Topic Covered -

• Class Enrollment and Registration Process
• Smita's Transition to SAP Ariba
• SAP Ariba Solutions and Migration
• Sourcing Activities and Procure to Pay
• Procurement Process and SAP Ariba
• Ariba Purchase Requisitions and Suppliers
• Supplier Registration, Qualification, and Performance
• SAP and Ariba Purchase Order Process
  

Summary

Class Enrollment and Registration Process

Smita asked if she needed to enroll for every class, to which Sree and SastraGeek clarified that it was a registration process, not an enrollment one. They explained that Smita would receive an email notification with a Zoom link for each class, and she would need to enroll using her email address to join the session. Smita confirmed that she would need to enroll for every class. The classes were scheduled for five days, Monday to Friday, with one hour of class time each day.

Smita's Transition to SAP Ariba

Smita, with 12 years of work experience, primarily in operational roles, expressed interest in transitioning to a consultant role, particularly in SAP Ariba. Sree, acknowledging her experience, confirmed that it would be beneficial for her to move into a consultant role. Smita's experience in SAP Ariba, including system testing and end user testing, was highlighted as valuable. Sree also noted the growing demand for Ariba due to its subscription-based activation and the increasing need for reliable systems, especially in countries introducing taxes. Smita's location in Bangalore, India, was also noted for time zone considerations. The course was designed to cover sourcing management, contract management, and invoicing, with a focus on upstream processes. Smita was encouraged to apply for positions in Ariba, leveraging her experience for higher packages and growth opportunities.

SAP Ariba Solutions and Migration

Sree discussed the differences between SAP Ariba's on-premise and cloud solutions. He explained that the on-premise solution allows for more customization due to the server being loaded on the customer's server, but it requires more maintenance. In contrast, the cloud solution is more reliable and can be activated within 3 months, although in reality, it may take 6 to 9 months. Sree also mentioned that Ariba uses a project management system called Activate Methodology, which involves understanding business requirements, converting them into Ariba application, and demonstrating it to the user. He further explained the concept of realms, which are environments that can be connected to different ERP systems, and the importance of data sharing between realms. Lastly, he clarified that while it is possible to migrate certain changes from the test environment to the production environment, not all changes can be migrated.

Sourcing Activities and Procure to Pay

Sree discussed the sourcing activities within a company, specifically focusing on the roles of the procurement department and sourcing department. He explained the process of a requester asking a sourcing agent to find a suitable supplier for a specific material or service, such as a laptop. Sree also outlined the traditional scenario where the buyer would contact potential suppliers, receive quotations, and make a decision. He then introduced the concept of 'procure to pay' and'source to pay', which involves differentiating the entire process into two levels: upstream (from the requester to the supplier's quotation response) and downstream (from the supplier's quotation response to the customer receiving the item and payment being made).

Procurement Process and SAP Ariba

Sree discussed the procurement process, emphasizing the importance of upstream and downstream activities. He explained that the sourcing department's role is to understand business requirements and negotiate contracts, while the procurement department's role is to process the purchase order (PO). Sree highlighted the use of SAP Ariba for automating the process, eliminating the need for manual interactions with suppliers. He also mentioned the necessity of a contact for creating a PO in Ariba. Sandeep confirmed that a contact is mandatory for creating a PO in Ariba.

Ariba Purchase Requisitions and Suppliers

In the discussion, Sree explains the process of creating a non-catalog item purchase requisition in Ariba when the required item or service is not available in the catalog. He also discusses the process of onboarding new suppliers, including via sourcing or supplier request. Additionally, Sree mentions the company policy of requiring suppliers to have ISO certification and be authorized vendors for certain products like laptops. Ketan asks about how pricing information is stored and maintained in Ariba, and Sree explains that it is done through sourcing projects and contracts with validity periods.

Supplier Registration, Qualification, and Performance

Sree discussed the process of supplier registration, qualification, and preference. He explained that after a supplier is registered, they are evaluated based on factors such as price competitiveness, payment terms, and proximity. If a supplier fails to meet quality standards, they are rejected. Sree also introduced the concept of supplier performance management, where suppliers are periodically evaluated and ranked based on their performance. He emphasized the importance of this process in ensuring the quality of goods and services provided by suppliers. The discussion also touched on the distinction between development and production environments in the context of quality systems.

SAP and Ariba Purchase Order Process

Sree explained the process of creating purchase orders (POs) in both SAP and Ariba, emphasizing that POs are created in SAP and then sent to Ariba. Dipikka asked about the possibility of creating POs in both systems, to which Sree clarified that while it's technically possible, it's not necessary as the POs are sent from SAP to Ariba. Sree also discussed the role of consultants in the process, including template configuration, master data management, and troubleshooting support. Sree further explained the concept of'supply chain collaboration' and how it differs from the procurement process in SAP. Lastly, Sree clarified that while customization is possible in SAP, it's not necessary in Ariba due to its different functionality.