Ariba Sourcing 4.3 Supplier Guide · Ariba Sourcing Supplier Guide 9 Logging in to Ariba Sourcing Chapter 1 Introduction For information on the types of messages you can receive from

Ariba SourcingSupplier GuideVersion 4.3September 2004

Copyright © 1996-2004 Ariba, Inc.Ariba and the Ariba logo are registered trademarks of Ariba, Inc. Ariba Analysis, Ariba Buyer, Ariba Category Management, Ariba Category Procurement, Ariba Contract Compliance, Ariba Contract Workbench, Ariba Data Enrichment, Ariba eForms, Ariba Invoice, Ariba QuickSource, Ariba Settlement, Ariba Sourcing, Ariba Spend Management, Ariba Supplier Network, Ariba Supplier Performance Management, Ariba Travel & Expense, BPM Services, Power Sourcing, Total Spend Capture and PO-Flip are trademarks or service marks of Ariba, Inc. All other trademarks are property of their respective owners.

CONTAINS IBM Runtime Environment for AIX (R), Java (TM) 2 Technology Edition Runtime Modules(c) Copyright IBM Corporation 1999, 2000All Rights Reserved

Some versions of this product include software licensed from International Business Machines Corp. Such software is protected by copyright as provided in the proprietary notices included with the software.

Some versions of this product include software licensed from BEA Systems, Inc. Such software is protected by copyright as provided in the proprietary notices included with the software.

All other brand or product names may be trademarks or registered trademarks of their respective companies or organizations.

ALL LICENSES OF ARIBA SOFTWARE PROGRAMS AND RELATED DOCUMENTATION (“PROGRAMS”) ARE SUBJECT TO ANY EXPORT LAWS, REGULATIONS ORDERS OR OTHER RESTRICTIONS IMPOSED BY THE UNITED STATES OF AMERICA OR BY ANY OTHER GOVERNMENT ENTITY ON THE PROGRAMS OR INFORMATION RELATING THERETO. A LICENSEE OF ANY PROGRAM WILL NOT IMPORT, EXPORT, OR ALLOW THE EXPORT OR REEXPORT, DIRECTLY OR INDIRECTLY, OF THE PROGRAM (OR TECHNICAL DATA OR OTHER INFORMATION RELATED THERETO) OR ANY DIRECT PRODUCT THEREOF, TO ANY COUNTRY TO WHICH SUCH IMPORT, EXPORT, OR REEXPORT IS RESTRICTED OR PROHIBITED, OR AS TO WHICH SUCH GOVERNMENT OR ANY AGENCY THEREOF REQUIRES ANY EXPORT LICENSE OR OTHER GOVERNMENTAL APPROVAL AT THE TIME OF IMPORT, EXPORT OR REEXPORT, WITHOUT FIRST OBTAINING SUCH APPROVAL.

THIRD PARTY SOFTWARESee this URL for a complete list of third-party software copyright information: http://www.ariba.com/copyrights.cfm

http://www.ariba.com/copyrights.cfm

Ariba Sourcing Supplier Guide iii

Table of Contents

Chapter 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Minimum System Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5Logging in to Ariba Sourcing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Accepting Terms and Conditions. . . . . . . . . . . . . . . . . . . . . . . . . . 7Changing Your Personal Information . . . . . . . . . . . . . . . . . . . . . . 7

Chapter 2 How to Participate in an RFX . . . . . . . . . . . . . . . . . . . . 11

About RFXs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Overview of the RFX Process. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Preview Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Viewing an RFX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14Submitting a Pre-Bid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Declaring Your Intention to Respond . . . . . . . . . . . . . . . . . . . . . 21

Bidding Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22Bid Entry Tab and Enter Values Page Compared . . . . . . . . . . . . 22Beginning the Bidding Process . . . . . . . . . . . . . . . . . . . . . . . . . . 24Bidding Example . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27Saving Bid Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Viewing the Event Change History . . . . . . . . . . . . . . . . . . . . . . . 32Viewing the Bid Clock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Review Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33Bid Selection Phase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Messages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Online Help. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

iv Ariba Sourcing Supplier Guide 43en_us2004.9.407

Table of Contents

Chapter 3 Bidding Checklist . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Chapter 4 Frequently Asked Questions. . . . . . . . . . . . . . . . . . . . . 39

Ariba Sourcing Supplier Guide 5

Chapter 1

Introduction

As a supplier of goods or services, you have been invited to participate in an online sourcing event in Ariba Sourcing. The buying organization is conducting this event to source future goods or services.

This chapter describes minimum system requirements and explains how to log in to Ariba Sourcing. It includes the following sections:

• “Minimum System Requirements” on page 5

• “Logging in to Ariba Sourcing” on page 6

Minimum System Requirements

Before participating in a sourcing event in Ariba Sourcing, make sure your system meets the minimum requirements described in the following table.

