SAP SRM Overview Training

All rights reserved. The information contained herein is subject to change without notice. ©2009, Cognizant Technology SolutionsAll rights reserved. The information contained herein is subject to change without notice. ©2009, Cognizant Technology Solutions

SAP Supplier Relationship Management

Girish Dhondge

| ©2009, Cognizant Technology Solutions Confidential| ©2009, Cognizant Technology Solutions Confidential2

Chief Procurement Officer - What Keeps Them Up at Night?

Cooperation with peer departments that hold the budgets

Systems challenges: collaboration, user adoption, compliance

Supplier Costs Constant search for new ways to

manage and reduce supplier costs

Requires new systems and skills

Compliance Difficulty ensuring

regulatory/policy compliance i.e., Sarbanes-Oxley and

HIPAA, etc.

Spend Management Hard to manage all spend

categories Perception that purchasing

doesn’t always need to be involved

Managing Savings Savings claims are difficult to

measure and guarantee No systems to ensure

expected savings are delivered

Prove savings to CFO and business units

© SAP 2008 /

| ©2009, Cognizant Technology Solutions Confidential| ©2009, Cognizant Technology Solutions Confidential 3

Chief Procurement Officer - Procure to Pay Process Priorities

…is Driving CPO Focus

Accelerating business value and efficiency

Lowering costs

Compliance imperative

Supplier risk

Increasing Pressure on Procurement..

Ensuring lean, compliant procurement operationsAutomating compliance to contracts and policies

Freeing up time and resources

Improving operational execution and savings realization

Closing the loop with suppliers, users and finance

BUSINESS PRIORITIES GOALS

Efficiency driven savings through integrated process

Source: Aberdeen report ‘E-Procurement Trials and Triumphs, (Oct 2007)

56%Lack of requisition-to-pay

process efficiency

Improve compliance (contract, process, price)

Improve visibility of spend

Lower transaction costs

Increase spend under management

41%

30%

27%

23%

© SAP 2008 /


Inefficient Procure-to-Pay Processes - Results in High Costs

Lack of centralized view of demand increases cost and cycle times and decreases transparency

Ineffective Ability to Meet Sourcing Demand

Inability to monitor and reduce maverick buying, enforce contract usage and drive cost savings.

Lack of Contract Compliance Leads to poor supplier on-

boarding, communication, engagement, and visibility

Inefficient Supplier Enablement & Collaboration

Due to non-standardized Req-to-PO processes, poor user adoption and disparate systems

High Procure to Pay Process Costs

Inefficient Procure-to-Pay Processes Result in Unrealized Savings, Costly Operating Costs and Poor Spend Control

!

© SAP 2008 /


Efficient Procure-to-Pay Processes - Ensures Cost Savings


Procure to Pay Process - Measurements of Success

Key Performance Indicators

Average annual savings

Spend under contract

Contracts managed centrally

Indirect purchases through catalogs

PO error rate

Source: ASUG Benchmarks 2006, 2007

Bottom

3.1%

45.7%

55%

14.9%

10.5%

Average Leader

5.4%

80.2%

76%

19.2%

8.1%

5.7%

82.2%

85.6%

28.3%

4.6%

Significant Difference in Success Between Top-Performing Companies and Others


SAP Supplier Relationship Management -Automates the Procure to Pay Process

Automates Requisition and Purchase Order Management with easy to use Catalog

Centralized Sourcing reduces cost and cycle times

Centralized Contracts drives compliance to contracts and policies

Supplier connectivity enables transaction efficiency

Supplier qualification & evaluation enables Supplier Management

Spend Reporting delivers enterprise wide insight

Integration with Business Suite/ ERP

SRM Delivers Efficiency, Flexibility, and Insight

Finance

Requisition & Purchase Order Management

Spend Reporting

Centralized Contracts

Supplier Qualification&

Evaluation

SupplierCollaboration

Centralized Sourcing

SRM


SAP SRM - Procurement Process & Supplier Collaboration


SAP SRM - Centralized Sourcing & Contract Management


SAP SRM - Spend Reporting, Supplier Qualification & Evaluation


SAP SRM - Key Takeaways


SAP SRM System landscape


SAP SRM – Deployment Scenarios


Easy to use wizard for end users

Generation of a Requisition, Reservation, or Purchase Order

Team Purchasing concept

Availability check and Assignment of Sources of Supply

Preferred Vendor, Contracts

Distribute Account Assignment

SRM Functional Overview Self-Service Procurement – Shopping Cart


SRM Functional OverviewSRM-MDM Catalog Robust Search

by Free text, Supplier, Category

Fuzzy search, linguistic search support

Robust Catalog Administration

Flexible Catalog mapping

Image support Parametric

attribute search

Internal (stock item), Supplier, and Punch Out Catalogs


Check status of Workflow

Change/ edit Shopping Carts

Track PO status

Extensive document search and sort

Related documents

SAP SRM Functional Overview Self-Service Procurement – Check Status


SAP SRM Functional Overview Self-Service Procurement – Approval

Flexible Approval flow to drive compliance

Spending limit, Accounting access enforcements

Header or Line item approval

Mobile access Ad Hoc

Approvers, Reviewers

Business rule based Workflows

Email notifications

Delegations and Substitutions


Returns and Credit Memos

Partial Confirmations, Cancellations

Advance Shipping Notification

Texts / Attachments can be flagged as “Internal” or “External”

