Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components.
 Key Features and Scope of mySAP SRM

mySAP SRM is SAP’s solution for

Supplier Relationship Management

mySAP SRM covers a wide range of functionality

 From simple self-service procurement of MRO* goods

 To strategic sourcing and supplier enablement

 Plus complementary services like content management

mySAP SRM is build upon a set of

business application components and leverages
SAP NetWeaver as integration and application platform
 Evolution: Continuous Improvement to customers
Employee-Self- Professional Hosted version/ Direct materials
Service purchasing Integration
(MRO) MarketSet 1.0

03/ 05/ 09/ 03/

1999 2000 2000 2001
B2B Procurement 1.0 B2B Procurment 2.0 Enterprise Buyer 1.0 Enterprise Buyer 2.0

Sourcing/ SRM SRM Strategic Purchasing

Mobile Engine Supplier Self Service Supplier Evaluation & Sourcing
Bidding Engine Content Integration Supplier Portal

10/ 06/ Q2/ Q2/

2001 2002 2003 2004
Enterprise Buyer 3.0 mySAP SRM 2.0 mySAP SRM 3.0 mySAP SRM 4.0
 mySAP SRM at a Glance

Strategic Sourcing Operational Procurement

Sourcing analytics Self-service procurement
Supplier evaluation Plan-driven procurement
RFx & auctions Services procurement
Contract management

Supplier Enablement Content

Supplier portal Content consolidation
Supplier connectivity Catalog content management
mySAP SRM Offering

Strategic Purchasing & Sourcing

Better supply strategies Supply strategy development

through focused sourcing initiatives, Spend analysis

supplier selection and contract Supplier selection
management. Contract management
Catalog management

Operational Procurement

Expedited purchasing Self service procurement

processes Services procurement

through process automation and Plan driven procurement

compliance management for goods
and services.
Supplier Collaboration

Higher supplier participation Supplier registration

through supplier self-service, Design collaboration

connectivity, collaboration and Order collaboration
supply chain visibility. Collaborative replenishment
Supplier connectivity
Key Benefits of SRM

Reduced process costs

 increased compliance through less maverick buying
 improved efficiency through procurement automation

Lower unit prices

 demand consolidation
 better pricing through competitive bidding

Compressed cycle times

 on-line approval by cost center managers
 web enabled user friendly screens

Improved sourcing strategy

 rationalisation and optimisation of supply base
 better access to data on supplier performance
 entire functionality of Bidding engine
 Live auction
 Components of mySAP SRM 4.0

E-Procurement Components Supplier Collaboration Components

 SAP Enterprise Buyer 5.0  SAP Supplier Self Services 3.0

 SAP Catalog and Content  SAP Bidding Engine 3.0.
Management 1.0  Live Auction Cockpit 2.0
 Requisite Bugs Eye 3.5

Technology Components

 SAP Business Inf. Warehouse 3.5

 SAP Enterprise Portal 6.0
 SAP Exchange Infrastructure 3.0
Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components.
 Operational Procurement I

Standard Procurement…
- e Procurement Of *MRO Items (Self-Service Procurement)
- e Procurement Of Services (Service Procurement)
Catalog engine
Catalog engine
can be replaced by any

Internet
Shopping Cart OCI-compliant catalog
and Order
management
Backend SRM

Supplier
Bugs CCM
Eye
SAP
SAP EBP
R/3
R/3
R/3

Tight integration with SAP Integration with

ERP system(s) supported; supplier via Email,
integration with non-SAP Fax, XML messages
system(s) via appropriate
adapter * Maintenance, Repair and Operating Supplies
 Operational Procurement II

Professional Procurement…
- e Procurement Of Direct Material (Plan-Driven Procurement)

Tight integration with SAP

ERP system(s) supported;
integration with non-SAP

Internet
system(s) via appropriate Demand
adapter aggregation,
Order
Backend management SRM