▼ To enable JavaScript in Internet Explorer:

1 From the Tools menu, choose Internet Options, and then click the Security tab.

2 Click the Internet icon, and then click Custom Level.

3 Scroll down to Scripting,

4 Set Active Scripting to Enable.

System Component Requirement

Internet connection Your connection speed determines your access speed.

Web browser Microsoft Internet Explorer versions 6.x or Netscape Navigator versions 7.x or higher with JavaScript enabled.

Chapter 1 Introduction Logging in to Ariba Sourcing

6 Ariba Sourcing Supplier Guide 43en_us2004.9.407

▼ To enable JavaScript in Netscape:

1 From the Edit menu, choose Preferences, and then choose Advanced.

2 Make sure Enable JavaScript for Navigator is selected.

Logging in to Ariba Sourcing

When a buying organization invites you to participate in a sourcing event, you receive an email message containing a link to the URL of the Ariba Sourcing website. If you haven’t already registered in Ariba Sourcing, the email message includes a username and temporary password. To access the Ariba Sourcing login page, click the link in the email message or copy and paste the link into your browser.

▼ To log in to Ariba Sourcing:

Enter your username and password on the login page, and then click Login.

You can also select your preferred language on the login page. The locale set in your Preferences determines the language in which you see labels, prompts, hints, and help text in Ariba Sourcing. You can select another supported language from the Language drop-down menu, if you want.

If you forget your password and the forgotten password feature is set up for your account, you can click Forgot your Password? to reset your password. For information on setting up the forgotten password feature, see “Changing Your Personal Information” on page 7.


Logging in to Ariba Sourcing Chapter 1 Introduction

Accepting Terms and Conditions

If this is your first visit to this buying organization’s Ariba Sourcing website, you might need to accept a set terms and conditions before you can access Ariba Sourcing. Review the terms and conditions, and click Accept.

Changing Your Personal Information

The first time you log in to Ariba Sourcing, click Preferences to display your account preferences, and click Change Password on the Personal Info tab to change your temporary password. Choose a password that is easy for you to remember, but hard for others to guess.



Personal Info Tab

The Personal Info tab contains your personal contact information, address, and organization profile. The organization profile can contain many fields, such as revenue, number of employees, and UNSPSC codes. The buying organization uses this information to evaluate suppliers, and might require suppliers to input data in some fields. If the Personal Info tab contains a required field, you are not allowed to access any other pages until you supply the required information.

You can also set your locale on the Personal Info tab. The locale controls the language that appears in Ariba Sourcing, as well as how numbers are formatted.

Make sure you keep the information on the Personal Info tab up to date.

Message Settings Tab

You can use the Message Settings tab to change the message setting preferences for the messages you receive from Ariba Sourcing. You can specify whether you want to receive messages online, by email, or both. You can also specify whether you want to hear a sound when a new online message is received, when a new bid is made while you view an event, or both. The sound tone that announces a new message is more attention-getting and is different from the one played for a new bid.

Note: If you decide to have a sound played when new bids come in, be aware that there might be many frequent bids (and therefore frequent sounds), depending on the RFX type you’re viewing.

Your computer’s time zone determines the times shown throughout Ariba Sourcing. If your computer’s time zone is not set correctly, you might misunderstand bidding event start and finish times.


Logging in to Ariba Sourcing Chapter 1 Introduction

For information on the types of messages you can receive from Ariba Sourcing, see “Messages” on page 34.

Forgotten Password Tab

You can use the Forgotten Password tab to provide a Forgotten Password Question and Forgotten Password Answer that will enable you to access your account if you forget your password. Make sure the question is one that is unique to you and is information you will remember, such as your mother’s maiden name, your spouse’s middle name, your first pet’s name, or some other personal or confidential information. The information you enter cannot be seen by an administrator.

If you forget your password, you can click the Forgot your Password? link on the login page and answer the reminder question to recover it. You’ll receive an email with your password.




Chapter 2

How to Participate in an RFX

This chapter describes how to use Ariba Sourcing to participate in an online sourcing event. It includes the following sections:

• “About RFXs” on page 11

• “Overview of the RFX Process” on page 12

• “Preview Phase” on page 12

• “Bidding Phase” on page 22

• “Review Phase” on page 33

• “Bid Selection Phase” on page 34

• “Messages” on page 34

• “Online Help” on page 34

• “Summary” on page 35

About RFXs

Ariba Sourcing uses the term RFX to describe an online sourcing event. An RFX might be a request for information (RFI), a request for quote (RFQ), a request for proposal (RFP), or a negotiation.

