SAP SRM Solution

SAP Consulting,
May, 2016
Agenda

TIME DUR (min) TOPICS

0900 - 1030 90 Introduction and SAP SRM Overview
- Operational Procurement
> Self-Service Procurement
> Service Procurement
> Plan-driven Procurement
1030 - 1100 30 Break
1100 - 1200 60 - Strategic Sourcing
> Bid Invitations
> Live Auctions
Supplier Collaboration
Registration of Supplier
1200 - 1300 60 Lunch Break
1300 - 1430 90 SAP Contract Lifecycle Management Overview
- CLM Project Management
- CLM Contract Management
- Legal Contract Authoring
1430 - 1500 30 Break
1500 - 1700 120 Invoice Management (Opentext)

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

• System Landscape • Sourcing with Bid Invitation
• Product Roadmap • Sourcing with Live Auctions
• What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement:
• Self-Service Procurement
• Service Procurement
 Plan-driven procurement

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 SAP Supplier Relationship Management
Product description

 Automates requisition and order

management with intuitive UI and easy
to use catalog
Requisition &
 Centralized sourcing reduces cost and Purchase Order
cycle times Management
Supplier
 Centralized contracts drives compliance Centralized Collaboration
Contracts
to contracts and policies
 Financial Settlement automates the pay Finance
Centralized
process Sourcing Spend
Reporting
 Supplier Management reduces risk and
Supplier
improves supplier engagement Qualification
& Evaluation
 Operational Reporting delivers
enterprise-wide insight
 Integration with Business Suite/ ERP
enables end-to-end processes and lower
TCO

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System Landscape

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SAP Supplier Relationship Management
SAP SRM Availability

 SAP SRM is a supported solution

 For SAP SRM 7.0 the planned end of mainstream maintenance is 31.12.2025
(for latest information please check the Product Availability Matrix).

 SAP SRM is optimized for SAP HANA and comes with latest SAP Fiori UI for the
most commonly used transactions

 SAP SRM will continue to be enhanced with customer driven innovation via the
customer connection programs

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SAP Supplier Relationship Management
Product road map overview

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SAP Supplier Relationship Management 7.0 EhP3 & EhP4

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 SAP Supplier Relationship Management 7.0 EhP3 & EhP4
Continuous Innovations

 Change Currency in contracts  Undo Accept and Undo Reject –Bid

 Text Templates Decoupling Scenario
 Down Payment and Payment Plan  Sub Contracting in SAP SRM
Retro Fit  Output determination
 New PO UI  Retrofit of UI Add on in standard with
 Process Automation in Sourcing additional features on catalog
extraction, mini cart, team shopping
 Extended Pricing in Contracts and PO
cart etc
 Year End Negotiation
 Large Document Handling
 Long Material Number

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SAP SRM with S/4HANA On premise/Cloud edition

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape • Sourcing with Bid Invitation
 Product Roadmap • Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement:
• Self-Service Procurement
• Service Procurement
 Plan-driven procurement

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SAP SRM – Deployment Scenarios

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SAP SRM – Deployment Scenarios

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SAP SRM – Deployment Scenarios

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SAP SRM – Deployment Scenarios

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SAP SRM – Deployment Scenarios

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape • Sourcing with Bid Invitation
 Product Roadmap • Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
• Self-Service Procurement
• Service Procurement

 Plan-driven procurement

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Personal Object Work List (POWL)

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Universal Work List (UWL)

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Self-Service Procurement solution

Empower buyers across the organization with the

Self-Service ability to purchase goods and services from a user
friendly, intuitive shopping environment.
Procurement
 Self-service procurement frees purchasing
professionals to spend more time on high-value
sourcing and procurement tasks.

 Role definitions and automated workflows enable

shortened cycle times and ensure that companies
maintain control and compliance.

