SAP Ariba provides features for the sourcing of direct materials and collaborating with suppliers once the supply base is established.
SAP Ariba Direct Material Sourcing encompasses two primary scenarios: sourcing of direct materials for new product development and/or sourcing for direct materials that have already been identified as necessary for production.
You have the option to import your materials or bills of materials, which have been identified by the Engineering team, from SAP S/4HANA, to SAP Ariba Sourcing. Suppliers, whether they are new or already on the Approved Manufacturer List, can then be invited to participate in sourcing events. Suppliers can use their SAP Business Network account to answer queries regarding material specifications and pricing. Once the material demand is confirmed, you can also import it into SAP Ariba, and request vendors to submit quotes for the exact quantity you require. Additionally, the SAP Ariba Contracts software can be utilized to generate contracts digitally with the suppliers.
Essentially, SAP Ariba enables customers to request suppliers for information and costs of direct materials and choose the best candidate for their supply base.
Once appropriate vendors are engaged, after the sourcing process is completed, all relevant details regarding the materials or bills of materials are transferred to SAP S/4HANA as a purchase info record, a purchase order, or an outline agreement for the procurement activities. This means that buyers will use SAP S/4HANA to buy direct materials from their suppliers.
Alternatively, you have the option to utilize the SAP Business Network Supply Chain Collaboration as the primary method for purchasing direct materials. Your purchasing team can initiate the procurement process within SAP S/4HANA and communicate with suppliers electronically through the SAP Business Network Supply Chain Collaboration platform. This platform facilitates seamless collaboration between buyers and suppliers, ensuring that the supply of direct materials remains uninterrupted. The application enables buyers to schedule material deliveries based on pre-established agreements with suppliers and also provides vendor inventory management capabilities. Both buyers and suppliers can manage any necessary stock transfers efficiently. Suppliers can promptly confirm orders, ship goods, and invoice customers once orders are fulfilled.