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SAP Ariba cloud Solutions
Worlds Largest Business to Business commerce Network
 Introduction to Enterprise Spend Management
 Ariba- Sourcing
 Traditional Sourcing vs Ariba Sourcing
 Types of Sourcing
 Sourcing Projects
 Event Types
 Auctioning
Agenda
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08/10/2025
Ariba Spend Management gives companies a straightforward approach to
manage their spend –
Overview of Enterprise Spend Management
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Sourcing
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Sourcing refers to the process of seeking, evaluating, selecting, and
negotiating agreements with suppliers to purchase specific goods or services.
 Network
 Collaboration
 Transparency
 Globalization
 TCO
 Scoring and Grades
Traditional Sourcing vs Ariba Sourcing
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Phase 1 Phase 2
Phases of Sourcing
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Request for Proposal
 Present Initial
Requirements
 Collect Initial Bids
 Collect Creative
Options
 In-depth options
Analysis
 Shortlist Suppliers
 Negotiate
 RFP / Sealed Bid
 Reverse Auction
 Final Presentation of
Requirement
 Final Price and
Performance
Evaluation
 Award
Recommendation
Sourcing Analysis
 Pre Market Analysis
 Initial Supplier list
Some of the Question while Creating a Sourcing Project
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Types of Sourcing
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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
 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
Template
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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
Sourcing Full Project
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Types of Tasks
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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
 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.
Types of Events
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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
2. Forward Auction
s
 Forward Auction
 Forward Auction with Bid Transformation
Types Of Auction
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Thank you

SAP Ariba Sourcing PPT for learning material

  • 1.
    08/10/2025 © it e ll i g e n c e 2 0 1 5 1 SAP Ariba cloudSolutions Worlds Largest Business to Business commerce Network
  • 2.
     Introduction toEnterprise Spend Management  Ariba- Sourcing  Traditional Sourcing vs Ariba Sourcing  Types of Sourcing  Sourcing Projects  Event Types  Auctioning Agenda © it e ll i g e n c e 2 0 1 5 2 08/10/2025
  • 3.
    Ariba Spend Managementgives companies a straightforward approach to manage their spend – Overview of Enterprise Spend Management 08/10/2025 © it e ll i g e n c e 2 0 1 5 3
  • 4.
    Sourcing 08/10/2025 © it e ll i g e n c e 2 0 1 5 4 Sourcing refers tothe process of seeking, evaluating, selecting, and negotiating agreements with suppliers to purchase specific goods or services.
  • 5.
     Network  Collaboration Transparency  Globalization  TCO  Scoring and Grades Traditional Sourcing vs Ariba Sourcing 08/10/2025 © it e ll i g e n c e 2 0 1 5 6
  • 6.
    Phase 1 Phase2 Phases of Sourcing 08/10/2025 © it e ll i g e n c e 2 0 1 5 7 Request for Proposal  Present Initial Requirements  Collect Initial Bids  Collect Creative Options  In-depth options Analysis  Shortlist Suppliers  Negotiate  RFP / Sealed Bid  Reverse Auction  Final Presentation of Requirement  Final Price and Performance Evaluation  Award Recommendation Sourcing Analysis  Pre Market Analysis  Initial Supplier list
  • 7.
    Some of theQuestion while Creating a Sourcing Project 08/10/2025 © it e ll i g e n c e 2 0 1 5 8
  • 8.
    Types of Sourcing 08/10/2025 © it e ll i g e n c e 2 0 1 5 9 Whattype 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
  • 9.
     A templateis 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 Template 08/10/2025 © it e ll i g e n c e 2 0 1 5 10
  • 10.
    A Sourcing FullProject 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 Sourcing Full Project 08/10/2025 © it e ll i g e n c e 2 0 1 5 11
  • 11.
    Types of Tasks 08/10/2025 © it e ll i g e n c e 2 0 1 5 12 ATask 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
  • 12.
     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. Types of Events 08/10/2025 © it e ll i g e n c e 2 0 1 5 13
  • 13.
    Mainly there aretwo 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 2. Forward Auction s  Forward Auction  Forward Auction with Bid Transformation Types Of Auction 08/10/2025 © it e ll i g e n c e 2 0 1 5 14
  • 14.