procurement excellence in business suite 7.0
TRANSCRIPT
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Procurement Excellence in Business Suite 7.0MCLA Webcast Series
Damian Edelberg
Procurement Solution Principal - SAP Latin America
July 2nd, 2009
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© SAP AG 2009. All rights reserved. / Page 2
MCLA Webcast Series – Business Suite
Business Suite Process Platform
June 19th
Business Suite Supply Chain Management
(SCM)
July 16th
Business Suite Human Capital Management
(HCM)
June 25th
Business Suite Customer Relationship
Management (CRM)
July 23rd
Business Suite Supplier Relationship
Management (SRM)
July 2nd
Business Suite Product Lifecycle
Management (PLM)
July 30th
Business Suite Functional Improvements
(Enhancement Packs)
July 8th
Application Optimization & Administration
(Solution Manager)
August 6th
Contact Person for futher information about past or coming Webcasts: Carina Friguglietti - carina.friguglietti@sap,com
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© SAP AG 2009. All rights reserved. / Page 3© SAP 2009 / Page 3
Damián Edelberg
SAP Argentina, Buenos Aires -.Joined in 1997
11+ years of SAP experience
Specialized in Procurement & Logistics
Degree in Business Administration
Soccer, Asados, Live Music, Family
Damian Edelberg
SAP Argentina
Av. L .N. Alem 855 Piso 9
(1001) Ciudad de Buenos Aires
Arg ent ina
T 54 11 4891 3000
M 54 911 6459 1946
http://www.sap.com
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© SAP AG 2009. All rights reserved. / Page 4© SAP 2008 / Page 4
SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 5© SAP 2008 / Page 5
SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 6
SAP definition of Business Suite
Business Suite is a “ library of business processes”
delivered in modular steps at the pace of the
Customer and at a reduced cost
buil t on a consistent and modern IT Architecture
L i b r a r y
R e d u c e d
c o s t s
I T
A r c h .
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© SAP AG 2009. All rights reserved. / Page 7
EhA EhB
EhC EhD
EhE EhF
EhA EhB
EhC EhD
EhE EhF
MES
Integ.EBPP
Sales
order
HCM
forms
CreditReport
BudgetExecuti
on
EnhancementPackage
User interface
Functionality
Enterprise services
Purchase Order Management
User interface
Enterprise services
Functionality
Traditional Upgrades Enhancement Packages
“ All or none”
Af fecting the enterpr ise
Requires thorough regression testing
Business case for entire release
“ Pick and choose”
Self-contained innovation
Isolated testing effort
Business case for target process
Efficiency to Drive Innovation
Enhancement Packages Eliminate Major Upgrades
© SAP 2008 / Jim Hagemann Snabe/ Page 7
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Driving Synergies Across the SuiteDelivering on one date, Innovation across the Applications
2006 2007 2008 2009 2010
EhP1ERP 6.0
CRM 7.0
PLM 7.0
SCM 7.0
SRM 7.0
Business Suite
release strategySynchronized
Suite release
Enhancement Packages
across the Suite* Future topics
may be subject
to change
EhP2 EhP3 EhP4 EhP5 EhP6
EhP1
EhP1
EhP1
EhP1
EhP2
EhP2
EhP2
EhP2
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© SAP AG 2009. All rights reserved. / Page 9
ERP
SAP Business Suite Release StrategyWhat does it mean for Procurement?
2006/2007 Enhancement Packages
based evolution pioneered by ERP
2008/2009 Enhancement Packages
based evolution extended to the
SuiteStable core available with ERP 6.0
and SRM 7.0.
ERP 6.0 EhP4 and SRM 7.0 is the
recommended ‘Go-To’ Release as of
Q4 2008.
New functionality will be delivered
via enhancement packages of ERP
as well as of SRM.
EhP EhP EhP
Stable Core
SAP NetWeaver 7.0
Continuous Innovation
SAP Business Suite
CRM PLM SCMSRMERP
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SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 11
Comprehensive and integrated
Tailored for your industry and all
spend categories and business
models
Strong partner ecosystem
Intuitive role-based access along the
end-to-end process
Supports supplier collaboration
Open and flexible to deploy
Compliant with legal procedures
Procurement
Planning and
Analy sis
Procurement
Purchase
Request
Processing
RFx
Processing
Purchase Order
Processing
Goods Receipt
and Service Entry
Invoice
Processing
Payment
Demand /
Request Creation
Procurement ExcellenceComplete and flexible solution for organizations in all industries
Build out of ERP and SRM
functionalities!