 Intuitive UI enables casual users to participate in the

procurement process with minimal training

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Self-Service Procurement
Process flow

Access and browse

from online catalogs

Process accounts Request goods via

payable invoices shopping cart

Employee

Finance
Manager

Create, process, and

Approve shopping cart
monitor confirmations

Operational purchaser
Supplier

Create, process, and

monitor purchase SAP SRM
orders SAP ERP

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Self-Service Procurement
In the system

SAP SRM SAP ERP

 Shopping cart creation through a Employee Purchaser
catalog, free text or product ID
Punch-Out
 Shopping cart approval Catalogs
 Processing of purchase orders in
SAP ERP Shopping
Cart
 Confirmation creation
 Confirmation approval
SC Approvals Purchase
 Status tracking and purchase order Requisition
history check

Purchase Order

Confirmation Goods
Receipt

Invoice

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Self-Service Procurement
Recent features with EHP3 & EHP 4

 With SRM EHP 4, SRM UI Add-On 1.0 and SAP Fiori for SAP SRM 1.0 and are
available as part of standard delivery of SAP SRM.

 Long Material Number for S/4 HANA, support material ID with 40 characters

 Process Automation for Follow-on Documents

 Payment Plans (invoicing plans) at extended classic PO item level to support

complex procurement processes extending over time period involving milestone
billing

 Down Payments for SRM extended classic POs

 Additional Fields in POWL Inbox

 Text Format for Long Text Boxes

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 Self-Service Procurement
Shopping Cart

 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

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Self-Service Procurement
Check Shopping Cart Status

 Check status of
Workflow
 Change/ edit
Shopping Carts
 Track PO status
 Extensive
document search
and sort
 Related
documents

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Self-Service Procurement
Approval Workflow
 Flexible Approval
flow to drive
compliance
 Spending limit,
Accounting access
enforcements
 Header or Line item
approval
 Ad Hoc Approvers,
Reviewers
 Business rule
based Workflows
 Email notifications
 Delegations and
Substitutions

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Self-Service Procurement
Ordering item using Ariba Procurement Catalog

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Self-Service Procurement
Ordering item using SRM-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

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 Self-Service Procurement
Purchase Order Management

 Electronic
Purchase Orders
 Supplier Self-
Services (SUS)
 Electronic Service
Confirmations
 Support for
Services

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 Self-Service Procurement
Confirmation & Invoice

 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
 Tolerances
 Evaluated Receipt
Settlement (ERS)

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SAP SRM
Approval Workflow features
• Portal Universal Worklist (UWL)
• Back & Forth
• Recall
• Approval Process overview
• Add Approver
• Add Reviewer
• Offline Approval
• Alert
• Inbox Substitute

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Portal Universal Work List

 Each employee has 1 central inbox connected with several systems. Employee does not
need to logon each system.
 Filter, Sort and UWL configuration are available

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Back & Forth

 Document will be send back to document creator

 For revision if approver partly rejected the document
 In completion phase if approver marked an item for inquiry

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Recall

 Document creator is allowed to change document

 If approval process was not started by accessing via POWL
 If approval process was already started by accessing via POWL  a recall of already
created workitems takes place

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Approval Process Overview

 Header and item level approval preview/result are available

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Add Approver

 Approver
 can be added manually additional approver via Approval Process Overview

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Add Reviewer
 Reviewer
 can be added manually via Approval Process Overview or can be added automatically
following configured rules
 receive a workitem and can add approval notes

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Offline Approval

 Documents can be approved without logging on to SRM

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Alert

 Alerts will be created by Business Logic of corresponding Business Object

 UWL displays Alerts

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Inbox Substitute

 User can set inbox substitute by wizard style rule setting

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Service Procurement

Supports company in managing resources and

monitoring costs
Service Procurement
 Support of various service types commonly used
in major industries, such as time-based and
deliverable-based services

o External staffing for time-based staffing

o Service procurement classic for maintenance and

construction type services

 Tight integration with existing contracts, ensuring

compliance with approved suppliers

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Service Procurement
In the system

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Service Procurement
Key features

 Support of various service types commonly used in major industries, such as

time-based and deliverable-based services
o External staffing for time-based staffing
o Service procurement classic for maintenance and construction type services

 Tight integration with existing contracts, ensuring compliance with approved

suppliers

 Enhanced sourcing functionalities through utilization of RFx functionalities for

service structures

 Specialized service-delivery management, by enabling vendor-initiated service

entries and lump-sum services and tracking contractual limits

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Service Procurement
Shopping Cart creation

