Name: Creating Requests for Proposals in SAP Ariba Sourcing
Uploaded: 2023-10-19
Duration: 289 s
Description: This video provides and overview of how to create a Request for Proposals within SAP Ariba Sourcing.The overview provides common use cases and a demonstration of how to create a sourcing project with RFP as the event type.

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<div><div>This video provides and overview of how to create a Request for Proposals within SAP Ariba Sourcing.<br><br>The overview provides common use cases and a demonstration of how to create a sourcing project with RFP as the event type.</div></div>

Creating Requests for Proposals in SAP Ariba Sourcing

Today's video will review requests for proposals within SAP Ariba sourcing. A Request for Proposal, or RFP, is an event that can collect both information about suppliers' qualifications, as well as pricing information. Although pricing information can be collected, pricing might not be the most important factor in the award selection. RFPs tend to gather competitive market and pricing data by asking questions about the opportunity. RFPs can be helpful when sourcing non-standard items, obtaining first round pricing in preparation for an auction, comparing a variety of possible options, or allowing suppliers to differentiate themselves through bidding. Project owners should know the intent of their RFP before creating a project in the system. For example, a project owner will need to know if their RFP will be closed or competitive. Closed RFPs do not disclose other supplier responses from other participants. If the event is competitive, suppliers can see such information like the lead bid or their rank within the event. Within competitive RFPs, it is common to have suppliers submit multiple bids. Project owners will also want to know how many line items will be included in the event. If this number exceeds 2000, large capacity events may be better suited. Project owners will also want to know the duration, as timing rules will specify how long an event will remain open. A project owner will want to know what template to select. Companies may have a custom template suited for their common RFPs, and standard system RFP templates are available for selection as well. Each template has a description and can be administrated by template owners. Each project requires completion of the header fields above and then the template selection will create a project shell that the project owner will then personalize. For RFPs, there are some templates visible for certain pricing collection strategies, or there are rules that may be turned on for alternative responses. Let's quickly go through the standard templates. Price breakdown and total cost are used to collect pricing in specific ways. Price breakdown requires the participant to enter pricing at the term level, like itemizing a receipt, and total cost can be taken at the total face value or include custom terms that can factor into the cost with capacity for more complex calculations. Delegative responses allow suppliers to submit initial bids and then allows a follow-on bid with format specifications built into the event rules. The large RFP template is for RFPs with more than 2,000 line items that heavily uses Microsoft Excel. And lastly, the request for proposal is simplified and does not have many delegated rules that would heavily alter the market feedback or supplier visibility settings. Once the project is created from the template, there are five steps in a quick project RFP where the rules, participants, team, content, and summary steps are visible. This time is spent adding content and updating rules, but project owners will want to go through each step and ensure that the settings are appropriate for their RFP. The content step is the most time-consuming as it is where the event participants will see information to respond to as this includes read-only text, questions, and potentially pricing through line items. To recap, RFPs are used to collect market information by asking questions with various answer types and potentially quotes for pricing elements through line items. Project owners should know the template they will want to select as it will drive the format of the event through event rules and other template configurations. For most customers, the generic template may suit what they need for non-competitive events and look to other templates for competitive rule settings or pricing strategies. The last step of the event is the summary page which includes the publish button which will launch the event and make it live depending on the event timing rules. For additional information on RFPs and event creation, please consult our product documentation.