SAP Supplier Relationship Management Value of Upgrade. SAP Procurement Portfolio November 2011

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1 SAP Supplier Relationship Management Value of Upgrade SAP Procurement Portfolio November 2011

2 Procurement Executives What does this mean for your business? How do we standardized processes and drive user adoption to drive down procureto-pay costs? How do we avoid maverick buying and enforce contract and process compliance to maximize spend under management for all categories of spend? How do we enable our suppliers to efficiently collaborate on supplier onboarding, communication, engagement, and visibility? How do we harmonize systems to enable end-to-end processes and ensure low TCO? 2012 SAP AG. All rights reserved. 2

3 Challenges and Opportunities

4 Inefficient Procure-to-Pay Processes Results in High Costs Ineffective Ability to Meet Sourcing Demand Lack of centralized view of demand increases cost and cycle times and decreases transparency Corporate Buyers Lack of Contract Compliance Inability to monitor and reduce maverick buying, enforce preferred catalogs and vendors, and drive cost savings High Procure-to-Pay Process Costs due to non-standardized Req-to-PO processes, poor user adoption and disparate systems Suppliers Supply Chain Finance Procurement Product Development Cost Accounting Category Managers Chief Procurement Officer Inefficient Supplier Enablement & Collaboration Leads to poor supplier on-boarding, communication, engagement and visibility Production Contract Managers 2012 SAP AG. All rights reserved. 4

5 Efficient Procure-to-Pay Processes Ensures Cost Savings Deliver on Sourcing Demand. Centralized sourcing aggregates demand, decreases cycle times, and increases visibility Corporate Buyers Enforce Contract Compliance. Centralized contracts automate preferred catalogs, vendors and contracts, eliminates offcontract purchasing and delivers realized savings Procurement Reduce Procure-to-Pay Processing Costs. Easy-to-use catalogs and automated Req-to-PO process enabled by an integrated solution drives user adoption Suppliers Supply Chain Finance Product Development Cost Accounting Category Managers Chief Procurement Officer Automate Supplier Collaboration. Streamlined supplier connectivity delivers efficiency, transparency, and increased supplier engagement Production Contract Managers 2012 SAP AG. All rights reserved. 5

6 Solution Overview

7 SAP s Procurement Portfolio Today Spend Analytics Sourcing Contract Management Operational Procurement Invoice Management Supplier Management SAP Supplier Lifecycle Management New! SAP einvoicing for Compliance OnDemand SAP Spend Performance Management SAP Sourcing SAP Contract Lifecycle Management SAP SRM & ERP (w/ SAP Cart Approval mobile app) SAP Invoice Mgmt by OpenText SAP Data Enrichment and Classification OnDemand New! SAP SRM Bidding Engine SAP SRM Central Contract Management SAP Supplier Self-Service SAP Information Interchange OnDemand SAP Commodity Procurement New! SAP Confidential 2012 SAP AG. All rights reserved. 7

8 Procurement Excellence Complete and flexible solution for organizations in all industries Expert User Casual User User Interface and Access Channels Familiar Applications Forms NetWeaver Business Client Web Browser Mobile End-to-End Business Process 2012 SAP AG. All rights reserved. 8

9 SAP Supplier Relationship Management Automates the Procure to Pay Process SRM Delivers Efficiency, Flexibility, and Insight Operational Reporting Supplier Management & Collaboration Requisition, Purchase Order Management and Cart Approval Finance SRM Financial Settlement Centralized Sourcing Centralized Contract Management Automates requisition and order management with intuitive UI and easy to use catalog Centralized sourcing reduces cost and cycle times Centralized contracts drives compliance to contracts and policies Financial Settlement automates the pay process Supplier Management reduces risk and improves supplier engagement Operational Reporting delivers enterprise-wide insight Integration with Business Suite/ ERP enables end-to-end processes and lower TCO *Available as a function of Supplier Lifecycle Management 2012 SAP AG. All rights reserved. 9

