SRM Overview

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SRM Overview
2
SRM Agenda

• Business Drivers for the Commonwealth of PA
• What is SRM?
• Functionality Overview

3
Business Drivers

• The Commonwealth spends approximately 4.5
  billion annually in goods, services and
  equipment. Recent sourcing efforts have saved
  over 120 Million.
• The current supply chain model has several
  opportunities to adapt best practices
• Leverage the knowledge gained through the
  strategic sourcing initiative to institutionalize
  the process through technology.
• Reduce transaction costs for creating and paying
  for purchase orders by reducing touch points and
  time spent on each touch point.
• Implement electronic procurement via an aggregate
  catalog, directing users first to suppliers with
  negotiated contracts.
• End Users have expressed a desire for a
  procurement process that will
• Simplify purchasing
• Reduce processing costs by increasing department
  productivity
• Provide a fast, efficient and dependable process
  for order placement, receipt of confirmation,
  delivery of goods, and invoice accuracy and
• Reduce costs of goods and services.

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Supplier Relationship Management - SRM

• SRM is a Web-based tool that
• Simplifies the purchasing process, improves
  accuracy and productivity by minimizing manual
  administrative tasks
• Allows purchasing professionals to focus on
  managing relationships instead of transactions
• A friendly user interface, allowing the user to
  view contracted pricing
• An electronic catalog with correct prices to
  reduce PO corrections
• The ability to order items from multiple
  suppliers at the same time.
• Electronic submission of orders and invoices to
  select suppliers.
• Better purchasing data reporting capabilities.
• Sourcing and contract creation capabilities with
  templates
• Full supplier collaboration

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mySAP Supplier Relationship Management
Strategic Purchasing Sourcing
Supply Strategy Development
Spend Analysis
Supplier Selection
Contract Management
Catalog Management
Operational Procurement
Self-Service Procurement
Service Procurement
Plan-Driven Procurement
Supplier Collaboration
Supplier Registration
Design Collaboration
Order Collaboration
Collaborative Replenishment
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mySAP Supplier Relationship Management
Operational Procurement Self-service
procurement Plan-driven procurement Services
procurement
EBP Upgrade
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Self-Service (Operational) Procurement Process

• Standard approval Workflows available
• Managers Inbox

• Self-service confirmation and central dispatching
• Time recording for temporary labour
• Electronic confirmation processing

ShoppingCartCreation
InvoiceHandling
Operat.Sourcing
Goods Receipt
WorkflowApproval
Ordering
SAP Enterprise Buyer

• Process requirements
• Selection of different sources of supply (SoS)
• Integration with SAP Bidding Engine

mySAP SRM
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Shopping Cart Creation

• Selecting Product Master requesters can also
  select products directly from the SRM product
  master via search help or by entering the product
  number
• Entering requirement as free form If no product
  found in catalog or in product master, requesters
  can enter a description item will be treated as
  an incomplete order in SRM without SoS
• External orders reservations Depending on the
  system settings, requisitions can be converted
  into external PO (directly sent to the supplier)
  or if available on stock into a reservation
• Favorites templates Employees can create their
  own Shopping Cart templates or favorites

• Automatic account assignment If defined in the
  system settings, G/L-accounts will be assigned
  automatically to Shopping Cart items
• Multiple account assignment Costs can be
  distributed across accounts by percentage
• Budget check A budget check when ordering a
  shopping cart can be performed for certain
  account assignment objects (e.g. WBS elements)
• User-specific budgets Budgets can also be
  specified for single users
• Assignment to assets In the shopping Cart and in
  the PO, assignments to assets existing in the
  backend can be done assets can also be created
  in SRM

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Sample Screen Wizard-Based Shopping Cart
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For the User it Is EASY...
Local PO sent via XML
Reservation from local stock
Requisition created backend system
PO sent by backend system
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Sample Screen Confirmations
Search for PO
List of confirm. status
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mySAP Supplier Relationship Management
Strategic Sourcing Sourcing analytics Supplier
evaluation RFx auctions Contract management
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Rfx and Auction Process

• Convert RFQ into auction
• Create from Sourcing Cockpit
• Manual auction creation
• XML upload
• Maintain auction-specific parameters
• Monitor auction activity
• Chat
• Auction status interaction
• Submit bids
• Bidding rules
• Close auction
• Accept / reject bids
• Workflow approval
• Create PO or Contract

• Create Bid invitation in bidding engine
• Free text, product master, or catalog items
• Create from reference
• Add attachments, internal and external texts
• Integration into Vendor List
• Template management
• Dynamic attributes
• Integration with cFolders for Collaboration
• Convert into Live Auction

