SAP Solution Brief SAP Business Suite SAP Strategic Sourcing OnDemand

Drive SavingS anD Streamline Strategic Sourcing ProceSSeS

SOFTWARE AnD SERvICES TO LAUnCH A STRATEgIC SOURCIng PROgRAM

Jump-start effective sourcing processes with the SAP Strategic Sourcing OnDemand solution, a subscription offering with software, hosting services, training, and user support. Execute sourcing projects, competitive bidding, and analysis as the first steps toward better managing your procurement costs.

Under pressure to support constant profitability in the face of global competition, procurement organizations like yours must find ways to generate additional savings from the supply base. Most likely, your group struggles to meet savings goals with an overworked staff using time-consuming, manual processes. As a procurement professional, you need a solution that helps you collaborate across departments and geographies, discover and qualify suppliers, and ensure a competitive bidding environment to drive maximum efficiencies and cost reductions across all of your spend categories. Helping to address these concerns, the SAP Strategic Sourcing OnDemand solution enables you to better manage the entire sourcing process. This includes performing essential processes such as collaborative project management, multiround request for processes, bid analysis, and auctions. With SAP Strategic Sourcing OnDemand, your sourcing initiatives can get started quickly. When youre ready, you can augment your strategic sourcing solution by adding advanced, complementary software such as the SAP Supplier Management OnDemand solution and the SAP Contract Lifecycle Management OnDemand solution, which are fully integrated, while retaining your existing investment. In addition, you can make sure that savings identified as a result of sourcing events are fully realized by complying with negotiated pricing terms through key integration to operational procurement processes.

Key Tools for Driving Savings

SAP Strategic Sourcing OnDemand supports the complete sourcing process, enabling you to perform the following actions to maximize your savings. Collaborate Using Project Management Bring internal stakeholders together using a shared, online project plan. Keep team members up-to-date using status reports and alerts. Define your sourcing methodology to help ensure consistency and repeatability in the organization. Track opportunities for savings. Reduce Cycle Times Leverage preconfigured business processes to create your own templates to reduce cycle times and help ensure that best practices are repeated throughout your organization. Use predefined analysis reports to quickly compare supplier responses and understand which suppliers can best meet your needs. Find the Right Bidders Help ensure that qualified suppliers are competing for your business. Using the self-registration process and supplier repository, you can readily identify which suppliers should be part of your sourcing events. Suppliers can maintain their profile information so that you stay current on their capabilities. Manage Requests for Information, Proposal, and Quotation Conduct simple or complex sourcing activities in direct, indirect, and service categories by automating the creation of requests for information, proposal, and

quotation. Manage multiround sourcing events, carrying relevant results from a previous round to a subsequent one. Analyze bids using automatic scoring, collaborative scoring, question weights and preferences, total cost calculations, and side-by-side comparisons, as well as pricing and savings reports. Conduct Online Auctions Create competitive bidding environments using a variety of formats including reverse, forward, transformational, and Dutch auctions. Interact with suppliers in real time using instant messaging. Monitor bidding activities using the real-time countdown clock and graphical bidding console that automatically refreshes. Manage bidding rules such as bid visibility, automatic extensions, ranked-bidding format, weighted-bidding format, staggered start and end times for individual items, and reserve prices. Set individual start prices for each supplier, or set uniform start prices for each line item for all suppliers.

a say in the decision-making process. As a result, when a decision is made that involves change, these key contributors are able to help support the decision because of their direct participation in the selection process. Sourcing Event Collaborators You can add collaborators with specific roles that allow them to edit, approve, or simply view sourcing events, providing key stakeholders with access and visibility to important events in which they have a vested interest. Key users can offer critical input on what questions are asked, how pricing is structured, which suppliers are invited, and what criteria should be most heavily weighted. This establishes a collaborative environment and helps ensure the necessary support for sourcing decisions. Discussions and Message Boards Timely communications are a key enabler in driving change. Users of SAP Strategic Sourcing OnDemand are able to communicate directly within the solution to provide important information, ask key questions, and help ensure timely responses. Both internal and external communications are made easier and maintained with the sourcing event for future reference. Because all participants have access to the same information, communication is effective and efficient.

activity by business unit, category, supplier, and user. Management dashboards provide a single place to access critical information. This gives managers the information they need to better run their organizations, balance workloads, and prepare for executive management reviews.

