supply relationship management srm 7.0

Procurement Excellence in Business Suite 7.0MCLA Webcast Series

Damian Edelberg

Procurement Solution Principal - SAP Latin America

July 2nd, 2009

© SAP AG 2009. All rights reserved. /

MCLA Webcast Series – Business Suite

Business Suite Process PlatformJune 19th

Business Suite Supply Chain Management(SCM)July 16th

Business Suite Human Capital Management(HCM)June 25th

Business Suite Customer RelationshipManagement (CRM)July 23rd

Business Suite Supplier RelationshipManagement (SRM)July 2nd

Business Suite Product LifecycleManagement (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

© SAP AG 2009. All rights reserved. / © 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 ArgentinaAv. L.N. Alem 855 Piso 9(1001) Ciudad de Buenos AiresArgentinaT 54 11 4891 3000M 54 911 6459 [email protected]://www.sap.com

mailto:[email protected]

http://www.sap.com/


SAP Business Suite Solution Management

Innovate Your Business

Business Suite 7

Procurement Excellence

Business Suite Scenarios

SRM in One Client

Summary




Business Suite 7



SRM in One Client

Summary


SAP definition of Business Suite

Business Suite is a “library of business processes”

delivered in modular steps at the pace of theCustomer and at a reduced cost

built on a consistent and modern IT Architecture

Libr

ary

Red

uced

cost

sIT

Arc

h.


EhA EhBEhC EhDEhE EhF

EhA EhBEhC EhDEhE EhF

MESInteg. EBPP

Salesorder

HCMforms

CreditReport

BudgetExecuti

on

EnhancementPackage

User interface

Functionality

Enterprise services

Purchase OrderManagement

User interface

Enterprise services

Functionality

Traditional Upgrades Enhancement Packages

“All or none”Affecting the enterpriseRequires thorough regression testingBusiness case for entire release

“Pick and choose”Self-contained innovationIsolated testing effortBusiness case for target process

Efficiency to Drive InnovationEnhancement Packages Eliminate Major Upgrades

© SAP 2008 / Jim Hagemann Snabe/ Page 7


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 Suiterelease strategy

SynchronizedSuite release

Enhancement Packagesacross the Suite* Future topics

may be subjectto change

EhP2 EhP3 EhP4 EhP5 EhP6

EhP1

EhP1

EhP1

EhP1

EhP2

EhP2

EhP2

EhP2


ERP

SAP Business Suite Release StrategyWhat does it mean for Procurement?

2006/2007 Enhancement Packagesbased evolution pioneered by ERP

2008/2009 Enhancement Packagesbased evolution extended to theSuite

Stable core available with ERP 6.0and SRM 7.0.

ERP 6.0 EhP4 and SRM 7.0 is therecommended ‘Go-To’ Release as ofQ4 2008.

New functionality will be deliveredvia enhancement packages of ERPas well as of SRM.

EhP EhP EhP

Stable Core

SAP NetWeaver 7.0

Continuous Innovation

SAP Business Suite

CRM PLM SCMSRMERP




Business Suite 7



SRM in One Client

Summary


Comprehensive and integrated

Tailored for your industry and allspend categories and businessmodels

Strong partner ecosystem

Intuitive role-based access along theend-to-end process

Supports supplier collaboration

Open and flexible to deploy

Compliant with legal procedures

ProcurementPlanning and

Analysis

Procurement

PurchaseRequestProcessing

RFxProcessing

Purchase OrderProcessing

Goods Receiptand Service Entry

InvoiceProcessing

Payment

Demand /Request Creation

Procurement ExcellenceComplete and flexible solution for organizations in all industries

Build out of ERP and SRMfunctionalities!


SAP Supplier Relationship ManagementProcure 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 integratedend –to-end procure to payprocesses

Value Delivers centralized sourcing andcentralized contracts

Enables end to end servicesprocurement with ERP

Extends the use of the catalog forall goods and services

Supports multiple back-endsExtends supplier collaborationSpend reporting delivers enterprise

