SAP and Procurement
The pursuit of operational excellence in the area of procurement starts with the recognition that procurement is not an isolated activity. It's part of a continuum of activity that starts with spend analysis and the sourcing of goods and services. It extends through the management of your contracts and suppliers and proceeds through to operational procurement and the day-to-day actions associated with ordering, tracking, and receiving goods and services from those suppliers.
SAP offers 2 key solutions for procurement.
SAP Supplier Relationship Management (SRM)
SAP Supplier Relationship Management (SRM), part of the SAP Business Suite, helps to optimize your procurement strategy.
You can shorten procurement cycles, and work with your partners in real time. This allows you to develop long-term relationships with all those suppliers that have proven themselves to be reliable partners. It also lets you cut down on your procurement expenses and to collaborate more intensively with more suppliers than ever.
The application enables the following:
- Self-service procurement & plan-driven procurement
- Centralized sourcing using RFx and reverse auctions
- Central contract management
- Supplier qualification & evaluation
- Supplier collaboration
- Catalog & content management
- Sourcing hub for multiple SAP ERP systems
- Public sector sourcing & procurement
- Service procurement
SAP Sourcing
SAP Sourcing is an on-premise and OnDemand application that provides an end-to-end solution to the sourcing process.
The application enables the following:
-
Spend analysis
-
Category and project management
-
Requests for proposals, information, and quotation
-
Forward and reverse auctions
-
Contract generation and management
-
Supplier management
Spend Performance Management
The SAP BusinessObjects Spend Performance Management application (part of SAP Enterprise Performance Management) helps organizations perform global spend analysis with data coming from heterogeneous systems, enables business users to gain insight into savings opportunities and compliance by enabling access to aggregated, enriched spend data, and to identify fragmented contracts, distributed supply bases, and multiple contracts with single suppliers and sole-sourced suppliers.
This application enables the following:
• Rapidly identify savings opportunities
• Gain spend visibility and solve the spend data challenge
• Reduce supplier risks
• Increase spend under management
