Central Procurement with SAP Ariba Sourcing (4QN)

S/4HANA Sourcing & Procurement Scope Items

The SAP S/4HANA Hub system offers a centralized RFQ process with a deep integration into the customer's landscape. It connects SAP Ariba Sourcing to the customer’s SAP ERP or SAP S/4HANA system (on-premise or Cloud).

With the SAP S/4HANA Hub system, you can pool or aggregate purchase requisitions created in multiple connected backend systems to create a single central RFQ and thus get support for better scale pricing.

SAP Ariba Sourcing provides access to intuitive RFX tools (for requests for information, requests for proposals, and reverse auctions), connections to more than two million companies, quick and easy supplier discovery, and automated and adjustable negotiation procedures.

Once the award process is completed in SAP Ariba Sourcing, the supplier contract that is created in the SAP S/4HANA Hub system generates either purchase orders or contracts in the respective connected backend system.

Key Process Steps Covered

Create a central RFQ in SAP S/4HANA Hub system for purchase requisitions that are created in the connected backend systems (central purchaser)
Send the central RFQ to the SAP Ariba Sourcing application, which triggers a sourcing request in SAP Ariba
Access your worklist and convert sourcing requests into sourcing projects/ events (sourcing manager)
Monitor sourcing projects that result in RFI / RFP / Auctions and discover suppliers via Ariba Network and monitor suppliers’ responses (sourcing manager)
Award one or more bids in SAP Ariba Sourcing (sourcing manager)
Send awarded bids automatically to SAP S/4HANA central hub to create a central supplier quotation
Use central supplier quotation to create operational purchase orders or operational contracts in the respective connected backend ERP systems of SAP S/4HANA Central hub

Benefits

Aggregate demand by pooling requisitions created in multiple connected backend systems into one central RFQ
Source the best supplier based on the aggregated demand, using the power of SAP Ariba Sourcing and Ariba Network
Seamless creation of purchase orders and contracts in the respective backend systems upon finalization of the Award process in SAP Ariba Sourcing

Where is Central Procurement with SAP Ariba Sourcing(4QN) being used?

This Scope item is used in the following way:

As a management function of Sourcing and Contract Management within Sourcing and Procurement Scope Item Group
As a core function of Central Procurement within Sourcing and Procurement Scope Item Group

Process flow of Central Procurement with SAP Ariba Sourcing (4QN)

Find below the process flow of the scope item Central Procurement with SAP Ariba Sourcing as it is defined for release s4h-2021.

Download Process Flow of Best Practice scenario Central Procurement with SAP Ariba Sourcing (4QN) - S/4HANA OP

Ref: Sourcing and Procurement of SAP S4H-2021

Best Practices related to S/4HANA

Best Practices of SAP S/4HANA On Premise *1
Best Practices of SAP S/4HANA Cloud *2
Best Practices of SAP Analytics Cloud *2
Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.

Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:

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