A buying organization uses Ariba Sourcing to create an RFX and invite suppliers to respond. If the buying organization is conducting a bidding event, you participate by submitting a bid. If the buying organization is conducting a non-bidding event, such as an RFI or RFP, you participate by submitting a response to the buying organization’s list of questions.

In general, the procedure for participating in a non-bidding event is the same as for participating in a bidding event. The biggest differences occur because of the chosen bidding mechanism. Ariba Sourcing supports a bid wizard (Enter Values page) and a bid console (Bid Entry tab). The way you bid depends on what mechanism is specified by your RFX. For more information, see the “Bid Entry Tab and Enter Values Page Compared” on page 22.

Chapter 2 How to Participate in an RFX Overview of the RFX Process


Overview of the RFX Process

The following diagram shows the major phases in the RFX process and the RFX status most commonly associated with each phase.

The RFX owner can also include a Review period after the Bidding phase. During this time, the RFX owner can evaluate bids and have suppliers adjust bids before selecting a winner.

The rest of this chapter describes the steps you perform during each phase of the RFX process.

Note: In an RFI, there is no competition, no selection, and usually no Preview phase. You need only submit your response.

Preview Phase

During the preview phase, you log into Ariba Sourcing and review RFX requirements, terms, and attachments. The Preview phase ends when the buying organization opens the RFX for bidding and the RFX moves from the Preview status to the Open for Bidding status.

During the Preview phase, read the RFX information and determine the following:

• Which items you can supply and want to bid on.

• The price you will offer the buying organization, based on the buying organization’s price (if specified), and your own acceptable price range.

• The quantity you can supply, if this information is requested. In some RFXs, you are required to supply the entire quantity requested for an item.

PendingSelection ClosedOpen for

BiddingPreview

Preview Bidding Bid Selection


Preview Phase Chapter 2 How to Participate in an RFX

• Whether you meet the other requirements the buying organization specifies, if any. For example, the buying organization might want specific logistics or timing.

• How you will respond to any questions or terms posed by the buying organization in the RFX Info section. An asterisk next to a question indicates that you are required to respond.

If the RFX is a bidding event, you must also determine the following during the preview phase:

• How you will bid initially, and how you might revise your bid in response to competitors’ bids. Check the Rules tab of the RFX to find out if new bids must lower the price, and by how much.

• Review the rules of the RFX to anticipate how the bidding event will run. For example, find out when bids will be accepted, and if the bidding period will be extended when there is active bidding.

• Notify anyone in your organization that you want to be available, such as people who have the expertise you need to make decisions. For example, you might want to consult a technical specialist to handle computer-related questions.

If the event uses the Bid Entry tab for bidding and requires RFX Info, there most likely will be a preview phase that requires mandatory pre-bidding. Previewing gives you a chance to answer any of the RFX Info before the actual bidding starts and gives you time to think about your bidding strategy. In many cases, the Bid Entry tab is specified for fast-moving, competitive events, so you will want to be able to participate efficiently during the actual bidding phase.

Chapter 2 How to Participate in an RFX Preview Phase


Viewing an RFX

After you successfully log in, Ariba Sourcing displays the RFX (or RFXs) to which you have been invited. If you are invited to a single RFX, Ariba Sourcing displays information about that RFX. For example:

If you are invited to multiple RFXs, Ariba Sourcing lists the RFXs on the Event List page. For example:

If you have access to the dashboard or permission to view information or perform tasks in Ariba Sourcing, a table of contents displays on the left side of this page (the navigation panel). The table of contents contains links to other pages you can access. You can click the control ( ) to expand or collapse the navigation panel.



To view a particular RFX, click the RFX name link in the Name column. You can click the tabs to see information about the RFX. See the following sections for details. You can return to the initial page at any time by clicking Home.

When you access an RFX through Ariba Supplier Network (Ariba SN), you can return to Ariba SN by clicking Back to or Logout. Clicking Back to takes you back to the last Ariba SN page you visited. Clicking Logout returns you to the Ariba SN login page.

RFX Info Tab

The RFX Info tab provides background information about the RFX. This information can include text and pictures, file attachments, questions that you must answer, terms that you and the buying organization must agree to, and requirements that you must meet. You respond to the RFX Info and submit your responses like a bid.

In RFX Info, a file attachment is indicated by a hypertext link. To read the attachment, click the link, save the file on your computer, and open or print the file.

Items Tab

The Items tab lists the line items on the RFX. You can change the display of this tab by selecting different values from the drop-down menus. For example, you might choose to display the cost formula associated with an item, unit prices, ranks, net present value, and so on.



To display the details for a line item, click the name of the line item. A new set of tabs appears, containing details for that line item.

Description Tab for an Item

The Description tab for an item provides background information about the line item. It is similar to the RFX Info tab, except it applies only to a specific line item. The Description tab might include text and pictures, file attachments, questions you must answer, terms you and the buying organization must agree to, and requirements you must meet.

