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Supplier Management Best Practices

A 7-page ETS guide to supplier and contract management best practices, SAP enablement, ROI metrics, and lessons learned from procurement transformation programs.
October 13, 2026 by
ETS, Inc.
This resource is available as a PDF

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The guide sets out supplier management best practices — segmenting suppliers by spend, risk, and criticality with executive sponsors for strategic suppliers, centralizing supplier master and performance data, formal supplier performance management on OTIF, defect rate, and lead-time variance, and risk monitoring with early warning — and contract management practices: a centralized repository, standardized templates and clause libraries, active compliance monitoring, and contract-to-procure integration so negotiated savings don't erode.

It shows how SAP enables both: SAP Ariba for supplier lifecycle, risk, and contract authoring; SAP ERP Cloud for the central supplier master, pricing condition enforcement, and automated purchase orders from contracts; SAP Business Network for supplier collaboration, ASNs, and invoice automation; and SAP Business Technology Platform for workflow automation, data cleansing, and analytics.

It gives commonly reported ROI ranges for a business case — from maverick spend reduction and spend leakage recovery to faster contract cycles and supplier onboarding — with a sample scenario for a mid-market manufacturer, then lessons learned from implementations: executive sponsorship, clean supplier data first, high-spend categories early, policy enforced through system controls, and change management. It ends with the six metrics that form the executive scorecard for procurement transformation.

The full guide is available above as a PDF. See also "The Strategic Benefits of SAP Procurement Functionality for Operations Executives" and "SAP Ariba Functionality Overview: Source-to-Settle Spend Management" in the Resource Library.

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