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© SAP AG 2009. All rights reserved. / Page 12
SAP Supplier Relationship Management
Procure to Pay Process
Ensures Compliance with Integrated End –to-EndProcure to Pay Processes
Stable CoreStable Core
SAP NetWeaver 7.0
CRM PLM SCMERP SRM CRM PLM SCMERP SRM
SAP Business Suite
EhP EhP EhP
Continuous Innovation
SRM
Pitch Ensures compliance with integrated
end –to-end procure to pay
processes
Value Delivers centralized sourcing and
centralized contracts
Enables end to end services
procurement with ERP
Extends the use of the catalog for
all goods and services
Supports multiple back-ends
Extends supplier collaboration
Spend reporting delivers enterprise
wide insight
Deployment On premise or Hosted
FinanceSRM
Procure to PayProcure to Pay
SRM
Procure to PayProcure to Pay
Requisiti on &
Order Management
Spend
Reporting
Centralized
Contracts
Supplier
Qualification &
Evaluation
Supplier
Collaboration
Centralized
Sourcing
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© SAP AG 2009. All rights reserved. / Page 13
SAP SRMProcurement Process & Supplier Collaboration
Requisition & Purchase
Order Management
Easy to Use Self-Service
Procurement
Compliance to Purchasing
Policies
Reduce Cycle Times
More Efficient , Reduced
Purchasing Cycle
Automate Supplier
Connectivity
Confirmation of Delivery
Visibility into Transaction
Status
Fast, Reliable,
Collaborative
Supplier Collaboration
© SAP 2008 / Page 13
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SAP SRM
Centralized Sourcing & Contract Management
Centralized Sourcing
Aggregate Demand and
streamline bidding
Collaborate with Suppliers
Manage Complex Services
Sourcing
Extend Sourcing Reach
and Speed
Consolidate Contract
Information
Track Contract Compliance
Distribute Contract Usage
Centralize Contract
Management and Execution
Centralized Contracts
© SAP 2008 / Page 14
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© SAP AG 2009. All rights reserved. / Page 16© SAP 2008 / Page 16
SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 17
OneRole
ERP SRM
End-to-end Procurement ScenarioUI & Role Harmonization
SAP Business Suite 7
ERPRole
SRMRole
ERP SRM
SAP ERP 6.0
SAP SRM 5.0
From traditional… …to Best-Run…
Increased business user efficiency via role harmonization Central point of access and end-user personalization via POWER lists
KEY MESSAGES
.
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© SAP AG 2009. All rights reserved. / Page 18
Work Center: Purchasing Document
Service Area
Work List
Overview
Quick Selection
Criteria for
Selected Work
List
Specific Work
List with Actions
to Trigger Follow-
On Activities
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Centralized Sourcing & Contract ManagementOrchestration of Global and Local Procurement Activities
Company
P2P P2P P2P P2P
Division 1 Division 2 Division 3 Division 4
Procurement Platform
Spend Category A
Spend Cat. B
Spend Cat. C
Spend Cat. D
Central and
strategic
procurement
activities
Strategic goals for SAP procurement Deliver leading procurement solution for central and de-central procurement processes.
Strong Integration scenarios on process and user interface level between ERP and SRM
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ERP ERP
End-to-end Procurement ScenarioContract Management
Local ERP Contracts
ERP ERPERP
SRM
Central Contract
Supplier
Relationship
Management
(SRM)
Company
ERP ERP ERP ERP
Company
ERP ERP ERP ERP
ERPCall-Off
ERPCall-Off
SOA
SOA SOA
Orchestration of global responsibility and support for best-run local execution SOA as key to business process efficiency via suite integration
From traditional… …to Best-Run…
KEY MESSAGES
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Tightly Integrated Sourcing ProcessProcure to Pay with RFx Processing
Integration of ERP and SRM provides robust sourcing capability within
the Procure to Pay scenario: SAP ERP: Overall demand planning and requirement generation system
SAP SRM: Negotiate and optimize supplier selection
SAP ERP: Procurement execution
Master Data (Material, Service, Supplier)
Demand
Creation
and
Planning
Purchase
Requisitio
n
Processin
g
RFx and
Contract
Processin
g
Purchase
Order
Processin
g
Goods
Receipt
and
Service
Entry *
Invoice /
Payment
Processin
gInvoicing / A/P Clerk
Buyer e.g. Employeeor Planner
Buyer e.g. Buyer or Sourcing
Specialist
e.g. Buyer or
Master Data Manager
*e.g. WarehouseClerk or Project
Member
*
ERP ERPSRM
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Sourcing Integration ProcessesCentral Sourcing (automatic transfer)
Sourcing Cockpit
Badi /Config
Purchase Requisition
Purchase Order Contract
RFx
SAP SRMSAP ERP Automatic demand transfer
from ERP to SRM
Automatic creation of purchase
request (shopping cart)
Automatic extract of data
Configurable by product category
Business Add-in (BADI) for customer specific rules for more
detailed control
SRM can receive demands from
multiple ERP systems, including
non-SAP systems
Sourcing Cockpit is used to select
and aggregate demands, which
may have originated from multipleERP systems
Ideal for Centralized Sourcing
Automatic (No UI)
The diagram above shows a simplif ied flow. Depending on configuration and BADI implementation, an RFx can directly create any of the follow-ondocuments: an SRM Central Contract, an SRM PO, an ERP Operational Contract, an ERP PO.
