Creation of Quote from PR> Quotation > Quote > Contract/PO.Creation of Sourcing request > Sourcing project > RFX and Contract > Contract to ERP.Souring for Direct material happens in two ways (Integration -ERPs Ariba Sourcing) and Product Sourcing with BOMs and Quote Automation. I would like to categorize- Two Main Area for Direct procurement/planning in SAP Ariba by integrating with ERPs.ĭirect material Sourcing: leveraging existing Ariba Sourcing application with Quote to RFX Functionality. All such requirements will then be sourced by using Ariba sourcing and rest of the procurement process will be followed in Ariba or SAP back end.ĮRP planning systems getting integrated to ASN to get the commit from Supplier over planning forecast to confirm future receipt else on uncommitted demand, planner can take advance action to avoid supply disruptions. SAP added the direct sourcing function wherein the PLM/ERP system can be integrated with Ariba sourcing to receive the requirements from exploded BOM. Supply Chain Collaboration (SCC) on the other hand provides the visibility of Subcontracting process from issue of raw material to manufacturing status of goods and receipt of finished good.įig.2: Integrated Procurement Solution for Direct/Indirect Spend with SAP Ariba and SAPERP Further it addresses the planning collaboration by integration between SAP IBP and Ariba Network to provide visibility of the forecast to the supplier. This addresses the Direct Sourcing needs via integration between PLM and SAP Ariba Sourcing.

SAP as product vendor for Ariba solutions understood this need and started to incorporate the missing pieces of direct procurement. Direct Spend is one of the major item and P&L of companies.īelow spends matrix is indicative spend but shows that Direct spend of 26% also a significant chunk that needs to be brought under overall spend control.įig.1: Indicative Spend Volumes in typical organizations Companies which belong to these industries are looking out for unified solution that covers all spend including Direct, Indirect and Services Spend. Direct procurement spend is one of the major spend area for certain industry segments like automotive, manufacturing, defense etc.

Ariba indirect procurement