Topics Covered -

• Ariba Training: Sourcing and Procurement
• Sourcing vs Procurement: Ariba Overview
• Direct vs. Indirect Procurement Insights
• Direct vs. Indirect Procurement Strategies
• SAP S/4hana vs. Ariba Overview
• Ariba Training Program Introduction
• SAP Ariba Procurement Modules Overview
• SAP Ariba Platform Features Overview
• SAP Ariba Training Overview
• SAP Ariba Career Path Opportunities

Summary

Ariba Training: Sourcing and Procurement

Parminder introduced a training session on Ariba, focusing on sourcing and procurement. She explained the session format, including how to ask questions and contact support. Parminder outlined the agenda, which covered Ariba basics, modules, training details, and career opportunities. The session aimed to cover these topics within 90 minutes, with time for Q&A afterward.

Sourcing vs Procurement: Ariba Overview

Parminder discussed the differences between sourcing and procurement, explaining that sourcing involves the strategic and tactical process of selecting suppliers, while procurement focuses on the purchasing process and maintaining stock. He emphasized the importance of understanding these business processes to become a better functional consultant. Parminder also explained that Ariba, a tool acquired by SAP in 2010, is a specialized platform for sourcing and procurement that can integrate with other ERP systems like SAP S/4 Hana, though it doesn't have as rich functionality as an ERP system.

Direct vs. Indirect Procurement Insights

Parminder explained the procurement process, distinguishing between direct and indirect materials. Direct materials, like car parts, are easier to plan and source, while indirect materials, such as office supplies and consulting services, are more variable and difficult to predict. He noted that indirect materials typically account for 70-80% of procurement volume but may have a lower value compared to direct materials. Parminder emphasized the importance of understanding the nature of materials to effectively manage procurement processes.

Direct vs. Indirect Procurement Strategies

Parminder explained the procurement process, distinguishing between direct and indirect materials. For direct materials, vendors are typically already established, while indirect materials often require more sourcing effort due to their greater variety. The sourcing process involves vendor selection, contract creation, and price negotiation, while procurement handles the day-to-day operations from requirement to invoice. Parminder emphasized that sourcing is more critical for indirect materials, as these cannot be sourced through formal channels and require more frequent vendor searches.

SAP S/4hana vs. Ariba Overview

Parminder explained the differences between SAP S/4HANA and Ariba, highlighting that Ariba offers advanced sourcing functionality while SAP S/4HANA provides strong procurement integration with other supply chain modules. He recommended using Ariba for advanced sourcing capabilities and SAP S/4HANA for integrated ERP procurement functions. Parminder emphasized the importance of understanding these product differences when conducting interviews or consulting on these systems.

Ariba Training Program Introduction

Parminder introduced the Ariba training program and its equivalent to SAP MM, explaining that it is a functional consultant training. He introduced Sri, a certified Ariba professional with 8 years of experience, who would be taking over the session. Sri began his presentation, and Parminder confirmed that the training link was shared in the chat for participants to enroll.

SAP Ariba Procurement Modules Overview

Sree explained the key differences between sourcing and procurement activities in SAP Ariba, emphasizing that while procurement focuses on contracts and purchase orders, sourcing handles requests for proposals and supplier management. He clarified that SAP provides technical support for Ariba, so consultants primarily focus on functional aspects like configuring systems and assisting clients with process migration. Sree outlined the five main modules of Ariba - sourcing, contract management, supplier management, buying, and invoicing - and demonstrated how the system supports end-to-end procurement processes from supplier qualification to invoice reconciliation.

SAP Ariba Platform Features Overview

Sree demonstrated the user-friendly features of the SAP Ariba platform, highlighting its integration capabilities with backend ERP systems and the ease of document searches without needing to remember specific codes. She explained that users can customize their dashboards, change themes, and use mobile apps for approvals and notifications. Sree also showed how to navigate between upstream and downstream access, search for projects and documents, and refine results using filters.

SAP Ariba Training Overview

Sree provided an overview of the SAP Ariba training curriculum, covering topics such as document creation, templates, approval flows, invoice validations, and administration tasks. The training will include 36 hours of instruction with recorded sessions, focusing on procurement concepts, sourcing, contract management, and performance management. Parminder encouraged participants to ask Ariba-specific questions in the chat while Sree covered the curriculum details.

SAP Ariba Career Path Opportunities

The session focused on career opportunities in SAP Ariba, with Parminder explaining that individuals with SAP MM or sourcing procurement experience can easily transition to Ariba consulting roles. Parminder emphasized that knowing both Ariba and S/4HANA sourcing and procurement modules is highly valuable for consultants, as it increases job opportunities and interview calls. The discussion covered career paths for freshers, experienced professionals, and those returning from career breaks, with Parminder advising that while AI will impact all roles eventually, functional consultants will see its effects later than others. The session concluded with details about training programs, internships, and the importance of hands-on experience, though Ariba and S/4HANA integration training was noted as cost-prohibitive for internships.