Strategic Sourcing with Bid Invitation

The strategic sourcing capabilities of SAP Supplier Relationship Management (SAP SRM) help strategic purchasers negotiate the best possible terms and conditions.

With SAP SRM qualified suppliers are invited to submit their proposals. Purchasers then compare the results and accept the best bid or bids. This allows purchasers to identify the best suppliers and minimize the costs for individual orders.

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Business Benefits

Collaborate with engineers, suppliers and purchasers to define the right product, ensure the right deals with the right companies

Accelerated purchasing process through fast and easy creation of bid invitation

Accelerate the product life cycle

Deepen your relationship with already existing suppliers by offering them easy to handle RFxs via the web

Procure goods and services by negotiating best price and best terms

Engineer (Buyer)

Buyer

Supplier

Engineer (Supplier)

Add technical information in cFolders

Evaluate technical information (cFolders)

Receive demand

Search for source of supply

Receive bid response

Evaluate commercial terms (Bidding Engine)

Accept winning bid

Create contract or purchase order

Create collaboration

Publish RFQ

Create RFQ and invite suppliers

Receive and check bid invitation

Submit bid

Enter commercial terms (Bidding Engine)

Enter technical information (cFolders)

Business Benefits

Get new customers through participation at the bid invitation

Less errors due to easy to handle collaboration possibility


Strategic Sourcing with Bid Invitation The purchaser receives an open requirement, for example from an expiring contract or for a missing product part. The purchaser creates a bid invitation with the relevant product information. This can include, for example, attributes, additional text for the suppliers, quantity, and delivery date of the requested goods. If the design engineers have not already done so, the purchaser can create a collaboration area within cFolders in SAP Product Lifecycle Management (PLM) to specify details of the requested goods and to facilitate advanced collaboration between the purchasing and supply sides. For example, the design engineers can store and update specification and design information in this area. Once the purchaser has entered all the required information, the bid invitation can be published. Selected suppliers receive an e-mail that includes a link to the bid invitation. They then create a bid stating their commercial terms and conditions. They can also attach documents to the collaboration area in cFolders before finally submitting their bid. The purchaser receives the bids with all the relevant information. They can compare all the bids before deciding on the best supplier. Design engineers can check the technical information in cFolders. Finally the Purchaser accepts the best bid. The Purchaser can create a Purchase Order or a contract out of the evaluated bids. As an option they can create a live auction involving the bidders who have been short-listed in the previous bidding process.