supplier management: reduce risk, improve performance and drive supplier value

Supplier Management Reduce risk, improve performance and drive supplier

value

Frank Eck, SAP AG

© 2011 SAP Inc. All rights reserved. 2

Current Strategies on the CPO Agenda

In light of recent global events, what different

strategies are you adopting or do you plan to adopt?

0,00%

10,00%

20,00%

30,00%

40,00%

50,00%

60,00%

70,00%

80,00%

Key Take Aways

Internal Collaboration

68% stated they are now working

much more closely with the

business

63% said they are more involved

in strategic decisions

Supplier Risk Mgmt

66% have created new

approaches to supplier risk mgmt

63% are proactive about

commodity mgmt

45% formalized a supplier mgmt

program (in addition to those who

had this already)

New Investments

Over 40% invested in technology

and intelligence


SAP Sourcing

SAP SRM &

SAP ERP (w/ SAP Cart Approval

mobile app)

SAP Invoice Mgmt

by OpenText

SAP Supplier Self-Service

SAP Commodity Procurement

New!

SAP

Contract Lifecycle

Management

SAP Procurement Suite

SAP

Supplier Lifecycle

Management

New!

SAP Spend

Performance

Management

SAP Data

Enrichment and

Classification

OnDemand

New!

Spend

Analytics

Supplier Management

Sourcing Contract

Management

Operational

Procurement

Invoice

Management

SAP eInvoicing for

Compliance

OnDemand

SAP SRM

Bidding Engine SAP Information Interchange OnDemand

SAP SRM

Central Contract

Management


SAP Supplier Lifecycle Management Process Coverage and Timing

Supplier Performance

Management

Supplier Classification

Supplier Phase Out

360° Category

Management

Supplier Qualification

Supplier Registration

Supplier Order Collaboration (UI

Integration)

Planned

2013

Planned

Q4 2012

Supplier Development


Integrated Supplier Lifecycle Management Global & Local Procurement Processes

Supplier Collaboration

P2P (ERP)

P2P (ERP)

P2P (ERP)

P2P (ERP)

Division 1

Division 2

Division 3

Division 4

Central and Strategic

Procurement Activities

CPO Focus Automation Focus

Supplier Registration

Supplier Qualification

Supplier Evaluation

Supplier Classification

Supplier Order Collaboration

Supplier Development

Supplier Phase Out

SAP delivers:

Leading procurement solutions for central and de-central procurement processes

Strong Integration scenarios on process, data and user interface level between SAP Supplier Lifecycle Management and ERP/SRM


Change Master Data Creation Paradigm with SAP Supplier Lifecycle Management

Process

Readiness

Data

Enrichment

Prospect

registered,

not approved

Prospect

registered,

approved

Supplier

released for

bidding

Supplier

approved for

SAP SRM usage

Supplier

approved for

SUS usage

Supplier

to be pushed to

backend(s)

Prospect

classified

Registration

Check & Approval

RFI, Classification

RFQ, RFP, Auctions

Transaction ready

Collaboration ready

Catalog ready

Accounts Payable ready

Registration Phase

Exploration

Phase

Transaction Phase

Transaction & FIN ready SAP SRM ready

SAP ERP ready


SAP Supplier Lifecycle Management End-to-End Orchestration – from Interested Party to ERP Vendor

Supplier Lifecycle Mgmt

Sell-Side Interested

Supplier

Supplier Lifecycle

Mgmt

Buy-Side

Interested

Supplier Qualification Level

Approval Approval

Potential

Supplier

Approval as

Bidder Supplier

Approval

Potential

Supplier Supplier

SAP ERP 6.0+ Supplier SAP SRM 5.0+ Bidder

Master Data Self Service

Registration

Distribution Distribution


SRM(>7.01)

SAP Supplier Lifecycle Management Deployment Options for “Sell Side“

DMZ

DMZ

Internet

Intranet

Supplier

SAP SLC

SAP Supplier Lifecycle Mgmt

as Central Hub

SAP Supplier Lifecycle Mgmt as SAP

SRM-SUS Add-On

SAP SLC

SAP

ERP(s)


as Central Hub

SAP SLC

SAP SRM

V 1.0

SAP SRM

SAP SLC


as SAP SRM Add-On

SAP

ERP(s)

