What enhanced functionality does Ariba offer to mitigate supply risk?

Ariba provides enhanced functionality through supplier performance assessments to help organizations mitigate supply risk effectively. This feature allows companies to systematically evaluate their suppliers based on various criteria such as quality, delivery performance, compliance, and financial stability. By regularly assessing supplier performance, organizations can identify potential risks early, such as a drop in quality or late deliveries, and take proactive measures to address these issues.

This continuous evaluation fosters better relationships with suppliers and encourages them to improve their performance. Furthermore, it enables procurement teams to make informed decisions when selecting or continuing to work with suppliers, thus safeguarding the supply chain against disruptions and ensuring that the organization can maintain its operational efficiency.

While other functionalities like price matching policies, volume discounts, and automated reordering systems can be beneficial in their respective areas, they primarily focus on cost savings and efficiency rather than directly managing and mitigating supply risks.