Name: Working with SAP Ariba Direct Spend Sourcing
Uploaded: 2023-8-7
Duration: 164 s
Description: Learn how to source for direct materials in SAP Ariba Sourcing, create requests for proposals using the guided sourcing capabilities and receive bids from suppliers.

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<div><div><div>Learn how to source for direct materials in SAP Ariba Sourcing, create requests for proposals using the guided sourcing capabilities and receive bids from suppliers. </div></div></div>

Working with SAP Ariba Direct Spend Sourcing

Direct spend sourcing is a feature of the Strategic Sourcing Suite. Enabling it, allows customers to manage their direct materials under one dashboard and have access to comprehensive information about the bill of materials and its structure. Depending on their business needs, buyers can run sourcing events on both materials, and, entire bills of materials. Once the BOMs or materials themselves have been sent from the ERP to SAP Ariba via the Managed Gateway, material managers can access them on the Direct Spend dashboard, which is the starting point of direct spend management in SAP Ariba. The dashboard allows you to search for the desired items and then view the details for either the entire bill of materials or, for a deeper view, drill down into the information at the material level. From the BOM Details page, buyers can run sourcing events for materials by creating a material quote, and they can also collect pricing for the entire bill of materials via a BOM quote. Using the guided sourcing capability for SAP Ariba Sourcing, project owners can create different types of events or choose the Full Project option if the business strategy calls for it. During the creation process, the system carries over to the event the entire bill of material structure, AML suppliers, and any terms associated with the materials. Suppliers receive a notification that the event is available for bidding. Depending on the setup, each supplier might be invited to different lots and could have their own starting ceiling value. Meanwhile, event owners can monitor the event timing and supplier activity in real time. When the bidding is over, buyers can perform supplier bid analysis by creating their own scenarios or by using the out of the box ones. When ready, they can go ahead and award the event. In this case, the supplier with the best bid was awarded. This concludes our overview on direct spend sourcing.