Ariba Helps Combat Currency Fluctuations

While there are differing opinions on the future of the dollar, there is no arguing that currency volatility is having a significant impact on companies both large and small. To help minimize its negative effects, Ariba, Inc. (NASDAQ:ARBA), the leading spend management solutions provider, is providing tips and best practices for developing and executing strategies that companies can leverage to maintain cost structures and competitive advantage as part of its ongoing podcast series.

"It used to be that regional currency differences were minimal and easily absorbed by suppliers or offset by productivity improvements. But today, the gaps are substantial enough that this no longer applies," said Patrick Furey, Senior Category Manager, Ariba. "As a result, companies must implement new strategies that enable them to head off price increases and potential disruption of supply."

To help them do this, Ariba recommends the following actions:

1.    Be Prepared
      Analyze fluctuations not just in domestic currency, but in the
      local currency of the suppliers you are evaluating and research
      regions where currency fluctuations may not be as significant.
2.    Know your Costs
      Take time to determine key total cost inputs for each commodity you
      are sourcing, including raw materials, labor, capital expenditures,
      energy, types of labor, geographic distribution, etc. Also be sure
      to understand the cost structures of your suppliers.
3.    Utilize Raw Material Indices Based on US Dollars
      Hedge against significant price increases and manage a key portion
      of overall costs by pegging raw material costs to an index based in
      US dollars such as the LME or NYMEX exchanges.
4.    Diversify your Supply Base across Multiple Currencies
      Include suppliers from multiple regions in all rounds of RFx
      competition and award business across various regions to mitigate
      the impact of currency fluctuations and ensure consistency of
      supply. While China remains a relevant source of supply, emerging
      markets such as Eastern Europe merit consideration as well.
5.    Share Currency Volatility with Suppliers
      Share the risks and rewards of currency volatility through price
      adjustment mechanisms to mitigate fears that often cause suppliers
      to pad their margins. Factors to consider include: minimum change
      threshold percentages or basing thresholds on total part cost versus
      exchange rates.

"By following these recommendations, companies can develop optimal strategies that enable them to successfully manage currency fluctuations and their impact on operations and profits in both the short and long-term."

For additional insights, visit http://www.ariba.com/resourcelibrary/podcast.cfm and download the podcast "Tips for Managing Currency Fluctuations."

About Ariba, Inc.

Ariba, Inc. is the leading provider of on-demand spend management solutions. Our mission is to transform the way companies of all sizes, across all industries, and geographies operate by delivering technology, service, and network solutions that enable them to holistically source, contract, procure, pay, manage, and analyze their spend and supplier relationships. Delivered on demand, our enterprise-class offerings empower companies to achieve greater control of their spend and drive continuous improvements in financial and supply chain performance. More than 1,000 companies, including more than half of the companies on the Fortune 100, use Ariba solutions to manage their spend from sourcing and orders through invoicing and payment. For more information, visit www.ariba.com.

Copyright (C) 1996 -- 2009 Ariba, Inc.

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Safe Harbor Statement under the Private Securities Litigation Reform Act 1995: Information and announcements in this release involve Ariba's expectations, beliefs, hopes, plans, intentions or strategies regarding the future and are forward-looking statements that involve risks and uncertainties. All forward-looking statements included in this release are based upon information available to Ariba as of the date of the release, and we assume no obligation to update any such forward-looking statements. These statements are not guarantees of future performance and actual results could differ materially from our current expectations. Factors that could cause or contribute to Ariba's operating and financial results to differ materially from current expectations include, but are not limited to: the impact of the credit crises on Ariba's results of operations and financial condition; delays in development or shipment of new versions of Ariba's products and services; lack of market acceptance of Ariba's existing or future products or services; inability to continue to develop competitive new products and services on a timely basis; introduction of new products or services by major competitors; the ability to attract and retain qualified employees; difficulties in assimilating acquired companies, long and unpredictable sales cycles and the deferrals of anticipated orders; declining economic conditions, including the impact of a recession; inability to control costs; changes in the company's pricing or compensation policies; significant fluctuations in our stock price; the outcome of and costs associated with pending or potential future regulatory or legal proceedings; the impact of our acquisitions, including the disruption or loss of customer, business partner, supplier or employee relationships; and the level of costs and expenses incurred by Ariba as a result of such transactions. Factors and risks associated with its business, including a number of the factors and risks described above, are discussed in Ariba's Form 10-Q filed with the SEC on August 7, 2009.

SOURCE: Ariba, Inc.

Ariba, Inc. 
Karen Master, 412-297-8177 
kmaster@ariba.com

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