Spend Management Blogs by Members
Check out community member blog posts about spend management and SAP Ariba, SAP Fieldglass, and SAP Concur solutions. Post or comment about your experiences.
Showing results for 
Search instead for 
Did you mean: 
In this blog post, you will get an overview of SAP's new product offering Ariba Supply Chain Collaboration and also understand a few of the Buyers Business Processes supported by SCC.


Supply Chain Collaboration is the extension of supply chain information and capabilities to all trading partners in a supply network. Often accomplished through the real-time collaborative digital exchange of planning/forecasting, purchasing, inventory fulfillment and payment transactions between buyers and suppliers in order to improve traceability and end-to-end visibility of supply chain operations.

Why Do Buyers Need Supply Chain Collaboration?

Today’s global economy is built on a foundation of more outsourcing, trading partners, complexity, fragmentation, geographies, and technology as companies have shifted their focus to core competencies and away from vertical integration with 30% of manufacturing outsourced in a typical company. Amongst these challenges, it’s increasingly more difficult for organizations to effectively manage their supply chain and specifically reduce inventory levels, increase fill rates, and minimize supply chain risks.

Buyer Benefits

  1. Reduce Inventory Levels

  2. Mitigate Supply Chain Disruptions

  3. Prevent Revenue Loss via Stock-Outs

  4. Automate Data Exchange

Supplier Benefits

  1. Reduce Latency

  2. Increase Forecast Accuracy

  3. Improve On-Time Delivery and Flexibility

  4. Reduce Manual Intervention


SAP Ariba SCC Processes: Overview


Purchase Order Collaboration

PO Collaboration is the extension of purchasing information and capabilities to all trading partners in a supply network.

  1. Create PO (Direct) Item Category and Account Assignment category is blank.

  2. Order Confirmation (PO Acknowledgement in terms of price, quantity, delivery date, etc)

    • In ECC it is done manually after confirming with Supplier over phone/mail

    • In SCC, this will be updated by the Supplier in the portal and will reflect in ECC.

    • Supplier may agree or disagree on date, quantity or price. In SCC there is an option that the Supplier can change/modify the Quantity or Date, this will be automatically updated in PO in ECC

    • Authorization to modify/change to the Price will ONLY remain with the Buyer

  3. Advanced Shipping Notification (ASN) Creation (Notification to Buyer that Material is outbound)

    • Advanced HU Management – Information on Packaging details. Creation of HU numbers which will be transmitted to ECC.

    • Added functionality of Barcode labels which can be read to complete GR.

  4. ASN triggers the creation of Inbound Delivery.

    • Placeholder for ASN in SAP is Inbound Delivery.

    • HU numbers are also reflected if created by the supplier.

    • Details of Inbound Delivery and HU numbers are within Dispatch Delivery notification message.

  5. Goods Receipt – Automated Barcode scanning, Against Inbound Delivery

  6. Good Receipt confirmation/failure status will flow back to Supplier (using WebServices)

    • Error handling is done with the help of FEH

    • This information is sent to the supplier depending upon Output Message type (EDI)* predefined.

  7. After the GR confirmation supplier will raise Invoice (Flip the PO) and submitted on the Portal

  8. MIRO gets posted. PO history is updated, and Invoice Receipt is completed

  9. Payment Run Process is started. Payment type is validated and Posted. The supplier immediately gets the updated about the status of Invoice (Accepted, Rejected, Paid, etc)



Vendor Consignment Collaboration 

Consignment Collaboration provides the Buyers and Suppliers with end-to-end visibility of movements related to consigned inventory.

Note: Cannot use this business process where the material has a shelf life or expiry date.

  1. Item Category Type – K, Account Assignment: blank, Confirmation Control: Ariba-MFG Visibility, PO price is blank (Price is maintained in Consignment Price Info Record and not in Purchase Order, because of Price validity)

  2. Goods Receipt Processing (Buyer) – Moved to Consignment Stock and no FI document generated

    • Buyer’s ERP doesn’t assign a monetary value to the consigned material during goods receipt

    • Upon successful receipt, a GR notification is sent back to update PO

    • ERP also clearly identifies quantities that are in consigned status

  3. Withdrawal / Consumption Stock (Buyer) – Consignment withdrawal message sent to the supplier

    • Buyer performs a transfer posting in ERP to transfer ownership of consigned stock into their own

    • ERP establishes Buyer’s liability based on the price in Consignment Purchasing Info Record

    • Buyer ERP sends a Consignment Withdrawal notice to Supplier

  4. Create a Consignment Settlement Invoice (Buyer)

    • Buyer creates a consignment settlement invoice (Tcode MRKO) based on the material document generated by the consignment withdrawal

    • Buyer ERP sends a Consignment Settlement notice to Supplier and creates the invoice in Ariba Network

    • Settlement invoice is also displayed in the Consignment Movement screen


Subcontract Manufacturing Collaboration

This informs Subcontractor about products ordered and components to be used, Enables the Buyer to advise the Subcontractor component OH inventory and shipment, Enables Subcontractor to report a real-time receipt and consumption of components ensuring greater predictability of supply.

  1. If Transit time is short, we use 1 Step method.

    1. Create Outbound Delivery (Movement type 541) > PGI (Post Goods Issue)

    2. Stock is deducted from Unrestricted and updated in Subcontracting Stock.

  2. If Transit time is long, we use 2 Step method.

    1. PGI (Post Goods Issue) using Movement type 30A.

    2. Stock is deducted from Unrestricted and updated in Subcontract Transit Stock.

    3. After Subcontractor receives, he sends Component Receipt which sends a PoD (Proof od Delivery)

    4. Movement type 30C is triggered and the Stock is deducted from Subcontract Transit Stock and updated in Subcontract Stock.

  3. Another option is Real Time Consumption.

    1. Report Consumption – This updates the Subcomponent / Subcontract item consumption

    2. But this does not update the Finished Goods – It happens with ASN only.


SAP Ariba SCC ensures a comprehensive and flexible collaboration between the Buyer and Supplier across the Ariba Network.

  • Provides extended visibility and enables buyers/ planners to collaborate with Component/ Raw Material Suppliers, Contract Manufacturers/ Subassembly Partners and 3rd Party Logistics Provider

  • Offers flexible options for integrating buyer ERP and suppliers systems to the SAP Ariba Network

  • Embedded Supplier Enablement Service with no transaction cost for Suppliers

  • Offers comprehensive end-to-end collaborative business processes and integration

  • Extends your internal business applications to external business partners


Follow me on LinkedIn

Please write your comments to improve this blog.

0 Kudos
Excellent Note on SCC !
0 Kudos
well articulation on ARIBA SCC offering
0 Kudos
Clear and detailed information on the supply chain collaboration in the procurement process.
0 Kudos
How Down Payment Request can be created by supplier in Ariba SCC and transfer to SAP ECC for down payment.
0 Kudos
(1) Do we need any 3rd party software for scanning for below scenario:

Under PO collaboration scenario above point#5 (Goods Receipt – Automated Barcode scanning,      against Inbound Delivery).

(2) Additionally, Is this scenario possible in ARIBA Buying (without Ariba SCC)?