srm +supplier+relationship+management

8/2/2019 SRM +Supplier+Relationship+Management

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mySAP SRM

Thomas DepewegSAP AG, Product Management SRM

Supplier Relationship Management


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SAP AG 2002, mySAP SRM, Andrea Rota 2

Supplier Relationship Management Motivation

Contents

mySAP SRM Overview

mySAP SRM Components


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Supplier Relationship Management

The bulk of yourspend is with a fewkey suppliers

and drive the totalcost of sourcinghigher

with relationshipsthat change morefrequently

But non-strategicsuppliers pose ahigher risk

THE MYTHS

Only the top 10% of the suppliers are really important Only these supplier relationships are worth being optimized

THE FACTS

The total cost of procurement increases sharply in the extended supply base

(Lower compliance increases risk of supply while higher turnover hinders supplierselection)

Supply-base optimization is the fastest way to lower costs and increase profits(Purchased goods and services can represent over 60% of sales for a company. A 4%

reduction in this cost can create as much profit as a 10% increase in sales.)


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Why SRM matters: Cost of Goods Compared to Revenue

18,49337,707Utilities, Gas and Electric

LowerImpact

25,50748,439Petroleum Refining

33,80217,739Food

34,00204,400Pharmaceuticals34,3053,665

Mining, Crude Oil Production

35,60520,961Telecommunications

36,2085,800Forest and Paper Products

40,0039,676Scientific, Photo, Control Equip.

Medium

Impact

40,00119,800Airlines

42,10184,426Aerospace

42,20102,437Railroads

45,60778,602Electronics, Electrical Equip.

47,201,109,949Motor Vehicle and Parts50,80281,740Computers, Office Equipment

51,7085,629Beverages

58,60153,831Engineering, Construction

61,30257,477Chemicals

HighestImpact

64,60113,910Metals

Industry 1999 Fortune 500

Sales ($ in Millions)

Purch. $

% of Sales

Source: Gartner Research


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Supplier Relationship Management Introduction

Contents

mySAP SRM Overview



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How E-Procurement Evolves into SRM

mySAP Supplier Relationship ManagementmySAP E-Procurement

E

Spend reporting

Tendering

E

Catalog content management

E

Indirect procurement

Direct procurement

EVALUATEYOUR SUPPLY AND SOURCING STRATEGY

Supply strategy development

Supplier qualificationSupplier selection

Contract negotiation and management

ENABLE

YOUR SUPPLY BASESupplier self service

Content management

ENGAGEYOUR SUPPLY RELATIONSHIPS

Operational sourcingSelf service procurement

Plan driven procurement

Relationship monitoring


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mySAP SRM: Integration & Collaboration

SCM

ERP

PLM

CRM

Suppliers

selling

coll. design

coll. planning,

inventory mgmt

payments,

fulfillment

CustomersThe Corporation

CRM SRM

AUTOMATION OF CROSS COMPANY PROCESSES


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E-Marketplace

SRM in the Supply-Net


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Supplier Relationship Management Introduction

Contents

mySAP SRM Overview



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Supplier Relationship Management Portal

PORTALPortal functionality like

Portal Customization

Personalization

Single Sign On

is achieved by running all the

SRM application components in the

SAP Portals Enterprise Portal.

The portal provides an inter-enterprise

focussed view for the employees as well

as an external facing portal for suppliers.

Portal

Framework Services

Application Components

Technology Infrastructure


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SRM Applications are tightly integrated in the SAPPortals Enterprise Portal


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SRM Application Components

APPLICATION COMPONENTSSAPM Enterprise Buyer (Prof.)

SAPM Dynamic Bidding

SAPM Supplier Self ServicesSAPM Decision Support

SAPM Supplier Collaboration Services

(for use in SAPM C-ROOM)

Requisite eMerge 3.5

Portal

Framework Services




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SRM Component Enterprise Buyer Pro. (EBP)

Indirect Procurement

Employee self service procurement

Workflow

Direct Procurement (planned materials)

Integration with Planning & Execution systems(e.g. MRP)

Integration with Maintenance Systems

Integration with Project Management Systems

Contract Management

Sourcing Cockpit

Aggregation of multiple requirements

Selection of source of supply by assignmentor RFQ

Approved vendor list

Procurement of Services

Procurement / Confirmation with Limits

Integration to Supplier Portal for supplier selfservice

SAPM ENTERPRISE BUYER PRO.SAPM ENTERPRISE BUYER PRO.SAPM ENTERPRISE BUYER PRO.SAPM ENTERPRISE BUYER PRO.

