Operational vs Strategic SourcingOperational sourcing is more
operational in nature i.e. the demand comes from the requesters and
the request is linked directly to the operations of the
organization. Operational sourcing is highly critical for
manufacturing organizations that rely heavily on the "Direct" or
"MRO" materials. Strategic sourcing is more strategic in nature.
The starting point for strategic sourcing process typically could
be -- Spend Analysis, or Strategic Initiative from the top
management. The operational sourcing can be handled well by both
SRM and SAP Sourcing. The main differentiator of ESourcing solution
is that it can handle not only the operational sourcing but also
the strategic sourcing. In operational sourcing scenarios, the
demand always gets started by the requesters (e.g. shopping carts,
purchase requisitions). The procurement / sourcing / purchasing
team tries to fulfill these requests from operations. The
purchasing team might utilize strategically defined contracts or
agreements with various suppliers to source these requirements. In
Strategic Sourcing scenarios, the demand does not come from
requesters or operations. The strategic team performs the analysis
of spend and sets the goal for sourcing activities e.g. reduce IT
spend by 10%, reduce travel spend by 20%. Then, a strategy or a
plan is devised to achieve this savings goal, supplier development
goal, or contract renewal goal. Team responsible for strategic
sourcing creates contracts, agreements with various vendors to
increase savings. They generally utilize RFI, RFP, RFQ, Auctions
etc. for this activity. To support these strategic sourcing
scenarios, SAP Sourcing has the following features that are not
available in SRM solution. Project Management capabilities Robust
RFI / RFP / Auction capabilities Contract authoring capabilities
Contract Lifecycle Management Integration with SPM (Spend
Performance Management)
Sourcing 9A central contract in SAP SRM itself integrates
seamlessly with SAP ERP and in fact, provides capability of
integrating with multiple ERP systems. Thus the current integration
between SAP Sourcing agreements and the SAP SRM central contract
extends the multi-back end capability to SAP Sourcing agreements
too. This integration bridges upstream strategic sourcing and
contract management processes with downstream operational
procurement processes and thus extends the value to entire
organization.
The following benefits can be attributed to the integration
between agreements in SAP Sourcing and SAP SRM central contracts:
1. Brings together the legal contract and operation contract and
provides single view of complete contract. 2. Provides complete end
to end contract management solution 3. Binds together the upstream
strategic sourcing and contract management with downstream
operational procurement 4. Helps drive better contract
compliance
SAP Sourcing CLM agreement integration with SAP SRM central
contract:Version 9 supports the replication of agreements to create
central contracts in SAP SRM synchronously. The trigger of
replication is manual and is controlled by user action. When the
replication process is successful the agreement will be updated
with the central contract reference number. In case of unsuccessful
replication user will be informed about the error. This integration
assumes that there is common master data between SAP Sourcing and
SAP SRM such as materials, suppliers, plants, purchasing
organization, etc...
Integration scenarios in Sourcing 9.With line itemsThis process
typically starts in SAP Sourcing with the creation of an RFx,
including line items to be sourced. The supplier responses within
the RFx can be analyzed and during awarding an agreement can be
created which includes negotiated prices for line items along with
other terms and conditions. A legal contract can be negotiated as
part of the agreement. After approval of legal contract, the
agreement can be replicated to SAP SRM and can be used as a source
of supply within SAP SRM for self-service procurement process or
can be replicated to ERP systems and used as source of supply. In
this scenario, changes can be done in the agreement in SAP Sourcing
and can send updates to central contract. Changing central contract
directly in SAP SRM will be not possible.
Without line itemsThis process typically starts with creation of
an agreement directly to create the legal contract, while all
operational negotiations will happen in SAP SRM. An agreement in
such cases will not have any line items on SAP Sourcing. After
approval of the legal contract, the agreement can be replicated
over to SAP SRM to create a central contract without any line
items. Further central contracts can be enhanced with line items
and prices. However the line items will not be updated back to the
agreement in SAP Sourcing. This scenario is important for
procurement of complex materials, services and large contracts.