SAP Gives You a Jump Start

There is nothing like initial success to generate long-term automated sourcing acceptance. You can leverage SAPs experience to help ensure the successful launch of your automated sourcing program. Best practices supported by SAP software are available to you in numerous ways. Embedded Templates for Best Practices Launch your events using sample templates with embedded sourcing processes. These tools help you repeat best practices, reduce cycle times, and share knowledge among category managers. Automated sourcing events and analytical functions help you eliminate cumbersome, time-consuming, and paper-based supplier negotiations and awards. On-Demand Assistance Included in the on-demand solution are user training, guided help for using the solution, and help-desk support for sourcing events such as online auctions, requests for information, proposal and quotation. These services help increase user adoption and sourcing event success. In addition, value-added services to provide supplier training and support are available.

Collaboration Tools That Encourage Adoption

SAP Strategic Sourcing OnDemand includes important tools that enable you to collaborate both internally with key stakeholders and externally with suppliers. Enabling collaboration is critical to driving adoption and supporting change throughout your organization. Collaborative Scoring Scoring features that allow you to invite users to provide input and collaboratively score supplier responses help to ensure that key stakeholders have

Management Visibility and Reporting

Automated sourcing provides visibility to management to help them understand the sourcing activities that are being managed in their organizations. Summary reports enable them to understand

Rapid Deployment You can begin using SAP Strategic Sourcing OnDemand in a matter of days. The software is provisioned rapidly with predefined templates to load key master data such as suppliers and materials. End-user training is straightforward and concise.

Undisputed ROI, Quick Payback

With low investment, rapid adoption, and supporting expertise from SAP, you have all of the ingredients to generate substantial savings and raise the prominence of your procurement team. greater Savings and value Automated sourcing activities result in better decisions that optimize the overall value contribution from suppliers. Through ready-to-use analysis tools, you can evaluate and compare supplier bids on factors that are most important to your organization. For example, your procurement team can analyze proposals on the basis of factors such as price, supplier capabilities, delivery options, and so on. Using SAP Strategic Sourcing OnDemand, you can source from qualified suppliers that deliver the best value to your enterprise.

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If you would like to know more about the SAP Strategic Sourcing OnDemand solution and learn how it can help your procurement organization improve its results, contact your SAP representative or visit www.sap.com/sourcingondemand.

SAP Strategic Sourcing OnDemand enables you to better manage your entire sourcing program by performing essential processes such as collaborative project management, multiround request for processes, bid analysis, and auctions.

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Summary The SAP Strategic Sourcing OnDemand solution combines software, hosting services, training, and user support to help you quickly access the benefits of strategic sourcing. You can execute sourcing projects, multiround request for processes, competitive bidding, and analysis as the first steps toward more effectively managing your costs associated with procured goods and services. Business Challenges Support profitability and savings goals Collaborate across departments and geographies Discover and qualify suppliers Create a competitive bidding environment to drive efficiency and cost reductions Key Features Rapid deployment Use predefined templates to load key master data such as suppliers and materials, so youre up and running in a matter of days On-demand assistance Leverage user training and help desk support for sourcing events such as online auctions and other processes Embedded best practices Launch your events using sample templates with embedded sourcing processes based on best practices Management visibility and reporting give managers the information they need to best run their organizations, balancing workloads and preparing for executive management reviews Sourcing event collaboration give collaborators access to and visibility into events in which they have a vested interest Collaborative scoring Invite users to provide input and collaboratively score supplier responses so key stakeholders have a say in decision making Discussions and message boards Communicate directly within the solution to share important information, ask key questions, and get timely responses Business Benefits Fast ROI due to low investment, rapid adoption, and supporting expertise from SAP More value for your organization through sourcing from qualified suppliers and using competitive bidding environments Better decision making made possible by automated sourcing activities For More Information To learn more, contact your SAP representative or visit www.sap.com/sourcingondemand.

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