V 1.0

SAP ERP


as SAP ERP Add-On

SAP SLC

SAP

ERP(s)

V 1.1


Develop the best suppliers and collaborate seamlessly

Supplier Management

Supplier Data

Management

Transactional

Collaboration

Performance and

Risk Management

Supplier Data Management

Self-service registration and profile

management minimizes cost and

improves accuracy

Single source of truth simplifies

landscape

Transactional Collaboration

Network tools support one-time supplier

on-boarding and transaction routing

Performance and Risk Management

Evaluation and development optimize

the supply base and innovation

Risk tracking and management help

ensure supply and protect the brand


SAP Supplier Lifecycle Management 1.0 It’s All New!

Onboard & Qualify Suppliers

Self-Service Data Maintenance

Categorize and Maintain Portfolios

Distribution to SRM & ERP

Evaluation & Development with

Streamwork Integration


All Supplier Information at a Single Location


Single entry for suppliers to

collaborate with company experts

Networked services to easily

communicate and collaborate with

business partners

Embedded analytical

capabilities

Optional BI usage

In-memory search

capabilities

Business content tagging

Provide 360° view of

suppliers and purchasing

categories.

Activities and information

pushed to buyers.

Alert and notification

monitoring

Intuitive and social-media

like screen designs

Strategic Buyer Portal Procurement Analytics

Supplier Portal

SAP Supplier Lifecycle Management Extending the Core Processes - Outlook

Based on the existing SAP Supplier Lifecycle Management capabilities, SLC will evolve

into the following areas


Delivers the complete supplier management process in a single solution

Centralizes supplier information and

increases transparency of supplier

decisions

Ensures selection of most qualified

suppliers

Reduces costs through superior supplier

effectiveness and performance

Successfully drives ROI through low-TCO deployment options

Why Choose SAP Supplier Lifecycle Management?


Leading Companies Trust Our Procurement Expertise

Services

Consumer Industries

Retail

Financial Services

Process Manufacturing

Discrete Manufacturing

Public Services

http://www.veritas.com/us/partners/vplus-strategic/ibm/images/logo-ibm.gif

http://www.corporate.basf.com/en/

http://timesofindia.indiatimes.com/

http://de.pg.com/index.shtml

http://www.nasa.gov/

http://www.e-coop.it/portalWeb/coop.portal?_nfpb=true&collabora_1_actionOverride=/portlets/collabora/user/Content/topicsView&collabora_1compoze_discussion_user_topic_sort_by=3&collabora_1compoze_discussion_user_pageno=1&collabora_1compoze_discussion_forum_id=207916885289273611&collabora_1compoze_discussion_user_topic_sort_order=1

SAP keeps looking forward

Frank Eck Chief Product Owner

SAP Supplier Lifecycle Management

T +49 6227 745244

M +49 160 3603064

E [email protected]

www.sap.com

SAP AG

Dietmar-Hopp-Allee 16

69190 Walldorf


The information in this presentation is confidential and proprietary to SAP and may not be disclosed without

the permission of SAP. This presentation is not subject to your license agreement or any other service or

subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this

document or any related presentation, or to develop or release any functionality mentioned therein. This

document, or any related presentation and SAP's strategy and possible future developments, products and

or platforms directions and functionality are all subject to change and may be changed by SAP at any time

for any reason without notice. The information in this document is not a commitment, promise or legal

obligation to deliver any material, code or functionality. This document is provided without a warranty of any

kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness

for a particular purpose, or non-infringement. This document is for informational purposes and may not be

incorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, except

if such damages were caused by SAP´s willful misconduct or gross negligence.

All forward-looking statements are subject to various risks and uncertainties that could cause actual results

to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-

looking statements, which speak only as of their dates, and they should not be relied upon in making

purchasing decisions.

Legal disclaimer

supplier management: reduce risk, improve performance and drive supplier value

Technology