Under Armour
Improving AP Efficiency Without a Supplier Network
A DataServ client since 2016
Key Results:
- Seamlessly processed all previously manual invoices straight through to SAP Ariba
- Successfully avoided pitfalls of a faulty supplier network with low vendor compliance
Key Stats:
- ERPs: SAP Ariba
- Team Size: 12,000+ employees
- Industry: Manufacturing / Retail
Executive Summary
Under Armour, a global leader in sports apparel, made a significant investment in implementing SAP Ariba as their ERP system to streamline their accounts payable (AP) process. From the outset, Under Armour anticipated that approximately 25% of their invoices would not flow automatically through the Ariba network and would require manual processing. Understanding this potential challenge, they proactively engaged DataServ to handle this portion of their invoices, demonstrating foresight in addressing the expected gap.
However, after onboarding with Ariba, Under Armour encountered greater obstacles than initially predicted. Vendor compliance challenges with the supplier network emerged, causing substantial delays in invoice processing. Despite their original estimate that 75% of invoices would process straight through Ariba, DataServ quickly found that only about 60% could be handled automatically, leaving 40% requiring manual intervention due to vendor non-compliance.
To address this larger-than-expected hurdle, DataServ stepped in to automate the remaining 40% of invoices. DataServ’s solution seamlessly integrated with Ariba, transforming Under Armour’s AP operations by reducing manual workloads, improving efficiency, and providing greater visibility into non-network AP spend. This collaboration empowered Under Armour to overcome the challenges and realize the full potential of their AP automation efforts.
Outcomes
DataServ’s AP automation solution integrated directly with Ariba via cXML, allowing the “manual” invoices to be automatically processed through DataServ’s Invoice Processing Machine (IPM). This relieved Under Armour’s AP team of the most time-consuming and labor-intensive tasks, such as data entry and validation.
Despite Under Armour’s substantial investment of time, money, and effort to ensure vendor compliance with the supplier network, it became clear that even with full adherence to best practices, supplier networks are never able to deliver the 100% success they claim. Under Armour had done everything by the book, yet their vendor compliance efforts yielded diminishing returns.
By contrast, DataServ required no vendor onboarding whatsoever for the invoices it processed, which eliminated the need for Under Armour to spend additional resources on vendor management. Each executive business review (EBR) confirmed that Under Armour’s team found it significantly easier to handle invoices processed through DataServ because they no longer needed to engage in vendor compliance efforts tied to the supplier network.
This seamless integration between DataServ and Ariba provided Under Armour with full visibility of their invoice data within Ariba while automating the invoices that previously required manual intervention. The efficiency and simplicity of DataServ’s solution required very little IT investment and was rapidly deployed, reducing the AP workload and minimizing the need for vendor onboarding efforts.
Business Impact
Under Armour’s attempt to utilize a supplier network with Ariba led to significant pushback from vendors, many of whom refused to comply. Under Armour tragically fell victim to the common false expectations about supplier networks, which can quickly derail even the most well-intended AP automation initiatives. Despite their extensive efforts and financial investment, they were unable to achieve the expected level of automation, and the complexity of manually processing a large portion of invoices persisted. This resulted in wasted time, money, and resources.
DataServ’s AP Automation solution dramatically simplified Under Armour’s AP process by automating the previously “manual” invoices. This shift saved time for the AP team and eliminated the frustration of vendor onboarding struggles. The integration allowed Under Armour to continue benefiting from the visibility and functionality of Ariba, while DataServ handled the complexities of invoice processing.
To avoid the challenges of vendor onboarding and pushing for vendor compliance through a supplier network, choosing to initially focus on an AP Automation solution like DataServ’s would have avoided the inefficiencies and high costs that Under Armour encountered. DataServ’s ability to fill the gaps in Ariba’s functionality highlights the importance of choosing the right AP automation partner—one that can adapt to the needs of both the system and its vendors.
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