Tactical sourcing in SAP Ariba cloud

Tactical sourcing in SAP Ariba cloud | con4PAS

SAP Ariba Guided Buying capability offers a perfect solution to organizations’ tactical sourcing needs. The cloud solution uses request forms based on the foregoing sourcing processes.

February 28, 2022

Casual users and functional buyers simply browse for request forms in SAP Ariba Guided Buying catalogs. Each form contains a commodity code, location and preferred suppliers. Quotes from the suppliers can thus be requested in a reactive, less controlled manner without involving strategic buyers in every transaction and activity.

Tactical sourcing possible scenarios in SAP Ariba:



Strategic procurement, sometimes called strategic sourcing, refers to a long-term approach to procure what a business needs. Decisions are made and plans are drawn up based on market intelligence, analyses of the company’s spend, its present requirements, and a forecast of future needs. It involves fostering collaborative relationships and partnerships with suppliers, which is aimed at bettering service, quality and cost, and encouraging innovation. The relationship is not just a transactional one, and decisions are not made keeping in mind only immediate monetary gains.

Tactical procurement, on the other hand, is more of a short-term procurement strategy focused on fulfilling the company’s more immediate requirements through the best possible deals and with minimal risk. It does not look at broader business goals and objectives, and the relationship with the vendors is transactional and cost-driven.

Operational procurement refers to obtaining goods and services that are needed on a day-to-day basis to keep the business running and sustain daily operations. It has more to do with the type of items and services required rather than a business approach.



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