Transcript of "Ariba Knowledge Nuggets - Services Procurement Collaborative Requistioning"
Ariba ServicesKnowledge ProcurementNuggetsServices likely account for half of your total spending, if not more. Still, theyre hard todefine, hard to see, hard to centralize, and thus, hard to control. Even so, you gotta finda way. Otherwise, youll keep missing out on a sizable source of savings. The goodnews is that simply recognizing the problem probably puts you out in front of yourcompetition, and halfway to a solution. By delivering complete visibility andorganization-wide control, Ariba Services Procurement empowers you to finally bring allservices spend under management, ensure compliance, and protect more companyprofits. And its the only solution that can.Collaborative Requisitioning is a new feature in 10s2 that can be used with Procure ToPay, Procure To Order, Ariba Procurement Content, and Services ProcurementSolutions.In this week’s Knowledge Nugget we will explore:• Spot Buy: This feature enables buyers to request proposal from suppliers on an ad-hoc basis when procuring goods and services items without have to re-negotiate thecatalog or contract price. Buyers can also send proposal requests to other suppliersdynamically and then accept a suitable proposal that meets their needs during thepurchasing process.• N Bids and a Buy: In some organizations, if a requisition meets certain pre-definedcriteria, it is required that the buyer negotiate with a minimum number of suppliers andreceive their bids before completing before completing the purchasing process.• Quick Enablement Collaboration Request: This feature enables buyers to For More Info:negotiate with supplier who are not members of Ariba Network and do not possess AribaNetwork IDs (ANID) or whose suppliers are not available in the Ariba procurementsolution. For more in depth information consult the Ariba Procurement Solutions 10s2 Release Guide on Ariba Connect
Collaborative RequisitioningA collaborative requisition is a requisition in which a buyer can negotiate with one or more suppliers before placing anorder. A collaborative requisition has three phases: pre-collaboration, collaboration and post-collaboration. These phasesare identified in an approval flow by the begin collaboration and the end collaboration nodes.Pre-Collaboration PhaseIn the pre-collaboration phase, the requisition goes through any required approvals before the collaboration process ininitiated. When all required approvers in the pre-collaboration phase have approved the requisition, the collaboration phasestarts. Once the collaboration phase starts, a Collaboration tab is added to the requisition that displays the status of the Ins ide Story Headlinerequests sent to the suppliers along with other details.Collaboration PhaseDuring the collaboration phase, a collaboration request is created for each invited supplier and supplier location for thatitem, and then sent to them on Ariba Network. A supplier views the collaboration request in their Inbox on Ariba Network,reviews the details, and responds either by declining the request or by submitting a proposal, which contains the details ofhow they will fill the request.When sending a proposal, suppliers will be able to edit the following field values:• Description• Quantity• Price• Supplier Part Number In case of a catalog item, only the supplier associated with the item will be able to view and edit the Supplier Part Number field value. Other suppliers will see a blank field where they can enter a value.• Supplier Auxiliary Part ID In case of a catalog item, only the supplier associated with the item will be able to view and edit the Supplier Auxiliary Part ID field. Other suppliers will see a blank field where they can enter a value.• Additional non-standard fields for configurable items.Suppliers will also be able to add catalog or non-catalogitems to the requisition including punchout items. Thesupplier needs to specify the commodity code whenadding a non-catalog item.After suppliers submit their proposals, users can reviewthem on the Collaboration tab of the requisition in theAriba procurement solution. Users can further negotiate aproposal or send questions to the suppliers using themessage screen on the Collaboration tab. Suppliers cansend messages back and respond with additional oramended proposals. When a proposal is satisfactory,users can accept that proposal. The information from theaccepted proposal is merged into the requisition, and therequisition is sent for final approvals.
