SRM – Sourcing
Product Management SAPMarkets
SAP Markets 2002, Title of Presentation, Speaker Name 2
Part of enterprise management team
Responsible for strategic evaluations and decisions
Cross-product (category) decisions
No transactional use of software tools
Strategic vs. Operational Purchaser
Part of purchasing department
Operational decision making
Daily ‘supplier relationship management’
Transactional use of software tools
Specialist for specific product categories
StrategicPurchaser
OperationalPurchaser
SAP Markets 2002, Title of Presentation, Speaker Name 3
Strategic vs. Operational Purchaser
StrategicPurchaser
OperationalPurchaser
SoftwareRequirements
SoftwareRequirements
Access to external market data
Permanent monitoring / reporting on demand
Support by SEM tools for scenario management
Workflow-based, cross-application procurement tool
Access to centrally maintained master data
Predefined communication channels with business partners
Operational purchaser will use sourcing cockpit for daily tasks!
SAP Markets 2002, Title of Presentation, Speaker Name 4
Sourcing Cockpit as Part of the SRM Initiative
SAPMarketsSRMProcure
Enable Suppliers
Execute
Analyze
Source
DesignPlan
mySAP SRM / Sourcing
The sourcing cockpit focuses on operational procurement tasks.
It enables seamless communication with your suppliers.
The sourcing cockpit relies on data that is based on strategic decisions.
SAP Markets 2002, Title of Presentation, Speaker Name 5
Evolution: E-Sourcing
EBP
BackendSAP & Non-SAP
• Catalog• ESS
• ‘PO cockpit’• Local orders• Tendering• BW Reporting
• ‘Direct’ procurement• Contract Management• Content Workbench
LES LES LES LES LES
+ + + • Assignment / evaluation of local contracts
• Vendor list• ‘Sourcing cockpit’• SUS• C-Room• OPI• DAB
+
BBP 1.0
BBP 2.0 /EBP 1.0
EBP 2.0
EBP 3.0
EBP 3.5
SAP Markets 2002, Title of Presentation, Speaker Name 6
Activities:• Goods receipt• ASN• Invoicing
Fulfillment Fulfillment
Activities: • Negotiating contracts• Auctions• Supplier management• Vendor list
Selection /Decision /
Negotiation
Selection /Decision /
Negotiation
Operational Procurement Operational
Procurement
Activities:• Manage require- ments(aggregation)• Select SoS• Determine new SoS for specific demands (Tendering)• Create PO
StrategicEvaluationStrategic
Evaluation
Based on:• Product innovation (‘Make or buy‘) • Vendor evaluation• Sales forecast• Sourcing strategy• External market data
From Strategic to Operational Sourcing
Permanent analysis / monitoringPermanent analysis / monitoring
Analytics /SEM
Tools for Negotiation /
Tendering
E-Procurement / Materials
Management /Analytics
E-Procurement / Materials Management /
Order Management
SAP Markets 2002, Title of Presentation, Speaker Name 7
StrategicEvaluationStrategic
Evaluation
Based on:• Product innovation (‘Make or buy‘) • Vendor evaluation• Sales forecast• Sourcing strategy• External market data
From Strategic to Operational Sourcing
Activities:• Goods receipt• ASN• Invoicing
Activities: • Negotiating contracts• Auctions• Supplier management• Vendor list
Fulfillment FulfillmentSelection /Decision /
Negotiation
Selection /Decision /
Negotiation
Operational Procurement Operational
Procurement
Activities:• Manage require- ments (aggregation)• Select SoS• Determine new SoS for specific requirements (Tendering)• Create PO
Permanent analysis / monitoringPermanent analysis / monitoring
Analytics /SEM
Tools for Negotiation /
Tendering
E-Procurement / Materials
Management
E-Procurement / Materials Management /
Order Management
Sourcing Cockpit
SAP Markets 2002, Title of Presentation, Speaker Name 8
Internal and external
requirements
Internal and external
requirements
Dynamic Auction and Bidding Collaboration Room Service Provider
Vendor List (VL) Contracts Business Warehouse Information Catalog, Product Master Vendor Master Data
Create purchase
order
Create requirements
via shopping cart or external system
Transfer
requirements to sourcing
cockpit
Sourcing Cockpit
Internet
IntranetWorklist
Operational Purchaser’s View
SAP Markets 2002, Title of Presentation, Speaker Name 9
Work Areas in the Sourcing Cockpit
Worklist
Search area
Requirementgrouping
Area Details
Purchasers can search for requirements using different criteria such as product category or delivery date.
