1 Reply Latest reply on Apr 22, 2011 8:08 AM by Srini Varadarajan

    Services Procurement

    Jay Merenda Journeyman

      Ariba Exchange Community -  We are currently stuggling with compliance on services spend.   When we first went live back in 2004 with Ariba Buyer services were all created as a two line item requisitions, fees and out of pocket.   The price entered as $1 and Qty=total amount of service (to allow for partial receiving based on invoice amount).  This approach is efficient but not effective, as we cannot drive compliance to rate cards our give us the granularity required in spend analysis.   We can load all the rate card data into a catalog but from a user point of view that makes things harder as I need to add multiple lines to the requisition.   Also, services spend is a collaborative process and many times rate card is reduced based on the specific project.

       

      I would like to know how successful companies have been using Ariba Services Procurement (ACP/ASP) and the services drivers. 

       

      • What is the user experience like and how successful have you been at adoption?
      • Are you using collaboration? 
      • What ongoing maintenance is required?
      • How difficult it it to onboard new categories?
      • Have you used other solution instead, like Fieldglass, that have been effective?  

       

      Thanks in advance for any input you can provide.

       

      Jay

        • Re: Services Procurement
          Srini Varadarajan Master

          Jay,

           

          We bundled the amount into 2 lines initially. This allowed the PM to monitor budget shift during the project. Lately, we have been successful to split the PO into multiple lines - one line for each deliverable. This works in fixed bid scenario. To ensure rate compliance, we route the transactions to procurement buyers.

           

          We are revisiting this strategy with 2 options:

          a) In case of fixed bid scenario, the requisition is created with a single line and routed for collaboration. The supplier will split the lines based on milestones and attach their SOW. We turn on bid ranking for additional savings.

           

          Our biggest roadblock here is the inability to attach SOW at header level. We have a ticket with Ariba to understand further.

           

          b) In case of T&M, have the rate cards as ACC based contract and the suppliers will invoice against the contract.

           

          We are testing these and working thru buy-in's.

           

          Srini