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© SAP AG 2009. All rights reserved. / Page 23
Sourcing Integration Processes
Central Sourcing with User Intervention (manual transfer)
Collective Processing
of PurchaseRequisitions (CPPR)
Sourcing Cockpit
Purchase Requisition
Purchase Order Contract
RFx
SAP SRMSAP ERPManual demand transfer
through user interaction
Within CPPR, select ERP
purchase requisition(s) and click
on “Transfer to Central System”.
This creates purchase requests
(shopping carts) in SRM
If there are multiple SAP ERP
systems, CPPR can be used in
each ERP system to send
demands to a single SRM
Sourcing Cockpit is used to select
and aggregate demands, which
may have originated from multiple
ERP systems
Ideal for Centralized Sourcing
Transfer toCentral System
The diagram above shows a simplif ied flow. Depending on configuration and BADI implementation, an RFx can directly create any of the follow-ondocuments: an SRM Central Contract, an SRM PO, an ERP Operational Contract, an ERP PO.
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© SAP AG 2009. All rights reserved. / Page 24
Sourcing Integration ProcessesDirect RFx Creation
Collective Processingof PurchaseRequisitions (CPPR)
Purchase Requisition
Purchase Order Contract
RFx
SAP SRMSAP ERPDirect RFx creation
Within CPPR, select ERP
purchase requisition(s) and click
on “Create RFx”.
Can select an RFx type and
enter bidders and the bid
submission deadline
RFx is created in SRM
If there are multiple SAP ERP
systems, CPPR can be used in
each ERP system to create
separate RFx’s in SRM
A single RFx has demands
from the same ERP system,
i.e. not from multiple ERPsystems
Sourcing Cockpit is not used in
this scenario
Ideal for immediate one-to-one
RFx creation
The diagram above shows a simplif ied flow. Depending on configuration and BADI implementation, an RFx can directly create any of the follow-ondocuments: an SRM Central Contract, an SRM PO, an ERP Operational Contract, an ERP PO.
*For technical reasons, an approved shopping cart is also created
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© SAP AG 2009. All rights reserved. / Page 25
Services Procurement in the Business Suite
S A P E R P
Purchaseorder
S A P S R M
Purchaserequest Contract
Sourcingcockpit
RFx
Buying company
Serviceentry sheet Invoice
Salesorder
Confir-mation
Invoice
Supplier company
PM/PS*order
Service
line
Service
specificationoutlines
SAP ERP MM-SRV service item with hierarchical struc tureMM-SRV service item
with hierarchical structure in sourcing cockpi t
Complex Services – Planned Maintenance and Construction
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© SAP AG 2009. All rights reserved. / Page 26© SAP 2008 / Page 26
SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 27
SAP SRM One Client
One-Client target customers
… plans for empowering the casual user
… do not use SAP SRM
… existing ECC customers
Solution
Procurement features of Ehp4 bundled with SRM in aconcise package
Accelerated deployment (compared to SRM)
Enable the casual user
Extending procurement process to indirectpurchasing
Reduced maverick buying and increased compliance
via catalog procurement Optimize purchasing process/ streamline purchasing
department
Leverage workflow processes to enable the casualbuyer
A sustainable strategy
Leverage existing system landscape*
Reuse SAP components
Minimal IT costs*Easy licensing
No additional license costs
“Light” implementation of SRM optimizedconsulting costs, accelerator based packages
* SRM user based pricing should be clarified (>5000 user migration may incur additional licenses)
* Landscape Costs may include additional app servers requirements based on overall system set-up
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© SAP AG 2009. All rights reserved. / Page 28
SAP SRM One ClientCapabilities
SAP SRM on One Client in SAP ERP released for the SRM scenarios
Service Procurement - External Staffing
Scenario run entirely in SRM i.e. Standalone deployment
Self-Service Procurement
Classic deployment + Multiple catalogs
Supplier Collaboration with Supplier Self-Services
EBP-SUS & MM-SUS supported
Deployed in two flavors*
With SRM 5.0 focus
With SRM 7.0 focus
(portal required)
* Assuming that customer is upgrading from EhP 3
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© SAP AG 2009. All rights reserved. / Page 29© SAP 2008 / Page 29
SAP Business Suite Solution Management