wide insight

Deployment On premise or HostedFinanceSRM

Procure to PayProcure to Pay

SRMProcure to PayProcure to Pay

Requisition &Order Management

SpendReporting

CentralizedContracts

SupplierQualification &

Evaluation

SupplierCollaboration

CentralizedSourcing


SAP SRMProcurement Process & Supplier Collaboration

Requisition & PurchaseOrder Management

Easy to Use Self-ServiceProcurement

Compliance to PurchasingPolicies

Reduce Cycle Times

More Efficient, ReducedPurchasing Cycle

Automate SupplierConnectivity

Confirmation of Delivery

Visibility into TransactionStatus

Fast, Reliable,Collaborative

Supplier Collaboration

© SAP 2008 / Page 13


SAP SRMCentralized Sourcing & Contract Management

Centralized Sourcing

Aggregate Demand andstreamline bidding

Collaborate with Suppliers

Manage Complex ServicesSourcing

Extend Sourcing Reachand Speed

Consolidate ContractInformation

Track Contract Compliance

Distribute Contract Usage

Centralize ContractManagement and Execution

Centralized Contracts

© SAP 2008 / Page 14


SAP SRMSpend Reporting, Supplier Qualification & Evaluation

Operational SpendReporting

Ease to use prepackagedreports

Role based data access

Flexible query engine

Comprehensive SpendInsight

Flexible web-based surveys

Central Survey cockpit forstatus

Response Monitoring &Reminders

Effective SupplierManagement

Supplier Qualification& Evaluation

© SAP 2008 / Page 15




Business Suite 7



SRM in One Client

Summary


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 harmonizationCentral point of access and end-user personalization via POWER lists

KEY MESSAGES

.


Work Center: Purchasing Document

Service Area

Work ListOverview

Quick SelectionCriteria forSelected WorkList

Specific WorkList with Actionsto Trigger Follow-On Activities


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 andstrategic

procurementactivities

Strategic goals for SAP procurementDeliver leading procurement solution for central and de-central procurement processes.Strong Integration scenarios on process and user interface level between ERP and SRM


ERP ERP

End-to-end Procurement ScenarioContract Management

Local ERP Contracts

ERP ERPERP

SRM

Central Contract

SupplierRelationshipManagement

(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 executionSOA as key to business process efficiency via suite integration

From traditional… …to Best-Run…

KEY MESSAGES


Tightly Integrated Sourcing ProcessProcure to Pay with RFx Processing

Integration of ERP and SRM provides robust sourcing capability withinthe Procure to Pay scenario:

SAP ERP: Overall demand planning and requirement generation systemSAP SRM: Negotiate and optimize supplier selectionSAP ERP: Procurement execution

Master Data (Material, Service, Supplier)DemandCreation

andPlanning

PurchaseRequisitio

nProcessin

g

RFx andContract

Processing

PurchaseOrder

Processing

GoodsReceipt

andServiceEntry *

Invoice /PaymentProcessin

gInvoicing /A/P Clerk

Buyere.g. Employeeor Planner

Buyere.g. Buyer orSourcingSpecialist

e.g. Buyer orMaster Data Manager

*e.g. WarehouseClerk or ProjectMember

*

ERP ERPSRM


Sourcing Integration ProcessesCentral Sourcing (automatic transfer)

Sourcing Cockpit

Badi /Config

Purchase Requisition

Purchase Order Contract

RFx

SAP SRMSAP ERPAutomatic demand transferfrom ERP to SRM

Automatic creation of purchaserequest (shopping cart)Automatic extract of dataConfigurable by product categoryBusiness Add-in (BADI) forcustomer specific rules for moredetailed controlSRM can receive demands frommultiple ERP systems, includingnon-SAP systemsSourcing Cockpit is used to selectand aggregate demands, whichmay have originated from multipleERP systemsIdeal for Centralized Sourcing

Automatic (No UI)

The diagram above shows a simplified 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.


Sourcing Integration ProcessesCentral Sourcing with User Intervention (manual transfer)

Collective Processingof Purchase

Requisitions (CPPR)Sourcing Cockpit



RFx

SAP SRMSAP ERPManual demand transferthrough user interaction

Within CPPR, select ERPpurchase requisition(s) and clickon “Transfer to Central System”.This creates purchase requests(shopping carts) in SRMIf there are multiple SAP ERPsystems, CPPR can be used ineach ERP system to senddemands to a single SRMSourcing Cockpit is used to selectand aggregate demands, whichmay have originated from multipleERP systemsIdeal for Centralized Sourcing

Transfer toCentral System



Sourcing Integration ProcessesDirect RFx Creation

Collective Processingof Purchase

Requisitions (CPPR)



RFx

SAP SRMSAP ERPDirect RFx creation

Within CPPR, select ERPpurchase requisition(s) and clickon “Create RFx”.

Can select an RFx type andenter bidders and the bidsubmission deadlineRFx is created in SRM

If there are multiple SAP ERPsystems, CPPR can be used ineach ERP system to createseparate RFx’s in SRM

A single RFx has demandsfrom the same ERP system,i.e. not from multiple ERPsystems

Sourcing Cockpit is not used inthis scenarioIdeal for immediate one-to-oneRFx creation


*For technical reasons, an approved shopping cart is also created


Services Procurement in the Business SuiteSA

P ER

P

Purchaseorder

SAP

SRM

Purchaserequest Contract

Sourcingcockpit RFx

Buying company

Serviceentry sheet Invoice

Salesorder

Confir-mation Invoice

Supplier company

PM/PS*order

Serviceline

Servicespecification

outlines

SAP ERP MM-SRV service item with hierarchical structure MM-SRV service itemwith hierarchical structure in sourcing cockpit