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Service Procurement
Service Entry sheet by supplier/service provider

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Service Procurement
Service Entry Sheet approval by buyer

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Service Procurement
Invoice entry by supplier and approval by buyer

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape • Sourcing with Bid Invitation
 Product Roadmap • Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
 Self-Service Procurement
 Service Procurement

 Plan-driven procurement

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Plan-Driven Procurement

Centrally aggregate and process requirements from

Plan-Driven supply chain management, plant maintenance, and
Procurement project solutions for compliance enforcement,
process efficiency, and supplier selection efficiency

 Automated order generation and sourcing rules to

reduce manual processing.

 Central sourcing to identify the best source of supply for

the requirement or initiate competitive bidding through
online bidding (RFx and auction)

 Targets direct materials to align strategic procurement

objectives with the tactical processing of demands.

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Plan-driven Procurement

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 In the system: Plan driven Procurement

SAP ERP SAP SRM

Purchaser Purchaser
Key process
 Creation of Purchase Purchase
Requisition
requisition through MRP,
PM, PS etc in ECC
 Searching for sources of CPPR* Sourcing Cockpit
supply centrally
 Assign source of supply
Assign Source of
 Purchase Order/Contract supply
creation

Purchase Order /
Contract

Purchase Order /
Contract

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Plan Driven Procurement
Key features

 Consolidation & Single view of purchasing requirements across systems

 Source of Supply determination

 Workflow re-distribution to optimal assignment of requirement to purchasing

group

 Enhance existing documents like RFx, PO or contracts with new requirements

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Plan-driven procurement
Recent features with EHP3 & EHP 4

 Enhance Follow-On Documents in Sourcing for extended classic scenario

 Approve Purchase Requisitions in SAP SRM using workflow

 Rejection Reason in Sourcing Application

 Defer Sourcing

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Plan driven Procurement
Search requirements

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape • Sourcing with Bid Invitation
 Product Roadmap • Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
 Self-Service Procurement
 Service Procurement

 Plan-driven procurement

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Sourcing with Bid invitation and Live Auction

The Sourcing scenario helps standardize and

Sourcing with Bid automate process to find the best source of supply.
Invitation  A longstanding history and deep functionality in
operational sourcing processes.

 Integration options to leverage company investments in

ERP.

 Targets indirect, direct/plan-driven, and services,

including complex services, such as maintenance and
construction scenarios.

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 Sourcing with Bid Invitations (RFx)

Approve purchase
IssueRequest
Issue requestfor
for
requisition / shopping
quotation (RFx)
cart Quotation (RFQ)

Generate operational
reporting and analyze key Confirm participation*
performance metrics
Operational purchaser

Create follow-on Supplier Submit quotation /

documents bid response

Operational purchaser

Select quotation and

Compare bids SAP SRM
award bid winner
SAP ERP
* Not for decoupled bidding

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 In the system: Sourcing with RFx

SAP ERP SAP SRM Internet

FIREWAL
Purchaser Purchaser Supplier Side

L
Sourcing with one
bidding system behind Purchase Shopping Cart
Requisition
a firewall
 Searching for sources
of supply centrally CPPR* Sourcing Cockpit
 Defining and creating
sourcing events
Supplier
 Receiving bid RFQ Creation Notification
responses from the
bidders
 Processing of RFQ RFQ Responses Supplier Access
 Awarding the qualified
bid
Award

Purchase Order / Purchase Order /

Contract Contract

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In the system: Sourcing with RFx
Decoupled Bidding

SAP ERP SAP SRM PI SAP SRM

FIREWAL
Operational sourcing with one Purchaser Purchaser Supplier

L
bidding system behind a Portal
Purchase
firewall and a supplier portal Requisition Shopping Cart
in front of the firewall
 Searching for sources of CPPR* Sourcing Cockpit
supply centrally
 Defining and creating
sourcing events RFQ Creation RFQ Copy

 Receiving bid responses

from the bidders on a RFQ Responses RFQ
Copy Responses
supplier portal in SAP SRM
 Processing of RFQ
Award
 Awarding the qualified bid
Purchase Order / Purchase Order /
Contract Contract

