Step by step

The elements of e-Sourcing

Seen from a supplier perspective, the negotiation process starts with an invitation to participate in an RFx. From here, we plan our next step in the negotiation process.

The RFx

An RFI (Request for Information) is used to gather non-competitive data on suppliers' capabilities and is not asking for any pricing information. The information is used to build a database which supports Arla in developing a sourcing strategy and preparing for an RFP as part of further negotiations.

An RFP (Request for Proposal) provides suppliers with more detailed information about business needs and is asking for a proposal for how to satisfy these needs as well as giving a price indication.

The RFP can be used to set up an e-Auction as a next step in the negotiation process

The e-Auction

Participating in an eAuction means taking part in a real time online negotiation via our e-sourcing tool. Purchasers put up a request for a required good or service. For these goods or services, suppliers will place bids and the supplier with the leading bid will be awarded as the winner of the e-Auction.

The e-Catalogue

Whenever we negotiate new contracts or renegotiate existing ones, we in Procurement make an evaluation of the supplier and decide whether to include an e-catalogue in the contract. When a supplier is selected, the supplier will start an onboarding process to our e-Soucing tool and receive training in our e-Sourcing tool, provided by SAP Ariba. 


More information on our e-Sourcing tool, e-Auctions and e-Catalogues can be accessed by clicking on the links below.