Complex Services – Planned Maintenance and Construction




Business Suite 7



SRM in One Client

Summary


SAP SRM One Client

One-Client target customers… plans for empowering the casual user… do not use SAP SRM… existing ECC customers

SolutionProcurement features of Ehp4 bundled with SRM in aconcise packageAccelerated deployment (compared to SRM)

Enable the casual user !Extending procurement process to indirectpurchasingReduced maverick buying and increased compliancevia catalog procurementOptimize purchasing process/ streamline purchasingdepartmentLeverage workflow processes to enable the casualbuyer

A sustainable strategy !Leverage existing system landscape*Reuse SAP componentsMinimal IT costs*

Easy licensingNo 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


SAP SRM One ClientCapabilities

SAP SRM on One Client in SAP ERP released for the SRM scenariosService Procurement - External StaffingScenario run entirely in SRM i.e. Standalone deploymentSelf-Service ProcurementClassic deployment + Multiple catalogsSupplier Collaboration with Supplier Self-ServicesEBP-SUS & MM-SUS supported

Deployed in two flavors*With SRM 5.0 focusWith SRM 7.0 focus(portal required)

* Assuming that customer is upgrading from EhP 3




Business Suite 7



SRM in One Client

Summary


At-A-Glance: Supplier Relationship ManagementSAP SRM 7.0 – Cross Industry Enhancements Highlights

Central Contract in SAP ERP usable assource of supply directly out of ERPPayment terms on item levelCurrency on distribution levelPush contract to catalog determination onitem level or on header levelMultiple alert thresholds on contract level

Expiration dateTarget value/released valueTarget quantity/released quantity

Release based rebatesExchange Rate ThresholdsChange Documents and VersionManagement for ConditionsRecords Management IntegrationMass Change of contracts out of Award

Central Contract Management

SOA based integration between demand inSAP ERP and sourcing capabilities in SAPSRM, e.g. direct creation of bidding event outof purchase requisitionBidding Engine Enhancements

Confirmation of bidder’s participationLine-item revision level on all documentsChatRFx response modificationAward on bid comparison view

Dutch Auction and automatic creation oftemporary contact person in auctions

Sourcing

Support for service items and hierarchiesTransfer of service hierarchies from SRMQuotations or ERP MM SRVEnhancements of search user-interfacefor displaying services

New Features from MDM coreExtended flexibility of data modeling andcomplex objectsTransport support for expressions,matching strategies, workflows and maps

Catalog

Team PurchasingDefine own procurement substitutesTeam Shopping Carts

Flexibility in Transfer and Mapping of TextsRevision level assigned to a material in SAPERP is available in SAP SRMConfiguration of delivery date in ShoppingCartMultiple G/L account handling and changedlogic to retrieve default account assignment


Unified Access via harmonized roles acrossERP and SRM purchasing capabilitiesExtended Workflow capabilitiesTCO ReductionEnhancement Package Enablement

Stable Core and Suite Alignment

Transfer of external services items includinghierarchical structures from SAP ERP to SAPSRMSourcing for Services

Service hierarchies presented as treestructure or flat list including user-friendlysearch and go-to in sourcing cockpitConfigurable item numbering withinservice hierarchiesDemand aggregation for service itemhierarchiesSource of supply determination for serviceitem hierarchiesResponse modification allowed for RFxbased on preceding MM-SRV*hierarchical service requirementCatalog access for purchaser and bidder,including hierarchical service structures

Response modification items allowed to fulfilloriginal purchase requisition itemsSupplier Self-Services for service itemprocessing (Order Acknowledgement,Service Entry Sheet, Invoicing)

Service Procurement


SRM@BPX:The SRM Community in the Business Process Experts Community

https://www.sdn.sap.com/irj/sdn/bpx-srm

BENEFITSFind SRM newsNetwork with expertsShare best practicesDiscover new practicesGet answers 24x7Access product demos

CONTRIBUTORSSAP Product ExpertsCustomersConsultantsPartnersAnalystsYou…

CURRENT HIGHLIGHTSSRM 7.0ESourcing 5.1CLM 2.0One Client

Learn. Find. Share. at SRM@BPX

https://www.sdn.sap.com/irj/sdn/bpx-srm


MCLA Webcast Series – Business SuiteComing Sessions

Business Suite Process PlatformJune 19th

Business Suite Supply Chain Management(SCM)July 16th

Business Suite Human Capital Management(HCM)June 25th

Business Suite Customer RelationshipManagement (CRM)July 23rd

Business Suite Supplier RelationshipManagement (SRM)July 2nd

Business Suite Product LifecycleManagement (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


Thank you!


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