Ariba Launches Comprehensive Risk Management Software

New offerings combine best-in-class risk and performance management software with deep expertise and services to help companies identify and mitigate supply chain risk

SUNNYVALE, CA, June 23, 2009 -- In today’s economy, it isn’t a question of if your suppliers may be at risk of failing. It’s a matter of which suppliers will fail and when? According to industry reports, business bankruptcies were up 75% in 2008. And they are expected to increase another 35% this year. To help companies deal with the risks inherent in these numbers, Ariba, Inc. (NASDAQ: ARBA), the leading spend management solutions provider, has launched a new set of solutions that combine best-in-class risk and performance management software, global supplier and supply market expertise and risk mitigation services to help companies identify and effectively minimize risk across their global supply chains.

“Having information on supplier financial viability and operational performance is critical to assessing exposure to risk, but it doesn’t provide a full picture and isn’t enough to help companies mitigate potentially negative effects on their business,” said Sundar Kamakshisundaram, Senior Solutions Marketing Manager, Ariba. “What’s needed is a 360° view of a supplier’s health, details on underlying supply market risks and an efficient process for acting upon this intelligence on an ongoing basis.”

With Ariba® Supplier Management™, companies can gain the most comprehensive view of supply risk and proactively diagnose and mitigate these issues before they impact their organization.

Comprehensive Solutions to Complex Problems
Poor management and coordination of information across the supplier management lifecycle can lead to unforeseen and potentially devastating supply risk. Ariba’s Supplier Management solutions combine market-leading supplier information and performance management software, global supplier and supply market expertise and risk-mitigation services to help companies identify potential financial, operational, and market risks in their supply chain and rapidly develop and execute contingency plans to mitigate them.

Supplier Risk Assessments
In order to effectively manage supply risk, companies must first understand their exposure. To help them do this, Ariba has launched Ariba® Supplier Risk Assessments™. Leveraging its global category specialists, deep supply market knowledge and dedicated spend management professionals, Ariba provides targeted risk management assistance, including:

* Analyzing the financial health and stability of suppliers using detailed financial information and third-party risk profiles
* Obtaining proof of financial soundness through site visits
* Creating detailed supplier risk profiles to determine category and industry threats
* Examining commodity and underlying supply market trends to discern the potential impact of supply constraints and price fluctuations across top and sub-tier supply chains
* Investigating the stability of raw material supply and possible effects of trends such as market consolidation and capacity constraints

Supplier Information Management On Demand
As tough economic conditions persist, the odds that companies will face some form of supply disruption increase. To minimize the impact, companies need solutions that enable them to quickly discover, assess, and on board new supply partners, ensure their information is accurate and up-to-date and continually measure and improve their performance.

Delivered on demand, Ariba® Supplier Information Management™ combines market-leading technology, global supplier expertise and spend management services that companies can leverage to:

* Reduce the cost and time involved in supplier discovery and assessment - which can account for up to half of the sourcing cycle – as well as on-boarding and management so that as suppliers fail, new ones can quickly be identified and brought up to speed.
* Gain a 360-degree view into supplier information including contracts, quotes, performance, certificates, internal stakeholders and contacts.
* Access additional information, performance ratings, and alternative sources of supply on over 200,000 suppliers through the Ariba Supplier Network™
* Speed supplier assessment and qualification by automating information collection and new supplier approval processes.
* Ensure proper supplier selection, measurement, and risk and performance management.

Supplier Performance Management On Demand
Successful spend management requires working with existing suppliers, identifying new sources of supply and evaluating the supply base on an ongoing basis. But the challenges to managing a global supply base are many, including:

* Large numbers of suppliers
* Fragmented data spread across multiple systems
* Inconsistent goals, metrics and measurements
* Labor-intensive data gathering and rudimentary analysis procedures

With Ariba Supplier Performance Management™, companies can overcome these challenges and define, measure, aggregate and act upon the performance metrics of their supply base. Delivered on-demand, the solution combines Ariba’s market-leading technology, best-practice processes and deep supplier performance management expertise to help organizations:

* Ensure that suppliers perform to expected metrics and service levels
* Avoid critical supply problems through tight collaboration with and frequent measurement of key suppliers
* Award more business to high performers based on quality, timeliness and other key performance indicators
* Ensure that future sourcing activities take performance and quality into account
* Manage more suppliers using automated processes and scoring /analysis tools
* Give suppliers visibility into performance issues and quality problems

“Companies today face more supply risks and challenges than ever before,” Kamakshisundaram said. “But with the right combination of technology, expertise and services, they can effectively manage and overcome them.”

Availability
Ariba’s Supplier Management solutions are available and in use by customers today. For more information on the offerings and the value that they can deliver, visit ariba.com/programs/supplyrisk.cfm

Source: Ariba, Inc.