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 Centralized Sourcing

 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

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Sourcing with Bid Invitation
Key features

 Can be created Manually, From Sourcing, Contract and CPPR (Collective

processing of PRs)

 Public and Restricted Bid Invitations; Single or Two Envelope Bidding

 Workflow Approval

 Tender Fee & EMD

 Additional Currencies, bidding in Lots

 Response modification, Withdrawal of bid and Versioning of bids

 Dynamic Attributes, Weighing and Rankings enabled Evaluation

 Follow on documents – Contract or PO

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Sourcing with Bid invitation & Contracts
Recent features with EHP3 & EHP 4
 Generic Text Templates: central location to create or edit the text templates and
use them across SC, PO, RFx, RFx response and Central contract

 Undo Accept or Undo Reject a Bid: This was not available earlier for bid
decoupled scenario

 Large Document Handling for RFx Response

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Strategic Sourcing with RFx
Check requirements in Sourcing Cockpit
The user creates a shopping cart with unknown source. The shopping cart will be available in the
sourcing cockpit waiting to be sourced.

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Strategic Sourcing with RFx
Check source of supply
If a suitable source cannot be determined ,the purchaser has the option of converting the shopping cart to
an RFx or Auction to find a suitable source .

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Strategic Sourcing with RFx
Create RFx
There are multiple types of RFx available as standard to choose from. Choosing the right type will be mainly
driven by company sourcing policies.

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Strategic Sourcing with RFx
Edit RFx
An RFx is generated in this example and required data like start date are filled in.

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Strategic Sourcing with RFx
Publish RFx
Assign bidders to the RFx document. Bidders are to be setup prior to the sourcing process in order for them
to receive and participate in the bids.

The RFx is not available to the bidders until it is complete and published..

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Strategic Sourcing with RFx
Display RFx
Once published the RFx are visible in the Bidders POWL. The Bidders can browse through the published
RFx and choose to respond using the “Create Response” button directly.

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Strategic Sourcing with RFx
Create Response
Bidders can also display the RFx details and then choose to either participate or not participate. Once the
Bidder decides to participate he can respond using “Create Response” link.

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Strategic Sourcing with RFx
Submit response
Bidders would then start the bid by entering the required details like price. They can also write notes and
attach related documents if required.

The Bidders response is finalized using the “Submit” button.

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Strategic Sourcing with RFx
Bidder POWL- RFx
Once the response is successfully submitted, the status of the response is updated accordingly in the
Bidders POWL.

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Strategic Sourcing with RFx
Buyer POWL - RFx
The purchaser can check the number of responses received for specific RFx in his POWL .

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Strategic Sourcing with RFx
Compare/Evaluate Bids
The Purchaser can look at response activity and also compare the responses.

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Strategic Sourcing with RFx
Accept/Reject bid
After the comparison and the responses accepted the vendor is awarded and the Bidder received an
acceptance notification

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Strategic Sourcing with RFx
Create follow-on documents
The Purchaser can now has the option of either converting the winning Bid to an Purchase Order or an
Contract.

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Sourcing with Live Auction
In the system

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Sourcing with Live Auction
Key features

 Can be created Manually, From Sourcing and By converting a bid invitation to

Live Auction

 Price as determining factor

 Define Binding Period, Multiple Currency bidding

 Proxy bidding

 Automatic Extension for last minute bids

 Auction control & monitoring through defined Start Price, Reserve Price,
Reference Price, Bid Decrement and Factored-cost based bidding(assignment of
advantage/disadvantage to bidder)

 Options for Bid Validations : Overall best Bid, Best Bid from each bidder, Best Bid
from Each company

 Dutch auction
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Strategic Sourcing with Auction
Header data
The purchaser creates a auction entering the parameters as per scenario/business need

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Strategic Sourcing with Auction
Selects bidders
The purchaser includes the required participants of the auction by using the “Bidder” tab

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Strategic Sourcing with Auction
Item level parameters & Publish
The purchaser adds his requirement in the auction and publishes the auction.

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Strategic Sourcing with Auction
Bidder view
The contact person of the vendor logs in and is able to search for the auction created by the purchaser.

