SAP Ariba - Comparison With Other Tools

When we compare SAP Vendor Management systems like SRM or SAP Ariba system with ServiceNow, ServiceNow is considered as an IT Service Management software which is used to transform IT services and infrastructure using single cloud based platform.

Service Now tool is used to automate IT Service management processes, it is primarily used for managing technology-based Service Management tasks to initiate workflows, approval tasks, and other IT Service management processed.

The following image shows common features which are available in Service Now Jakarta edition −

Comparison of SAP Ariba with Service Now

When you compare SAP Ariba with Service Now, Ariba is open to all systems and all types of goods and services, and provides an option to connect to all types of suppliers and buyers on a single global network.

Using Ariba Network (AN), you can collaborate with the right business partners, and enhance your solution with targeted apps and extensions. When users are connected to AN, it allows you to connect to millions of suppliers and merchandisers (direct or indirect). Following are the key features provided by the SAP Ariba network −

One of the key advantages of using Ariba solution is that it simplifies procurement and sourcing process with easy synchronization to SAP SRM and other ERP software.
It enhances the experience of suppliers and buyers by creating digital transformation to supply chain process.
With cloud-based solution, SAP Ariba can be accessed from different locations with a very low initial capital cost for setting up the solution.
There is easy setup of key procurement processes – Procure to pay (integration of purchase department with Accounts payable department), Procure to Order by maintaining shopping carts.
SAP Ariba enables easy transfer of master data – organization structure, suppliers and GL data to Ariba solution using optimal way of integration.
SAP Ariba offers an end-to-end automated system that removes complexity and allows buyers and suppliers to manage everything from contracts to payments all in one place.

SAP SRM (Supplier Relationship Management)

SAP SRM is a SAP product that facilitates the procurement of goods via a web-based platform. Organizations can procure all type of products like direct and indirect material, services and this can be integrated with SAP ERP modules and other non-SAP backend systems for accounting and planning.

SAP SRM allows you to optimize your procurement process to work effectively with suppliers to get long term benefits and also to perform forecasting, procurement cycle and to work with partners. You can reduce the time span and costing of procurement cycle using innovative methods to manage business processes with key suppliers.

SAP SRM supports the full procurement cycle, i.e., starting from source and purchase to pay through complete procurement process with suppliers and effectively managing supplier to build long-term relationship.

SAP SRM helps you to emphasize supplier performance management, streamline the procurement operations, put compliance with contracts and purchasing policies, and improve overall cost management and expenditure.

The future of SAP SRM is SAP S/4 HANA and SAP Ariba system for exceptional procurement and vendor management capabilities. When you have SAP S/4 HANA implemented, you can easily extend your procurement solution from on-premise solution to cloud and it allows to exchange information, improve visibility with great efficiency and effectiveness with your suppliers.

Comparison Scorecard

KPIs	SAP Ariba	ServiceNow
Integration with SAP S/4HANA system	SAP Ariba can be easily integrated without the use of any middleware or SAP PI/HCI can be used for integration purpose.	Need 3^rd party plugins/ middleware to integrate. Not standard integration and need some expertise to expose Web Services for integration or JCo option for integration.
Primary Functionality	Ariba is a cloud-based solution for sourcing, contracts, spend visibility, procurement and Ariba Network.	ServiceNow is basically a ticketing tool used to manage Technology Service Management tasks. It provides a centralized service catalog for personnel to request for technology services or information about applications and processes that are being used in the system.
Meeting Vendor Management KPI’s	With use of preconfigured workflows based on best practices, easy to automate approval processes for invoice management, procure to pay workflows, etc.	ServiceNow system can automatically generate an approval request to individuals or groups when specific criteria are met; however, customization of approval process depends on vendor management data.
Other Benefits	1. Ariba offers an end-to-end automated system that removes complexity and allows buyers and suppliers to manage everything from contracts to payments all in one place. 2. Ariba Network is one of the key components, which provides a cloud-based B2B marketplace where buyers and suppliers can find each other and do business on a single platform.	Already in place and can be used for ticket management.
Costing	SAP Ariba has four pricing plans — Select, Premier, Enterprise, and Enterprise Plus. The plans cost $50, $495, $2,495, and $7,495 per month, respectively. To get quotation, you can also reach- https://www.ariba.com/support/customer-hub	Service Now cost depends on required version.
Reporting	With use of custom and compound reports in Ariba, it is much more advanced as compared to standard reporting in an ERP system. Following report types are supported in Ariba system − Prepackaged Reports Investigate Data Custom Reports Multi-fact Reports Exporting Reports Compound Reports	Vendor management reports depend on vendor management data. Limited reporting functionality as compared to Ariba reporting feature.