Ariba Knowledge Nuggets
Key Activities / Steps
- Search for new suppliers
- Finalize list of suppliers
- Prepare Request for Information
- Prepare Scoring & Grading rules
- Launch RFI
- Train stakeholders: RFI grading
- Send Confidentiality Agreement
- Supplier response follow-up
- Final Suppler List
- RFI Result summary
- Market Making Sheet
- RFI template (by category)
- Scoring/Grading templates
- Search engines company web sites, site supplier database
How To Prepare for Researching Suppliers and Developing an RFI:
Consider the goals for the sourcing project:
- Should you increase/decrease the number of suppliers?
- Are you trying to move away from a monopoly/unique supply?
- Are you looking for alternatives/proposals to consider?
- Are you looking for higher quality suppliers?
Consider supplier capabilities:
- Is another other area of the world becoming best place for finding suppliers for this good/service?
- Is there anew way of producing the product?
- Are there innovations in production that you could benefit from?
What areas/regions/countries have suppliers who are capable of providing the goods/services:
- Not all areas/regions/countries have suppliers who can be competitive for all categories.
- the good/service may benefit from a local supplier as well because of service requirements.
Best Practice for Supplier Search
Consider requirements such as the following and prioritize:
- Start within your own company – Are there other divisions/groups that purchase the same goods/services?
- What suppliers do they use? Research the competitors of your Incumbent (current) suppliers.
- Research suppliers using industry/trade association publications and/or web sites·
- Research suppliers using internet search engines·
- Compile a list of suppliers
- Check the suppliers on your list against your company’s list of Non-Performing Vendors
- Obtain approval from other internal stakeholders on the supplier list
RFI Set-Up Suggestions
Based on supplier criteria, develop the list of questions that suppliers must answer before being considered for participation in the project.
Leverage the RFI Template (Excel file) as a starting point --
Based on the supplier criteria, develop the sections or groupings of questions:
- Company Information
- Financial Information
- QualityProcess/Service Capabilities
Determine what questions might need to be asked to help with lotting strategy:
- Supplier locations
- Supplier capabilities
- Material experience
Determine what type of response suppliers should provide:
- Free text
- Drop down checkboxes
- Radio buttons
Consider limiting the number of questions to those that will really help make a sourcing decision:
- Too many questions may make bidders reluctant to participate
- If the RFI is very complex, an offline version in Excel could be used and uploaded via AS platform
Obtain internal approval from other stakeholders on the RFI content
Genius is 1% inspiration and 99% perspiration. Accordingly a genius is often merely a talented person who has done all of his or her homework.
~ Thomas Edison