Supplier
SAP SAP
R/3
R/3 EBP
R/3

SAP
R/3
PS
R/3 Integration with
Demand generated in SAP
Planning System; integration supplier via Email,
with non-SAP planning Fax, XML messages
system(s) via appropriate
adapter
 Strategic Sourcing

Sourcing Process…
- From Spend Analysis To Contract Management

Sourcing and Global Spend Supplier

Analysis evaluation,
RFx and

Internet
Reuse of SAP BW auctions,
in backend Contract
possible management
Backend SRM
SAP Live auction

Supplier
BW SAP cockpit
LAC
directly
SAP SAP WPS
SAP connected
R/3 BW EBP with SAP
SAP
EBP**
CI*

SAP
R/3
PS
R/3 Integration with
Master data harmonization supplier via Email,
Fax, XML messages
Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components.
 Self Service Procurement

Fill a shopping cart with Goods Or Services.

 Self Service Procurement

Check status and approving

 Self Service Procurement

Processing Purchase Order

 Self Service Procurement

Processing Confirmation
Purchase Order
 Self Service Procurement

Processing Invoices
Purchase Order
 Plan Driven Procurement with Strategic Sourcing

R/3 MM System EBP Bidding Engine Live Auction

MRP Run Process Bid
Invitation
Create Purchase
Requisition Create Reverse
Sourcing Cockpit Auction

Submit Bid by
Publish Auction Suppliers
Create Bid Invitation

Monitor Bid by
Buyers

Evaluate and
Finalize Bid

Workflow Approval

Create Contract or
Process Contract
PO

Replicate Outline Create Global

Agreements Outline Agreements
 Supplier Enablement Process

SAP EBP SAP XI SAP SUS

Create PO

Map and route

XML Create SO

Purchase Order Create PO response

Map and route

Receive PO response
XML

PO response accepted Purchase Order

Response

Change PO

Map and route

XML
Purchase Order Receive changed PO
Change

Update SO
Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components.
 Technical Scenarios

Business Scenario Self-service procurement can be deployed by using one of the

following technical scenarios.

Classic Extended Classic Standalone

Shopping Cart SAP Enterprise Buyer SAP Enterprise Buyer SAP Enterprise Buyer

Approval SAP Enterprise Buyer SAP Enterprise Buyer SAP Enterprise Buyer

Purchase Order Backend system SAP Enterprise Buyer (leading SAP Enterprise Buyer
system) and backend system

Goods Receipt Backend system (can be pre- Backend system (can be pre- SAP Enterprise Buyer
entered in SAP Enterprise entered in SAP Enterprise
Buyer) Buyer)

Invoice Backend system (can be pre- Backend system (can be pre- SAP Enterprise Buyer
entered in SAP Enterprise entered in SAP Enterprise (accounting information
Buyer) Buyer) sent to backend system)
Self Service Procurement – Classic Scenario
Self Service Procurement – Stand Alone Scenario
Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components
 SRM Component – Enterprise Buyer

SAP ENTERPRISE BUYER

The procurement and sourcing system

that is the central piece for any SRM
solution. It empowers employees with
self service procurement, enables
centralized direct procurement and
provides the professional purchaser with
tools to make the right sourcing
decisions.

KEY CAPABILITIES
Direct Procurement (planned materials, raw & pack) Supplier Portal for supplier self service (specifically
 Integration with Planning & Execution systems for services processing via SUS)

Indirect Procurement Sourcing Cockpit

 Employee self service procurement  Aggregation of multiple requirements
 Procurement of services  Selection of source of supply by assignment or RFQ

Contract Management Approved vendor list

Workflow

Content Management (via Content Workbench)

 Catalog Management

Provides necessary tools for managing content flow efficiently from the suppliers to
buyers

