What is Strategic Sourcing?
While purchasing is a business process that organizations use to acquire essential products and services in a timely, cost-effective way, strategic sourcing takes a more holistic approach that involves collecting data, analyzing costing and prices, category management, collaborating deeply with suppliers, conducting market research, and negotiating competitively priced contracts.
Identifying SAP Ariba Sourcing Solutions
- SAP Strategic Sourcing Suite: The SAP Strategic Sourcing Suite bundles together SAP Ariba Sourcing, SAP Ariba Contracts, and SAP Ariba Supplier Lifecycle and Performance, plus includes the ability to use Direct Spend Sourcing.
- SAP Source-to-Contract Suite: The SAP Source-to-Contract Suite bundles together SAP Ariba Sourcing, SAP Ariba Contracts, and SAP Ariba Supplier Lifecycle and Performance.
- SAP Ariba Sourcing: Discover and select qualified suppliers of indirect materials from a broad supplier network and automate, streamline, and track sourcing activities through sourcing projects and events.
- Direct Spend Sourcing: Allows sourcing and commodity management in procurement departments to source direct materials through bill of materials collaboration, manufacturing cost breakdown, and integration with SAP ERP. Formerly referred to as Direct Material Sourcing (DMS).
Play the video below to learn more about SAP Ariba Sourcing Solutions and key terminology.