"You can use this business scenario to process all your requirements and optimize your source of supply for each individual item. You can identify saving opportunities and evaluate suppliers in their ability to provide materials and services at low cost, high quality, and according to schedule. Once you have determined the best source of supply for your requirements, you can collaborate in project teams both internally and with your suppliers, and establish on-going relationships based on contracts and global outline agreements." SAP Online Help

The business processes run as follows: 
1. Processing local requirements
2. Negotiating contracts 
3. Sourcing requirements in SAP Bidding Engine 
4. Submitting bids 
5. Determining winning bids 
6. Creating follow-on documents

Processing Local Requirements

You can use this business process to handle your requirements by: 

• Automatically assigning the sources proposed by the system to the items. This applies, for example, when there is one single contract for the item being procured. 
• Creating a bid invitation or an auction within SAP Bidding Engine 
• Creating global outline agreements or contracts in SAP Enterprise Buyer

Negotiating Contracts

You use this process to negotiate a new contract or renew an existing contract with a supplier. This process is triggered in the contract application of SAP Enterprise Buyer and then moves to SAP Bidding

Sourcing Requirements in SAP Bidding Engine

You can use this business process to invite suppliers to submit bids in response to a bid invitation or an auction. You can use the functions offered by SAP Bidding Engine to exchange detailed information with potential suppliers. For example, you can use dynamic attributes to prompt specific product data from suppliers, and create a collaboration area where each party has access to technical specifications.

Negotiating Contracts

You use this process to negotiate a new contract or renew an existing contract with a supplier. This process is triggered in the contract application of SAP Enterprise Buyer and then moves to SAP Bidding Engine, where the supplier updates the contract details, such as target value or conditions.

Sourcing Requirements in SAP Bidding Engine

You can use this business process to invite suppliers to submit bids in response to a bid invitation or an auction. You can use the functions offered by SAP Bidding Engine to exchange detailed information with potential suppliers. For example, you can use dynamic attributes to prompt specific product data from suppliers, and create a collaboration area where each party has access to technical specifications.

Submitting Bids

Suppliers can use this business process to submit bids in response to a bid invitation or auction. Suppliers must register themselves to obtain permission to participate in a public bidding process. They submit bids in response to a bid invitation directly in SAP Bidding Engine and they submit bids in response to a live auction using the Live Auction Cockpit.

Determining Winning Bids

You can use this business process to select one or more suppliers to fulfill your requirements. You can use the report-to-report interfaces and analysis functions provided by SAP Business Information Warehouse to compare bids and bidders.

Creating Follow-On Documents

You can use this business process to create a purchase order, a contract, or a global outline agreement from the winning bid or bids.

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