Defining the Scope Items

Objectives

After completing this lesson, you will be able to:

Define the scope items of Central Procurement
Describe how Central Procurement acts as a core of every multi-ERP procurement landscape

Execution of Procurement Activities from a Single, Centralized Command Center

The SAP Ariba Central Procurement offers several advantages across all the different activities of procurement.

Bringing consistency to approvals, workflows, confirmations, corrections, source-of-supply assignments and returns, while leveraging customized workflows in existing backend systems.
Central requisitioning provides centralized, self-service requisitioning across a multi-ERP landscape.
Automating purchase requests and POs on a single solution in a consistent workflow.

Creating and distributing central contracts across the company, and monitor purchases against those contracts.
Creating POs using central contracts, so you know you’re getting the pricing and terms you’ve negotiated.
Creating RFXs once across the entire organization.

Monitoring global planned purchasing spend across connected back-end ERP systems
Monitoring health of procurement processes so you can achieve continuous process improvement and making more timely decisions
Tracking operational requisition metrics like cycle times and touchless rates and contract consumption analysis of central contracts based on back-end PO release history

To view this diagram in detail, refer to page 12 of the Course Diagrams PDF.

Central Procurement acts as the core of every multi-ERP procurement landscape as it offers:

Unified Requisitioning Experience: Extended by Guided Buying offering a unified self-service requisitioning experience guided by the company’s business policies
"One stop shop" Control Center: Centralize compliance, process control, approval workflows and document output into one single procurement control center
Central Demand Aggregation: Aggregate and bundle external demands from all your SAP and non-SAP connected systems to take advantage of better volume pricing
Enterprise Contract Orchestration: Centrally negotiate and monitor global contracts for all legal entities of your enterprise incl. integrated commodity pricing

To view this diagram in detail, refer to page 13 of the Course Diagrams PDF.