SAP Ariba Strategic Sourcing | SEIDOR
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May 17, 2024

SAP Ariba Strategic Sourcing

Is Strategic Sourcing the right solution for your company? Find out how SAP Ariba Strategic Sourcing can help your company grow

For companies that obtain their materials from external suppliers, strategic sourcing is crucial to managing their procurement process efficiently. Strategic sourcing involves identifying and selecting the best possible suppliers who can provide materials at a competitive price without compromising on quality. This approach requires an exhaustive analysis of the factors that affect suppliers' capabilities, such as price, quality, delivery and risk management. If your company needs a simplified sourcing process that maximises savings and efficiency, strategic sourcing could be the right solution.

To back up the above statement, we are proud to share that, of all the SAP solutions, SAP Ariba has already won several awards. Procurement magazine has placed SAP Ariba as No. 1 or No. 2 in the following categories:

Software rankings:

In this article, we're going to talk about SAP Ariba's strategic sourcing solution, which is used by many companies and our customers in the Middle East to improve collaboration with suppliers, reduce costs and increase transparency. It is cloud-based software that offers a comprehensive set of tools to help organisations automate and optimise their sourcing processes. It provides a centralised platform for all procurement-related activities, from sourcing to contract management.

The typical stages of strategic sourcing:

  • Identify potential suppliers: Once you have defined your requirements, the next step is to identify potential suppliers. SAP Ariba offers a wide range of sourcing options, including sourcing events, requests for proposals (RFPs) and requests for quotations (RFQs).
  • Short list of candidates: After identifying potential suppliers, the platform allows companies to analyse supplier performance metrics, market trends and other data to select suitable candidates.
  • Evaluate proposals: SAP Ariba allows companies to evaluate suppliers' proposals based on various criteria, such as price, quality and service. The platform offers powerful tools for conducting negotiations, ensuring that the terms of the contract are favourable to your organisation.
  • Finalising contracts: Once the supplier selection process is complete, SAP Ariba provides tools for drafting, reviewing and finalising contracts. The platform ensures that contracts comply with legal requirements and are aligned with your organisation's objectives.
  • Manage supplier performance: SAP Ariba provides advanced tools to manage supplier performance, track deliveries and monitor compliance with contract terms. The platform offers real-time visibility of supplier performance.

strategic product sourcing

SAP Ariba Strategic Sourcing Method

SAP Ariba Strategic Sourcing takes a data-driven approach to sourcing, providing real-time analyses and insights. This allows companies to make informed decisions about supplier selection and contract negotiation. The solution uses supplier scorecards to evaluate supplier performance and supplier collaboration tools that help improve supplier relations and reduce risk.

Strategic sourcing vs. procurement

Strategic sourcing and procurement are often used synonymously, but they are not the same thing. Procurement is a broader term that refers to the overall process of acquiring goods and services, while strategic sourcing is a specific approach to procurement that focuses on long-term supplier relationships and value creation. Strategic sourcing involves a more comprehensive analysis of supplier capabilities and market trends than traditional sourcing, which tends to prioritise cost savings and transactional efficiency.

The main difference between procurement and strategic sourcing is the depth of analysis and planning carried out before purchasing decisions are made. Procurement involves reacting to immediate needs and selecting suppliers based on price and availability. Strategic sourcing, on the other hand, employs a more proactive approach, analysing data, identifying suppliers and assessing costs and risks before making a purchasing decision.

A successful strategic sourcing process results in the selection of a supplier that offers the best value for money, providing quality products at a reasonable price. In addition, strategic sourcing aims to establish long-term partnerships with suppliers to ensure a consistent and stable supply of goods or services. By adopting a strategic sourcing approach, companies can improve collaboration with suppliers, reduce costs and increase transparency, while at the same time building strong and sustainable relationships with suppliers.

demand-driven product sourcing

In recent years, SEIDOR has been a leader in investing in and providing SAP Ariba solutions to clients around the world. SEIDOR's consultants have been instrumental in providing customised solutions that adapt to each client's unique needs. Whether it's providing guidance on supplier management, optimising sourcing strategies or streamlining procurement operations, our consultants have consistently delivered exceptional value to our clients. Whether it's designing or adopting new digital technologies, we remain committed to delivering excellence.

One of the key areas of our service is post-GoLive support. We realise that the period following the implementation of a new system can be challenging for many customers, which is why we work closely to ensure that all issues specific to the customer's system are resolved in a timely manner. Our team of experts is always on hand to provide guidance and advice on how to manage exceptional system cases, ensuring that your businesses continue to run smoothly and without any disruption.

What does our Ariba support team do?

Solving customer-specific system problems:

With the unique requirements of each of our customers, we understand the importance of providing timely and effective support. Our team of experts has cooperated to ensure that each customer can function optimally without any problems. We have successfully resolved many system problems, ensuring that each client's procurement process runs smoothly.

Continuous communication between the SAP Ariba team and SAP S/4HANA:

To provide the best procurement support, we maintain continuous communication between the SAP Ariba and SAP S/4HANA teams. By doing so, we are able to promptly resolve integration-related problems, reducing downtime for our customers and ensuring that the procurement workflow remains efficient.

System maintenance:

Our commitment to providing top-level procurement support extends to carrying out essential system maintenance. We have ensured that our customers are kept up to date with new versions of Ariba and that they enable new functionalities that are relevant to their companies. In this way, our clients can take advantage of the latest technological advances and stay ahead of the competition.

System Improvement Projects:

At SEIDOR, we know that companies are dynamic and that procurement workflows need to be continually updated. We have worked on several system improvement projects, ensuring that our clients' procurement processes keep pace with the ever-changing business landscape.

Advice on managing exceptional cases:

In any company, it's natural for exceptional cases to arise that require a unique approach. At SEIDOR, we provide our customers with specialised advice on how to manage exceptional cases in the system. Our team's extensive experience has been invaluable in guiding our clients to make informed decisions whenever they are faced with exceptional cases in their procurement workflows.

Would you like to know more about SAP Ariba strategic sourcing? Contact our experts!

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