Learn about the key benefits of Aravo's SLM and SIM offerings:
You've invested millions in your enterprise source to settle business systems. Perhaps you have ERP procurement and payables, best of breed sourcing, stand-alone eProcurement, or niche services and asset management systems. Regardless of vendor, age, or technology, they all rely on one key ingredient to deliver their expected ROI and process efficiency: accurate, timely, and complete supplier data. Incomplete or inaccurate supplier data costs you money in the form of inaccurate payments, duplicate supplier records, maverick spend, and more.
Add decentralized global operations each with their own unique set of supplier issues, and it's not surprising that supplier enablement continues to be among the primary challenges facing sourcing and procurement professionals today.
Aravo can help. We have been the market leader in SLM and SIM since we pioneered the space in 2000. We have helped companies of all shapes and sizes transform their supplier management landscape, driving substantial bottom line savings and ROI while reducing risk.
Avoid Penalties and Fines
Are you at risk from supplier or trading partner regulatory compliance failures? Can you ensure that your suppliers have valid insurance certificates or that your channel partners are FCPA compliant?
It's no longer enough to ensure that your company is meeting its internal regulatory compliance requirements. Unsafe cars, toys contaminated by lead, pet food containing dangerous fillers, and medications formulated with treacherous levels of key ingredients are examples of supply chain failures. Such failures typically involve costly regulatory penalties and fines. What's common to them is that the brands of the companies affected were not damaged by their own overt acts, but rather by those of suppliers that did not adhere to government regulations, safety/quality standards, and codes of conduct.
And it isn't just about product safety and sustainability. Regulatory penalties and fines can run into the millions of dollars for violations of regulations such as the US Foreign Corrupt Practices Act or Dodd-Frank/Conflict Minerals. As the list of regulations continues to grow, how do you mitigate the risk of costly violations across international markets while managing compliance costs? By implementing systems and controls to gather and monitor trading partner compliance and by proactively identifying non-compliant partners and suppliers before problems arise.
Aravo has helped companies across multiple industries ensure global regulatory compliance by providing an automated, flexible, scalable SLM/SIM solution that provides a single, centralized, 360 degree view of supplier credentials and compliance across business units and geographies.
According to Accenture's 2011 Global Risk Management Report, the magnitude, frequency and costs of global supply chain disruptions are increasing. Is your company at risk from supply chain disruption? Did you know that companies announcing a supply chain failure experience an average share price drop of 9%?
Risks with respect to a company's supply chain have become key operational concerns from the factory floor lines to the boardroom given the substantial economic and brand risk from supply chain disruptions. Aravo has helped companies around the world mitigate supply chain risk by providing an automated, flexible, scalable SLM/SIM solution that provides a single, centralized, 360 degree view of supplier risk across business units and geographies.
Aravo allows companies to proactively measure, monitor and mitigate supply chain risk via a cloud-based SLM/SIM solution.
- Measure: Create a 360 degree "mash up" view of supplier information, including data on risk, performance, reliability, disaster recovery, etc.
- Monitor: Identify the risk measurements that are most important to business continuity for each risk area. Automatically monitor risk measurements such as receivables, days of inventory stock, geopolitical unrest in the region, labor issues, and even severe weather forecasts.
- Mitigate: Develop an early warning system of supplier health, and alert the right business owners before issues arise. Enable collaboration on risk mitigation and business continuity planning from alternate supplier sourcing to contract renegotiation.
Are you spending too much due to poor enforcement of sourcing and procurement policies?
Millions of dollars of investments in sourcing and procurement systems have been justified on the basis of consolidating spend to achieve leverage, identifying the best suppliers through discovery best practices, and using transparent bidding to negotiate the best prices...all leading to huge forecasted procurement cost savings to the enterprise. But the savings never seem to completely reach the bottom line. Where is the disconnect preventing full savings realization?
The problem is enforcement. Commodity managers, buyers, and approvers often have limited ability to enforce usage of preferred suppliers, resulting in spend leakage. Compounding the problem is the fact that requestors often do not have insight into Preferred Supplier Lists, and required approvers are often left off of approval processes leading to maverick or off-contract spend. Given the number of procurement execution systems inside the typical enterprise, combined with the long IT backlog around systems integration and business process management projects, it's no surprise that companies can't leverage their negotiated buying power.
Aravo has helped companies across industries and around the world save money by managing processes and workflows around automated supplier selection and enablement, thus reducing administrative costs and ensuring low cost, approved suppliers are always the first choice.
Lower Total Cost of Ownership
Are you concerned that you can't afford a world-class SLM/SIM solution? Not sure what Cloud-computing means to you and your organization?