The procurement and sourcing system

that is the central piece for any SRM

solution. It empowers employees with

self service procurement, enables

centralized direct procurement and

provides the professional purchaser with

tools to make the right sourcing

decisions.

KEYKEYKEYKEYCAPABILITIESCAPABILITIESCAPABILITIESCAPABILITIES


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SRM Component Dynamic Bidding

Decision Support

Bid analysis

Single- and Multi-parameter matching

Ranking & winner determination

Monitoring

Business Tracker

Integration

Contract creation in EBp

Purchase order creation in EBp

Analytics

SAPM DYNAMICSAPM DYNAMICSAPM DYNAMICSAPM DYNAMIC BIDDINGBIDDINGBIDDINGBIDDING


Sourcing Capabilities

RFP/RFQ

Reverse Auction

Flexibility

Rules definition

Dynamic attributes

Control

Distribution lists

Workflow

Supports sourcing needs through RFP,

RFQ, and Reverse Auction capabilities.

Helps to turn planned, unplanned and

strategic demand into contracts and

purchase orders. Automated decision

support to determine winning suppliers

and stipulate follow-on processes.


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SRM Component Supplier Self Service

Supplier Homepage

Complete Process Sales Order, Service Entry,and Invoice

Process without Service Entry

ERS Procedure Invoice entry without PO reference

Reporting

Web reports accessible to suppliers keeping themup-to-date on their transactions and performance.

Master data management

Business Partners

Catalog (Products and Prices)

Contracts

SAPMSAPMSAPMSAPM SUPPLIER SELF SERVICESUPPLIER SELF SERVICESUPPLIER SELF SERVICESUPPLIER SELF SERVICE

A web based application which gives

suppliers access to hosted order and

content management functionality.

This drives participation within thesupplier community, reduces costs and

increases speed across the value chain.



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SRM Component Decision Support

Global Spend Analysis Mapping via CI (SP1)

Supplier Base analysis DUNS Number

DUNS Family trees

Sourcing Intelligence External Market Data (eg. from data providers)

Bid analysis for RFQ / Reverse Auction

Procurement History Per supplier, material, requester, purchaser, cost center

manager etc.

Supplier Relationship Monitoring Performance and reliability KPI

Quality monitoring with eg. R/3-QM

Supplier Scorecards with SAP SEM

Contract Analysis Utilization in terms of time, value and volume

Spend with and without contract

Expiring Contracts

External Categories UNSPSC

ecl@ss

Alerts

SAPM DECISION SUPPORTSAPM DECISION SUPPORTSAPM DECISION SUPPORTSAPM DECISION SUPPORT

SAPM Decision Support provides analytics to

support all SRM processes. Analytics are

flexible predefined reports based on powerful

state of the art data warehouse technology

(SAP BW).

SAPM Decision Support offers a 360

approach to SRM intelligence such as supplier

strategy management, strategic sourcing,

relationship monitoring, global spend analysis

and document level procurement process

monitoring.



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SRM Component Content Workbench

SAPM CONTENT WORKBENCHSAPM CONTENT WORKBENCHSAPM CONTENT WORKBENCHSAPM CONTENT WORKBENCH

The content workbench supports content

import processes. It acts as the staging

interface helping during the schema

mapping process suggesting you

possible match.


