SAP Ariba Strategic Sourcing Suite: A Solution for Discrete Manufacturers
Discover how discrete manufacturers can accelerate the sourcing process and optimize direct spend costs during product development and subsequent cost-out programs with SAP Ariba Strategic Sourcing Suite. Download the DocumentSAP® Ariba® Strategic Sourcing
Suite: A Solution for Discrete
Manufacturers
Benefits
With SAP Ariba Strategic Sourcing Suite,
you can:
• Capture more savings by increasing
spend under management
• Accelerate time to market for new
products
• Manage complex bills of materials
more effectively with product lifecycle
management integration
• Achieve contract compliance and
stop contract leakage through ERP
integration
• Gain greater pricing and forecasting
visibility
• Increase average savings by using
competitive sourcing methods such as
auctions
• Increase visibility into the cost structure
of suppliers to identify ways to achieve
cost reduction
• Reduce source-to-contract cycle times
In discrete manufacturing industries, product costs and time to market are critically
important to increasing profits and revenues. Direct materials costs typically make
up the majority of a product’s total budget, making them an important part of
continuous cost-out programs. In addition, most direct spend costs are determined
very early in the source-to-pay process – when product design is complete. In this
key phase, poor collaboration between engineering, procurement, and suppliers can
lock companies into high product costs.
As shown in the figure below, SAP® Ariba® Strategic Sourcing Suite helps discrete
manufacturers accelerate the sourcing process and optimize direct spend costs
during product development and subsequent cost-out programs. The suite not
only helps you involve sourcing teams earlier in the new-product development
process, but it also supports collaboration across internal engineering and sourcing
teams, as well as with external manufacturers and raw material and component
suppliers. This collaboration helps you design for manufacturability and costing –
quickly, accurately, and efficiently – by leveraging the innovation power of your
suppliers. SAP Ariba Strategic Sourcing Suite also supports ongoing direct spend
reductions, continuous cost-out programs, and renegotiations. And with flexible
project management tools enabling configurable workflows and approvals, sourcing
and collaboration can happen more quickly and easily for all parties.
Data Sheet | PUBLIC
SAP Ariba Solutions | SAP Ariba Strategic Sourcing Suite
Figure: SAP Ariba Strategic Sourcing Suite
Cost
breakdown
analysis
Advanced direct
materials sourcing
Product
questionnaire
Sourcing and
costing from
multilevel
bills of materials
Product
lifecycle
sourcing
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Suite: A Solution for Discrete
Manufacturers
Benefits
With SAP Ariba Strategic Sourcing Suite,
you can:
• Capture more savings by increasing
spend under management
• Accelerate time to market for new
products
• Manage complex bills of materials
more effectively with product lifecycle
management integration
• Achieve contract compliance and
stop contract leakage through ERP
integration
• Gain greater pricing and forecasting
visibility
• Increase average savings by using
competitive sourcing methods such as
auctions
• Increase visibility into the cost structure
of suppliers to identify ways to achieve
cost reduction
• Reduce source-to-contract cycle times
In discrete manufacturing industries, product costs and time to market are critically
important to increasing profits and revenues. Direct materials costs typically make
up the majority of a product’s total budget, making them an important part of
continuous cost-out programs. In addition, most direct spend costs are determined
very early in the source-to-pay process – when product design is complete. In this
key phase, poor collaboration between engineering, procurement, and suppliers can
lock companies into high product costs.
As shown in the figure below, SAP® Ariba® Strategic Sourcing Suite helps discrete
manufacturers accelerate the sourcing process and optimize direct spend costs
during product development and subsequent cost-out programs. The suite not
only helps you involve sourcing teams earlier in the new-product development
process, but it also supports collaboration across internal engineering and sourcing
teams, as well as with external manufacturers and raw material and component
suppliers. This collaboration helps you design for manufacturability and costing –
quickly, accurately, and efficiently – by leveraging the innovation power of your
suppliers. SAP Ariba Strategic Sourcing Suite also supports ongoing direct spend
reductions, continuous cost-out programs, and renegotiations. And with flexible
project management tools enabling configurable workflows and approvals, sourcing
and collaboration can happen more quickly and easily for all parties.
