1

SAP Ariba cloud Solutions

Worlds Largest Business to Business commerce Network

© itelligence 2015
9/23/2019
 2
Agenda

 Introduction to Enterprise Spend Management

 Ariba- Sourcing
 Traditional Sourcing vs Ariba Sourcing
 Types of Sourcing
 Sourcing Projects
 Event Types
 Auctioning

© itelligence 2015
9/23/2019
 3
Overview of Enterprise Spend Management

Ariba Spend Management gives companies a straightforward approach to

manage their spend –

© itelligence 2015
9/23/2019
 4

Sourcing

Sourcing refers to the process of seeking, evaluating, selecting, and

negotiating agreements with suppliers to purchase specific goods or services.

© itelligence 2015
9/23/2019
 6
Traditional Sourcing vs Ariba Sourcing

 Network
 Collaboration
 Transparency
 Globalization
 TCO
 Scoring and Grades

© itelligence 2015
9/23/2019
 7
Phases of Sourcing

Phase 1 Phase 2
Request for Proposal  Negotiate

 Present Initial  RFP / Sealed Bid

Requirements
 Reverse Auction
 Collect Initial Bids
Sourcing Analysis
 Collect Creative  Final Presentation of
Options Requirement
 Final Price and
 Pre Market Analysis
Performance
 Initial Supplier list  In-depth options Evaluation
Analysis  Award

© itelligence 2015
Recommendation
 Shortlist Suppliers

9/23/2019
 8
Some of the Question while Creating a Sourcing Project

© itelligence 2015
9/23/2019
 9

Types of Sourcing

What type of Sourcing policy works best for your company?

If you ask this question to a group of procurement professionals from different organizations,
you will probably get the following answers:

 Tactical Sourcing
 Strategic Sourcing

© itelligence 2015
9/23/2019
 10

Template

 A template is a predetermined set of rules and content that govern the operation of a
particular project.
 The use of templates creates consistency within the your organization and streamlines the
process of quick/Full Sourcing project creation.

Sourcing Projects
 Full Project : It’s a workspace having best practice content from your organization.
Having capabilities of project management processes.

 Quick Project: Typically quick Projects only contains events and documents derived
from template

© itelligence 2015
9/23/2019
 11

Sourcing Full Project

A Sourcing Full Project is a discipline for stating how to source an item and/or service within
a certain time frame, usually with defined stages, and with designated deliverables. It is a
workspace that includes best practice content, including:

1. Tasks

2. Documents (including sourcing events)

3. Team members

© itelligence 2015
9/23/2019
 12
Types of Tasks

A Task is a description of an action that needs to be completed by a particular person at a

specified time.

 To Do Task
 Review Task
 Approval Task
 Negotiation Task

© itelligence 2015
9/23/2019
 13

Types of Events

 RFI : An RFI event is used to gather non-competitive data, information, comments, or reactions from potential
participants. Participants typically do not respond to an RFI with pricing information. Instead, RFIs usually precede
other events (RFPs or auctions) that include price.
 RFP: An RFP provides an efficient means of gathering competitive market and pricing information. RFPs provide a
non-competitive environment for suppliers because they cannot view each others’ bid information.
 Auction: In a reverse auction, suppliers submit bids, offering progressively lower prices in an effort to outdo their
competition and offer you the best price.
 Forward Auction: In a Forward Auction, participants submit bids, offering progressively higher prices in an effort to
outdo their competition.

© itelligence 2015
9/23/2019
 14
Types Of Auction
Mainly there are two types of Auctions

1. Reverse Auction
s

 Extended Reverse Auction

 Reverse Auction with Bid Transformation
 Total Cost Auction
 Dutch Reverse Auction
 Index Based Auction by Amount or Percentage

s
2. Forward Auction
 Forward Auction
 Forward Auction with Bid Transformation

© itelligence 2015
9/23/2019
 15

9/23/2019 © itelligence 2015