Ariba Strategic Sourcing

Solution and Discovery

 Introduction to Ariba Sourcing

This course provides a high-level understanding of Ariba

Sourcing and introduces new terms and concepts. We will
learn about various components of Ariba Sourcing and
discuss its benefits.

By the end of this course, you should be able to:

 Define key terms and concepts associated with Sourcing using Ariba
 Explain at a high-level the functionalities and benefits of Ariba Sourcing
 Describe how to navigate the system
 Explain at a high-level how to create a sourcing event and manage a sourcing project
Strategic Sourcing and Procurement Overview
 Ariba Sourcing Terms and Concepts

Term Definition
Quick Project A Quick Project is a sourcing event such as a RFI, RFP, or an Auction (forward or reverse). If you
choose to create a Quick Project, then you will create a project containing only an event
template without walking through the strategic sourcing process.
Full Project A Full Project is similar to a quick project, but includes the strategic sourcing process. These
steps are utilized to execute a project. The preferred project method is a Full Project.
Project Owner A Project Owner creates, publishes and manages sourcing events. They are responsible for
monitoring the events, publishing the event, and awarding business at the close of bidding.
Project owners are sometimes referred to as buyers.
Team Team members are members of a sourcing project. They help Project Owners manage and
Members execute sourcing events. Their roles may vary from answering suppliers’ technical questions,
grading supplier responses, assisting in award allocation, or being an observer in the sourcing
process.
Suppliers Suppliers or Participants are individuals outside the organization who are invited to respond to
(Participants) event(s). They are provided a username and password to access the Ariba site and respond to
sourcing events.
 Ariba Sourcing Terms and Concepts (contd.)

Term Definition
Desktop File DFS uses the centralized file storage provided by Ariba for local file editing. When DFS is
Sync (DFS) enabled, opening a document stored in the Ariba system downloads a new version of the file to
the user’s desktop if the user does not have the latest version of the document. If a user
modifies his or her local copy of the document, the system detects the change and asks if the
user wants to create a new version of the file in the system by uploading the local file.
Phase A phase is an organizational structure for tasks that are helpful in organizing tasks and
activities.
Event In Ariba Sourcing, an “Event” is the publication of data to suppliers or buyers and their
response to questions or bids on goods or services. It includes requests for information, or
proposals, as well as forward and reverse auctions.
Request for An RFI event is used to gather non-competitive data, information, comments, or reactions from
Information potential participants. Participants typically do not respond to an RFI with pricing information.
(RFI) Instead, RFIs usually precede other events (RFPs or Auctions) that include price.
Request for An RFP communicates business needs to potential participants and asks them to propose goods
Proposal (RFP) or services to fulfill the business needs. The participant typically includes pricing information in
the response, but price might not be the most important factor in selection.
 Ariba Sourcing Terms and Concepts (contd.)

Term Definition
Manual The manual scenario allows users to award specific lots to individual suppliers and split the
Scenario awarding of a lot by percentage among multiple suppliers. This scenario is useful if awarding
decision is fairly obvious. For large and complex events where the awarding is not easy to
determine, users utilize the optimization scenario.
Optimization The optimization scenario allows users to analyze the award decision for a large or complex
Scenario event. The optimization helps to make the award decision by allowing users to create and
compare hypothetical awarding models with specific constraints to determine the potential
awarding results. Users do not have to accept any of the scenarios. When the analysis is
complete, uses can accept the appropriate award scenario.
Preview The time period between publishing of the event and the bidding start time is called the
Period preview period.
Reverse A reverse auction is the standard auction. In a reverse auction, suppliers submit bids, offering
Auction progressively lower prices in an effort to outdo their competition and offer the best price.
Commodities such as desktops and laptops are suitable for simple reverse auctions.
Forward A forward auction is used to sell things, such as surplus inventory. Instead of inviting suppliers
Auction to compete to offer the lowest cost, buyers are invited to compete to offer the highest price.
Navigation and Dashboard
 Basic Navigation
1 5

# Description
1 Dashboard tabs are completely configurable by each end user, and they differ based on the user’s role within the organization and
permissions in the system.
2 The Calendar illustrates the specific “Work In Progress” activities including: tasks needing review, tasks due this week and tasks
submitted to others in the system
3 The Navigation Bar menus allow users to access various activities including creating and searching. Click on either Create or Search
menus and review the options available (click on the double arrow to view all options).

4 By clicking on the Configure Tabs link, users can organize and configure their own Dashboard layouts.

5 The Home link is consistent on every page and will always bring the user back to the Dashboard View.
 Setting User Preferences
Users can set preferences from the dashboard command bar. A drop-down menu appears under

Preferences that provides a list of options to edit .

# Description
1 Delegate authority: Assign authority to another person to complete tasks and action items.

2 Change notification preferences: Change the method of notification of action items.

3 Change dashboard preferences: Change the format of the dashboard, including choosing which functions to display on the
dashboard home page.
 Sourcing Process Management in Ariba

• The Ariba Sourcing solution includes process management features that

allows users to control sourcing projects from the planning stage to the
awarding of individual events.

• Sourcing Projects incorporate the following guiding principles:

 Establishing a central repository for all sourcing initiative related
information
(data, discussions, decisions, documentation)
 Enabling process standardization by following steps for Strategic Sourcing
 Enabling collaboration with team members and cross-functional teams
 Sourcing Process Overview
1 2 Define 3 Assess 4 5 6
Assess Develop Execute Implement
Internal External
Opportunit Sourcing Sourcing Sourcing
Requiremen Supply
y Strategy Strategy Decisions
ts Market
Understand and Document current Understand the Define category Conduct sourcing Identify suppliers
document category specs, sourcing external supply strategy among the event to collect and and develop
Goals

scope, dynamics, process, and cost market and identify sourcing levers analyze supplier bids processes to realize
and opportunity baseline potential suppliers and develop award savings over time
scenarios

 Identify category  Evaluate current  Document current  Review internal  Develop RFx bid  Support supplier
stakeholder and specs and suppliers and requirements / package and selection process;
executive sponsor processes, and research additional external supply supplier issue award
 Validate results of document suppliers market and refine communications decisions
diagnostic and improvement  Evaluate services preliminary  Invite suppliers to  Develop supplier
gather additional opportunities, if any provided by sourcing levers sourcing event implementation
info as needed  Identify additional suppliers and  Determine qualified  Execute RFx plan incl.
 Document stakeholders identify key suppliers based on communications,
Key Activities

addressable spend, impacted by industry issues / research, RFI, etc. contracting, etc.
preliminary savings sourcing decisions trends  Determine  Execute supplier
levers, and savings  Understand and  Assess bargaining appropriate type of implementation
target challenge ‘current strength of sourcing event plan
state’ when suppliers (e.g., RFP, direct
appropriate negotiation, etc.)