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mySAP SRM
Contents
Supplier Relationship Management Motivation mySAP SRM Overview mySAP SRM Components
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 supplier selection) 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.)
1999 Fortune 500 Sales ($ in Millions) 113,910 257,477 153,831 85,629 281,740 1,109,949 778,602 102,437 184,426 119,800 39,676 85,800 520,961 53,665 204,400
217,739
Purch. $ % of Sales 64,60 61,30 58,60 51,70 50,80 47,20 45,60 42,20 42,10 40,00 40,00 36,20 35,60 34,30 34,00
33,80
Highest Impact
Medium Impact
748,439 337,707
25,50 18,49
Lower Impact
Contents
Supplier Relationship Management Introduction mySAP SRM Overview mySAP SRM Components
E
Catalog content management
ENABLE
YOUR SUPPLY BASE Supplier self service Content management
E
Indirect procurement Direct procurement
ENGAGE
YOUR SUPPLY RELATIONSHIPS Operational sourcing Self service procurement Plan driven procurement Relationship monitoring
The Corporation
Customers
CRM
SRM
coll. design
E-Marketplace
Contents
Supplier Relationship Management Introduction mySAP SRM Overview mySAP SRM Components
Portal
PORTAL
Portal 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.
Application Components
Framework Services
Technology Infrastructure
SRM Applications are tightly integrated in the SAP Portals Enterprise Portal
Portal
APPLICATION COMPONENTS
SAPM SAPM SAPM SAPM SAPM Enterprise Buyer (Prof.) Dynamic Bidding Supplier Self Services Decision Support Supplier Collaboration Services
Application Components
Framework Services
Technology Infrastructure
Direct Procurement (planned materials) Integration with Planning & Execution systems (e.g. MRP) Integration with Maintenance Systems Integration with Project Management Systems Contract Management
SAP AG 2002, mySAP SRM, Andrea Rota 13
Procurement of Services
Procurement / Confirmation with Limits Integration to Supplier Portal for supplier self service
KEY CAPABILITIES
Sourcing Capabilities RFP/RFQ Reverse Auction Flexibility Rules definition Dynamic attributes Control Distribution lists Workflow 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
KEY CAPABILITIES
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 them up-to-date on their transactions and performance.
KEY CAPABILITIES
Global Spend Analysis
Mapping via CI (SP1)
Contract Analysis
Utilization in terms of time, value and volume Spend with and without contract Expiring Contracts
Sourcing Intelligence
External Market Data (eg. from data providers) Bid analysis for RFQ / Reverse Auction
External Categories
UNSPSC ecl@ss
Procurement History
Per supplier, material, requester, purchaser, cost center manager etc.
SAP AG 2002, mySAP SRM, Andrea Rota 16
Alerts
KEY CAPABILITIES
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
Import content
Product content Supplier Records From R/3, other ERP, SAPM EBP, various catalog formats XML File upload or XML message
Maintenance of schema
Data storage of the schema UI for Maintenance APIs for Adding, Deleting, Modifying, and Reading (F4-Help) Schema information
Portal
Application Components
FRAMEWORK SERVICES
Framework Services
Technology Infrastructure
SAPM Collaborative Room SAP Business Information Warehouse Requisite Bugs Eye SAP Enterprise Portal SAPM User Management
Business Services
Contract Services Shopping Cart Services Document Management
Folder structure Document upload/ download Flexible authorization on folder and document level Document versioning Status Subscription
Portal
Application Components
Framework Services
Technology Infrastructure
Application integration Business partner integration
Technology Infrastructure
Asia R/3
3rd Party 3rd Party
Cat.
Corporate HQ
BW EBp Cat. SUS
Portal
EBP XI
DB CROOM
XI
SAP R/3
R/3
XI
thank you
for your interest
Back Up Slides
ENABLE
YOUR SUPPLY BASE Supplier self service Content management
ENGAGE
YOUR SUPPLY RELATIONSHIPS Operational sourcing Self service procurement Plan driven procurement Relationship monitoring
EXAMPLES
An electronics manufacturer finds that certain components have become commodity and formulates a strategy to source them locally. A company opens a new facility in East Asia, and redefines the sourcing strategy for that region. Analysis of hidden procurement costs kicks off a supplier de-proliferation initiative.
SAP AG 2002, mySAP SRM, Andrea Rota 25
EXAMPLES
CPG company certifies different raw material vendors. A company locating different suppliers for upcoming new product developments A financial institution maintains lists of suppliers for different MRO materials.
SRM COMPONENTS
SAP Enterprise Buyer Professional SAP Business Information Warehouse SAP Dynamic Bidding
EXAMPLES
Consulting company reduces supplier base, by aggregating airline tickets to one airline. Bank aggregates paper demand to improve MRO pricing.
SRM COMPONENTS
SAP Enterprise Buyer Professional SAP Business Information Warehouse SAP Dynamic Bidding
EXAMPLES
A professional purchaser negotiating a long term contract with a supplier to deliver goods of a specific commodity A professional purchaser and the IT department jointly negotiating a contract for an IT service project with the IT service provider
SRM COMPONENTS
SAP Enterprise Buyer Professional SAP Collaborative Room SAP Business Information Warehouse
EXAMPLES
A professional purchaser creating a reverse auction to find a supplier for a specific non-standard engineering software not covered by the catalog. A professional purchaser manually assigning a contract to a demand for office furniture.
SAP AG 2002, mySAP SRM, Andrea Rota 29
SRM COMPONENTS
SAP Enterprise Buyer Professional SAP Business Information Warehouse SAP Dynamic Bidding
mySAP SRM
Suppliers
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Enterprise Portal Enterprise Portal
Small Suppliers
Product Division 1
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Suppliers 1/2/3/4/...