Cloud-based solutions, also known as SaaS (Software as a Service) or on-demand, have become the darling of the software industry based on shorter implementation times, lower up-front costs, subscription-based payments and lower TCO for the user, combined with shorter, less costly development cycles and simplified updates/maintenance for the vendor, have everyone jumping on the bandwagon.
Google.com and Yahoo.com are examples of software available exclusively through the cloud, and Salesforce.com is largely credited with popularizing the cloud deployment model for business applications. Nowadays cloud-based software is available in almost every category of business.
According to a Gartner Group estimate, SaaS sales in 2010 have reached $10B, and are projected to increase to $12.1b in 2011, up 20.7% from 2010. Gartner Group estimates that SaaS revenue will be more than double its 2010 numbers by 2015 and reach a projected $21.3B.
Aravo leverages a multi-tenant SaaS platform which offers our customers extreme flexibility, scalability, and rapid time to benefit through ease of deployment. SaaS eliminates the need for upfront IT infrastructure and software license investments, and ensures rapid access to new functionality for your users. With a subscription-based model, you pay for the resources you need when you need them.
Are you manually managing supplier profile, performance, risk, and compliance information? Is your supplier management team mired in tactical paper pushing rather than focused on strategic relationships?
The effectiveness of sourcing, procurement, finance, supply chain, and compliance organizations across the global enterprise is significantly reduced by manual, legacy systems managed via decentralized processes. The answer is SLM/SIM automation
Automation is not just about replacing manual processes with electronically managed ones, it's about linking processes and systems together, centralizing information to provide a single source of truth, and removing redundant, manual processes. When implemented properly, automation results in higher quality data, seamless integration, improved process execution and management, improved scalability, and greater strategic focus...all at lower cost.
Aravo has helped companies around the globe increase automation to deliver tangible benefits across their businesses.
Is your brand at risk due to trading partner actions, inactions, or regulatory violations? Do you want to avoid seeing your company's name in the headlines because a supplier has failed to meet minimum standards for social responsibility or business continuity?
The newspapers today are filled with examples of corporate brands that have been tarnished due to the failures of trading partners. Product safety recalls, natural disasters impacting strategic suppliers, compliance issues and fines….the list goes on. However such incidents share one thing in common: a lack of visibility into, and control over, supplier relationships.
Given the substantial economic impact associated with brand risk, companies must implement solutions allowing their procurement, legal, compliance and finance teams to proactively manage risk exposure. Effective solutions must provide the tools to effectively mitigate vendor risks, before they impact the bottom line, via the application of a consistent due diligence process across the extended enterprise.
Aravo has helped companies around the world manage supplier compliance to minimize brand risk while strengthening the resiliency of their supply chains.
Simplify Master Data Management and Integration
If you're like most large enterprises, you have a complex IT infrastructure involving multiple ERP instances and best-of-breed solutions. As companies grow and processes are decentralized, the landscape complexity increases exponentially, making master data management a necessity.
According to a survey by research firm The Tower Group, most companies maintain master data separately in at least 11 or more source systems. In reality, the picture is even more complex, as large companies rarely have just one instance of an enterprise resource planning or customer/supplier relationship management system. It is not unusual for global companies to have 50 or more separate ERP instances, each with a slightly different implementation from the next. As a result, most companies are pursuing a Master Data Management (MDM) strategy that strives to maintain data integrity and availability across these systems.
Given the complexity of IT architectures and the resulting MDM strategies, application data integration becomes a fundamental driver of success. Your application solution vendors must understand this and provide configurable, flexible integration frameworks and tools to simplify their inclusion in your MDM strategy, as well as to facilitate integration with external 3rd party data sources.
Aravo has helped companies around the world integrate supplier MDM with their enterprise MDM strategy.
Reduce Accounts Payable Errors
Are you experiencing payment errors and returned payments, with increasing resources dedicated to correcting AP failures? Are you losing money due to outdated payment controls and policies?
In today's business environment, maximizing free cash flow and optimizing payment terms is a key strategic priority. And yet, supplier payment errors are more commonplace than ever before -- ranging from over-payments to late payments to payments to suppliers after contracts have expired. At a time when companies are focused on reducing costs and increasing free cash flow, the cumulative effect of payment mistakes can be disastrous.
However, by implementing a best-of-breed solution for SLM/SIM, with a focus on payment policy creation, dissemination and enforcement, companies are able to standardize payment policies and terms, roll out best practices to their global supply base, and automate supplier communications and collaboration from a centralized, Cloud-based application.
Aravo has helped companies around the world implement a single source of truth for supplier payment, policy, and contract data to improve AP accuracy, ensure realization of contract savings, and drive working capital benefits.
"The types of risk to which companies are exposed, as well as their severity, are growing. Companies are increasingly concerned about the spectrum of risksfrom supply chain to operations to regulation to reputation and financial fraud and failure."
Report on the Accenture 2011 Global Risk Management Study