Data Sheet | PUBLIC
SAP Ariba Solutions | SAP Ariba Strategic Sourcing Suite
Figure: SAP Ariba Strategic Sourcing Suite
Cost
breakdown
analysis
Advanced direct
materials sourcing
Product
questionnaire
Sourcing and
costing from
multilevel
bills of materials
Product
lifecycle
sourcing
Analyze and
awardS u p p l i e r
o
n
b
o
a
r
d
i
n
g
,
q
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Source Contract
Manufacture
Design
Integrate
product lifecycle
management
Integrate
ERP
Manage
About SAP Ariba
Solutions
SAP Ariba solutions support the market-
place for modern business, creating
exchanges between millions of buyers
and suppliers across the source-to-pay
process. Our solutions enable companies
to simplify collaboration with their trading
partners, make smarter business decisions,
and extend their collaborative business
processes with an open technology plat-
form. More than two million companies
use SAP Ariba solutions to connect and
collaborate around nearly US$1 trillion in
commerce on an annual basis. To learn
more about SAP Ariba solutions and
the transformation they are driving,
visit us online.
OPTIMIZING DIRECT SPEND COSTS AND SPEEDING UP THE
SOURCING PROCESS
SAP Ariba Strategic Sourcing Suite offers discrete manufacturers:
• Electronic, template-based requests for information, requests for proposals,
requests for quotations, auctions, and project management tools with integrated
workflows, document management, and approvals to obtain bids and award suppliers
• Dynamic and real-time event views, integrated reporting, and what-if scenarios for
decision support
• Innovative and configurable dashboards for materials and bills of materials (BOMs)
• Tagging for materials and BOMs to provide easier access and visibility
• A 360-degree view for insights into material price history and trends, sourcing
activities, and sources of supply
• Integration with product lifecycle management processes and systems
for importing BOMs and engineering change notifications
• Support for sourcing events for a BOM, subassemblies, and materials
• Simplified comparisons of BOMs, with clear visibility into the differences
between them
• Early visibility into product costs with cost roll-ups, and visibility into pricing trends
• Integration with the SAP ERP application or SAP S/4HANA® so you can use
demand data to jump-start the sourcing process, with outcomes transferring to
procurement systems used to create follow-on documents
• Support for configurable, complex pricing conditions, enabling you to use negotiated
prices in procurement processes supported by SAP ERP and SAP S/4HANA
• Ability to calculate total landed cost, including logistics costs, import duties, and
taxes, to compare supplier prices with different International Commercial Terms
(Incoterms)
• Tools to configure complex cost breakdowns using supplier and external manufac-
turer costing data for cost structure analysis
• Efficient supplier collaboration on product specifications and characteristics, with
outcomes flowing into external specification management systems or to contract
documents
A CLOSED-LOOP, DIGITALLY TRANSFORMED SOURCING
SOLUTION FOR YOUR NEEDS
SAP Ariba Strategic Sourcing Suite supports a closed-loop, digital, source-to-
contract, and supplier management process for direct materials; maintenance,
repair, and operations materials; and indirect materials.
Contract Management Capabilities
With this suite, you can reduce the risks and lost savings associated with misplaced
and mismanaged paper contracts. You can:
• Manage procurement and sales contracts, IP licenses, internal agreements, and more
• Accelerate the contract lifecycle with automated contract authoring, review, and
approval
• Collaborate with internal stakeholders and trading partners
• Integrate article master, supplier master, and contract data to and from sourcing,
ERP, and other back-end systems
Supplier Lifecycle and Performance Management Capabilities
Support the supplier management lifecycle using a single, Web-based platform that
enables suppliers to register and collaborate with you. You are able to:
• Register, qualify, and segment suppliers based on category, location, and business unit
• Integrate qualified and preferred suppliers smoothly into the source-to-contract
process
• Access a 360-degree view of supplier information
• Monitor and manage supplier performance with a centralized information portal
• Utilize automated, standard alerts and reports to assess compliance and manage
supply risk
LEARN MORE
To learn more, visit us online.
www.ariba.com
Studio SAP | 73947enUS (23/09)
© 2023 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms,
disclaimers, disclosures, or restrictions related to SAP Materials
for general audiences.