Import content Product content

Supplier Records

From R/3, other ERP, SAPM EBP, various catalogformats

XML File upload or XML message

Mapping content to schema Mapping of incoming schema categories to master

schema categories

Restricted value help, if manual category assignmentis necessary

Reuse of assignemnt done previously

Creation of a master schema for categorization(used for catalog searching, de-duplication and reporting)

Import of a master schema UNSPSC

E-Class

schema of a public marketplace

Maintenance of schema Data storage of the schema

UI for Maintenance

APIs for Adding, Deleting, Modifying, and Reading (F4-Help)

Schema information


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SRM Framework Services

FRAMEWORK SERVICESSAPM Collaborative Room

SAP Business Information Warehouse

Requisite Bugs Eye

SAP Enterprise Portal

SAPM User Management

Portal

Framework Services




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SRM Component Collaborative Room

Communication Services

Threaded Discussion

Calendar and Tasks

Ad-hoc Notification

Chat

Alerts

Poll

Announcements

Business Services Contract Services

Shopping Cart Services

Document Management

Folder structure Document upload/ download

Flexible authorization on folder anddocument level

Document versioning

Status

Subscription

SAPMSAPMSAPMSAPM COLLABORATIVE ROOMCOLLABORATIVE ROOMCOLLABORATIVE ROOMCOLLABORATIVE ROOMThe Collaborative Room is an application

for collaboration projects within and out-

side of your company. It offers a safe

environment for structured and logically

connected collaboration and project data.To work quickly and professionally in a

business context, to process data in the

various stages of a products life cycle,

business applications can be integrated.



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SRM Framework Services


Application integrationBusiness partner integration

Portal

Framework Services




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Scalable & Flexible Deployment

Suppliers

WebBrowser

SAPR/3

3rd Party

BW

C-ROOM

SUS

Corporate HQ

EBp DB

Cat.

XI

R/3

3rd

Party

3rd

PartyXI

EBP

Cat.

Asia

Canada

R/3

EBP

XI

Cat.

ERP

SierraLeone

Portal


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thank youfor your interest


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Back Up Slides


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mySAP SRM for Business Process Efficiency

mySAP Supplier Relationship Management

EVALUATEYOUR SUPPLY AND SOURCING STRATEGY

Supply strategy development

Supplier qualificationSupplier selection

Contract negotiation and management

ENABLEYOUR SUPPLY BASE

Supplier self service

Content management

ENGAGEYOUR SUPPLY RELATIONSHIPS

Operational sourcingSelf service procurement

Plan driven procurement

Relationship monitoring


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mySAP SRM COMPONENTS

An electronics manufacturer finds thatcertain components have become

commodity and formulates a strategy tosource them locally.

A company opens a new facility in East Asia,and redefines the sourcing strategy for thatregion.

Analysis of hidden procurement costs kicks

off a supplier de-proliferation initiative.

EXAMPLES

SAP Enterprise Buyer (Prof. Ed.)


SAP Collaborative Room SAP Content Integrator


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SRM COMPONENTS

CPG company certifies different rawmaterial vendors.

A company locating different suppliers forupcoming new product developments

A financial institution maintains lists ofsuppliers for different MRO materials.

EXAMPLES

SAP Enterprise Buyer Professional


SAP Dynamic Bidding


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SRM COMPONENTS

Consulting company reduces supplier base,by aggregating airline tickets to one airline.

Bank aggregates paper demand to improveMRO pricing.

EXAMPLES



SAP Dynamic Bidding


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SRM COMPONENTS

A professional purchaser negotiating along term contract with a supplier to

deliver goods of a specific commodity A professional purchaser and the IT

department jointly negotiating a contractfor an IT service project with the IT serviceprovider

EXAMPLES


SAP Collaborative Room



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SRM COMPONENTS

A professional purchaser creating areverse auction to find a supplier for aspecific non-standard engineering softwarenot covered by the catalog.

A professional purchaser manuallyassigning a contract to a demand for office

furniture.

EXAMPLES

SAP Enterprise Buyer Professional SAP Business Information Warehouse

SAP Dynamic Bidding


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mySAP SRM: an Architectural view

Suppliers1/2/3/4/...

ERP SystemERP System

Business Units

Business

Warehouse

Business

WarehouseCatalogueCatalogue

Enterprise PortalEnterprise Portal

EBProEBPro

Content

Integrator

Content

Integrator

cRoomcRoom

SUSSUS

DABDAB

Exchange

Infrastructure

Small Suppliers

mySAP SRM Suppliers


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ProductDivision 1

APO/APSAPO/APS

FIFI

COCO

MMMM

PMPM

ProductDivision 1

APO/APSAPO/APS

FIFI

COCO

MMMM

PMPM

Employees

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