Suppliers Tab for an Item

The Suppliers tab for an item provides the list of active participants bidding on that item and displays the extended price and submission time of your last bid.

Rules Tab for an Item

The Rules tab for an item shows important information that might affect how you bid on this line item.

The Bidding Rules for this Item section describes how bid improvement rules are used during the bidding event. Review these rules and prepare your strategy to meet the requirements.



The following table describes each type of bidding rule.

The buying organization can elect to use any number or none of these bid improvement rules. Review the Rules tab at each line item to see how these rules are set for each item.

Note: Some rules can differ from item to item, such as minimum or maximum quantities. Check the specific Rules tab for each item that interests you.

Bidding Rule How It Works

Bid improvement This rule specifies whether you must improve on the best of your competitors’ bids when placing a bid. If you are required to improve on your competitors’ bids, the rule also specifies the amount or percentage by which your bid price must be lower than the best competitor’s price.

Revised bid improvement

This rule specifies whether you must improve on your previous bid when you submit a revised bid. If you are required to improve your bid price, the rule also specifies the minimum amount or percentage by which your revised bid price must be lower than your previous price (the minimum decrement). For example, if the revised bid improvement rule specifies a minimum decrement of $10 and your previous bid was $100, then your revised bid must be $90 or less.

General bid improvement

This rule specifies whether your bid must satisfy both the bid improvement and revised bid rules, or only one of them.

Bid protectionbuffer

This rule specifies that you cannot bid too closely to a leading bid but must improve on the bid by a specified price or percentage. The bid protection buffer enables buyers to protect the best bid by setting front (upper threshold) and end (lower threshold) bid buffers to create a zone or “halo” that surrounds and protects the leading bidder. When bid protection front and end buffers are used, the limits are displayed on the Rules tab.

Tie bid rule This rule specifies whether tie bids are allowed, and if so, whether they are limited to certain suppliers based on rank. For example, a buyer might allow tie bids only among the top four bidders.



Suppliers Tab

Depending on how the RFX is set up, you might see a list of the participants invited to the event. You might also see aliases instead of actual supplier names. You can click a bid next to the supplier name to see Bid Details for that bid.

Rules Tab

The Rules tab for the RFX shows information that might affect how you bid. For example, the Timing Rules section of the Rules tab tells you when the bidding starts and when it ends.

The closing rule tells you how the close of bidding is determined. The following table describes the ways in which the close of bidding can be determined.

Closing Method How It Works

Fixed end time The close time is fixed. Bidding closes at the date and time shown as the bidding close time.

End time extension rules Bidding closes after a specified period, shown as the bid inactivity period, during which no bids have been entered.

Bid extension rules until a fixed end time

Bidding closes when the bidding close time is reached, or no bids are entered for the amount of time specified in the bid inactivity period, whichever comes first.



The buying organization can change the bidding close time, or the bid inactivity period, while the RFX is running. You are notified with an email message if the buying organization makes either of these changes. When the RFX is in the Preview or Open for Bidding status, the time remaining until the status changes is displayed in the bid clock in the upper right corner of the RFX.

Q&A Board Tab

An RFX might provide a Q&A board through which you can ask the buying organization a question. To view the Q&A board, click the Q&A Board tab.

Bid extension rules after a fixed end time

Bidding is open until the bidding close time, and then closes if no bids have been entered for the amount of time specified by the bid inactivity period. If a bid is entered, the Open for Bidding status is extended by the amount of time specified by the bid inactivity period. Bidding closes only when no bids are received within the time limit of the bid inactivity period.

No close time The RFX is open-ended. This option is useful in negotiations.

Closing Method How It Works



The Q&A board addresses questions that suppliers have about an RFX. Click Ask Question to open an edit box. Type your question and click OK.

The buying organization is notified when a question is submitted. The buying organization can answer a question privately, or choose to post the question and its answer on the board and send an email message that contains the question and answer to all participating suppliers.

In most cases, the identity of the supplier who asks a question is not shown, although the buying organization might choose to show it. The buying organization always sees the identity of a supplier posting a question. The buying organization can delete or edit questions from the Q&A board, even after answering them. A record of the deletion remains in Ariba Sourcing.

You can find helpful information on the Q&A board, even if you don’t have a question.

Submitting a Pre-Bid

Many RFXs allow you to prepare a bid during the preview period of the event and some require that you pre-bid. If the Prepare Bid button is displayed when the RFX is in the Preview status, the RFX allows you to place a pre-bid. Pre-bidding enables you to participate in an RFX if you are not available during the bidding period and gives you time to review and consider your bidding strategy before the RFX opens. A pre-bid is automatically placed for you when the RFX status changes from the Preview status to the Open for Bidding status.

