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Introduction toEnterprise Spend Management
Ariba- Sourcing
Traditional Sourcing vs Ariba Sourcing
Types of Sourcing
Sourcing Projects
Event Types
Auctioning
Agenda
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Ariba Spend Managementgives companies a straightforward approach to
manage their spend –
Overview of Enterprise Spend Management
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Network
Collaboration
Transparency
Globalization
TCO
Scoring and Grades
Traditional Sourcing vs Ariba Sourcing
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Phase 1 Phase2
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
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Some of theQuestion while Creating a Sourcing Project
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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
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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
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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 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
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