The system automatically creates a worklist. The worklist contains all requirements of the purchasing group for which the purchaser is responsible.
Within the group area, purchasers can group requirements together into a single purchase order. The system can indicate which requirements can be grouped into one purchase order.
SAP Markets 2002, Title of Presentation, Speaker Name 10
Sourcing Cockpit: Screen
SAP Markets 2002, Title of Presentation, Speaker Name 11
Functions in Detail: Process Flow
System
bo
un
dary
System
bo
un
dary
Shopping Cart
Shopping
Cart
External Demand
Approval
Sourcing
Cockpit
Purchase Order
BE Purchase Req.
BE Purchase Order
Transfer
Transfer
Customizable transfer In Customizing, you can
choose which products appear in the sourcing cockpit.
This is controlled by the product category and whether or not a source of supply exists.
With a BAdl it is possible to control the transfer to the sourcing cockpit more specifically, using criteria other than the product category
SAP Markets 2002, Title of Presentation, Speaker Name 12
Functions in Detail (1)
Search forsupply proposal
Display productdetails
Business InformationWarehouse
Feature Description
Coverage and price
Professional purchasers can display product details for a requirement in the external catalog via a hyperlink.
The system enables purchasers to find an appropriate source of supply for a requirement. Sources of supply can be contracts, product links or vendors.
The corresponding vendor evaluation report can be viewed with BW. In the requirement list, purchasers can also find the purchasing history in BW for a specific item.
The system shows how many items of the requirement a specific vendor can cover and, at which price. The potential sources of supply can be sorted by those criteria.
SAP Markets 2002, Title of Presentation, Speaker Name 13
Functions in Detail (2)
Feature Description
Master datadisplay
Purchasers can display vendor data and contract data.
DynamicAuction/Bidding
Purchasers can start an auction in the Dynamic Auction and Bidding (DAB) from within the sourcing cockpit.
Grouping and splitting
After purchasers have moved requirements to the grouping area, the system applies splitting criteria to them to create multiple purchase orders for multiple requirements.
Createcontracts
Purchaser can issue a contract requirement, which can be discussed and negotiated in the C-ROOM
Purchasers can access external vendor directories to search for sources of supply via the Open Partner Interface
Open PartnerInterface
SAP Markets 2002, Title of Presentation, Speaker Name 14
Restrictions (1)
No additional items can be added to shopping cart Purchasers can only change shopping cart items. It is not possible to add additional items to an existing
shopping cart. (This requires an additional approval step, which is not possible with 3.5).
Only limited functionality of OPI interface Idea is an interface for external service providers offering
supplier information. This will only be partially covered (only one way, that is, with no transfer of supplier data, in EBP 3.5).
No requirements from the SAP APO scenario Direct procurement scenario with SAP APO creates purchase
orders. As the requirement object of the sourcing cockpit is a
shopping cart, requirements from APO will not appear in the sourcing cockpit at the moment.
SAP Markets 2002, Title of Presentation, Speaker Name 15
Restrictions (2)
No requirements for the ‘classic’ scenario If a customer uses the ‘classic scenario’ (PO generated in the
backend system), requirements will not appear in the sourcing cockpit.
No different delivery address at item level When grouping, requirements have to have the same delivery
address. It is not currently possible to have different addresses at item level.