As with a regular bid, you cannot withdraw a pre-bid after you submit it, but you can revise a pre-bid any time before the close of bidding as long as you conform to the bid improvement rules.



Depending on the bidding rules specified by the buying organization, pre-bidding can be mandatory. When pre-bidding is mandatory, you must submit a pre-bid during the preview period. If you don’t submit a pre-bid during the preview period, you are locked out of the RFX when the RFX is open for bidding. You can submit pre-bids and bids during the open phase.

Preparing a pre-bid is the same as preparing a bid. For information on preparing bids, see “Bidding Phase” on page 22.

Declaring Your Intention to Respond

If the Intend to Respond and Decline to Respond buttons are displayed when the RFX is in the Preview status, you must declare your intention to participate in the RFX before you can place a bid or pre-bid.

When you click Intend to Respond, you are just letting the buying organization know your intention to participate. Ariba Sourcing does not force you to bid on the RFX.

The Prepare Bid button appears immediately after you click Intend to Respond or after the buying organization has approved your participation in the RFX, depending on the bidding rules specified by the buying organization. You receive an email notification message when the buying organization has approved your participation in the RFX.

Depending on the RFX information rules specified by the buying organization, you might be able to see additional information about the RFX after one or more of the following occurrences:

• You click Intend to Respond.

• The buying organization accepts your intention to respond.

• You submit a bid.

You can retract your “intention to respond” as long as you haven’t submitted an actual bid. If you click Decline to Respond, but then decide later that you want to participate in the RFX, you can click Intend to Respond at that time.

Chapter 2 How to Participate in an RFX Bidding Phase


Bidding Phase

During the bidding phase, you can prepare and submit a bid for the RFX. You can also revise your bid, if necessary, to improve your chances of being selected by the buying organization. If the buying organization decides to disclose competitive bidding information, you can also observe the status of your bid compared with the bids of your competitors.

The RFX remains in the Open for Bidding status for a specified time and then enters the Pending Selection status.

Bid Entry Tab and Enter Values Page Compared

The RFX you are participating in will use either the Bid Entry tab (bid console) or the Enter Values page (bid wizard) as the bidding mechanism. The bid wizard steps you through a series of screens to place your bid.

The Bid Entry tab is designed for fast-moving events with competitive active bidding. It provides a streamlined interface with powerful bidding capabilities on a single screen.


Bidding Phase Chapter 2 How to Participate in an RFX

If you are using the Bid Entry tab, you can complete answers to RFX Info questions on the RFX Info tab. Although you can do this later, it’s best to enter RFX Info during a preview period so you can concentrate on bidding during the bidding phase of the event.

After you submit your RFX Info, you can click the Bid Entry tab to view the information on the tab. The Bid Entry tab includes a top area for bid submittal, a bid graph that can display different views of the event, and a table of bid histories (yours and your competitors’, if the event is set up for you to view competitive bids) for the event.



RFXs using either the Bid Entry tab or the Enter Values page can include some of all of the following tabs:

• RFX Info (see “RFX Info Tab” on page 15)

• Items (see “Items Tab” on page 15)

• Bids (see “Reviewing a Bid” on page 31)

• Suppliers (see “Suppliers Tab” on page 18)

• Q&A Board (see “Q&A Board Tab” on page 19)

• Rules (see “Rules Tab” on page 18)

• Event Change History (see “Viewing the Event Change History” on page 32)

Beginning the Bidding Process

The following table describes the various ways in which you begin the bidding process.

Bidding Method How It Works

Click the Intend to Respond button

If the Intend to Respond button appears, you must declare your intention to participate in the RFX before you can place a bid. For more information, see “Declaring Your Intention to Respond” on page 21.

Note: Not all RFXs require you to declare your intention to respond.

Click the Prepare Bid button

A series of screens steps you through the process of preparing a bid.

The steps for using the Prepare Bid method are described in the following sections.



Bidding Considerations

The following table describes bidding considerations to keep in mind as you bid on different types of RFXs.

Click the Open RFX in Excel button

You follow the onscreen instructions to prepare your bid in a Microsoft Excel bidding workbook. You must have Microsoft Excel on your computer to use this bidding method.

In general, enter your bid data only in worksheet cells that are colored yellow. For complete information, read the information on the Cover Page tab within the Microsoft Excel bidding workbook. If you need more information, click Help.

Note: Not all RFXs give you the option of preparing bids with Microsoft Excel. If the event uses the Bid Entry tab, Excel bidding is not supported.

Click the Bid Entry tab You fill in bid information or click the EasyBid icon (if available) to get the best bid information, and then click Submit to submit your bid or Cancel to cancel. Click Update Totals to refresh derived amounts, such as Extended Price.