Organize Create & Catalog

Manage Content publish catalogs
Content Import Search & PO

Import of a master Mapping of incoming Define Views Standard search

schema (UNSPSC, E- schema categories to A view can limit the Exact search for
Class, …) master schema visibility of items, individual words
Import of supplier categories categories, and Advanced search
Catalog Reuse of assignment characteristics Boolean search,
Checks for done previously Publish catalogs to Phrase search, Fuzzy
mandatory and Approval rules search Engine search, Linguistic
optional creation Full publishing search
characteristics Delta publishing
Manual and automatic
Multiple sources enrichment of content
SRM Product Master
Data
Contract Information
Contract Import

Key Business objectives of Catalog

Management
Procurement automation
Compliance enforcement
 SRM Component – Requisite BugsEye
REQUISITE’S CATALOG SEARCH
ENGINE: BugsEye
Requisite’s BugsEye is an easy to use
and extremely flexible search engine
which accommodates wide variations
in the quality and consistency of
electronic content, user skills,
experience and needs. It also includes
tools to enable the management and
maintenance of the catalog.

KEY CAPABILITIES
Ease of Use: Flexibility:
 Highly intuitive interface for successful finding in reduced search  Provides search strategies with multiple search capabilities
time. including parametric refinement.

Schema: Customizable Interface:

 BugsEye provides multiple categorization of items an optional
navigation hierarchies with multiple and arbitrary paths.
Category and Attribute Support:
 Categories are genus class collections also referred to as „is as“
relationship. Base attributes apply to all items and optional
category attributes apply to specific categories.
 As an HTML templated interface, BugsEye supports
customization of buttons, background, text, foreground colors,
font-family and font-size.
Web Browser Client Access:
 BugsEye Catalog Engine is a server-side Java program
generating the user interface from HTML templates.

Parametric Refinement of Results: Configurator:

 Enables the user to select specific values to further narrow a  BugsEye provides the capability to generate a part number
result set. through a category specification.
 SRM Component – Bidding Engine

SAP Bidding Engine

Supports sourcing needs through RFP,

RFQ, and Reverse Auction capabilities.
Helps to turn planned, unplanned and
strategic demand into contracts and
purchase orders. Automated decision
support to determine winning suppliers
and stipulate follow-on processes.

KEY CAPABILITIES
Sourcing Capabilities Analytics
 RFP/RFQ  Bid analysis
 Reverse Auction  Single- and Multi-parameter matching
 Live Auction Cockpit  Ranking & winner determination

Flexibility Monitoring
 Rules definition  Business Tracker
 Dynamic attributes
Integration
Control  Contract creation in EBp
 Distribution lists  Purchase order creation in EBp
 Workflow  Analytics
Live Auction

Initiators: Bidders:
Bidding Engine: Bidding Engine:

 Create Auction  Search

 Copy, Search and Modify  View auction details
 Status change  Download to excel
 Error checklist  SUS integration
 Download to excel
Live Auction:
Live Auction:
 Monitoring
 Monitoring  My bid
 Bids  Rank
 Rank  Leading bid
 Leading bid  Countdown timer
 Countdown timer  Chat
 Chat  View graphs
 View graphs  Submit bids
 SRM Component – Supplier Self Service

SAP SUPPLIER SELF SERVICE

A web based application which gives

suppliers access to hosted order and
content management functionality.
This drives participation within the
supplier community, reduces costs and
increases speed across the value chain.

KEY CAPABILITIES
Supplier Homepage Master data management
 Complete Process – Sales Order, Service Entry,
and Invoice  Business Partners
 Process without Service Entry  Catalog (Products and Prices)
 ERS Procedure
 Contracts
 Invoice entry without PO reference

Reporting
 Web reports accessible to suppliers keeping them
up-to-date on their transactions and performance.
 SRM Component – Business Information Warehouse
(SRM Analytics)
SRM Analytics
SRM Analytics provides analytics to support all
SRM processes. Analytics are flexible
predefined reports based on powerful state of
the art data warehouse technology (SAP BW).
SRM Analytics offers a 360° approach to SRM
intelligence such as supplier strategy
management, strategic sourcing, relationship
monitoring, global spend analysis and
document level procurement process
monitoring.