Innovate Your Business
Business Suite 7
Procurement Excellence
Business Suite Scenarios
SRM in One Client
Summary
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© SAP AG 2009. All rights reserved. / Page 30
At-A-Glance: Supplier Relationship Management
SAP SRM 7.0 – Cross Industry Enhancements Highlights
Central Contract in SAP ERP usable as
source of supply directly out of ERP
Payment terms on item level
Currency on distribution level
Push contract to catalog determination on
item level or on header level
Multiple alert thresholds on contract level
Expiration date
Target value/released value
Target quantity/released quantity Release based rebates
Exchange Rate Thresholds
Change Documents and VersionManagement for Conditions
Records Management Integration
Mass Change of contracts out of Award
Central Contract Management
SOA based integration between demand inSAP ERP and sourcing capabilities in SAP
SRM, e.g. direct creation of bidding event outof purchase requisition
Bidding Engine Enhancements
Confirmation of bidder’s participation
Line-item revision level on all documents
Chat
RFx response modification
Award on bid comparison view
Dutch Auction and automatic creation of
temporary contact person in auctions
Sourcing
Support for service items and hierarchies
Transfer of service hierarchies from SRMQuotations or ERP MM SRV
Enhancements of search user-interfacefor displaying services
New Features from MDM core
Extended flexibility of data modeling andcomplex objects
Transport support for expressions,
matching strategies, workflows and maps
Catalog
Team Purchasing
Define own procurement substitutes
Team Shopping Carts
Flexibility in Transfer and Mapping of Texts
Revision level assigned to a material in SAPERP is available in SAP SRM
Configuration of delivery date in Shopping
Cart
Multiple G/L account handling and changed
logic to retrieve default account assignment
Procurement Excellence
Unified Access via harmonized roles across
ERP and SRM purchasing capabilities
Extended Workflow capabilities
TCO Reduction
Enhancement Package Enablement
Stable Core and Suite Alignment
Transfer of external services items including
hierarchical structures from SAP ERP to SAPSRM
Sourcing for Services
Service hierarchies presented as tree
structure or flat list including user-friendlysearch and go-to in sourcing cockpit
Configurable item numbering within
service hierarchies
Demand aggregation for service itemhierarchies
Source of supply determination for service
item hierarchies
Response modification allowed for RFxbased on preceding MM-SRV*hierarchical service requirement
Catalog access for purchaser and bidder,including hierarchical service structures
Response modification items allowed to fulfilloriginal purchase requisition items
Supplier Self-Services for service itemprocessing (Order Acknowledgement,Service Entry Sheet, Invoicing)
Service Procurement
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© SAP AG 2009. All rights reserved. / Page 31
SRM@BPX:The SRM Community in the Business Process Experts Community
https://www.sdn.sap.com/irj/sdn/bpx-srm
BENEFITS
Find SRM news
Network with experts
Share best practices
Discover new practices
Get answers 24x7
Access product demos
CONTRIBUTORS
SAP Product Experts
Customers
Consultants
Partners
Analysts
You…
CURRENT HIGHLIGHTS
SRM 7.0
ESourcing 5.1
CLM 2.0
One Client
Learn. Find. Share. at SRM@BPX
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© SAP AG 2009. All rights reserved. / Page 32
MCLA Webcast Series – Business Suite
Coming Sessions
Business Suite Process Platform
June 19th
Business Suite Supply Chain Management
(SCM)
July 16th
Business Suite Human Capital Management
(HCM)
June 25th
Business Suite Customer Relationship
Management (CRM)
July 23rd
Business Suite Supplier Relationship
Management (SRM)
July 2nd
Business Suite Product Lifecycle
Management (PLM)
July 30th
Business Suite Functional Improvements
(Enhancement Packs)
July 8th
Application Optimization & Administration
(Solution Manager)
August 6th
Contact Person for futher information about past or coming Webcasts: Carina Friguglietti - carina.friguglietti@sap,com
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© SAP AG 2009. All rights reserved. / Page 33© SAP 2007 / Page 33
Thank you!
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© SAP AG 2009. All rights reserved. / Page 34
Copyright 2009 SAP AG
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