Event Type or Option Bidding Considerations

Lots A lot is a group of items for which you bid and compete at the group level but whose prices are specified at the item level. Lots are indicated by green basket icons ( ) in the RFX. When you bid on a lot, you must enter bids for all the line items.

Market Baskets A market basket is a group of line items priced as a group rather than as individual items. Market baskets are indicated by blue basket icons ( ) in the RFX. When you bid on a basket, you bid at the basket level for all items in the basket.

Bidding Method How It Works



Net Present Value (NPV)-based event

NPV events require that you bid on items over periods of time, for example, for every quarter during a year. The NPV calculation helps determine the cost of a future purchase in today’s dollars and factors in a discount rate for purchasing in today’s dollars (to account for the decrease in value over time).

NPV events use lots for bidding, so you bid on individual line items but compete at the lot level. You bid on each period of time and compete for a buyer’s business based on the lowest total NPV.

If the RFX permits, you can apply a variable reduction percentage (VRP) after the first period to recurring terms in the RFX. You can specify a different reduction discount at the lot level for each period after the first period. During bidding, the term is automatically reduced by the specified percentage at the item level for all items in the lot.

Different timing rules

• In an RFX with parallel timing, all items open for bidding at the same time and close at the same time.

• In an RFX with serial timing, items open consecutively and close at different times. Only one line is open for bidding at any time.

• In an RFX with staggered timing, all items open at the same time and close in succession based on a specified interval.

Dutch reverse auctions

A Dutch reverse auction is a fast-moving event in which line items steadily increase in price until the first supplier agrees to sell some quantity of the item at the current price. Line items open and close consecutively in serial order, and only one line is open for bidding at any time. The bid clock indicates the time remaining for bidding on the current line item.

Depending on the RFX rules, you might need to bid on the full quantity of all items. If you can bid on partial quantity, enter a quantity value and submit your bid.

Event Type or Option Bidding Considerations



Registering in Ariba SN

If you access an RFX through Ariba SN without first logging into Ariba SN, Ariba Sourcing redirects you to the Ariba SN registration page when you click any of the buttons described in the previous table. On the registration page, you can either enter your existing account information or create a new account. After completing the registration process, you are returned to Ariba Sourcing.

Bidding Example

This section describes one typical scenario for the bidding process using the Enter Values page (bid wizard).

Answering RFX Questions

If the RFX includes questions, enter your responses to those questions on the RFX Info page. The buying organization will consider this information along with the price and quantity of your bid.



Entering Prices and Quantities

If the RFX requires a price and quantity for each line item, you are prompted to enter that information on the Enter Values page.

A shaded green background highlights fields that update dynamically. When all fields in a table update dynamically, the table header is shaded green. Highlights display for several seconds.

If a line item allows bids in multiple currencies, the currency icon appears next to the Price box. Click this icon to display the currency chooser and select the currency you want to use for your bid. Selecting different currencies is useful if you have a multinational organization. If the buyer specifies the allowable currencies and exchange rates, you can bid in the currency most favorable at the current time. Or, if you want, you can select a separate currency for each line item, for example, if you were to supply those items from different geographical regions.

When multi-currency bidding is enabled for an RFX, you see your chosen currency unless you choose to always show your preferred currency.

In an event that supports multiple currencies, you cannot change your currency selections after you submit your first bid.



Click Update Totals to refresh the derived values in the Line Items table. For example, clicking Update Totals refreshes Extended Price when you change your bid price.

Submitting a Bid

On the Summary page, review the instructions and revise your bid, if necessary. If there are any errors in your bid, they are listed in red at the top of the page. Click the link in the error message to go to the page where you can fix the error.

Click the EasyBid icon to have the system automatically enter minimally valid bid entries, taking into account the current best price and any price improvement rules. If you hover your cursor over the EasyBid icon, you see a suggested bid price (or matrix factor or tier factor, depending on the item type).

Competitive data (including bid rank, best price, and best unit price) is dynamically updated in the user interface shortly after other suppliers’ bids are accepted. The EasyBid icon glows or brightens when someone has bettered your bid and new suggested competitive data is available. When you click the glowing icon, you accept the suggested data, and the icon dims to indicate that the suggested value was used. When new suggested competitive data is updated dynamically, the EasyBid icon glows again to indicate that new data is available.

For example, if a new bid is required to improve on price by $100, EasyBid will enter a price that is $100 less than the current best bid price. Each line item has an EasyBid icon. An EasyBid icon at the top of the list enters values for all items listed on the page.



As a final check, read your bid before submitting it. Make sure to check all tabs. When you are ready, submit your bid by clicking Submit.

After you submit your bid, an online message is sent to your Message Center, telling you whether your bid was entered.