10 Procurement Solution SAP SRM Enables all Spend Categories Indirect Inventory/Stock Goods IT Spend Complex Services Non PO Invoice Only Direct Materials /MRO Multiple Buy Channels Enabled by SAP P2P functionality Indirect materials Easy to use self service tool for end users P Services Supplier portal enabling service entries P Direct materials Collaboration with key suppliers P Project PREPARE System (wbs) TRANSFORM Budget approval WORKFLOW and financial control P AP / FI Plant Maintenance Shop floor MRO/spare part replacements P Stock inventory Real time check against inventory items P 2012 SAP AG. All rights reserved. 10

11 Catalog-Based Shopping Capabilities & Benefits Simplified shopping for casual users 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 Drive spending to referred vendors, contracts Distribute account assignment 2012 SAP AG. All rights reserved. 11

12 Self-Service Procurement Approval Flexible approval flow to drive compliance Spending limit, accounting access enforcements Line item approval Mobile access Capabilities & Benefits Ad Hoc approvers, Reviewers Business rule based flows notifications Delegations and substitutes 2012 SAP AG. All rights reserved. 12

13 SAP Cart Approval Capabilities & Benefits Become notified of pending shopping carts for approval View list of shopping carts to be processed View requestor details View shopping cart/product details Approve or reject shopping carts and process multiple carts View requester and approver details 2012 SAP AG. All rights reserved. 13

14 Requisition and Purchase Order Management Capabilities & Benefits More efficient, reduced purchasing cycle Easy to use Self-Service Procurement Compliance to purchasing policies Personal work lists Reduced cycle times Supplier self service (SuS) Electronic service confirmations Services Procurement 2012 SAP AG. All rights reserved. 14

15 Self-Service Procurement Confirmation & Invoice Returns and Credit Memos Partial confirmations, cancellations Advance Ship Notice Text / attachments can be internal or external Invoice entry Returns, Credit memos Non-PO invoices Tolerances Capabilities & Benefits Evaluated Receipt Settlement (ERS) Invoice against contracts 2012 SAP AG. All rights reserved. 15

16 Self-Service Procurement Check Status Capabilities & Benefits Check status of workflow Change/ edit shopping carts Track PO status Extensive document search and sort Related documents 2012 SAP AG. All rights reserved. 16

17 Centralized Sourcing Aggregate demand and streamline bidding Manage complex services 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 Dutch auction Multi-round processing Bid evaluation and award Offline bidding Capabilities & Benefits 2012 SAP AG. All rights reserved. 17

18 Centralized Contracts Capabilities & Benefits Central contract repository and compliance across SRM and ERP Consolidate Contract Information Track Contract Compliance Distribute Contract Usage Payment Terms at Header, Line item, and distribution level Flexible alerts on contract value, expiration date, qty etc. Distribute contract items to catalog Document Change & version management Control on Exchange rate thresholds, multi-currency contracts Embedded analytics 2012 SAP AG. All rights reserved. 18

19 Supplier Enablement* Capabilities & Benefits With SAP Information Interchange OnDemand (Crossgate): Exchange purchase orders, forecasts, invoices, delivery notes and other documents electronically from your SAP applications Connect any partner, anywhere in the world, regardless of data standard With SAP Supplier Self-Service (SUS): Empower suppliers to register and update critical business data Embed collaboration in your daily operations with suppliers shrinking order cycles with an intuitive and automated workflow Leverage shared reporting providing suppliers with the information they need to measure and improve their performance *Enabled by SAP Information Interchange OnDemand and SAP Supplier Self Service. SRM can also work with 3 rd party supplier networks such as Capgemini and Hubwoo 2012 SAP AG. All rights reserved. 19

20 Operational Spend Reporting Capabilities & Benefits Operational Reporting with data access across SRM and ERP Financials Comprehensive Spend Insight Ease to use prepackaged reports Role based data access Flexible query engine SAP NetWeaver support for BI data extractors/ mapping, Portal, MDM data harmonization 2012 SAP AG. All rights reserved. 20

