New Normal Sparks New Priorities for European Procurement Executives

It’s a new year and European procurement executives are beginning it with a fresh set of priorities. While driving cost reductions remains job number one, managing cash and mitigating supply risk have taken on increasing importance, according to the results of a new study from Aberdeen Group. On Thursday, January 21, Andrew Bartolini, Vice President/Group Director, Global Supply Management, Aberdeen Group and author of "European CPOs: Capitalising on the Best Opportunities,” will discuss the current challenges sparked by the slow recovery of the global economy during an interactive webinar hosted by Ariba, Inc. (NASDAQ:ARBA), the leading provider of spend management solutions. He will be joined by Stephen Hayers, Vice President, Services Procurement, BT plc, one of the world’s leading providers of communications solutions and services, who will discuss the strategies that his organisation is executing to overcome these challenges. The live session will take place from 2 p.m. to 3 p.m. GMT.

"In order to position themselves and their organisations to play an increasingly strategic role when the recovery inevitably begins, CPOs and other procurement leaders must successfully address short-term needs while pressing forward on longer-term initiatives,” Bartolini said.

According to "European CPOs: Capitalising on the Best Opportunities,” identifying cost reductions remains the top priority for procurement executives. But managing cash and mitigating supply risk have taken on new urgency.

"With access to credit tightening across most major industries, CPOs have moved quickly to implement strategies to keep more cash on hand by employing more aggressive demand management strategies, negotiating better payment terms and optimising working capital by taking more early payment discounts,” Bartolini noted.

They are also working to tackle supply risk. More than half of the executives interviewed as part of the measure cited risk as an increasing business pressure. And while 83 percent have no formal risk program in place at present, most recognize the need to mitigate the stress on the financial and operational performance of key trading partners that the recession has caused.

One company that has successfully done so: BT plc. As outlined in the Aberdeen research, the company began publishing a quarterly report that identifies high-risk suppliers and presents mitigation plans to ensure business continuity and financial success. BT will discuss this report along with its efforts to work with suppliers to identify cost reductions during the January 21 webinar.

And Bartolini will provide recommendations for actions that companies can take now to position themselves to strongly compete in the future.

"Innovative organisations recognise that to succeed under current economic conditions, they need to be more agile than ever before,” said Steve Canning, Director, Ariba EMEA. "As such, they are redefining their priorities and implementing solutions and processes that enable them to quickly respond to changes in market and business conditions and drive their strategic goals. Our webinar is designed to provide insights into the challenges that the economy has created as well as action-oriented strategies for managing them.”

For more information on the January 21 session, or to register, please visit: www.ariba.com/programs/emeacpoagenda.cfm

About Ariba, Inc.

Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering technology, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 100, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit www.ariba.com

Copyright © 1996 – 2010 Ariba, Inc.

Ariba, the Ariba logo, AribaLIVE, SupplyWatch, Ariba.com, Ariba.com Network and Ariba Spend Management. Find it. Get it. Keep it. are registered trademarks of Ariba, Inc. Ariba Spend Management, Ariba. This is Spend Management, Ariba Solutions Delivery, Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement, Ariba Contract Compliance, Ariba Contracts, Ariba Contract Management, Ariba Contract Workbench, Ariba Data Enrichment, Ariba eForms, Ariba Invoice, Ariba Payment, Ariba Sourcing, Ariba Spend Visibility, Ariba Travel and Expense, Ariba Procure-to-Pay, Ariba Workforce, Ariba Supplier Network, Ariba Supplier Connectivity, Ariba Supplier Performance Management, Ariba Content Procurement, Ariba PunchOut, Ariba QuickSource, PO-Flip, Ariba Spend Management Knowledge Base, Ariba Ready, Ariba Supply Lines, Ariba Supply Manager, Ariba LIVE, It’s Time for Spend Management and Supplier Lifecycle Management are trademarks or service marks of Ariba, Inc. All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations in the United States and/or other countries.

Ariba Safe Harbor

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 current expectations include, but are not limited to: the impact of the credit crises on Ariba’s results of operations and financial condition; 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, including the impact of a recession; 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-K filed with the SEC on November 25, 2009.