• Sourcing cockpit integration
• Sourcing Hub scenario
• Create bid invitation from contract
• XML upload

• Download to Excel
• Upload into BW for bid comparison including
  dynamic attributes
• Acceptance / rejection of individual bids / line
  items
• One step, multi-level approval workflow

• SUS integration
• Online entry of response in bidding engine
• Bids can be returned to bidder for adjustment and
  resubmission

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Analysis Cockpit
What does the Analysis Cockpit look like?
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The Analysis Cockpit providing you with the most
important and strategic purchasing information on
one screen
Buyer Portal
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Key Performance Indicators
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Global Spend Analytics
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Analysis

• Compare spend across the entire enterprise.
• ABC-analysis for materials and vendors
• Compare internal spend data with supply market
  data (e.g. spend per supplier with total revenue
  of that supplier)
• Material consolidation using standard
  classification such as UNSPSC
• Contract utilization analysis
• Vendor performance based on purchase order, goods
  receipt and invoice documents
• Vendor consolidation
• Management by exception with alerts
• Role based provision of reporting information and
  authorization dependent information display

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Sourcing Cockpit

• For finding a new source of supply for open
  requirements, purchasers can create a bid
  invitation directly from the Sourcing
  Application.
• All header information of Shopping Cart is
  transferred to Bidding Engine
• The Sourcing Hub scenario allows you to receive
  demands. From there an RFQ is created. After
  awarding a winner, purchasers can
• create a PO
• Or create a contract

• Create Bid from Contract
• Purchasers receive alerts for expiring contracts.
• Out of these contracts a bid invitation can be
  created directly
• All the necessary data--including
  conditions--will be transferred to Bidding Engine

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Sourcing Process with Collaboration

• Purchaser creates bid invitation in SAP Bidding
  Engine
• Purchaser creates collaboration and invites
  agencies to add product specifications within
  cFolders
• Purchaser assigns suppliers to bid invitation and
  sends out invitation
• Suppliers automatically receive e-mail with link
  to SAP Bidding Engine
• Suppliers can access the product specifications
  in cFolders directly via link in bid invitation
• When creating a bid, private supplier areas,
  where technical product information can be
  stored, are automatically created in cFolders
• Both, agencies and purchasers review and evaluate
  bids.

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List of requirements
View your commodities

• Aggregating
• Demand
• Bottom
• Line Savings

Select sourcingmethod
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Create your bid
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Select suppliers to publish bids
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Define attributes to add to bid invitation
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Publish Bid Invitation
Publish Bid Invitation send E-Mail to bidders
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Bidder responses

• Bids can be either published on the public web,
  in SAP Supplier Self Service or an invitation is
  sent directly to already known suppliers via
  e-mail.
• Via a hyperlink bidders can log on to SAP Bidding
  Engine and enter their bid.
• Bidders are automatically informed if a bid
  invitation has been changed. They are invited
  via email to adjust to the changes

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Vendor/Bidder Process Bid
Create Bid
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Vendor/Bidder Process Bid
Add requested data
Submit bid
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Vendor/Bidder Process Bid
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Purchaser Process Bid Invitation
Select Bids
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Purchaser Process Bid Invitation
Accept or reject bid
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Process Bid Invitation
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Process Bid Invitation
Update the contract which was initiator of the
bid
Create a new contract out of this bid
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RFQ Weighting and Ranking

• Weighting and Ranking
• Allows bid evaluation on non-price attributes.
• Achieved by determining a value for each
  attribute response and weighting each attribute
  according to its importance.
• Line item score ? attributes score X weight
• RFQ score header attrib score X weight ? line
  item score X weight
• Enables the identification of the best offer at a
  glance.

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RFQ File Upload and Download

• File Upload and Download
• Purchasers can download and upload
• Bid invitations
• Contracts
• Suppliers can download
• Bid invitation
• Files downloaded in tab-delimited format and can
  be processed offline. For ex. An Excel sheet

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Additional Processes

• After awarding a winner you can create
• A purchase order
• A contract
• A live auction
• A one step, multi-level approval workflow can be
  triggered when the purchaser accepts a bid
• When creating a PO or a contract all relevant
  data is transferred to the system where the
  follow on document will be created.
• You can convert an RFQ into a live auction

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Bidding Engine to Live Auction Flow Auction
Search
Click to go to auction details
Click to go to Live Auction Cockpit
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Live Auction Cockpit Started
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SRM Contract Management
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Contract Management Process

• Monitor contracts in BW
• Alert functionality
• Create RFQ for expiring contract

• Manually via EBP
• Create central contract
• Resulting from RFQ or Rev. Auction
• Add Conditions

• Approval workflow
• Multiple output formats

• Use of contract as source of supply
• Call-offs

UtilizeContract
AnalyzeContract
Goods Receipt
Create Contract
Release Contract
SAP Enterprise Buyer
mySAP SRM
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Contract Renegotiation

• Purchasers receive alerts for expiring contracts.

