GRMSWith its announcement of a link with GRMS (Global Risk Management Solutions), SAP Ariba seeks to move trust to new levels.

GRMS enhances the vetting capabilities within SAP Ariba Spot Buy. It evaluates and monitors suppliers against more than 1,500 global governmental watch lists, enforcement and sanctions sources.

Robert Ward
Robert Ward

Robert Ward, Procurement Process and Performance Manager, at NSG Group, one of the world’s largest manufacturers of glass and glazing products, has said: “When it comes to some indirect spend, the role of procurement is changing from negotiating deals to creating a dynamic market place within a compliant environment where users can get what they need. (W)ith SAP Ariba Spot Buy, we can do this.

SAP Ariba Spot Buy + GRMS

SAP Ariba Spot Buy offers a marketplace which goes beyond simple catalogs for indirect goods. The company provides technology, content and expertise to organizations which need to:

  • gain greater visibility into their spend
  • fuel the compliance processes needed to ensure this is under control.

However, SAP Ariba argues there is more to this. Ramping up the vetting process for suppliers in SAP Ariba Spot Buy, sets new standards for ethics and compliance among marketplaces for indirect goods. For example, there are plenty of online sites where businesses can shop for industrial products and buy them in the same fast, easy way as consumer goods. But where can they go to:

  • purchase those hard-to-find, one-off items which account for a good chunk of their spend
  • execute those purchases in a compliant manner from trusted suppliers who align with the buyer’s corporate values?

SAP Ariba’s answer is itself. This is why SAP Ariba Spot Buy will include additional risk assessments of possible suppliers. These will come from Global Risk Management Solutions (GRMS). Put the two together and SAP Ariba Spot Buy becomes the largest marketplace for industrial goods which possess the most trusted, ethical and compliant credentials.

With SAP Ariba Spot Buy, you can do more than just speed and simplify the purchase of non-contracted goods,” said Tony Alvarez, General Manager, SAP Ariba Spot Buy. “You can actually control your spend and buy from compliant and ethical suppliers in a trusted B2B marketplace to reduce your supply chain risk and purchase with purpose.

The importance of business controls

Pairing SAP Ariba’s business network and cloud-based procurement, SAP Ariba Spot Buy combines consumer-like convenience shopping with business controls. This enables even the most casual users to find and immediately buy thousands of both contracted and non-contracted items with the assurance that such purchases will accord with the (buying) enterprise’s procurement policies and procedures.

The key is a three-tier vetting process, one which SAP Ariba argues is the most stringent in the industry. This ensures buyers purchase from trusted, ethical suppliers who comply with state, federal and local regulations and share the buyer’s corporate values.

GRMS enhances the vetting capabilities within SAP Ariba Spot Buy by evaluating and continuously monitoring suppliers against more than 1,500 global governmental watch lists and enforcement and sanctions sources. GRMS also offers the following risk assessment modules:

  • regulatory compliance
  • financial stability
  • insurance management
  • reputational protection
  • health and safety
  • social responsibility (CSR)
  • cybersecurity
  • document management.

According to Joe Fabiani, Chief Operating Officer, GRMS: “Monitoring key supplier performance metrics is tough enough, but identifying and monitoring supplier managing risk on an enterprise -wide basis is an entirely different matter and a difficult challenge that frankly, most companies have a hard time even scoping. The combination of highly configurable software, data and transparent, expert human interventions powers a practical, effective and market-leading approach.

About SAP Ariba and GMRS

SAP Ariba assists enterprises to connect in order to do business. On the Ariba Network, buyers and suppliers – from more than 3.3 million companies – discover opportunities, collaborate on transactions and grow relationships. Buyers can manage the entire purchasing process, while controlling their spending. They can identify new sources and extend supply chains.

Global Risk Management Services is a specialist service provider in the field of risk management. It sees this as an integral tool for managing a business in a global marketplace. In developing risk management strategies for an organisation it aims to mitigate potential loss as well as define areas of potential opportunity.

What does this mean

With US$1.6 trillion of business coming from 190 countries (according to SAP Ariba), SAP Ariba Spot Buy probably is the largest marketplace for industrial goods. But, in 2018, this is not sufficient. Trust, ethics and compliance (against a disparate array of local and international requirements) is a necessity if unexpected or unknown ‘rules’ are not to be broken. If they are, this threatens products, financial penalties and corporate reputations.

As individual countries, as well as the UN, introduce ever more sanctions at short (or minimal) notice, there is an acute need for buyers to protect themselves. By adding the GRMS knowledge, users of SAP Ariba Spot Buy can reduce supply chain risk as well as sustain hard earned product and corporate reputations.

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Charles Brett is a business/technology analyst consultant. His specialist areas include enterprise software, blockchain and enterprise mobility tech (including metering). Specific industry sectors of interest and experience include finance (especially systems supporting wholesale finance), telecommunications and energy. Charles has spoken at multiple industry conferences, has written for numerous publications (including the London Times and the Financial Times). He was the General Chair of the bi-annual High Performance Systems Workshop, 2005. In addition he is an author and novelist. His Technology books include: Making the Most of Mobility Vol I (eBook, 2012); Explaining iTunes, iPhones and iPads for Windows Users (eBook, 2011); 5 Axes of Business Application Integration (2004). His published novels, in the Corruption Series, include: The HolyPhone Confessional Crisis, Corruption’s Price: A Spanish Deceit and Virginity Despoiled. The fourth in The Corruption Series - Resurrection - has is now available. Charles has a B.A. and M.A in Modern History from the University of Oxford. He has lived or worked in Italy, Abu Dhabi, South Africa, California and New York, Spain, Israel, Estonia and Cyprus.


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