Link Between Procurement and Finance Key to Improving Business Performance
Ariba Technologies Netherlands
Netwerk, Inkoop, Leverancier
CFO Research Services survey finds close coordination essential to attaining business excellence
SUNNYVALE, Calif., May 22, 2007 – The battle to control costs is about more than saving money. It’s about improving performance. And leading finance organizations recognize that in order to succeed, they must enlist a new ally: procurement. According to the results of a recent survey conducted by CFO Research Services in collaboration with Ariba, Inc. (Nasdaq: ARBA), the leading spend management solutions provider, a majority of finance executives consider procurement a key partner in driving improved cost management, business unit decision making and planning, budgeting and forecasting.
"Historically, finance organizations have focused their attention on reporting," said Sam Knox, Director of Research, CFO Research Services. "They have automated their processes, can quickly close the books and generate the required regulatory filings. But they face a persistent challenge. And that is accessing timely and accurate information on what they are spending and where they are spending it. As a result, they cannot effectively tackle their larger objectives."
In January 2007, CFO Research Services launched "CFOs Views on Procurement-Information, Risk and Money," a survey of senior finance executives at companies throughout North America. Sponsored by Ariba, the research sought to understand how CFOs view procurement and determine whether the function could play a role in helping them achieve their goals. Among the key findings:
When seeking to control costs, executives see the greatest opportunity in managing spending on direct materials and indirect goods and services, sourcing through preferred vendors and improving their interactions with suppliers.
Most companies are unable to gather timely and accurate information on purchasing activities and consequently, have poor visibility into their spending.
Organizations that have adopted and implemented technology-based solutions report greater satisfaction with and better information from their procurement functions.
"Controlling costs is a struggle for companies of all sizes. Procurement can identify savings, but finance executives must ultimately get these savings to the bottom line," said Christine Crandell, Vice President of Marketing, Ariba. "To be successful, companies must look beyond large scale transactional systems that fail to provide consolidated and forward-looking views into spend. In order to make better decisions that drive business improvements and enhance financial performance, finance executives and procurement must partner to comprehensively manage spend and drive benefits from efficient buyer-supplier dynamics."
Ariba provides a comprehensive range of solutions that combine market-leading technology with deep category expertise and industry best-practices to help companies manage their spend from end-to-end. Flexible and easy to use, Ariba’s solutions seamlessly integrate with all major ERP systems and enable companies to understand their spending patterns, identify opportunities for savings, and design and execute strategies to get them to the bottom line.
"Spend management is a journey. And companies will inevitably encounter challenges on the path,” Crandell said. "But with the right solutions, they can forge a strong link between finance executives and procurement and enable people, processes and technology critical to achieving operational excellence, ROI and demonstrable bottom-line savings."
To learn more about Ariba® Spend Management™ solutions and the benefits these solutions are delivering to companies around the world, please visit: www.ariba.com
To download a complete copy of “CFOs Views on Procurement-Information, Risk and Money,” visit: http://www.ariba.com/learningcenter/view_page.cfm?asset_id=347
About Ariba, Inc.
Ariba, Inc. is the leading provider of spend management solutions to help companies realize rapid and sustainable bottom line results. Successful companies around the world in every industry use Ariba Spend Management™ software and services. Ariba can be contacted in the U.S. at 1.650.390.1000 or at www.ariba.com.
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Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from its current expectations include, but are not limited to: delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies; long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q filed May 9th, 2007.
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