The Silicon Valley Bank Collapse: Avoid Issues with your Ariba Network Suppliers
The Silicon Valley Bank collapse and the subsequent closing of Signature Bank has caused a lot of uncertainty in the business world, and our clients are no exception. Many are asking us what this means for them and for their suppliers on SAP Ariba.
We are going on the assumption that many companies that banked with SVB last week have since found an alternate bank, at least temporarily. That means the bank accounts a supplier might have on the SAP Business Network (formerly Ariba Network) or have populated within Ariba SLP or ERPs, are no longer processing transactions.
Be Proactive
Here is our advice for taking control of the situation proactively to avoid issues down the road:
- Run reports in your ERP and SAP Ariba systems to determine which suppliers are currently set up with these banks. That can be determined by the bank name, bank branch or bank routing number
- Reach out to those suppliers to proactively remind them to update their banking information in your systems so that you can ensure they continue to be paid on time. There may be multiple places where they need to update this data based on your current configurations, so make sure to include that detail in your communications. They will also want to update their default data on the Network so that invoice processing continues seamlessly.
- Don’t forget to check your vendor master data (especially if your supplier management system isn’t integrated to your vendor master) and, if necessary, contact your supplier to get information needed to update those records.
With the stress and uncertainty that many are already facing, especially when it comes to many types of financial transactions that are dependent upon electronic transfers, it can be easy to forget all of the areas where your banking information is used. Proactively reaching out to your suppliers to give them a playbook to follow will ease the burden for your suppliers. It will also help to prevent problems before they occur so you don’t have to put out fires associated with this issue down the road.
Need Further Assistance?
CCP Global specializes in an agile, customized approach to our projects, which has enabled our clients to save billions in spend over our 25-year history. Our consultants are among the most experienced in the industry and can help you get the full ROI you expect from your Ariba investment.
