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. 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

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