Catalogs aren’t optional when standing up Ariba—they’re your Ariba lifeline. Skip them, and you’re stuck in the slow lane or broken down on the shoulder of the S2P highway. At Groupsoft, we’ve seen the proof across global rollouts, and the numbers don’t lie.
Case Study: A retail client simultaneously launched Ariba in multiple countries without any catalogs. Result? A pitiful 7% 3-Way Match Rate. No punchouts or hosted catalogs meant manual requisitions and errors galore. Add with 35% of their suppliers’ items being updated at least annually, that meant outdated pricing, descriptions, availability, and manual processing that resulted in delays and unplanned costs.
Groupsoft’s AI flipped the script for our customer. We built catalogs—punchout and hosted—and covered over 50% more purchases. Their Match Rate soared to 64%, saving $34K per $1M spent. Ordering time decreased by 90%. With both common goods and services on catalog, their buyers and suppliers finally felt that their time and effort to migrate from their legacy solution to SAP Ariba was well worth the effort.
Catalog Benefits: Using catalogs with Ariba transforms manual or free form procurement into a more efficient, controlled, and user-friendly process. Moreover, it helps align with simplifying complex supply chain operations to save time, reduce costs, and improve overall compliance.
Catalog Types: Ariba, as part of the SAP Ariba suite, supports several types of catalogs that cater to different procurement needs and supplier transactions. Learn more about how SAP Ariba catalogs can streamline your procurement process here. Here are the main types of catalogs available when using Ariba:
Here are some examples of blockers that often create this never-ending perfect storm:
| Catalog Type | Description | Uses | Advantages | Limitations |
| Static Catalogs | Fixed, predefined catalogs typically uploaded as files (e.g., CIF or cXML format) created by suppliers or buyers. Contains a list of products or services with details like pricing, descriptions, and part numbers. | For stable offerings with infrequent changes, such as office supplies or standard industrial parts. | Simple to create and manage; doesn’t require real-time integration. | Updates require manual file uploading. |
| PunchOut Catalogs | Dynamic, web-based catalogs hosted on the supplier’s website. Users “punch out” from Ariba Buying to the supplier’s site to browse and select items using a familiar shopping cart checkout process, with the results seamlessly transferred back to Ariba. | Suppliers with large, frequently updated inventories or complex configurations like computer parts or custom services. | Real-time pricing and availability; richer user experience with supplier-hosted features like configurators for special orders. | Requires supplier-side technical setup and integration with Ariba and the SAP Business Network, which could cost extra time and money. |
| (Ariba) Hosted Catalogs | Supplier-managed catalogs hosted directly within the Ariba Network instead of on the supplier’s systems. Suppliers upload and maintain catalogs using Ariba’s built-in tools. | For suppliers who want centralized control without redirecting buyers to external systems or databases. | Easier for buyers to access than punchouts; supports real-time updates within Ariba. | Suppliers must actively manage their catalog content in Ariba, requiring more effort than static catalogs. |
| Internal Catalogs | Managed by the buyer side rather than the supplier. Created and maintained within Ariba so buyers can choose from lists of internal goods or services (e.g., company-specific assets, company-branded products, or approved vendor lists). | For controlling internal spend or managing unique company needs. | Full control over content and pricing; aligns with internal policies. | Requires internal resources to maintain and update regularly. |
| Level II PunchOut Catalogs | PunchOut catalogs with deeper integration with features like real-time inventory checks, personalized pricing, or contract compliance validation. | Complex procurement scenarios where customization and real-time data are critical (e.g., on-hand inventory balances, availability of specialized equipment). | Enhanced item data, greater functionality, and more ordering flexibility. | Possible higher complexity and setup costs for both buyer and supplier than Level I PunchOuts. |
Start Early: Since catalogs are linked to ERP master data, they should be determined and developed as early as possible in the Ariba implementation plan. The more catalogs available at go-live, the better the buyer experience and the less errors and manual interventions.
Plan: Prioritize enabling suppliers and catalogs that represent the highest number of order and invoice lines, not by spend alone. Set a targeted number of catalogs and percentage of volume these catalogs will represent. It should be at least 50% by go-live to be effective.
Decide: With 5 options available, decide per supplier which catalog type to use and how to use each one.
Collaborate: Always work directly with each supplier to see what catalog types they are using or can be made available to your buyers. Remember that Level 1 and 2 Punchouts take the longest time to enable, and they often have strong technical/integration components, so treat them like discrete IT projects so that they are scheduled to be ready for go-live.
Test: Ensure that each catalog works not just end to end, but backwards too. (e.g. for returns, credits, OS&D, rework, cores, and more.) While SAP Ariba has a dedicated catalog test environment, it still does not ensure source-to-pay transactions will work across all integration nodes.
Budget: In addition to setup costs, catalogs may incur maintenance costs, network and transaction fees, and testing charges from various qualified consultants.
Measure: Set catalog usage metrics and KPI’s with targeted values with milestone dates. Identify where user compliance is weak or where catalogs need to be created or improved.
Resource: Catalog success requires strong leadership and discipline to work with myriads of buyers, suppliers, integrations, and data. Most new Ariba catalog users do not have this level of experience, so selecting and negotiating for a partner (like Groupsoft) is highly recommended.
Groupsoft’s SAP Ariba Center of Excellence (COE) leverages the latest AI-based solutions to guide customers and their suppliers through the complexities of catalog enablement. This process is not a straightforward sprint, but rather a challenging mountainous journey with numerous obstacles and pitfalls to overcome.