Name: Using Bid Transformation in SAP Ariba Sourcing Events
Uploaded: 2023-10-19
Duration: 182 s
Description: This video provides an overview of how to set up bid transformation events within SAP Ariba sourcing. Learn how to collect additional cost components and compare vendors for better decision-making.

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<div><div>This video provides an overview of how to set up bid transformation events within SAP Ariba sourcing. Learn how to collect additional cost components and compare vendors for better decision-making.</div></div>

Using Bid Transformation in SAP Ariba Sourcing Events

This video will provide an overview of how to set up bid transformation events within SAP Ariba Sourcing. Bid transformation is used when you need to collect additional cost components to compare awarding one vendor over another. Within bid transformation events, suppliers bid only one price for each item, and terms vary across each supplier. For example, I may have an import duty for supplier A and then a different switching cost for supplier B. Not all of these terms are visible to the participants, but each supplier will see a bid-to-beat that will be adjusted based on how their own bidding is transformed. In addition to the bid to beat, participants may see different bid decrement or ceiling prices because of the hidden components factoring into the total cost formula. To create an event that employs bid transformation, a template must have the setting enabled, and SAP Ariba Sourcing provides one for auctions, named Reverse Auction with Bid Transformation. You may use this template or create one of your own by copying this standard template. Add a line item to the event as you normally would, and complete all of the required fields for the line item. Then we are ready to add a term by selecting Add > Term. Provide the term with a new name and be sure that if it is a term that is not meant to be seen by the participants that we change the setting to owner required instead of participant. Then we will set up the type and specify if it should be factored into the cost. So I will choose adder, and then I'm going to change the answer type to percentage. Let's say my incumbent supplier has an import duty of 5%, but I am considering switching to a new supplier without an import duty. Within my list of invited suppliers at the bottom, I will specify 5% for my incumbent and 0% for my new supplier. If both suppliers were to bid at $1,000 in our example, the bid transformation calculation will incorporate the 5% on the buyer view. The system will not display any information to the supplier for their own bids since the term was marked not visible. However, the buyer will see the transformed bids using the total cost formula. When the project owner views the bid console, the system displays the transformed bids from the participants, which is based on the total cost formula. For additional information on bid transformation, please consult our product documentation.