Dynamic CollaborationSpot BuyThis feature enables buyers to request proposals from suppliers on an ad-hoc basis when procuring goods and servicesitems without having to re-negotiate the catalog or contract price. Buyers can also send proposal requests to othersuppliers dynamically and then accept a suitable proposal that meets their needs during the purchasing process.For example, buyer LexCorp may have negotiated with supplier Stark Enterprises to supply item XYZ at a discountedprice of $100 per unit. If LexCorp wants to order 10,000 units of item XYZ, they can request from Stark Enterprises anadditional discount dynamically without having to re-negotiate the catalog price of item XYZ. LexCorp can alsocollaborate with multiple suppliers by sending collaboration requests to multiple suppliers and receive their proposals.This ensures that LexCorp receives multiple proposals and can then select the best deal for the purchasing project. Thisfeature also allows collaboration with suppliers on items associated with a contract. Buyers can request proposals fromsuppliers when procuring contracted items without having to review the contract. This is applicable to item-level, catalog-level, commodity-level and supplier-level contracts. For example, buyer LexCorp may have a contract with supplierStark Enterprises to supply item XYZ at a contracted price of $100 per unit. If LexCorp wants to order 10,000 units ofitem XYZ, LexCorp can request from Stark Enterprises an additional discount dynamically without having to review thecontract.Collaborative Configuration of Complex ItemsWhen procuring partial items or items whose specifications are not completely defined, buyers may require inputs fromthe supplier to complete the required specifications of the item. This feature enables buyers to dynamically collaboratewith the supplier(s) in completing the required specifications of a complex catalog or non-catalog item. Suppliers canalso add suitable items to the collaborative requisition that might meet the buyer’s requirements. To add items to acollaborative requisition, suppliers punchin to the Ariba procurement solution and view the catalogs. However, they willbe able to view and add only those catalog items that belong to them or those that do not have a supplier specified. Thesuppliers will also be able to add punchout items to the collaborative requisition.For example, buyer B wants to procure a pipe from supplier S. If B does not know about the available pipes and theirprices, B creates a non-catalog item for a pipe with the required specifications or adds a partial item to the requisition.The supplier S then proposes a pipe, its specifications and price. B can then accept the proposal or request additionalproposals. B can also collaborate with multiple suppliers at the same time to ensure they receive a proposal that best fitstheir requirement.Enabling Dynamic CollaborationThis feature is enabled by default in the Ariba procurement solution. However, to use the feature, users must be addedto the Dynamic Collaboration User group. The option to choose to collaborate with multiple suppliers when editing a lineitem will be visible only to users belonging to the Dynamic Collaboration User group.
N Bids and A BuyIn some organizations, if a requisition meets certain policy terms, it is required that the purchasing agents collaboratewith a minimum number of suppliers and receive their bids before completing the purchasing process. With this featureyou can enforce collaboration on a requisition based on certain policy terms.For example, you can specify a policy that all purchasing agents must collaborate with a minimum of three suppliers ifthe requisition amount exceeds $1000 for an item of commodity code 8012. To enforce this, you define a N Bids and aBuy policy where you specify the minimum number of suppliers that need to be invited for collaboration, the field(s) thatthis policy is based on and the terms of the policy.You can specify a policy based on a number of fields available in a requisition, for example:• Requisition Amount• Purchasing Unit• SET ID (PeopleSoft only)• Company Code• Common Commodity Code• Partitioned Commodity Code• Line Item Type (Catalog / Services / Non catalog items)You can also specify if violations of the policy are allowed. For example, you can specify if purchasing agents can stillsubmit requisitions if they do not invite the minimum number of suppliers or not.Note: The N Bids and a Buy policy can be enforced when procuring both goods and services items. In a requisitioncontaining multiple line items, you can specify whether the line items must be grouped based on the policy attributes.When line items are grouped, the policy is applied on the total amount of the grouped line items. You configure the NBids and a Buy policy attributes in a policy lookup table (a CSV file). The lookup table contains data related to the fieldsthat the policy is based on, the terms of the policy and the group that is responsible for enforcing the policy.
Quick Enablement CollaborationThe Quick Enablement Collaboration Request feature enables buyers to collaborate with suppliers who are not membersof Ariba Network and do not possess Ariba Network IDs (ANID) or suppliers whose ANIDs are not available in the Aribaprocurement solution. This feature is similar to the Quick Enablement Purchase Order feature.The steps involved in the Quick Enablement Collaboration Request process are as follows:1. A user adds a supplier whose ANID is not available in the Ariba procurement solution to the collaborative requisition.2. The collaborative requisition is sent to the Ariba Network during the collaboration phase.3. Ariba Network creates a private account for this supplier and generates an Ariba Network private ID.4. The supplier receives an email invitation from Ariba Network and clicks the link provided in the email to start the registration process.5. If the supplier is not yet registered, they can accept the invitation by completing the registration process.6. If the supplier is already registered, they can accept the invitation and combine their new relationship request with their existing account.7. Once registered, an ANID is created and the supplier gains immediate access to the account.8. The supplier can then punchin to the Ariba procurement solution to view and respond to the collaboration request.Note: Private IDs are unique per supplier location. You can view private IDs for supplier locations by using theSuppliers task in the Supplier Manager workspace in Ariba Administrator. For information on using the SupplierManager workspace, see the Ariba Procurement Data Import and Administration Guide. Email Notifications When you choose to collaborate with suppliers who are not members of the Ariba Network, the collaboration request is routed to those suppliers through Ariba Network by an email notification which includes an invitation to log in and complete the registration process. During the collaboration phase of the requisition, email notifications are sent to the suppliers and the buyers respectively when suppliers send proposals and the buyer responds to them. Changes to Existing Functionality The collaboration request is sent to suppliers even if they are not members of the Ariba Network and the following status is displayed in the Collaboration tab of the collaboration request: Request Sent - Waiting For Response