SRM Sourcing - Overview

SRM – Sourcing

Product Management SAPMarkets

SAP Markets 2002, Title of Presentation, Speaker Name 2

Part of enterprise management team

Responsible for strategic evaluations and decisions

Cross-product (category) decisions

No transactional use of software tools

Strategic vs. Operational Purchaser

Part of purchasing department

Operational decision making

Daily ‘supplier relationship management’

Transactional use of software tools

Specialist for specific product categories

StrategicPurchaser

OperationalPurchaser


Strategic vs. Operational Purchaser

StrategicPurchaser

OperationalPurchaser

SoftwareRequirements

SoftwareRequirements

Access to external market data

Permanent monitoring / reporting on demand

Support by SEM tools for scenario management

Workflow-based, cross-application procurement tool

Access to centrally maintained master data

Predefined communication channels with business partners

Operational purchaser will use sourcing cockpit for daily tasks!


Sourcing Cockpit as Part of the SRM Initiative

SAPMarketsSRMProcure

Enable Suppliers

Execute

Analyze

Source

DesignPlan

mySAP SRM / Sourcing

The sourcing cockpit focuses on operational procurement tasks.

It enables seamless communication with your suppliers.

The sourcing cockpit relies on data that is based on strategic decisions.


Evolution: E-Sourcing

EBP

BackendSAP & Non-SAP

• Catalog• ESS

• ‘PO cockpit’• Local orders• Tendering• BW Reporting

• ‘Direct’ procurement• Contract Management• Content Workbench

LES LES LES LES LES

+ + + • Assignment / evaluation of local contracts

• Vendor list• ‘Sourcing cockpit’• SUS• C-Room• OPI• DAB

+

BBP 1.0

BBP 2.0 /EBP 1.0

EBP 2.0

EBP 3.0

EBP 3.5


Activities:• Goods receipt• ASN• Invoicing

Fulfillment Fulfillment

Activities: • Negotiating contracts• Auctions• Supplier management• Vendor list

Selection /Decision /

Negotiation


Negotiation

Operational Procurement Operational

Procurement

Activities:• Manage requirements(aggregation)• Select SoS• Determine new SoS for specific demands (Tendering)• Create PO

StrategicEvaluationStrategic

Evaluation

Based on:• Product innovation (‘Make or buy‘) • Vendor evaluation• Sales forecast• Sourcing strategy• External market data

From Strategic to Operational Sourcing

Permanent analysis / monitoringPermanent analysis / monitoring

Analytics /SEM

Tools for Negotiation /

Tendering

E-Procurement / Materials

Management /Analytics

E-Procurement / Materials Management /

Order Management


StrategicEvaluationStrategic

Evaluation

Based on:• Product innovation (‘Make or buy‘) • Vendor evaluation• Sales forecast• Sourcing strategy• External market data

From Strategic to Operational Sourcing

Activities:• Goods receipt• ASN• Invoicing

Activities: • Negotiating contracts• Auctions• Supplier management• Vendor list

Fulfillment FulfillmentSelection /Decision /

Negotiation


Negotiation

Operational Procurement Operational

Procurement

Activities:• Manage requirements (aggregation)• Select SoS• Determine new SoS for specific requirements (Tendering)• Create PO

Permanent analysis / monitoringPermanent analysis / monitoring

Analytics /SEM

Tools for Negotiation /

Tendering

E-Procurement / Materials

Management

E-Procurement / Materials Management /

Order Management

Sourcing Cockpit


Internal and external

requirements

Internal and external

requirements

Dynamic Auction and Bidding Collaboration Room Service Provider

Vendor List (VL) Contracts Business Warehouse Information Catalog, Product Master Vendor Master Data

Create purchase

order

Create requirements

via shopping cart or external system

Transfer

requirements to sourcing

cockpit

Sourcing Cockpit

Internet

IntranetWorklist

Operational Purchaser’s View


Work Areas in the Sourcing Cockpit

Worklist

Search area

Requirementgrouping

Area Details

Purchasers can search for requirements using different criteria such as product category or delivery date.

The system automatically creates a worklist. The worklist contains all requirements of the purchasing group for which the purchaser is responsible.

Within the group area, purchasers can group requirements together into a single purchase order. The system can indicate which requirements can be grouped into one purchase order.


Sourcing Cockpit: Screen


Functions in Detail: Process Flow

System

bo

un

dary

System

bo

un

dary

Shopping Cart

Shopping

Cart

External Demand

Approval

Sourcing

Cockpit

Purchase Order

BE Purchase Req.

BE Purchase Order

Transfer

Transfer

Customizable transfer In Customizing, you can

choose which products appear in the sourcing cockpit.

This is controlled by the product category and whether or not a source of supply exists.

With a BAdl it is possible to control the transfer to the sourcing cockpit more specifically, using criteria other than the product category


Functions in Detail (1)

Search forsupply proposal

Display productdetails

Business InformationWarehouse

Feature Description

Coverage and price

Professional purchasers can display product details for a requirement in the external catalog via a hyperlink.

The system enables purchasers to find an appropriate source of supply for a requirement. Sources of supply can be contracts, product links or vendors.

The corresponding vendor evaluation report can be viewed with BW. In the requirement list, purchasers can also find the purchasing history in BW for a specific item.

The system shows how many items of the requirement a specific vendor can cover and, at which price. The potential sources of supply can be sorted by those criteria.


Functions in Detail (2)

Feature Description

Master datadisplay

Purchasers can display vendor data and contract data.

DynamicAuction/Bidding

Purchasers can start an auction in the Dynamic Auction and Bidding (DAB) from within the sourcing cockpit.

Grouping and splitting

After purchasers have moved requirements to the grouping area, the system applies splitting criteria to them to create multiple purchase orders for multiple requirements.

Createcontracts

Purchaser can issue a contract requirement, which can be discussed and negotiated in the C-ROOM

Purchasers can access external vendor directories to search for sources of supply via the Open Partner Interface

Open PartnerInterface


Restrictions (1)

No additional items can be added to shopping cart Purchasers can only change shopping cart items. It is not possible to add additional items to an existing

shopping cart. (This requires an additional approval step, which is not possible with 3.5).

Only limited functionality of OPI interface Idea is an interface for external service providers offering

supplier information. This will only be partially covered (only one way, that is, with no transfer of supplier data, in EBP 3.5).

No requirements from the SAP APO scenario Direct procurement scenario with SAP APO creates purchase

orders. As the requirement object of the sourcing cockpit is a

shopping cart, requirements from APO will not appear in the sourcing cockpit at the moment.


Restrictions (2)

No requirements for the ‘classic’ scenario If a customer uses the ‘classic scenario’ (PO generated in the

backend system), requirements will not appear in the sourcing cockpit.

No different delivery address at item level When grouping, requirements have to have the same delivery

address. It is not currently possible to have different addresses at item level.

SRM Sourcing - Overview

Economy & Finance

Transcript of SRM Sourcing - Overview