Frequently Asked Questions - SAP Network

General

I received a notification from Best Buy about transacting on the SAP Network. What does this mean?
This was to notify you that Best Buy is starting its transition to the SAP Network for transacting for Goods Not for Resale (GNFR) suppliers. Eventually, after full implementation, the only way to transact (receipt of POs, submit invoices, receive payments, receive and respond to RFx, establish contracts, and other related activities) will be through the SAP Network.

What is the SAP Network?
SAP Network is the world’s largest web-based trading community which connects suppliers and their clients for all key business collaboration/transaction needs. It supports everything from trading partner discovery and e-procurement to e-invoicing and working capital management, allowing participants to buy, sell, and perform multiple other business transactions effectively. SAP Network enhances efficiencies for both buyers and sellers and offers unparalleled reach and flexibility. Today, more than 7 million companies and roughly 75% of Best Buy top transaction Suppliers use SAP Network to streamline and automate their business processes.

Why is Best Buy moving to SAP Network?
Implementing SAP Network is part of our effort to continuously improve our operational efficiencies. SAP Network integrates and simplifies purchasing processes from RFP, to contracting, to POs and invoice payment into a one-stop shop enabling a world class experience and significant efficiencies for both, our internal users and suppliers.

Does this transition apply to all Best Buy suppliers?
This transition impacts ALL GNFR suppliers conducting business with Best Buy US. Suppliers doing business with Best Buy Canada as well as in support of products sourced by Exclusive Brands are impacted for some of their transactions. Goods for Resale (GFR) suppliers are not impacted. There are several other exceptions such as government fees, utilities, etc.

My company transacts with Best Buy as both Non-Merch and Merch space. How does this transition impact my company?
You will be expected to transact with Best Buy via the SAP Network for all transactions that fall within the GNFR/Non-Merch space. The process to transact for all products within the Merch space will remain unchanged.

What date will I start transacting with Best Buy over the SAP Network?
Estimated Go-Live date will be done in a phased approach for Corporate and Retail employees. On October 23rd Best Buy Corporate employees will begin creating orders in SAP Ariba. In January of 2024 Retail and Field employees will begin using the system to create orders. Suppliers may receive Purchase Orders in both SAP Ariba and Oracle until final cutover in January 2024.

I frequently receive invitations to respond to RFPs within one of several Best Buy Sourcing Platforms (Scout RFP, Jaeger, or other). Will I be able to receive these RFPs after the transition to SAP Network, and will I have access to any historical information in such other platforms?
Over the coming months we will transition all sourcing activities to the SAP Network. Once fully transitioned, you can expect to receive invitations to respond to RFPs via SAP Network. You will not have access to any historical information on any of the currently used Sourcing platforms once such sourcing platforms are retired. We encourage you to have access to such information within your own systems.

Will my method of payment be impacted?
The method of payment will not be impacted.

Does my company have to be on the SAP Network to transact with Best Buy?
Yes. If you are a supplier providing goods or services classified as GNFR, you must transact with Best Buy on the SAP Network.

Can my company start transacting with Best Buy via the SAP Network prior to Go-Live?
No. You will not be able to transact with Best Buy via SAP Ariba Network prior to the go-live date. Go-live is the date Best Buy begins transacting with all GNFR suppliers, currently targeting the fourth quarter of 2023 for Corporate orders and the first quarter of 2024 for Retail orders.

What are the different service tiers available via the SAP Network?
SAP Network offers five subscription levels: Standard, Bronze, Silver, Gold, and Platinum. The subscription level each supplier receives is aligned with the transaction volume and number of documents they transact on the SAP Network as well as their technology usage.

For answers to more specific questions regarding service tiers or fees, suppliers may sign into their SAP Network account or contact SAP Network support via the Help Center.

What happens if my company already has an SAP Network account?
Your account administrator is responsible for setting up new users on the account and defining their roles/permissions. Each account can have up to 250 users but only one administrator. You should check “Review Accounts” first to determine list of matching accounts for your company. After reviewing, you have the option to log in using an existing account to establish a trading relationship with Best Buy (this will need to be done by the account administrator) or create a new account.

How can I find out who the account administrator is for my company?
Reach out to your internal resources who are managing the SAP Network account. If you are unable to identify the administrator, contact SAP Network support.

Will there be training offered on how to use the SAP Network?
Yes. Best Buy and SAP Network will facilitate training sessions to teach suppliers how to use the SAP Network. You can expect additional details about the available training closer to go-live date.

What if my company doesn’t want to participate?
Best Buy is committed to the success of this initiative and is working hard to make the transition as seamless for our GNFR suppliers as possible. As we complete the transition to SAP Network, we will no longer support any other channels for transacting and thus expect that all suppliers wishing to continue doing business with Best Buy will comply with this process change.

How secure is the SAP Network?
The SAP Network uses Secure Hypertext Transfer Protocol (HTTPS) for all communication between procurement applications, suppliers, and the SAP Network. HTTPS is the standard for secure Internet communication and uses Secure Socket Layer (SSL) with RSA Labs encryption. Additionally, accounts on the SAP Network are password protected.