Support for centralized sourcing:With version 9, SAP Sourcing
supports importing materials from multiple ERP systems and include
them in a single sourcing document, which enables central sourcing
of strategic materials by global purchasing organization. This
helps in efficient execution of the corporate strategy centrally by
responsible single global purchasing organization. This also helps
combining the requisitions from different subsidiaries and gain
tactical advantage for better negotiation. A single agreement can
contain materials from different ERP systems and this can be
replicated over to the SAP SRM central contract. Furthermore, the
SAP SRM central contract can be distributed to multiple ERP systems
and used as source of supply.
Implementation RequirementsYou must implement the information
contained in the following SAP Notes before beginning the
integration process: SAP PI/XI is required for this integration.
Process Integration is required to transfer the Central Contract
from SRM to ECC. This can also be done using Web Services. SAP Note
1551800: SAP Sourcing Integration with SAP SRM Central Contracts.
This note includes corrections related to metadata management and
the display of additional fields in the Contract user interface.
SAP Note 1609208: SAP Sourcing / SAP SRM Integration. This note
includes corrections related to the processing of incoming XML
messages from SAP Sourcing. SAP Note 1598641: SAP Sourcing
Integration with SAP SRM Central Contracts. Additional information
to SAP Note 1551800.
SAP Note 1651629: Header Condition Does Not Get DeletedThis note
describes issues related to the removal of contract header
conditions.
Implementation RecommendationsSAP recommends that you use the
highest version of SAP NetWeaver Process Integration (PI).
Currently this is SAP NetWeaver PI 7.3. For more information, see
SAP Note 1515223 and SAP Note 1388258.
Create Business System for SAP SRM in SAP SourcingThe SAP SRM
system must exist before you create it as a business system in SAP
Sourcing. A business system represents an SAP SRM system that is
integrated with SAP Sourcing. SALE > Basic Settings > Logical
Systems >Assign Logical System to Clients Select the CLIENT and
choose Details
The Logical Client name is in the form: CLNT This number is then
used in the Sourcing system for configuration.
SAP Sourcing Agreements and SAP SRM Central Contract
IntegrationThis business process integration enables you to
initiate the creation, update, and cancellation of SAP SRM Central
Contracts from SAP Sourcing Agreements.
Maintain Customizing Data for Business Document
IntegrationTransaction Types for SAP SRMCreate Transaction Type in
SAP SRM SPRO > SAP Implementation Guide > SAP SRM > SRM
Server > Cross-Application Basic Settings > Define
Transaction Types. Choose Contracts (BUS2000113) and double click
on Transaction Types Sub folder on the left.
By default, two Transaction Types CCTR (Central Contract) and
PCTR (Purchasing Contract) are delivered by SAP. You can create a
new transaction type by clicking New Entries.
Double-click one of the transaction types (existing or
newly-created) and verify all of the configuration settings (such
as Number Ranges, Text Schema, Event Schema, and Partner
Determination Procedure). You should assign any newly-created
transaction type to organizational Units as an attribute using
Transaction Code PPOMA_BBP. Typically, this assignment is done at a
high-level organizational unit such as the company/purchaser
organization or department. All suborganizational units
automatically inherit this attribute. The Transaction Type CCTR,
PCTR and any new ones created in SRM need to be replicated in
Sourcing.
Text IDsCreate Text IDs in SAP SRM
These steps are for creating text IDs required in the SAP
Sourcing Master agreement to SAP SRM central contract
replication.SPRO > SAP Implementation Guide > SAP Supplier
Relationship Management > SRM Server > CrossApplication Basic
Settings > Text Schema > Define Text Types Under Text Types,
select the BBP_PD text object, and double-click the dialog
structure to ensure that text ID ETXT is available. Otherwise,
create a new entry for the text ID ETXT with description External
Text.
SPRO > SAP Implementation Guide > SAP Supplier
Relationship Management > SRM Server > CrossApplication Basic
Settings > Text Schema > Define Text Schema Create a new
schema or use the standard text schema CTR. Click on Text for
Schema on the left side dialog structure.