21 SAP SRM 7.0 and EHP Highlights

22 SAP SRM 7.0 Release Summary Delivers Improved, fully integrated procure to pay offering for core procurement processes Excellence in end to end collaborative services procurement Increased investments to extend scalability, flexibility and reduce TCO Procurement Excellence Services Procurement Foundational Investments Highlights Unified Access and Information Centralized Global Operational Contracts Process Enhancements Document Search Across Source Areas Highlights Collaborative End to End Process Specific Industry Category Focused Enhanced Sourcing Enablement Services Repository and Specification Highlights Extended Workflow Capabilities TCO Reduction Enhancement Pack Enablement 2012 SAP AG. All rights reserved. 22

23 SAP Business Suite 7 Innovations 2010 EHP 5 for SAP ERP 6.0 & EHP 1 for SAP SRM 7.0 Central Purchasing Hub Highlights Usage of central contract also for services Functional improvement in the bidding engine Embedded contract analytics for central contracts Highlights SAP ERP E-procurement New shopping cart as part of ERP Employee Self-Services Additional scenarios for the oneclient deployment Usage of SAP SRM without a portal installation Preconfigured scenarios for BAiO customers Supplier Collaboration Highlights Offline bidding via SAP Interactive Forms software by Adobe Bid response processing within Supplier Self-Services Enhanced supplier registration, qualification and on-boarding 2012 SAP AG. All rights reserved. 23

24 SAP Business Suite 7 Innovations 2011 SAP SRM 7.0 EhP 2 & SAP ERP 6.0 EhP 6 Sustainable Procurement Highlights Availability of Sustainability information in Catalog While Shopping Enhanced Supplier & Info Record Masters Sustainable Supplier Evaluation and Monitoring Streamlined Operational Sourcing Highlights Quick Quote (RFx) from Shopping Cart Shopping Cart Modifications from Sourcing Improved Sourcing Decisions with Embedded Analytics Enhanced Bid Comparison Continuous Procurement Innovation Highlights Unknown Account Assignment Category Enhancements for Public and Regulated Industries Un-Bundled Service Line Items SRM Catalog Visibility Flat and Hierarchical Views Improved ERP Integration for Info Record & Source List Updates 2012 SAP AG. All rights reserved. 24

25 SRM Surroundings

26 SAP Supplier Lifecycle Management Process Coverage and Timing Planned 2013 Supplier Phase Out Supplier Registration Planned Q Supplier Qualification Supplier Development Supplier Order Collaboration (UI Integration) 360 Category Management Supplier Performance Management Supplier Classification 2012 SAP AG. All rights reserved. 26

27 SAP Supplier Lifecycle Management Solution today 2012 SAP AG. All rights reserved. 27

28 Supplier management Strategic buyer workplace Planned innovations 2012 SAP AG. All rights reserved. 28

29 SAP Sourcing - SAP SRM Central Contract Integration SAP Sourcing / SAP CLM Draft Negotiation Approval/ Signature Repository Master and Config Data SAP SRM 7.0 SRM Central Contract Outline Agreement Master and Config Data Outline Agreement Master and Config Data SAP ECC 6.0 SAP ECC SAP AG. All rights reserved. 29

30 Future Vision

31 Future vision for procurement Business network Supplier portal Mobile Employee shopping Buyer portal SAP Sourcing SAP Contract Lifecycle Management SAP SRM Materials management (MM) functionality in SAP ERP SAP Commodity Procurement SAP Supplier Lifecycle Management Procurement analytics Future direction 2012 SAP AG. All rights reserved. 31

32 SAP SRM User Interface Add-On Overview User Story Employees need to buy products and services for the company. Often these purchase are catalog driven so users can quickly find the items they need and comply with the company's supplier agreements. The purchases can be routine or infrequent, but in either case, users now expect the same user-friendly interfaces that they experience in their personal online purchasing. User Benefits Casual users can buy products and services that they need with little or no training. Improve compliance with company purchasing rules and contracts Reduces the number of steps to get information, such as order tracking Ability to process multiple items efficiently Reduce errors and re-processing Key Capabilities & Challenges Familiar, web-shopping, user interface Cross-catalog search (internal and external catalogs) Customizable Guidance to enter the right information 2012 SAP AG. All rights reserved. 32

