Dear all,
I work for a small scientific organisation in the UK. Big pharma organisations have recently pushed the ARIBA (SAP) filing system on their suppliers. This is often not negotiated well and, in the end, remains a manual action to operate the procurement system. This is a lot of work for an already stretched finance department.
If there is someone on this forum who had a similar experience and can share what they were able to negotiate, I would be very grateful.
Our Finance team doesn't operate SAP, or any e-invoicing system as its not a requirement in the UK yet.
Many thanks for your responses.
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I have used Ariba as a small businesses (and got a bit stung too!!). We were allowed up to 25 invoices per year for free as part of the Bronze level package. Turned out is was actually 25 documents per year (not invoices) and after a bit of tooing and froing this got used up quite quickly! We had to pay a small surcharge to join the Silver level which was based on a fix fee element and also a % of the total value of the account turnover - not sure why a higher value on any one invoice affects the overall fee but those were the terms. We were easily able to downgrade our account back to the free Bronze level and it didn't cost too much money in the scheme of things. I guess it is the customer who sets the limits and parameters that presumably can be negotiated as part of the contract with them. Overall I agree it is a bit of a con where a customer is asking you to pay to upload your own documentation into their computer system - and pay for the privilege although I am sure Ariba's marketing and sales gumpf will describe the process very differently!! My advice would be to group invoices together into 1 .pdf document if you are allowed. 1 or 2 invoices per month will probably work out free and if you are charged I am sure you can find a way to bill it back to the customer - shhh don't tell anyone....
You could negotiate to streamline the manual processes by requesting customized training or support from the big pharma organizations, seeking reduced transaction fees, or asking for integration assistance to better align ARIBA with your current systems. Some organizations have successfully negotiated for dedicated support teams to help manage the transition.
That's an awful lot of 'negotiating power' that you're assuming is available for "a small scientific organisation in the UK"!
But the point is why should a supplier have to 'better align' (or even use) ARIBA?
You are right - we could not negotiate our way out! In our case it was defined as a requirement in the terms and conditions of the customers purchase order to us. The order was accepted and there was just a few notational words about submission of invoices via their online portal that effectively tied us in. I felt it was a processing cost saving exercise on the customers side and who wants to argue with one of their customers over some petty background paperwork issues. Ultimately they didn't pay any quicker and we still had to chase them up!
I used to have to jump through these hoops for big American customers (Perkins engines, I think), and Rolls Royce Aerospace IIRC.
In the end - if you managed it correctly as the supplier it was worth the saving in credit control time. These were big contracts for my (then) employer - attention to detail meant the money arrived on the nail.
I always felt it was cheeky - but, we couldn't buck the system.