SAP Ariba Direct Materials Sourcing for Automotive and Industrial Manufacturing in SAP S/4HANA

Source-to-contract processes for direct materials can be managed across the entire lifecycle of highly engineered products.
A product sourcing solution from SAP on a laptop

Quickly meet the unique sourcing needs of highly engineered products

Traditional sourcing solutions can’t satisfy the unique requirements of automotive and industrial manufacturing companies. With SAP solutions, you can support product launches, apply supplier innovation, and aggregate demand while boosting sustainability and compliance.

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Equip your teams to create high-value sourcing agreements for direct materials, renegotiate prices, and produce complete procurement plans. SAP Ariba Direct Materials Sourcing solution for Automotive and Industrial Manufacturing runs natively on SAP S/4HANA, so operationalizing terms is simplified.
  • Cost reduction from global demand aggregation across ERPs and product lines
  • Global and local compliance across multiple ERP systems
  • Simplified price renegotiation process
  • Faster use of complex terms, such as commodity index-based pricing

Key benefits

Bring innovations to market faster

Accelerate time to market with robust procurement planning and tap supplier innovations effectively to design and manufacture competitive products.

Boost operational compliance and team efficiency

Improve global and local compliance to negotiated terms, including commodity index-based pricing, without the cost and complexity of system and data integration.

Reduce cost and better manage price volatility

Aggregate demand, renegotiate prices, and manage commodity pricing with ease to reduce cost and risk in product launches and ongoing procurement.

Improve product sustainability

Co-innovate with suppliers on sustainable products and parts and measure the carbon footprint implications of supplier selection.

Key features

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Procurement planning and project management

  • Create robust, multilevel sourcing projects across thousands of parts with reusable templates and imported parts lists
  • Align stakeholders on investment plans and aggregate demand across multiple projects
  • Trigger sourcing projects through procurement plans, which are automatically updated

Global demand aggregation for volume buys

  • Aggregate demand more easily across purchase requisitions in connected ERPs
  • Trigger sourcing projects through purchase requisitions acquired from multiple back-end systems
  • Bundle demand across multiple projects, product launches, and product lines

Supplier collaboration

  • Co-innovate with suppliers on key parts and components and leverage supplier innovation
  • Use flexible options for obtaining quotations from suppliers in multiple currencies and sharing design documents
  • Obtain commodity content and carbon-footprint information from suppliers

End-to-end sourcing and contracting support

  • Create and execute sourcing projects for materials that are part of material masters
  • Engage in multiple rounds of negotiation, evaluate and compare supplier bids, and award business
  • Benefit from company-wide procurement policies through configurable workflows and approved supplier lists

Accelerated price renegotiation

  • Select multiple items across multiple contracts to renegotiate price
  • Simulate the impact of price changes on overall saving
  • Engage in multiple rounds of negotiation with suppliers, award the final negotiated price, and update the central contract(s) automatically based on the approval process

Commodity index-based pricing

  • Obtain commodity content inputs from suppliers in the sourcing process
  • Operationalize index-based commodity pricing, without complex custom builds
  • Simulate and calculate pricing efficiently by accessing market data through integration and system-triggered lookups to commodity indexes

Pricing

SAP Ariba Direct Materials Sourcing for Automotive and Industrial Manufacturing in SAP S/4HANA Cloud, private edition
  • In blocks of 1 Users per year

  • Contract duration between 12 and 60 Month

  • Auto-Renewal

  • Has prerequisites

See buying conditions 

Features:

  • Included:

    • Automotive and industrial manufacturing source-to-contract capabilities for direct materials sourcing.
    • Flexible collaboration portal for suppliers to receive and respond to requests for proposal and pricing renegotiation.
    • One productive tenant and one test tenant.

  • Metric:

    • This cloud service is priced per user per year.
    • The metric entitlement is not time-bound and does not deplete with usage.

  • Pricing structure and more contract duration details are available on request.

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Explore your resources

Try the SAP Ariba Procurement Planning solution

Advanced procurement product management for your product launches

Track thousands of sourcing activities for complex projects in automotive and industrial manufacturing.

  • Accelerate time to market

  • Boost procurement efficiency

  • Simplify procurement project management

  • Ensure all BOM components are sourced

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Technical information

SAP provides built-in security features and add-on solutions to help you protect your enterprise.

Visibility

Unlock spend data with solutions that deliver total spend visibility, aid in planning and forecasting, and connect critical data from SAP and third-party sources.

Extensibility

Customize and extend the value of spend management solutions by eliminating inefficiencies, building new apps, enhancing existing apps, and providing personalized experiences.

Integration

Centralize data, remove silos, and create a connected enterprise with integration solutions from SAP, streaming your source-to-pay process with prebuilt connections.

Data security

Help protect confidentiality and data integrity.

Business process security

Support compliance with regularity requirements.

Risk and threat mitigation

Drive continuous improvement across your operations.

Cloud delivery operations

Enable a smooth transformation while meeting security and compliance requirements.

Resources

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Procurement Benchmark Survey Insights

Use this report to facilitate digital transformation, assess outcomes from your source-to-pay solutions, or identify KPIs to improve performance.

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Help manufacturers reimagine direct spend

Answer three questions that can help you transform direct spend sourcing into a powerful competitive differentiator.

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How capable is your source-to-contract solution?

See why you need a direct materials management solution with the tools to ensure your product meets market expectations throughout its lifecycle.

Services and Support

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