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Category management is an approach to procurement where similar products and services are grouped into categories – to consolidate spend and maximize savings.
Category-led procurement offers a host of distinct advantages that can help purchasing teams run a tighter ship and identify new opportunities:
- Improved insights
- Increased savings
- Reduced risk exposure
- Greater procurement efficiency
- Better adherence to ESG and SR commitments
- Increased spend under management
This business solution can be built on SAP Business Technology Platform (BTP).
Technical Architecture:
- SAP Ariba Category management use SAP BTP with this cloud solution to gain visibility, extend applications, and integrate source-to-pay processes. Customers must have the SAP Ariba Category management license. Setup 2 sub-account, one for test and another one for production use.
- For each of SAP BTP subaccounts configure a separate Identity Authentication service (IAS) tenant.·
- For each of SAP BTP subaccounts, one need an identity management system supporting SCIM, like Identity Provisioning service (IPS). Then Enable Cloud Foundry on SAP BTP subaccounts.
· In the BTP cockpit, subscribe to relevant Category management entitlement, once successfully enabled, one can see below entitlement in the BTP cockpit.
- Assign all the required administrator roles to user or to the administrator. Also, assign the roles to the end-users.
- When one subscribes to SAP Ariba Category Management, the system automatically creates the below mentioned roles and role collections. Each role is based on a role template that enables specific rights.
- Category Management Administrator – CategoryManagementAdministrator
- A new role collection to be created for workflow administration – WorkflowAdmin & WorkflowContextAdmin
- Opportunity Analysis Administrator – CategoryManagementOpportunityAdministrator
- Category Manager – CategoryManagementManager & CategoryManagementViewer
- Category Management Viewer – CategoryManagementViewer
- Category Strategy Approver – CategoryPlanApprover , WorkflowParticipant & CategoryManagementViewer
- Opportunity Manager – OpportunityManager OpportunityViewer, CategoryManagementOpportunityManager & CategoryManagementOpportunityViewer
- Opportunity Viewer – OpportunityViewer & CategoryManagementOpportunityViewer
Once enabled the above BTP subscriptions, then relevant SAP Ariba Category Management admin apps can be seen, which including Manage Taxonomy, Manage Configurations and workflow administrations.
Integrations Required for SAP Ariba Category Management Setup in BTP:
- Identity Authentication Service(IAS) and Identity Provisioning Service (IPS)
- SAP Master Data Integration service
- Procurement data warehouse
- Intelligent opportunity analyzer
- Setting Up Connection with SAP Ariba Sourcing
- Setting Up Connection with Market Intelligence Providers
- Publishing Spend Data to Procurement Data Warehouse