5    Sourcing and Procurement

This chapter discusses key functionalities, analytical capabilities, and integration aspects of SAP Ariba with SAP S/4HANA in sourcing and procurement functions.

The objective of this chapter is to highlight the business processes enabled by SAP S/4HANA’s sourcing and procurement functionality. It begins with an overview of the sourcing and procurement process as envisioned with SAP S/4HANA and explains important master data simplifications (the business partner). The chapter then explores the sourcing and procurement functionality (material requirements planning [MRP], purchase order management, contract management, etc.), calling attention to places where substantial improvements have taken place. The chapter also provides an overview of SAP Ariba and functionalities offered in its sourcing and procurement modules, after explaining the direct integration of SAP S/4HANA with SAP Ariba. The chapter ends with a detailed review of SAP Fiori apps in sourcing and procurement.

5.1    Sourcing and Procurement Basics

With SAP S/4HANA core, your procurement is supported by real-time analytics, visibility to supplier spend, contract management, supplier evaluation, and day-to-day operational procurement needs. SAP Ariba solutions help you extend the SAP S/4HANA core operational process with collaborative sourcing through standard integration capabilities (sending sourcing requests from SAP S/4HANA and receiving approved supplier quotes). SAP S/4HANA provides standard out-of-the-box integration with Ariba Network, helping buyers and suppliers collaborate effectively.

You’ll learn about SAP S/4HANA capabilities in sourcing and procurement, analytical capabilities, and integration aspects between SAP S/4HANA to transform your sourcing and procurement process.