Solutions
SAP Ariba solutions support the market-
place for modern business, creating
exchanges between millions of buyers
and suppliers across the source-to-pay
process. Our solutions enable companies
to simplify collaboration with their trading
partners, make smarter business decisions,
and extend their collaborative business
processes with an open technology plat-
form. More than two million companies
use SAP Ariba solutions to connect and
collaborate around nearly US$1 trillion in
commerce on an annual basis. To learn
more about SAP Ariba solutions and
the transformation they are driving,
visit us online.
OPTIMIZING DIRECT SPEND COSTS AND SPEEDING UP THE
SOURCING PROCESS
SAP Ariba Strategic Sourcing Suite offers discrete manufacturers:
• Electronic, template-based requests for information, requests for proposals,
requests for quotations, auctions, and project management tools with integrated
workflows, document management, and approvals to obtain bids and award suppliers
• Dynamic and real-time event views, integrated reporting, and what-if scenarios for
decision support
• Innovative and configurable dashboards for materials and bills of materials (BOMs)
• Tagging for materials and BOMs to provide easier access and visibility
• A 360-degree view for insights into material price history and trends, sourcing
activities, and sources of supply
• Integration with product lifecycle management processes and systems
for importing BOMs and engineering change notifications
• Support for sourcing events for a BOM, subassemblies, and materials
• Simplified comparisons of BOMs, with clear visibility into the differences
between them
• Early visibility into product costs with cost roll-ups, and visibility into pricing trends
• Integration with the SAP ERP application or SAP S/4HANA® so you can use
demand data to jump-start the sourcing process, with outcomes transferring to
procurement systems used to create follow-on documents
• Support for configurable, complex pricing conditions, enabling you to use negotiated
prices in procurement processes supported by SAP ERP and SAP S/4HANA
• Ability to calculate total landed cost, including logistics costs, import duties, and
taxes, to compare supplier prices with different International Commercial Terms
(Incoterms)
• Tools to configure complex cost breakdowns using supplier and external manufac-
turer costing data for cost structure analysis
• Efficient supplier collaboration on product specifications and characteristics, with
outcomes flowing into external specification management systems or to contract
documents
A CLOSED-LOOP, DIGITALLY TRANSFORMED SOURCING
SOLUTION FOR YOUR NEEDS
SAP Ariba Strategic Sourcing Suite supports a closed-loop, digital, source-to-
contract, and supplier management process for direct materials; maintenance,
repair, and operations materials; and indirect materials.
Contract Management Capabilities
With this suite, you can reduce the risks and lost savings associated with misplaced
and mismanaged paper contracts. You can:
• Manage procurement and sales contracts, IP licenses, internal agreements, and more
• Accelerate the contract lifecycle with automated contract authoring, review, and
approval
• Collaborate with internal stakeholders and trading partners
• Integrate article master, supplier master, and contract data to and from sourcing,
ERP, and other back-end systems
Supplier Lifecycle and Performance Management Capabilities
Support the supplier management lifecycle using a single, Web-based platform that
enables suppliers to register and collaborate with you. You are able to:
• Register, qualify, and segment suppliers based on category, location, and business unit
• Integrate qualified and preferred suppliers smoothly into the source-to-contract
process
• Access a 360-degree view of supplier information
• Monitor and manage supplier performance with a centralized information portal
• Utilize automated, standard alerts and reports to assess compliance and manage
supply risk
LEARN MORE
To learn more, visit us online.
www.ariba.com
Studio SAP | 73947enUS (23/09)
© 2023 SAP SE or an SAP affiliate company. All rights reserved.
See Legal Notice on www.sap.com/legal-notice for use terms,
disclaimers, disclosures, or restrictions related to SAP Materials
for general audiences.