0 Replies Latest reply on Aug 25, 2016 1:15 AM by Christian Steenberg

    Strategy for setting up a Supplier Hierarchy?

    Christian Steenberg Expert

      Hi all,

      We have started to use Ariba last year and it has become clear to us that we need to establish a supplier hierarchy in Ariba in order to get the best use out of Ariba.

      We have 1000s of suppliers and often multiple suppliers that belong to the same group. DHL is an example of this.

      It is easy in Ariba SIM module to define that a supplier has a “parent”. What strategy have you used when setting up the hierarchy?

      Do you define it according to the company’s legal structure? We do not necessarily always have all the levels created in Ariba or in our SAP ERP system.

      Do you create a “dummy” organization, for example “DHL Parent” and then just link all the relevant DHL suppliers under that dummy organization?

      Is it possible to group companies in Ariba SIM by setting a value that links them to a common organization? Then we would not use the parent child linkage, but rather add an attribute stating that these suppliers all share the same common name “DHL”.

      The reason we want the hierarchy is that it would be easier to link suppliers to contracts, identify who to invite to sourcing events and the 360 Supplier Report should show all the events that the child suppliers has been participating in.

      Any comments are warmly welcome.