33 Search Key Features Familiar, web-shopping like, user interface that requires little to no training. Cross catalog search, including internal and external catalogs, contracts, inforecords, and material masters Browse individual catalogs or browse by categories Type ahead on search fields Search more than one product at a time Free-form system will propose items from catalogs and suggest product categories Quick access to recurring and recent items 2012 SAP AG. All rights reserved. 33

34 Search Results Key Features One UI search results will contain product details from catalogs Fast search results Filtering to refine searches Product comparison Product images, details, and related product information Mini shopping tray keeps a summary and running total of all shopping cart items Save the shopping cart manual and auto save Quick checkout 2012 SAP AG. All rights reserved. 34

35 Check Out Key Features Simple or advanced (item details, multiple account assignment, etc) changes Mass changes update multiple line items at once Error messages users can navigate directly to the error 2012 SAP AG. All rights reserved. 35

36 SAP Supplier Briefing ipad Application Information at Your Fingertips Data Integration ipad Accessibility Contracts Sourcing Third Party Spend News Feeds Automated data aggregation Reduced effort Comprehensive Timely Tablet-based Easily locate information Portable 2012 SAP AG. All rights reserved. 36

37 Solution Summary SAP Supplier Briefing ipad Application Planned Capabilities, Technology Pre-Requisites, and Mobile Devices Capabilities Supplier Spend and Performance insight Supplier participation in RFx projects Existing Contract visibility Latest supplier news Supplier profile and financial information Meeting notes and history Supplier contact information Technology Pre-Requisites SUP 2.1.x Gateway 2.0 SP04 BW (Recommended) Mobile Device Support Apple ipad 2/3 on ios 5.1 or higher 2012 SAP AG. All rights reserved. 37

38 Implementation

39 SAP Procurement Solutions Offer Flexible Deployment Options On premise Customer migration between models is supported On demand Business process outsourcing SAP Confidential 2012 SAP AG. All rights reserved. 39

40 SAP Rapid Deployment Solutions Available for Self-Service Procurement Preconfigured software based on best practices Rapid delivery with packaged services; go-live in weeks Four more rapid-deployment solutions for procurement planned for 2012 Low TCO with affordable, flexibly priced consulting solutions and licensing Currently Self-Service Procurement is the only SRM solution available via RDS SAP SRM functionality is optional as a one-client deployment, and built as an add-on to your existing SAP ERP functionality Service Software Enablement Content SAP Confidential 2012 SAP AG. All rights reserved. 40

41 SRM as a Shared Services Hub Leverage SRM as a centralized, shared services hub and support a Center of Excellence model Deliver one source of spending truth, bringing spend under management and simplifying spend analysis SRM Hub Empower corporate-level discounts that can be extended to distributed purchasing groups Aggregate demand across disparate ERPs Centralize Contract Management Create a single point for supplier management Supplier Collaboration and Management 2012 SAP AG. All rights reserved. 41

42 Upgrade Services for your existing SAP SRM Solution Your Challenge Our Solution Pricing conditions The new SAP SRM offers a fully integrated procure-to-pay solution for automating core procurement processes including services procurement. You are seeking a way to change your old SRM quickly and, above all, with low risk? You are running SAP SRM already, planning to upgrade to the new SAP SRM? You can optimize the efficiency of your procurement organization with centralized sourcing and contracts, as well as obtain unified access to functionality and information across SAP SRM and to relevant data in the SAP ERP application. Make the most out of your SAP SRM without compromises. Take the chance to use the flexibility of our software to optimize your processes and unleash the full potential of your business. By this you maximize your benefit and make gainful use of the new possibilities and features of your SAP SRM. 1 - Quick upgrade analysis The Quick Upgrade Analysis (QUA) evaluates the chances and the potential of an upgrade to the new SRM version. Get to know the way to your new SAP SRM. 2 - Upgrade assessment In the upgrade and migration assessment we elaborate together with you requirements, optimization potential, and new processes methodically on the basis of an analysis tool and accelerators. This leads to detailed recommendations, roadmap, upgrade readiness scorecards, effort estimation, resource planning, and established migration plans for technical upgrade, processes and user interface. 3 - Functional upgrade service Offers an Upgrade Service for a Self-Service Procurement scenario in SRM 7.0 based on your current system. Result is an up and running SRM 7.0 system with your data and settings. Custom enhancements can be adjusted at add. cost. 4 - UI Migration service Offers an UI-migration including an upgrade of customer specific ITS developments based on the results of the 2 nd phase. Fixed price Euro T&M Euro Fixed price Euro 2012 SAP AG. All rights reserved. 42

