
  • Establishing robust integration channels linking SAP Ariba with SAP S/4 HANA via SAP PI, facilitating smooth transactional and master data flow.
  • Implementing integration interfaces between SAP Ariba and SAP BW utilizing open APIs to fulfill diverse reporting needs.
  • Thorough troubleshooting, rigorous testing, and provision of ongoing support.
  • Conducting targeted training sessions for key users, empowering them with in-depth knowledge and proficiency.
  • Developing comprehensive training resources utilizing the SAP Enable Now solution to facilitate effective learning and skill acquisition.”

Solution Description:

We successfully transitioned procurement operations across 15 holding subsidiaries to SAP Ariba, a comprehensive procurement platform.

Our deployment project encompassed the integration of SAP Ariba Sourcing and SAP Ariba Supplier Lifecycle and Performance (SLP) solutions with existing systems including SAP S/4 HANA, SAP BW, and legacy ERP systems.

This implementation revolutionized our client’s business processes by:

1. Standardizing, automating, and expediting supplier selection and onboarding procedures.
2. Enhancing transparency and facilitating seamless communication throughout the procurement lifecycle.
3. Consolidating oversight of supplier activities and performance evaluation.
4. Enabling advanced scoring mechanisms, real-time event monitoring, and informed decision-making analytics.
5. Leveraging SAP Ariba Discovery to discover and onboard new suppliers seamlessly.”

Milestones

1. Concept
– Defined integration points with related project modules.
– Planned project tasks and top-level architecture development.
– Examined current processes and prepared materials for SAP Shared Services.
– Developed business process diagrams and discussed supplier involvement options.

2. Design 
– Collected requirements and developed detailed design solutions for business processes.
– Created a design matrix in SAP Ariba format and described integration architecture.
– Defined requirements for master data and developed a supplier engagement strategy.
– Established specific regulations for improvement.

3. Realization 
– Set up procurement and qualification process templates.
– Conducted spot testing and prepared/testing data loading.
– Established integration flows and configured test scenarios.
– Implemented role models and finalized system setup.

4. Testing 
– Conducted integration tests with and independently from SAP S/4 HANA.
– Addressed major bugs and performed supplier engagement activities.

5. Training and Preparation for Launch 
– Rectified minor bugs and migrated settings to the production environment.
– Prepared and loaded production data and developed a maintenance plan.
– Conducted business user training and finalized training materials.

6. Initial Support 
– Provided support for business users to commence work with the solution.
– Assisted with SAP Ariba Shared Services and transitioned system support to ongoing SAP support.

7. Ongoing Training 
– Delivered additional user training as needed.

8. Stabilization and Development 
– Provided ongoing user support and adjusted procurement process templates.
– Added suppliers to the system and implemented system improvements.

9. Integration 
– Integrated the system with SAP S/4 HANA and established single sign-on (SSO).
– Loaded delta with basic data to ensure seamless integration.

10. Training 
– Conducted additional training on SAP S/4 HANA functionality.

11. Support 
– Continued supporting the integrated system and addressed errors as needed.
– Transitioned support responsibilities to the customer’s specialists.

12. Targeted Support

– Provided specialized support to the customer’s specialists for resolving complex incidents upon request.

Technology Stack we used

Our team used four core solutions to achieve our customer’s case results.

  • SAP ARIBA SOURCING
  • SAP ARIBA SLP
  • SAP S/4 HANA
  • SAP BW

Results

The integration of SAP Ariba with SAP S/4 HANA enabled the customer to streamline procurement data and processes throughout their holding company.

The migration to the SAP Ariba system resulted in enhanced efficiency and transparency across the company’s procurement operations

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