Name: Using Envelope Bidding in SAP Ariba Sourcing Events
Uploaded: 2023-8-24
Duration: 377 s
Description: This video demonstrates how to create a sourcing event with envelope bidding and which event rules to configure. You will learn how template administrators and event owners can leverage the envelope bidding functionality to collect supplier bids.

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<div><div><div><p>This video demonstrates how to create a sourcing event with envelope bidding and which event rules to configure. You will learn how template administrators and event owners can leverage the envelope bidding functionality to collect supplier bids. </p></div></div></div>

Using Envelope Bidding in SAP Ariba Sourcing Events

Envelope Bidding enables you to place the content of events in different envelopes, for example technical and commercial. Participant responses inside the envelope are not visible until the envelope is opened and envelopes must be opened in sequence. This behavior makes envelope bidding useful when regulations require that buyers view event sections that contain supplier responses in sequence. You can also use envelope bidding to eliminate participants based on certain criteria, such as technical responses, before viewing other criteria, such as price. This video demonstrates how to create a sourcing event with envelope bidding and which event rules to configure. Envelope bidding rules are typically hidden and restricted in live events and must be set up by an administrator at template level. This means that usually there is a template configured specifically for this purpose by the team that is in charge of template management. We open the Envelope Bidding template and we are going to modify some of the settings on the Rules page. Envelope bidding does not show up for configuration from the very beginning. To make it show, we go to the bidding rules section and then change the "must participants improve their bids" from yes to no. This rule specifies if the event will be competitive or not. If we allow it to be competitive, it defeats the purpose of having participants submit their bids inside envelopes. So we set this rule to no so that participants will submit one single and final bid. If we scroll back to the top, we will see the envelope rules appear. Team Access Control enables project team members who are authorized to open envelope bids to select which participants advance to the next envelope. For the next rule, we leave the number of envelopes to no envelopes, but we'll change the setting to Delegated so that the buyer using the template can make changes in their live event. Let us quickly publish this template and then focus on how we can create a request for proposal with envelope bidding. As usual, we're going to create a new sourcing project. It will be a request for proposal, and we use the envelope bidding template we were working on previously. Once the rules have been preset by the template administrator, it's quite easy to create the event. For the process to work, there has to be a solid cooperation between the template administrator and event owner. Because the number of envelopes rule was set to delegated, we can now choose how many envelopes we want to have in the event. So we will have two envelopes, one for the technical bid and the other one for the commercial bid. Next, we have to specify which of the team members are in charge of each envelope, keeping in mind that group membership can also be set at template level. Now, when we come to the content page, we can create different sections and allocate each section to a different team by placing the content inside an envelope. So, envelope number one will have the technical bid and we can also add any type of other content that we wish to. And then the commercial bid will be added, as set up previously, to the envelope number two. So our envelopes have been created and assigned to the respective team members. The rest of the event configuration will work as in any other event. Buyers will add additional content, such as lots, items, questions, either inside or outside the envelopes, then invite suppliers, and then finally publish the event. We will now fast-forward and see how envelopes are opened once the suppliers have submitted their bids and the event ended. Here we are looking at an event that is in pending selection status, which means that we are ready to open the envelopes. On the content page we see two suppliers participated and we also can view their responses placed outside the envelopes but nothing else. To open the envelope we go to actions and then from the drop down we choose open envelope. On the next page we see the list of participants and their responses. Users will only see the content of the envelope allocated to the team they belong to. This team member belongs to the engineering group, so they can only open the technical bid. To do so, we go on the Select Participants page, select one of the participants or both if we want to open both, and click Open Envelope. The Open Envelope Confirmation page displays a summary of the actions we are about to take. Users are warned that they will lose the bids submitted by the suppliers they didn't choose and they can decide whether they want to send notifications to both selected or non-selected participants. After selecting Open Envelope, we are taken back to the event content page, where the supplier's bid is now ready to be evaluated. This concludes the video on envelope bidding. Thank you.