Select Negotiate to renegotiate an expired
contract
Out of these contracts a bid invitation can be
created directly All the necessary
data--including conditions--will be transferred
to Bidding Engine
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Contract Renegotiation
Purchase contract in status In Renewal
Bid invitation created with status
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Contract Management

• Create Contract Template
• Functions possible Search, display, create,
  change, delete, copy, hold, release, create
  contract
• Statuses possible Created, hold, in approval,
  approval rejected, released, deleted

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Service Procurement

• Special entry screen for service requisitions
• Mix of planned and unplanned items in Shopping
  Cart
• Catalog-based search for services

• Creation of service entry sheet in EBP or in SUS
• Time recording for expenses and overtime
• Assignment of catalog items, master data or
  contracts

• Creation of POR in supplier-system or in SUS
• Accept / reject order
• Modification of PO-information

• Invoice creation by supplier (SUS) or by buying
  organization
• Approval workflow

• Approval workflow for Shopping Cart
• Multiple PO output forms

Order Response
Invoice
Service Entry
Requisition
Order
SAP Enterprise Buyer / SAP Supplier-Self Services
mySAP SRM
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Service Requisition

• Service-specific entry fields Users can specify
  services by entering information such as service
  providers, start and end date, limits for
  expenses and overtime
• Quick entry screen Professional users can enter
  a service requisition with a quick entry screen
  in EBP
• Selection of service provider A service provider
  is a specific employee of a vendor and can be a
  SUS user or contact person for vendor in the EBP
  vendor master
• Catalog-based search Services can also be
  selected from either an internal or external
  (service company) catalog and used as SUS for
  service requisitions
• Assigning source of supply Sources of supply can
  be SRM contracts or catalog items

• Planned items Can be specified goods or services
  with a defined price and quantity or duration at
  the time of creating a requisition
• Unplanned services If services cannot be
  specified at the time of creating a requisition,
  limits (e.g for overtime or expenses) can be
  defined
• Mix of planned and unplanned items The Shopping
  Cart application in EBP can contain planned as
  well as unplanned (limit) items

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Time recording sheet
Assignment of catalog item
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Time recording sheet
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mySAP Supplier Relationship Management
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Supplier Enablement with mySAP SRM

• Supplier-self services
• Order management
• Supplier-maintained content
• Document exchange
• Service Procurement (Service Entry screen for
  temporary labor)
• BW Reporting
• Integration of supplier evaluation scenario

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Document Flow in Detail SUS-EBP
Order/ Change Order
2
EBP
Order
PO
Order Response
3
Confirmation
4
Confirmation
Confirmation
Confirmation Response
Invoice
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Invoice
Invoice
Invoice Response
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Supplier Self-Services Process (Overview)

• Invoice flow
• Invoice modification
• Evaluated Receipt Settlement (ERS)

• Import new products and change products
• Classification of product categories
• Integration with Content Management tools

• Online supplier self- registration
• Logon ID via e-mail

• Confirmation sheets

• Order response
• Document flow

Supplier Registration
Content upload andmaintenance
Invoice Handling
Order Handling
Confirmation
SAP Supplier Self-Services
mySAP SRM
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Supplier Registration

• Online supplier self-registration
• Purchaser sends e-mail with link to SAP Supplier
  Self-Services
• Supplier registers on the homepage of the
  purchasing organization
• Purchasing company registers supplier
• Automatically generated e-mail containing initial
  logon ID and password is sent to supplier

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SAP Supplier Portal OrdersInvoices-gt SUS
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SAP Supplier Portal Payment Status
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Supplier Self-Services - BW-Reporting

• Selection of reports
• Purchase order history
• Open deliveries
• Open invoices
• Order information
• Contract history
• Confirmation information
• Invoice information
• Incoming payments
• Procurement value per contract
• Contract overview
• Item overview per contract
• Expiring contracts
• Supplier Evaluation

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• Thank You

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Access to Supplier Evaluation Data

• BW for accessing supplier evaluation data
• Using the Web Survey tool, each procurement step
  can be evaluated at document level.
• This evaluation is transparent to the supplier.
  The supplier evaluation report can be displayed
  in the Supplier Self-Services.
• In this way, suppliers have access to their
  evaluation results and can react directly.

• The supplier evaluation tool is used to evaluate
  and optimize the whole procurement process by
  making the results transparent also to the
  supplier.