KEY CAPABILITIES
Global Spend Analysis Supplier Relationship Monitoring
 Mapping via CI (SP1)  Performance and reliability KPI
 Quality monitoring with eg. R/3-QM
Supplier Base analysis  Supplier Scorecards with SAP SEM
 DUNS Number
Contract Analysis
 DUNS Family trees
 Utilization in terms of time, value and volume
Sourcing Intelligence  Spend with and without contract
 Expiring Contracts
 External Market Data (eg. from data providers)
 Bid analysis for RFQ / Reverse Auction External Categories
 UNSPSC
Procurement History  ecl@ss
 Per supplier, material, requester, purchaser, cost center
manager etc. Alerts
 SAP NetWeaver Services used with mySAP SRM

SAP NetWeaver is SAP’s integration and application platform for

all mySAP solutions
mySAP SRM leverages
SAP NetWeaver™
People Integration SAP Enterprise Portal as SRM
Multi-Channel Access User Interface
Portal Collaboration
SAP Business Information
Composite Application Framework

Warehouse for SRM analytics

Information Integration

Life Cycle Management

Business Knowledge
Intelligence Management
SAP Master Data Management for
Master Data Management
SRM master data harmonization*

Process Integration SAP Exchange Infrastructure as

Integration Business Process general SRM connectivity solution
Broker Management

SAP Web Application Server as

… Application Platform … general platform for all SRM
J2EE ABAP business application components
DBDBand
andOS
OS Abstraction
Abstraction
.NET WebSphere
Introduction to mySAP SRM 40

Contents:

 Value of SRM
 SRM Business Process Scenarios
 SRM Business Process Overview
 SRM Technical Scenarios
 SRM 40 Components.
mySAP SRM 40

Contents:

Thank You
 SAP’s Vision for mySAP SRM

COMPLETE CONNECTED INTEGRATED

Complete the loop Connect all suppliers Integrate purchasing with

between sourcing and through collaborative key processes in ERP,
procurement business processes CRM, PLM & SCM
VISION
Connected to All Suppliers

Linking with any kind of suppliers.

Supplier A
Buyer/ Manufacturer Only
Browser No Backend
System
Portal Unsophisticated
Suppliers

SRM Server
Supplier B
Orders,
Confirmations Legacy
System
, Invoice
Browser Upload/
Download
Bid Invitation / Bids Process
Integration
Contracts XML (SAP XI)
Supplier B

CRM
EDI/XML
Sophisticated
Suppliers
 mySAP SRM Solution Map 2004

Strategic
Supply Strategy Contract Catalog
Purchasing & Spend Analysis Supplier Selection
Development Management Management
Sourcing

 Demand aggregation &
planning
 Portfolio analysis
 Purchasing strategy planning
 Category management
 Program management
 Purchasing controlling
 Map & classify content
 Global spend analysis
 Supplier qualification
 Request for quotation
 Reverse auctions
 Sourcing event analysis
 Contract development
 Document management
 Contract distribution
 Contract execution
 Contract monitoring
 Organize content import
 Manage content
 Create & publish catalogs

Operational
Self-Service Procurement Services Procurement Plan-Driven Procurement
Procurement

 Adaptive requisitioning  Service specification and  Central source of supply determination

Order management requisitioning
  Procurement for plant maintenance
Confirmation  Order management
  Procurement for projects
 Invoice processing  Confirmation
 Invoice processing

Supplier Supplier Order Collaborative

Design Collaboration
Collaboration* Registration Collaboration Replenishment

 Supplier connectivity  Document versioning  Bidding event notification  Release Processing

 Supplier self-registration  Document Handling  Order management  Inventory Visibility
 Review questionaires  Redlining and Markups  Confirmation  Advanced Shipment
 Inegration into RFX  Invoice processing Notification processing
processes  Account information