Invoice entry PO and Non-PO

based invoices Procurement Card Tolerances Evaluated Receipt

Settlement (ERS)

SAP SRM Functional Overview Self-Service Procurement – Confirmation & Invoice

| ©2009, Cognizant Technology Solutions Confidential| ©2009, Cognizant Technology Solutions Confidential

Electronic Purchase Orders

Supplier Self- Services (SUS)

Electronic Service Confirmations

Support for Services

SAP SRM Functional Overview Purchase Order Management


Robust Sourcing for Direct, Indirect and Services spend

Easy to use Bidding Engine

Electronic Supplier response

Collaboration to propose changes, chat and bid confirmation

RFx creation from SRM and demand from ERP

Multi-round processing

Bid Evaluation and Award

SAP SRM Functional Overview Centralized Sourcing


Central Contract repository and compliance across SRM and ERP

Payment terms at Header, Line item, and distribution level

Flexible Alerts on Contract value, Expiration date, Qty etc.

Distribute Contract items to Catalog

Document Change & Version Management

Control on Exchange rate thresholds, multi-currency contracts

SAP SRM Functional Overview Centralized Contracts


Supplier communication of key transactions

User friendly dashboard for suppliers

Administration to manage user access

SAP SRM Functional OverviewSupplier Collaboration


Operational Reporting with data access across SRM and ERP Financials

Pre-packaged Reports

Role-based Reports

SAP NetWeaver support for BI Data extractors/ Mapping, Portal, MDM data harmonization

Spend Performance Management

SAP SRM Functional OverviewReporting


SAP SRM - Best in Class Procure-to-Pay Solution

Integrated process with SAP Business Suite

Self-service procurement + Goods Receipt + Invoice + Payment Approval = P2P

Catalogs, Shopping cart with automated Approval workflow

Centralized Sourcing & Contracts

Collaborative Services Procurement

Invoicing Reporting

… delivers valueComprehensive Functionality

Compliance tracking delivers realized savings

Efficiency throughout the entire P2P process reduces costs

Compliance and governance are achieved by using best practice

Positive ROI as measured key KPIs

© SAP 2008 /


SRM 7.0 Release Highlights


SAP Business Suite 7.0 Direction

Stable Core

SAP NetWeaver 7.0

CRM PLM SCMERP SRM

SAP Business Suite

EhP EhP EhP

Continuous Innovation

SRM 7.0

SRM 7.0

Stable core

Planned roadmap functionality released in easy to consume Enhancement Packs*

*Target: EhP 1 in 2009 & EhP 2 in 2010


SAP SRM 7.0Procurement Stable Core - Summary

Services Procurement

Foundational Investments

Procurement Excellence

Unified Access and Information

Centralized Global Operational Contracts

Process Enhancements

Document Search Across Source Areas

Collaborative End to End Process

Specific Industry Category Focused

Enhanced Sourcing Enablement

Services Repository and Specification

Extended Workflow Capabilities

TCO Reduction Enhancement Pack

Enablement

Procurement Core

Delivers Improved fully integrated procure to pay offering for core procurement processes Excellence in end to end collaborative services procurement Increased investments to extend scalability, flexibility and reduce TCO


User friendly Personalized Object Work list

Harmonization of roles across the Business Suite

Consolidated access to ERP and SRM business objects and queries

Quick links to application services

SAP SRM 7.0Unified Access and Information


SAP SRM 7.0Technology Platform Enhancements

Widgets for Business user access (pre-packaged and custom)

Process controlled SRM Business Workflow

Harmonized, UI for seamless usability across ERP and SRM

Robust mobile and desktop support

Non-disruptive innovation via EhP

Easy, low-cost customization with Web Dynpro


Harmonization of Global Outline Agreements and Purchasing Contracts in SRM and multiple ERPs

Sophisticated and efficient grouping of contract line item distribution across different locations of the same back-end system

Revision levels in SRM

Mass change of contracts

Currency flexibility on the distribution level

SAP SRM 7.0Centralized Contracts


Support for Services Procurement in Sourcing

Line-item revision level on all documents

Confirmation of bidder’s participation

Chat

Response modification

Withdrawal of bids

Versioning of bids

One bid per supplier company

SRM 7.0Centralized Sourcing


Services-based Catalog

Hierarchical definition of Services requirements

Catalog integration

Service Master Integration

Limits-based unplanned Services

Demand aggregation

PO and Contract creation

Service Confirmations

SRM 7.0Delivering on Services Procurement


Supplier survey cockpit

Ad hoc surveys SAP NetWeaver

BI integration for Consolidation and Reporting

Excel import of suppliers and evaluators

Response Monitoring and Reminders

SRM 7.0Supplier Evaluation – Supplier Survey Cockpit


Integration with Web Survey tool for Questionnaire creation

Custom invitations and Email distribution of survey

Response Monitoring and Reminders

SAP SRM 7.0Supplier Evaluation – Create Questionnaire


SAP SRM 7.0 delivers efficiency, insight, flexibility with integrated process support with SAP Business Suite

SAP offers a market-tested end-to-end Procure-to-pay solution

SAP SRM drives bottom line value by reducing costs, increasing compliance, and delivering realized savings

SAP continues to make significant investments in procurement

SAP SRM 7.0 Summary - Key Takeaways

All rights reserved. The information contained herein is subject to change without notice. ©2009, Cognizant Technology SolutionsAll rights reserved. The information contained herein is subject to change without notice. ©2009, Cognizant Technology Solutions

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SAP SRM Overview Training

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