Tata Motors extends partnership with Ariba

NEW DELHI: Ariba Inc., provider of spend management solutions, has extended its sourcing solutions partnership with Tata Motors, one of India's largest automobile manufacturers. As per the new agreement, Tata Motors has extended its commitment to Ariba Sourcing Services and Ariba QuickSource, according to an Ariba press release.

Tata Motors has been using Ariba spend management solutions for the last four years. During this time it has achieved significant bottom line savings, which are expected to drive additional cost reductions, the release said.

Given the competitive nature of the automobile marketplace, managing spend effectively has been a key business priority for Tata Motors. The Ariba spend management platform has helped the company introduce new suppliers, rationalize its supply base and run on-line markets, the release said. This has led to significant savings and development of an effective supply chain.

There is a rapidly growing move by many industry leaders, including the automotive industry, to use spend management as a key element in their strategic plans.

“We plan to implement a two-pronged sourcing strategy using Sourcing Services to manage complex spend, and leveraging Ariba QuickSource to ensure savings and adopt best practices amongst the buying organization, said Ravi Kant, Executive Director, Commercial Vehicle Business Unit, Tata Motors.

Ariba will continue to provide Tata Motors with sourcing and commodity knowledge along with technology advantages across multiple spend categories.

According to Arun Kharbanda, Group Director, Ariba, “Tata Motors is a good example of the sustainable savings and cost controls generated when a company is serious about spend management,” said.