SAP Ariba Quote Automation and integration with SAP S/4HANA Cloud

SAP Ariba Quote Automation with Ariba Network integration is a useful tool for the buyer when tasked with occasional non-catalog purchases that involve low spend amounts and do not require complex sourcing processes. Quote Automation allows you to digitalize request price updates from your suppliers. Achieve substantial savings for your hybrid tactical spend. For some items you buy without contracts, fast cycle times are expected, so you don’t have the time to compare prices from many suppliers, especially when the market is in steady flux. Quote automation improves your transnational efficiency.

It increases tactical savings and lets you discover new or better suppliers. With quote automation, you can quickly find new expertise to launch new products or new services in new markets, a source in markets with low cost of labor, and find quick replacements of suppliers where markets turn around quickly. It helps to support compliance in highly automated buying processes, such as three bids and a buy.

Quote automation is possible with direct integration between SAP S/4HANA Cloud, Ariba Network, and SAP Ariba Discovery.

Integration of Systems

How Client’s back-end system is used for Integration?

SAP ECC or S4HANA can be integrated with SAP Ariba by using three methods.

  • SAP Direct Connectivity
  • Cloud Integration Gateway
  • Web Services

Once the integration process has been initiated, the RFQ created in SAP ECC can be landed to Ariba Sourcing. The quotes are then pushed back to SAP ECC and used to create Purchase Orders in SAP Ariba.

In SAP S4HANA, a Request for quotation (RFQ) is created using ME41. Once saved the RFQ number is generated which can be used and searched to see the RFQ in Ariba Sourcing. The RFQ can be searched as a Sourcing Request in Ariba.

Sourcing Request in SAP Ariba

Enter the RFQ in the Search Filter that RFQ will be landed in SAP Ariba.

Process

To get the required quotations from the supplier we will have to create a sourcing event from a sourcing request. This can be done in the tasks tab of the sourcing request.

After the sourcing project(RFP/RFI) has been created we can invite the supplier to send the quotation. User will have the option to manually select the number of suppliers they want to invite.

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Once the RFP is published the suppliers respond back with the prices. This is followed by the Award proposal task where the user can choose the document type they would like to see getting created once the RFP information is pushed back to SAP ECC.

User has the option to choose between a contract and a purchase order. We use the option send quote to external system available in Actions to push this information back to SAP ECC from Ariba Sourcing.

Process steps of sourcing with SAP Ariba Sourcing.

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Process steps of sourcing with SAP Ariba Sourcing

Advantage

This helps in seem less flow of information between the Client’s Back end and front end system i.e Ariba with minimum data entry required.