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Strategic Sourcing with Auction

The contact person is able to view the auction and proceed with the live auction

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Strategic Sourcing with Auction
Bidder view: Live auction

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Strategic Sourcing with Auction
Purchaser view: Live auction

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Strategic Sourcing with Auction
Accept/Reject bid

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape  Sourcing with Bid Invitation
 Product Roadmap  Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
 Self-Service Procurement
 Service Procurement

 Plan-driven procurement

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Supplier Collaboration and Supplier Management solution

Supplier Enablement and Collaboration automates

Supplier and accelerates the procurement order cycle, and
Collaboration and helps reduce supplier risk.
Supplier
Management  Supplier Integration accelerates cycle time for
processing procurement documents, including change
requests.

 Cost effective connections with both large and small

suppliers

 Platform-enabled electronic invoice integration for

seamless interexchange with suppliers

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Supplier Order Collaboration
Supplier Self-Services (SUS)

 A hosted solution for suppliers that reduces costs of procurement cycles by

improving exchange of business documents and shortening the time it takes to
process the content of documents

 Higher security level, since suppliers log on to the SUS system only and not
buyer systems (SRM/MM)

 Security with a Firewall between Procurement systems (SRM/MM) and SUS

 SAP Process Integration (PI) enables data exchange between procurement

systems and SUS

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Supplier Collaboration
In the system: MM-SUS scenario

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Supplier Collaboration
In the system: SRM-SUS scenario

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Supplier Collaboration - SUS
Key features

 Can capture Order Acknowledgement, Shipping Notification, Service Entry sheet

and invoices

 Supplier can update information like email address, phone number, contact
person etc

 Schedule Agreement Release line display

 Check payment status of an invoice

 Electronic Receipt Settlement (ERS) Invoice display

 Credit Memo

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape  Sourcing with Bid Invitation
 Product Roadmap  Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
 Self-Service Procurement
 Service Procurement

 Plan-driven procurement

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Registration of Suppliers
Process flow

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Registration of Supplier
Key features

 Supplier identification consists of the following:

o Supplier registration
o Supplier questionnaire
o Supplier approval

 Synchronize back-end SAP ERP supplier data with SAP SRM

 General as well as Product category based supplier qualification

 Increase visibility of supplier information and reduce time and costs to qualify
suppliers

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Registration of Supplier (ROS)

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 Registration of Suppliers (ROS)
Create Questionnaire
 Integration with
Web Survey tool for
Questionnaire
creation
 Custom invitations
and Email
distribution of
survey
 Response
Monitoring and
Reminders

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Registration of Supplier (ROS)
Supplier Registration Page 1/2

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Registration of Supplier (ROS)
Supplier Registration Page 2/2

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Registration of Supplier (ROS)
Purchaser view & Accept/Reject

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Agenda: SRM session topics

 SAP SRM - Introduction  Strategic Sourcing

 System Landscape  Sourcing with Bid Invitation
 Product Roadmap  Sourcing with Live Auctions
 What's new in SRM 7 EHP 3 & 4

 Supplier Order Collaboration

 SRM Deployment Scenarios

 Registration of Suppliers
 SRM Operational Procurement
 Self-Service Procurement
 Service Procurement

 Plan-driven procurement

© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 104
© 2016 SAP SE or an SAP affiliate company. All rights reserved. Public 105
Agenda

TIME DUR (min) TOPICS

0900 - 1030 90 Introduction and SAP SRM Overview
- Operational Procurement
> Self-Service Procurement
> Service Procurement
> Plan-driven Procurement
1030 - 1100 30 Break
1100 - 1200 60 - Strategic Sourcing
> Bid Invitations
> Live Auctions
Supplier Collaboration
Registration of Supplier
1200 - 1300 60 Lunch Break
1300 - 1430 90 SAP Contract Lifecycle Management Overview
- CLM Project Management
- CLM Contract Management
- Legal Contract Authoring
1430 - 1500 30 Break
1500 - 1700 120 Invoice Management (Opentext)

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Thank you

Rishu Arora
SAP Procurement Solutions

SAP Consulting Services

+91 98105 94193

rishu.arora@sap.com