43 Why Upgrade?

44 The SAP Procurement Portfolio Is Rapidly Innovating In Many Dimensions Cloud / On Demand Sustainability Usability In-Memory Computing Embedded Analytics Mobile On-Premise Rapid Deployment 3 rd Party Partner Solutions 2012 SAP AG. All rights reserved. 44

45 Improved Functionality in: User Interface Operational Procurement Self-Service Procurement Plan-Driven Procurement Services Procurement Catalog Management Centralized Sourcing Centralized Contracts Supplier Collaboration Technical Benefits 2012 SAP AG. All rights reserved. 45

46 Business Benefits Improve Enterprise Processes and Visibility Increase and Facilitate Contract Compliance Optimize Services Procurement Streamline Sourcing Activities Reduce Total Cost of Ownership 2012 SAP AG. All rights reserved. 46

47 Technical Benefits Easier Upgrades with Enhancement Packs Harmonized User Interface Across SAP SRM and Other SAP Applications Business Rule Framework Workflow Technology Shift to Web Dynpro for ABAP Enterprise Services 2012 SAP AG. All rights reserved. 47

48 SAP SRM - Best in Class Procure-to-Pay Solution Comprehensive Functionality Integrated process with SAP Business Suite Self-service procurement + Goods Receipt + Invoice + Payment Approval = P2P Catalogs, shopping cart with automated approval workflow Centralized sourcing & contracts Collaborative Services Procurement delivers value Compliance tracking delivers realized savings Efficiency throughout the entire P2P process reduces costs Compliance and governance are achieved by using best practice Positive ROI as measured key KPIs Invoicing Reporting 2012 SAP AG. All rights reserved. 48

49 2011 SAP AG. All rights reserved No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, and PowerPoint are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, System z9, z10, z9, iseries, pseries, xseries, zseries, eserver, z/vm, z/os, i5/os, S/390, OS/390, OS/400, AS/400, S/390 Parallel Enterprise Server, PowerVM, Power Architecture, POWER6+, POWER6, POWER5+, POWER5, POWER, OpenPower, PowerPC, BatchPipes, BladeCenter, System Storage, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, Parallel Sysplex, MVS/ESA, AIX, Intelligent Miner, WebSphere, Netfinity, Tivoli and Informix are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the U.S. and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are either trademarks or registered trademarks of Adobe Systems Incorporated in the United States and/or other countries. Oracle is a registered trademark of Oracle Corporation. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems, Inc. HTML, XML, XHTML and W3C are trademarks or registered trademarks of W3C, World Wide Web Consortium, Massachusetts Institute of Technology. Java is a registered trademark of Sun Microsystems, Inc. JavaScript is a registered trademark of Sun Microsystems, Inc., used under license for technology invented and implemented by Netscape. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Sybase and Adaptive Server, ianywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase, Inc. Sybase is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is a preliminary version and not subject to your license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of the SAP product and is not intended to be binding upon SAP to any particular course of business, product strategy, and/or development. Please note that this document is subject to change and may be changed by SAP at any time without notice. SAP assumes no responsibility for errors or omissions in this document. SAP does not warrant the accuracy or completeness of the information, text, graphics, links, or other items contained within this material. 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. SAP shall have no liability for damages of any kind including without limitation direct, special, indirect, or consequential damages that may result from the use of these materials. This limitation shall not apply in cases of intent or gross negligence. The statutory liability for personal injury and defective products is not affected. SAP has no control over the information that you may access through the use of hot links contained in these materials and does not endorse your use of third-party Web pages nor provide any warranty whatsoever relating to third-party Web pages SAP AG. All rights reserved. 49

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