You can click Save at any time during bid preparation to save the bid or to save and continue to work on the bid. Saving a bid does not submit the bid. To edit a saved bid, click Prepare Bid to resume the bidding process.



Reviewing a Bid

The Bids tab in the RFX details lists all the bids you have submitted in this RFX, including any previous bids.

Click the bid ID number to see the details of the bid. The Bids tab also shows you how your bid ranks against the other bids submitted for the line item. Your bids are also listed on the details page for each line item included in the bid.

If the buyer allows it, you can observe the status of your bid compared with the bids of your competitors.

Note: If the RFX you’re bidding in uses the Bid Entry tab, you can review bid history on the page. The bid graph displays your bid history for the event. The bid history for the RFX is displayed in a table to the right of the bid graph. You can also click the bid ID to get more information about individual bids.



Revising a Bid

After you submit a bid, you can revise the bid by clicking Revise Bid. When revising your bid, you use the same series of screens as when you submit a new bid. The values of your existing bid appear in the fields where you entered them. You can change any of these values. When you submit the revised bid, it replaces your old bid as your current bid. You can still view your old bid in the Bids tab.

Make sure to allow enough time to submit revised bids.

Saving Bid Information

As you enter bid details, your information is saved automatically after the data is sent to the server. If either the Ariba Sourcing server or your browser becomes unavailable, you can recover your bid information. When you log back into Ariba Sourcing, the Recover Bid/Negotiation page displays, and you have the choice to recover or discard your earlier bid information.

Viewing the Event Change History

The buyer can make changes to an RFX while it is running, such as reducing the bidding time. The Event Change History tab shows a history of those changes.

For Dutch reverse auctions, the Event Change History tab also shows the time at which an item’s price changed.


Review Phase Chapter 2 How to Participate in an RFX

Viewing the Bid Clock

For parallel bidding events, the bid clock at the top of the RFX shows the time remaining until bidding closes for the RFX. For non-parallel events (staggered or serial bidding), the bid clock displays the close time for bidding on the current line item.

In addition, for Dutch reverse auctions, the time remaining until the price changes for the current item is displayed in the table.

If the RFX is in the Preview status, the bid clock indicates the Preview status and shows a smaller time remaining clock that counts down the time until the RFX leaves the Preview status and opens to bids or responses.

The close of bidding can change, depending on the closing rule. If you want to submit a new or revised bid, make sure to allow enough time before bidding closes.

Review Phase

If the RFX includes a Review period, the event moves into a specified period before it closes. The bid clock displays how much time is left in the event. During the review period, the buyer might communicate with suppliers to get additional information on their bids. The buyer might negotiate with suppliers and make agreed-upon adjustments to their bids before the event moves into the Pending Selection phase.

Don’t wait until the last minute to submit a bid. Because delays over the Internet are unpredictable, a last-minute bid might not be received by the system before the close of bidding. Also, bidding at the last minute does not guarantee that you’ll have the best bid when bidding closes. The closing rule for the RFX might allow bidding to extend past the nominal end time if a bid comes in close to the end.

Chapter 2 How to Participate in an RFX Bid Selection Phase


Bid Selection Phase

When the RFX reaches its closing time, the RFX moves to the Pending Selection status. The buyer reviews the bids and makes awards to one or more suppliers. When awards have been decided for all items, the RFX moves from the Pending Selection to the Closed state.

Messages

The following table describes the ways in which Ariba Sourcing communicates with you about an RFX.

Online Help

Click Help in the upper right corner of the screen to access online help. The online help includes an index and a search tool.

In addition, customer support might be available to assist you with technical issues. Click Support at the bottom right corner of the screen to display support telephone numbers and email addresses. If there is no Support link, contact the buying organization for support information.

Channel How It Works

Online messages (Message Center)

Online messages inform you of important events, such as when bidding has started. Messages are sent to your Ariba Sourcing account and can be viewed only when you are logged in. Click the Message Center link or icon ( ) to open and close a Message Center preview pane.

Email messages Email messages inform you of important events and can contain useful information, such as your Ariba Sourcing username and password. An email message is sent to the email address specified on the Personal Info tab for your user account.


Summary Chapter 2 How to Participate in an RFX

Summary

The following is a quick summary of how to participate in an RFX:

1 Log in to Ariba Sourcing.

2 Read the information on the RFX Info, Items, and Rules tabs.

You might want to use the bidding checklist provided in Chapter 3, “Bidding Checklist,” to make sure you are ready before preparing a bid.

3 Click Prepare Bid (or Prepare Response for an RFI or RFP).

4 Enter your bid on the Enter Values page or the Bid Entry tab, and then click Submit.

Chapter 2 How to Participate in an RFX Summary



Chapter 3

Bidding Checklist

Use the following checklist to make sure you are ready before preparing a bid.

