Introducing SAP Ariba Direct Materials Sourcing for Automotive and Industrial Manufacturing in SAP S/4HANA
Explaining Key Direct Material Sourcing Processes
Setting Up SAP Ariba Direct Materials Sourcing for Automotive and Industrial Manufacturing in SAP S/4HANA
Setting Up SAP Business Technology Platform

Activating SAP S/4HANA Procurement Hub and Scenarios

Objective

After completing this lesson, you will be able to activate the Central Procurement Hub and associated scenarios in SAP S/4HANA.

Central Procurement Hub

Business Purpose

SAP Ariba Direct Materials Sourcing for Automotive and Industrial Manufacturing on SAP S/4HANA is built on Central Procurement Hub. The design of the solution is strictly connected with the Central Contracting scenario. Therefore, activating Central Procurement Hub and the Central Contracting (2ME) scenario is mandatory for Direct Material Sourcing. Central Procurement Hub can be used as local scenario or as a hub scenario. Local scenario means that the Procurement Hub is activated on an SAP S/4HANA system that is used for other operations in your company (for example, Finance, Production, Logistics). The hub scenario is implemented on a separate SAP S/4HANA system and operational systems are connected to this system.

Hub activation is not reversible. After successful hub activation, you need to activate any needed scenarios.

As a prerequisite for the SAP Ariba Direct Material Sourcing, you need to activate following scenarios:

  • DMS – Direct Material Sourcing
  • CCM – Central Contract Management

If you would like to create sourcing projects from a purchase requisition, the CPU Central Purchasing scenario is also required.

In this training we are focusing on DMS and CCM scenarios.

Technical Explanation

When you activate the scenarios, additional functionalities and setup possibilities will be enabled. It is not possible to reverse SAP S/4HANA Procurement Hub and Scenarios activation.

How to Activate SAP S/4HANA Procurement Hub and Scenarios

Summary

  • Activate the Central Procurement Hub for direct materials sourcing in automotive and industrial manufacturing.
  • Implement Central Procurement Hub as either a local scenario or a hub scenario with connected operational systems.
  • Activation of the hub is irreversible, and post-activation, additional scenarios need to be activated as required.