Will my company have to agree to any Terms and Conditions for use of the SAP Network?
You will be prompted to agree to the SAP Network T&C’s when you setup your account.

Registration

What steps do I need to follow to prepare my organization for transacting with Best Buy via SAP Network?

Identify the right contact(s) within your organization to own the SAP Network registration
Review all available SAP Network account and integration options.
Accept the Trading Relationship with Best Buy when the SAP Network Invitation is received.
Identify the desired integration option and register with SAP Network accordingly.
Partner with Best Buy to complete integration and testing if your organization selects the integrated option.
Identify and communicate to the users within your organization about the new process.

What resources are required to enable a successful registration with the SAP Network?

Full integration - requires IT support with extensive testing, and socialization and training of the relevant business contacts
PO Flipper – limited configuration by your organization, and socialization and training of the relevant business contacts
Standard Account - only requires acceptance of the trading relationship, and socialization and training of the relevant business contacts

Fees

Are there Fees to suppliers to conduct business through the SAP Network?
Supplier fees vary depending on the level of service, integration, and transaction volume, with a no-fee option available should a supplier opt in for such an option. Suppliers can choose one of the following account types:

Standard Account is available for no transaction fees. Your company will be unable to integrate with Best Buy via the SAP Network which will limit efficiencies. Standard Accounts are recommended for low volume transaction suppliers.
Enterprise Accounts will be charged based on the service tier your organization selects. In this option, your organization will have the ability to integrate your system to the SAP Network.
Account for Diverse Certified Suppliers – In support of Best Buy’s diversity goals, SAP Network will waive all transaction fees for suppliers who meet the diverse supplier requirements.

For answers to more specific questions regarding service tiers or fees, suppliers may sign into their SAP Network account or contact SAP Support via the Help Center.

What are the fees for transacting via SAP Network?
There are no fees for ‘Standard Accounts’. For integrated, Enterprise Accounts, fees are calculated based on “transaction volume” and “document counts.” To learn more about the options and understand how fees are calculated, please visit the subscription and pricing page.

What is an ANID number, and how does it impact how supplier fees are calculated?
An SAP Network Identification (ANID) number is a unique identifier of an SAP Network account. Suppliers may maintain multiple ANIDs for various reasons. For each of these ANIDs, purchase orders and invoices – as well as transaction (monetary) volume – are counted for each customer relationship to determine when the thresholds are reached for supplier fees. Once the supplier reaches the chargeability thresholds in at least one relationship, transaction and subscription fees are assessed across all relationships within the same ANID. Suppliers with multiple ANIDs may roll up their accounts into a “multi-org” parent-child relationship to take advantage of per-relationship caps.

What happens if a supplier does not pay their SAP Network fees?
The suppliers account will be suspended. They will not be able to use SAP Network to receive purchase orders, submit invoices, or engage in any transactions. Best Buy will be notified of their account suspension.

Purchase Orders and Invoicing

I receive POs and submit invoices via Oracle iSupplier. What impact does this transition have to how I transact and what historical information will I have access to once transition is complete?
You will continue to transact via Oracle iSupplier until the SAP Network go-live date. After the go-live date you will transact with Best Buy via the SAP Network for new transactions. You will continue to have access to legacy transactions in Oracle iSupplier for a period, after which all access will be removed. Invoice payment information currently provided via Account Payable Visibility (APV) will continue to be available for historical data. We encourage you to maintain legacy information in your own system.

I submit invoices via TradeShift. What impact does this transition have to how I transact and what historical information will I continue to have access to via TradeShift?
You will continue to transact via TradeShift until the go-live date. After the go-live date you will submit invoices via the SAP Network and will need to have a corresponding PO and/or Contract for all invoices. Invoice payment information currently provided via Account Payable Visibility (APV) will continue to be available for historical data. We encourage you to maintain legacy information in your own system.

Will I be able to submit invoices for goods or services without a corresponding PO?
Best Buy is actively phasing out the processing of non-PO payments to take advantage of the benefits that electronic invoicing provides to our business and our suppliers. There will be a several-month grace period after go-live before transitioning to an operating state where you will no longer be able to invoice Best Buy without a corresponding PO and/or Contract.

Are we going to receive Purchase Orders from the SAP Network?
Yes. POs generated by Best Buy for any products and/or services that fall under the GNFR categorization will process through the SAP Network.

How are “transaction volume” and “document counts” calculated?
Transaction volume is calculated as the total financial value (in the USD currency), including any taxes such as value-added taxes (VAT), of the total financial value of all POs (excluding cancelled orders) or all invoices generated from a PO, whichever is greater, plus all non-PO invoices (if any) sent over the SAP Network for the preceding 12 months. To avoid double counting, PO-based invoices sent via the SAP Network are not included in the transaction volume.

Document count is the number of POs and all invoices (both PO-based and non-PO-based invoices) for the preceding 12 months. Order acknowledgements, change orders, advance ship notifications, and settlement/payment remittance advice documents are excluded from the document count; suppliers may transact an unlimited number of these at no cost.