"You have learned so far that sourcing event owners can collect different types of information from event participants.
SAP Ariba offers the possibility of collecting complex pricing in competitive and non-competitive events.
In the next lesson we will focus on learning about the different means of working with pricing."
Typically pricing is collected via lots and items.
Lots
Lots are usually composed of one or more line items. Lots have the following characteristics:
- The price of a lot is the combined total of all the items in the lot.
- Lots are optional elements, so you do not need to place line items into lots.
- Lots always count toward the maximum number of elements in your event.
- Bids for lots are always on the extended price or the total cost.
- A lot is awarded in its entirety; you cannot award line items in a lot to different participants.
- A lot is a group of items, and the price of a lot is the combined total of those items.
- You might be able to get a better price from suppliers if they can give discounts when they get business across all lines in the lot.
Line Items
A line item is the smallest entity that suppliers (participants) can submit pricing for or bid on. Line items have these special characteristics:
- Can be awarded individually or in groups.
- A line item is the smallest entity on which a participant can bid. It has a unique identifier, such as a manufacturer's part number or SKU. When you add a line item to your auction, enter the quantity associated with the item that you want to buy.
- When you list items separately, instead of grouping them into a lot, suppliers might give you better prices, because they can bid at a more granular level than if they bid on a lot (or group) of items.
- By adding content as a line item (whenever possible), you can take advantage of supplier's ability to give you a price break on selected items.
Type of Lots
Depending on the type of event, commodity, price complexity or event strategy, event organizers can use different lot configurations.
Item Lot - Bid at Item level, compete at Lot level (collect item pricing during bidding):Choose this type to collect line item pricing information during competitive bidding. Suppliers see rank based on the lot level. You, the buyer, control if suppliers can see rank at the item level too.
As the buyer, you will always see ranking at both the lot and item levels. By letting suppliers see rank at the line item level, you encourage competition at the line item level instead of just at the lot level. For example, even if bidder is ranked #1 at the lot level, they can see if they are trailing on any item within the lot. Note that the rank on the line item is informational only, no bid improvement rules or constraints based upon line item rank.
Basket - Bid at Lot level, compete at Lot level (collect item pricing post bidding):During competitive bidding suppliers will bid at the lot level (a group of lines) and see competitor pricing at the lot level. When the bidding ends, suppliers can provide detailed line item pricing online. Use this lot type if you have many line items in a lot. It saves suppliers’ time and makes bidding easier to manage. The bids are always on the extended price or total cost.
Basket with No Items - Bid at Lot level, compete at Lot level (do not collect item pricing):Choose this if you do not want to collect line item pricing. When you choose this, the application does not allow you to create line items within the lots. Suppliers bid based on the lot description or on information you provided to them outside of SAP Ariba Sourcing.
NoteStandard-capacity and simple-capacity events can contain up to 2000 total items. Large-capacity RFPs are non-competitive RFPs that can contain up to 10,000 line items.
Event Content Limits Documentation
Please select the below link to access product documentation regarding event content limits.
