Understanding Supplier Qualification Process

Objective

After completing this lesson, you will be able to summarize the differences between legacy qualification projects and qualification process projects.

When to Use the Supplier Qualification Process

Yes, for new suppliers (with considerations)

  • Keep it simple
    • Current state qualification process is not recommended for component suppliers or regulated industries

No, for existing suppliers

  • Unnecessary to complete the template-based process
    • Administrators can upload qualification status data

Integrations with other SAP Ariba solutions

  • Can use qualification status to limit sourcing event participation and/or award eligibility in SAP Ariba Sourcing
  • Qualified suppliers used in guided buying

Supplier Qualification vs. Engagement Risk Assessment

Supplier qualifications and engagement risk assessments have some similarities, but are used to different purposes. Supplier qualification, a lifecycle process in SAP Ariba Supplier Lifecycle and Performance, is used as a prerequisite to designating a supplier a preferred supplier for a specific commodity, region, and (optionally) department combination. Engagement risk assessment, a process in SAP Ariba Supplier Risk, is used to measure and mitigate the amount of risk of engaging with a supplier on a project for a specific commodity, region, and department combination.

Supplier Qualification

  • SAP Ariba Supplier Lifecycle and Prformance
    • Used as a prerequisite to designating a supplier as preferred for a specific combination of commodity/region/department

Engagement Risk Assessment

  • SAP Ariba Supplier Risk
    • Used to measure and mitigate the risk of engaging with a supplier on a particular project for a commodity/region/department

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