! View the RFX details.

Check the information on the RFX Info, Items, and Rules tabs for the RFX, and on the Description and Rules tabs for each line item. Make sure you read all attachments.

! Consider submitting a pre-bid, if pre-bidding is allowed.

The RFX might require or allow you to submit a bid before the bidding event begins. This feature is useful if you will not be available for the event, or if you will be late to the event.

Note: You cannot submit a pre-bid for an RFI.

! Use the Q&A Board.

Some RFXs feature a Q&A Board tab that enables you to ask questions. Ask questions as soon as possible, to give the buying organization enough time to provide a complete answer. Keep the Message Center preview pane open to see when you receive notifications of new postings to the Q&A board. You might also receive an email notification when there is a new posting. If the Q&A board contains relevant information, you might want to print a copy for reference.

! Prepare a price range for all items.

Decide on an initial bid price, middle bid price, and bottom bid price for all items in the RFX. Make these decisions before the bidding event begins, especially in situations where the sales decision-makers are not available during the event.

Note: You do not prepare prices for an RFI.

Chapter 3 Bidding Checklist


! Prepare responses for negotiable terms and questions.

The RFX might require you to supply information other than price and quantity, such as answers to questions and values for negotiable terms. An example of a negotiable term is a proposed initial delivery date. An example of a question is a request for customer references. Be ready to respond to all negotiable terms and questions.

! Prepare for an extended bidding event.

A bidding event might extend past the nominal end time if a bid is placed in the last few minutes. This feature gives suppliers time to respond to last-minute bids. Check the Rules tab to see if this feature is enabled, and be prepared if an extension occurs.

! Give the buying organization your contact information.

Provide the buying organization with information on where you can be reached during the bidding event. Giving the buying organization your contact information is important if you are not at your computer and cannot be reached by phone or email. At a minimum, provide the buying organization with a phone number at which you can be reached you during the event.


Chapter 4

Frequently Asked Questions

Do I have to pay a membership fee to participate?

There is no fee. The buying organization assumes all costs associated with running the RFX.

How do I get a username and password?

The email message inviting you to participate in the RFX contains your username and password.

How do I change my password?

Click the Preferences link to go to the Preferences page. Change your password on the Personal Info tab by clicking Change Password.

How do I change my time zone?

The time zone you see throughout Ariba Sourcing is automatically taken from the time zone setting in your computer’s operating system.

Do I have to fill out all the profile information?

Only fields with an asterisk (*) are required. However, the buying organization will use the information in your profile to find suppliers for future RFXs, so it is advantageous for you to keep your profile as complete as possible.

Chapter 4 Frequently Asked Questions


How do I set the currency used for the event?

▼ To set your preferred currency:

1 Click the Preferences link to go to the Preferences page.

2 On the Personal Info tab, click Edit at the bottom of the page.

3 Change the Currency field to the currency you want, and check the Always show preferred currency box next to it.

4 Click OK.

All price amounts are now shown in your preferred currency.

How do I bid in a specific currency?

If you set your preferences to view in your preferred currency as described in the previous answer, your bid prices are also displayed in your preferred currency.

Can my company bid as a team?

You can bid as a team only if the team members share a single login. Different team members can edit and save the bid to enter their contributions, and then one team member submits the bid when it’s complete. However, only one team member should edit the bid at a time. Otherwise, the edits of one team member can overwrite the edits of another team member.

What do I do if I make a mistake?

Ariba Sourcing checks your bid before you submit it and informs you of any errors you need to correct. After you submit your bid, it is checked further before being entered into Ariba Sourcing. You receive a notification of whether it was entered. As long as the RFX is in the Open for Bidding status, you can revise your bid by clicking Revise Bid. You can also request that the RFX Owner delete an erroneous bid for you.

Note: Bid improvement rules might prevent you from increasing your price in a revised bid. If your revised bid is not accepted because you increased your price, contact the buying organization immediately.



How do I send a message to the buying organization?

Click the Q&A Board tab in the RFX and then click Ask Question. Enter your message, and click OK.

Will other suppliers be able to see my bid or name?

Click the Rules tab and check the Information Release section to see what information is revealed to suppliers.

Will the event end automatically?

Click the Rules tab and check the Timing Rules section to see the closing rule.

Where do I go for help?

Click Help to access the Ariba Sourcing online help. If the buying organization has set up a support contact, you can view this information by clicking Support.




ARIBA, INC.

807 11th AvenueSunnyvale, CA 94089 USATelephone: 650.390.1000Fax: 650.390.1100

www.ariba.com

Documents

Ariba Sourcing 4.3 Supplier Guide · Ariba Sourcing Supplier Guide 9 Logging in to Ariba Sourcing Chapter 1 Introduction For information on the types of messages you can receive from