Arla Foods wants to ensure that suppliers are competing in a fair environment. We believe that the way to achieve this goal is to make the transition from conventional sourcing to electronic sourcing, also known as e-Sourcing.
e-Sourcing offers suppliers an efficient tool for collaborating with Arla Foods while also improving transparency throughout the tender process.
Arla Foods uses SAP Ariba to facilitate our tender projects. SAP Ariba provides an online portal through which purchasers and suppliers can collaborate and exchange information related to tender participation.
Furthermore, SAP Ariba has proved to be an efficient tool for automating our 6-step sourcing process. The process ensures that we can cooperate with global suppliers in a simple and unified way.
To many suppliers, the starting point for cooperating with Arla Foods is to participate in an RFI or RFP. But what is the difference?
An RFI (Request for Information) is used to gather non-competitive data on the capabilities of potential suppliers. The information is used to build a database of suppliers that gives Arla Foods an indication of opportunities in the market. Also, the RFI supports Arla in developing a sourcing strategy and prepare for an RFP as part of further negotiations.
An RFP (Request for Proposal) provides suppliers with more detailed information about the business needs of Arla Foods. We ask suppliers to draft a proposal and give a price indication. We use this information to plan the next step in the process for supplier selection.
Arla Foods is increasingly using e-Auctions to boost fair competition between suppliers.
We only run e-Auctions when we are able to gather a pool of comparable suppliers. We compare and select suppliers for e-Auctions based on the information that suppliers have shared with Arla Foods prior to the e-Auction.
To ensure that all participating suppliers have acquired the basic skills needed for participating in an e-Auction, we offer our suppliers to participate in a test e-Auction prior to the actual e-Auction.
Learn more about e-Auctions
We are currently expanding our pool of suppliers that have e-Catalogues included in their contract with Arla Foods. The e-Catalogue is an online ordering system that allow buyers inside Arla Foods to easily procure goods and services from a user-friendly platform known from everyday online shopping.
It will always be Arla Foods' decision whether a supplier should have an e-Catalogue included in the contract. If a supplier is selected, it will be the responsibility of the supplier to create and keep the e-Catalogue updated in SAP Ariba.
Naturally, the supplier will receive sufficient training in using the tool before starting.
Learn more about e-Catalogues