Recently SAP has improved its Direct Spend solution with the support of several collaboration business processes, earlier available only in SAP Supply Network Collaboration (SNC). The new component known as Supply Chain Collaboration (SCC) supports now a wide variety of Collaboration Processes for Direct Materials and it leverages the seller (supplier) on-boarding best-practices that made the success of the Ariba network.
In this process, the seller maintains the inventory level according to minimum and maximum targets agreed upon with the buyer. The buyer will not use MRP algorithms to replenish these materials and rely entirely on the seller (supplier) activity. Advance Shipping notification and Goods Receipts managed the execution aspect of this planning approach.
Net requirements within the forecast time horizon are shared with Suppliers in order to confirm and constrain the future plan. End-to-end integrated scenarios with SAP Integrated Business Planning enable planners to quickly react to demand changes and gauge the supply chain capacity.
Extend the Purchase Order collaboration process to the suppliers in a standard and user-focused solution in the largest supply network. Minimize the manual work associated to the management of Purchase Orders with Direct Materials Suppliers. The process manages Advance Shipping Notifications (with packing information), Goods Receipts and Invoices.
Ariba SCC supports Scheduling agreements (type LPA and LP), a process typical in CPG, IM&C and Automotive and typically developed to avoid the individual Purchase Order approval process.
The consigned inventory collaboration extends the Direct Material PO collaboration process with the process managing the inventory on consignment and the related invoicing process.
Ariba supports the process for subcontracting PO, whereas the Purchase Order document is enhanced with Bill-of-material information (BOM) and Advance Shipping notification from Buyer to Seller for the components, component consumption, and Finished Good Advance Shipping notification, Goods Receipts and Invoice.
It is very common for large organization to use co-packer or co-manufactures and use logistic service providers. This scenario supports the complexity of these situation, within the largest supplier network in the world.
Ariba SCC Quality collaboration supports bi-directional communication between buyer and supplier to address Defect and deviation notification and resolution