Make sure the text IDs listed below are available:. ID: ETXT
Description: External text Headr/Item: Header and Item Visible: For
all Users
These Text Ids created in SRM have to be replicated in Sourcing.
This can be done manually or using a CSV file. If an SAP SRM Text
Id entry has the value Header and Item in the headr/Item column (in
Step 6), you must create two separate entries in SAP Sourcing for
that SAP SRM Text Id; one for the header and another for the item
type.
Price ConditionsConfiguring Pricing Condition Types for Header
and Item in SAP SRM This is required to allow us to setup the
pricing condition types that are required for SAP Sourcing Master
Agreement to SAP SRM Central Contract replication. SPRO > SAP
Reference IMG > SAP Implementation Guide > SAP Supplier
Relationship Management > SRM Server > Cross-Application
Basic Settings > Pricing > Process Condition Types
Here we can create the different condition types that are
necessary for SAP Sourcing integration. SPRO > SAP Reference IMG
> SAP Implementation Guide > SAP Supplier Relationship
Management > SRM Server > Cross-Application Basic Settings
> Pricing > Process Condition Groups
Add the following condition for the Contract Header along with
the one shown in the pic above: Application Usage Cond Table Cond
Table Description BBP PR SAP019 01AG Discount %age Add the
following conditions for the Item level Condition Grp (0100)
Application BBP BBP BBP BBP Usage PR PR PR PR Cond Table SAP016
SAP016 SAP016 SAP016 Cond Table 0100 01CT 01RA 01RP Description
Price (old) Contract Absolute discount Percentage Discount
Authorization Provision for New Pricing Condition Types
ProcedureStandard SRM roles for strategic purchasers provide access
to a predefined set of condition types. In order to allow the usage
of new conditions by strategic purchaser, you must extend the
standard role of the strategic purchaser. The steps below are for
adding & configuring an authorization object for the Strategic
Purchaser Role. 1. Use the transaction PFCG and make a copy of the
SAP Standard role for Strategic Purchaser in the customer namespace
with all available authorizations. 2. Edit this role and click the
Authorizations tab. 3. Next to the Change Authorization Data field,
click Edit. 4. Search for the /SAPCND/CM authorization object. 5.
Click +manually to manually add the new authorization object. 6.
Enter the name of the authorization object as /SAPCND/CM. 7.
Specify values listed in the table below: Field Value BBP
/SAPCND/AP (Application as Condition Technique)
/SAPCND/CT (Condition Table)
/SAPCND/TY (Condition Table)
SAP001 SAP016 SAP019 SAP068 SAP116 0100 01AG 01BE 01CG 01CT 01PB
01PV 01RA 01RH 01RP 01SP
/SAPCND/US (Usage for Condition Technique) ACTVT (Activity)
PR
01 (Create or Generate) 02 (Change) 03 (Display)
8. Save the role. 9. Assign the role to the user/strategic
purchaser who manages Central Contracts. The Pricing Conditions
created in SAP SRM are then created in SAP Sourcing. It can be done
either by: 1. Manually creating the conditions in Sourcing 2.
Exporting the conditions from SRM as an XML file (SE38 >
/ESOSRMIN/BBP_ CONDDATA_EXTRACT) and then importing this XML into
sourcing.
Further ReadThe new features in the Strategic Sourcing module in
Sourcing 9 are:
http://scn.sap.com/community/sourcing/blog/2011/12/06/new-features-in-sap-sourcing-wave-9-part-1strategic-sourcingThe
new features in the CLM module in Sourcing 9 are:
http://scn.sap.com/community/sourcing/blog/2011/12/08/new-features-in-sap-sourcing-wave-9-part-2contract-lifecycle-management-clm
ReferencesConfiguration Guide Integration of SAP SRM and SAP
Sourcing 9.0
http://scn.sap.com/community/sourcing/blog/2012/03/19/sap-sourcingsap-clm-integration-with-sap-srm