Procurement Excellence in Business Suite 7.0

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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. / 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



© 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

[email protected]

http://www.sap.com

mailto:[email protected]

http://www.sap.com/

http://www.sap.com/

mailto:[email protected]




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 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 .




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




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




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






Business Suite 7



SRM in One Client

Summary




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!




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




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




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








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 harmonization Central point of access and end-user personalization via POWER lists

KEY MESSAGES

.




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




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




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




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




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.




Sourcing Integration Processes

Central Sourcing with User Intervention (manual transfer)

Collective Processing

of PurchaseRequisitions (CPPR)

Sourcing Cockpit



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





Sourcing Integration ProcessesDirect RFx Creation

Collective Processingof PurchaseRequisitions (CPPR)



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


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




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






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

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




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






Business Suite 7



SRM in One Client

Summary




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


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




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






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




Thank you!




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