SAP Ariba and Standard Chartered Bank, a leading international banking group, have announced a partnership that’s designed to bridge the gap between supply chain finance and the procure-to-pay process for members of its Ariba Network.
Ariba Network facilitates collaborations of around 4.2 million companies across 190 countries, where more than $2.9 trillion in commerce gets done every year.
Buyers using the Ariba Network will be able to manage their payments and supply chain finance (SCF) needs with the SAP Ariba digital platform, while suppliers will get access to financing and foreign exchange via Standard Chartered’s global network. The partnership will commence by the end of 2019.
The strategic collaboration aims to push digitalisation of the supply chain and enhance accuracy for buyers and suppliers. The goal for the collaboration on supply chain finance is to further strengthen the sustainable economic growth and opportunities for increasing financial access through commercial collaborations.
SAP Ariba’s ecosystem and Standard Chartered’s goals
Sean Thompson, senior vice president, Business Network and Ecosystem, SAP Ariba and SAP Fieldglass said: “We are thrilled to welcome Standard Chartered into our ever-expanding ecosystem to deliver financing options that enhance value for our customers, allowing them to complete the procure-to-pay process end-to-end on a single platform.”
Lisa Robins, global head of Transaction Banking at Standard Chartered commented: “Our goal is to make life easier for our clients and their ecosystems, and as their businesses evolve, so do we.
We are delighted to collaborate with SAP Ariba to support our clients throughout their procure-to-pay lifecycles and beyond. As we embrace open banking, we connect communities across our footprint and provide access to integrated solutions that enable our clients to grow their businesses sustainably.”
A report by McKinsey suggested that SCF had a potential global revenue pool of $20 billion. Additionally, a survey of banks in 98 different countries identified SCF as the most important area for development and strategic focus in 2019-20.
HSBC and Walmart joined forces in April on a finance programme that pegs a supplier’s financing rate to its ecological footprint.