Implementing Tactical Sourcing

Objective

After completing this lesson, you will be able to configure the tactical sourcing functionality for the guided buying capability​

Tactical Sourcing Scenarios

Under certain conditions, company policies enforce a bidding process for certain categories. ​Such policies also impact functional buyers, so a process must exist within guided buying that aligns with the following principles: smart, quick, and simple.

Users fill out a request form that captures their input for the request for quotation (RFQ) process. Customer administrators create supplier and touch policies that determine the scenario to be triggered and how much sourcing professionals' involvement is required.

Note

For some scenarios, your company will require an SAP Ariba Sourcing license.

There are four types of scenarios available: 

Self-Service Scenario

The self-service scenario does not require approval, and the form is immediately sent to the suppliers. The requester manages the collaboration entirely. The RFQ becomes a request after the casual user accepts one of the quotes. The request will follow the approval process configured in SAP Ariba Buying solutions. Such RFQs are meant for known services or goods where additional details are not required.

Low-Touch Scenario

The low-touch scenario requires a small amount of procurement department involvement. Low-touch RFQs are ideal for mid-range purchases where you're willing to give most of the control to casual users or functional buyers. Users still fill out a form in guided buying to kick off the process. They also choose suppliers on the form. After users submit the form, the RFQ event is created automatically in SAP Ariba Sourcing but not published. When suppliers respond with quotes, sourcing team members can review them, but it’s up to the requester to award the business to a supplier. After users accept a quote, the quote information is used to create a request automatically in guided buying. The request is subject to the active requisition approval process in SAP Ariba Buying solutions.

High-Touch Scenario

The high-touch scenario requires more involvement from the procurement department. High-touch RFQs are ideal for large, infrequent purchases or for situations where users don't know which supplier to choose on the request form. Like the self-service and low-touch scenarios, casual users or functional buyers fill out a form in guided buying.​

After users submit the form, the RFQ event is created automatically in SAP Ariba Sourcing but not published. The sourcing team manages the bidding process and makes all choices regarding event timelines, invited suppliers, event content, and so on. After they award the event, guided buying displays the results, and the casual user can create a request for the winning quote. The requisition is subject to the active requisition approval process in SAP ​Ariba Buying solutions.​

Sourcing Request Scenario

The sourcing request scenario requires the most involvement from the procurement department. Sourcing requests are ideal for very large purchases. After users submit the form in guided buying, a sourcing request is created automatically in SAP Ariba Sourcing. A sourcing request is used to request a sourcing project that the procurement department will run entirely. The rest of the scenario is similar to the high-touch one.

Note

Suppliers must have an SAP Business Network account to respond to RFQs. 

Play the video to learn about tactical sourcing scenarios in guided buying and how to submit a self-service RFQ to suppliers.

Tactical Sourcing Configuration

Administrators must perform a series of steps in the guided buying capability, SAP Ariba Sourcing, and SAP Business Network to configure tactical sourcing.

Configuration in Guided Buying

  • To create RFQs, guided buying uses a specific sourcing event template type: Spot Quote.​
  • Guided buying administrators must create a request form associated with a commodity for the preferred suppliers to be displayed by guided buying.
  • ​Guided buying administrators must create supplier and touch policies that determine system behavior and allow RFQs to be available in SAP Ariba Sourcing.​
  • After setting up the endpoint in SAP Business Network, a customer administrator must create the endpoint in guided buying via AdminTactical SourcingEndpoint name and password. The endpoint name should be GBEndPoint.

Configuration in SAP Ariba Sourcing

  • Run the EnableSourcingTemplatesForGuidedBuying scheduled task for the Spot Quote template to become available under ManageTemplatesGuided Buying Templates.​
  • Customers subscribed to SAP Ariba Strategic Sourcing can copy and modify the default Spot Quote template to accommodate their low-touch and high-touch scenarios:

    For Self-Service:

    Specify which system to award: ERP​

    Specify the bid information to send to ERP: All bids

    Auto publish sourcing request: Yes

    Award from GB: Yes

    For Low-Touch:

    Specify which system to award: ERP​

    Specify the bid information to send to ERP: All bids

    Auto publish sourcing request: No

    Award from GB: Yes

    For High-Touch:

    Specify which system to award: Sourcing​

    Specify the bid information to send to ERP: Manual Selection

    Auto publish sourcing request: No

    Award from GB: No

Note

Customers who require the self-service scenario only can use the default Spot Quote template. The Spot Quote section of the template determines the type of scenario to be triggered.

Log in to track your progress & complete quizzes