Exploring the Fundamentals of Demand Aggregation​

Demand Aggregation enables buying organizations to consolidate line items from multiple purchase requisitions into an aggregated purchase requisition.​

​Requisition line items are held for aggregation based on demand holding rules configured by the administrator.​

​The Purchasing Workbench enables members of the Purchasing Agent and Purchasing Manager groups to view these held line items and add them to aggregated requisitions.​

​Buying organizations can optionally send a sourcing request for this aggregated requisition or take advantage of the tiered pricing available in contracts.

• Can help reduce costs and processing time​
• Allows buyers to take advantage of tiered or other discounts available through contracts
• ​Consolidates multiple orders together
• Can simplify receiving department workload
• ​Allows buyers to create a Sourcing Request to seek out better pricing from vendors

1. User Creates Requisition​

   An employee at XYZ Corp requests various items, including Rayovac batteries, through a purchase requisition in SAP Ariba Buying. ​The Rayovac batteries line items are marked as held for potential aggregation, while other nonheld items, in the PR, generate separate POs as usual.​

2. Review in Purchasing Workbench

   The held line items for Rayovac batteries appear in the Purchasing Workbench, alongside other similar items on hold across the organization.

3. Aggregation​

   In the Purchasing Workbench, the procurement team identifies and aggregates similar held items like the Rayovac batteries from various PRs into a larger requisition.​ Auto-aggregation occurs for these batteries if they meet preset conditions configured in the system.​ With the aggregated quantity, the procurement team can negotiate better terms with suppliers.​ Once approved, the aggregated requisition for the batteries generates a PO sent to the supplier.​ The held line items for Rayovac batteries appear in the Purchasing Workbench, alongside other similar items on hold across the organization.

4. Distribution​

   The bulk order of Rayovac batteries is received and distributed to the original requesters based on the initial requisitions.

This screenshot shows a PR that has been submitted and approved. Line items 1 and 2 have been held for consolidation by the demand holding rules.​ Once the held items are added to a new aggregated requisition and ordered, the status of the line items in this original PR will be updated according to the status of the aggregated requisition.