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Solution Portfolio
Pro
cessDesign
Impl
ementation
Supplier Management
RFXs and auctions
Contract Managment
Purchase-2-PayCatalog Management
Spend Performance
Management
Technology
Our experience is your assurance.
apsolut process & IT-consulting in the
purchasing SAP & ARIBA environment.
Dear reader,...
Although Goethe’s verse famously stated that all theory is gray, this brochure provides you with
much more than just a theoretical introduction to the SAP and ARIBA purchasing modules in which
we specialize. It also presents a selection of practical user reports in which you can find out how
we help our customers benefit from the enormous performance and savings opportunities that
SAP and ARIBA offers purchasing and procurement organizations today. As a leading consulting
firm specializing in the SAP and ARIBA environment, apsolut is the first service provider in Germa-
ny to focus its consulting expertise entirely on SAP’s procurement solution.
Editorial
-2-
We have particular expertise and experience
in the following: strategic Supplier Ma-
nagement, electronic RFXs and auctions,
Contract Management, Purchase-2-Pay,
Catalog Management, and Spend Perfor-
mance Management. Our holistic approach
to consulting and support means that we sup-
port you through all stages of your project,
from the initial idea and analysis of its poten-
tial, through process and solution consulting,
to project implementation, rollout and opera-
tion of the right solution for you. Using Infra-
serv Höchst, Finanz Informatik, Stora Enso,
and Continental as examples, this brochure
explains how SAP projects like these are
implemented in practice. These companies
represent just a handful of apsolut’s satisfied
customers from more than 170 well-known in-
ternational customers.
We hope you will find our brochure an in-
teresting read.
Best regards
Your apsolut team
-3-
We have particular expertise and experience in the following: strategic Supplier Manage-
ment, electronic RFXs and auctions, Contract Management, Purchase-2-Pay, Catalog
Management and Spend Performance Management. Our holistic approach to consulting
and support means that we support you through all stages of your project, from the initial idea
and analysis of its potential, through process and solution consulting, to project implementati-
on, rollout and operation of the right solution for you.
apsolut process
consulting
Catalog Management
Multi-supplier catalog
Supplier selection
Technical content service
Price and product range checks
Catalog data approval
Web shop system integration via OCI
Contract Livecycle Management
Operational contracts
Strategic contract management
Legal documents & clauses
Approvals
Distribution & Utilization (release orders)
Monitoring/Alerting
RFXs and auctions
RFxs
Bids
Price Comparisons
Negotiations
Auctions
Spend Performance Management
Spending habits/savings opportunities
Price variances
Comparisons (planned/actual)
Contract performance
Supplier evaluation
Purchasing dashboard
Supplier Management
Registration
Qualification
Evaluation
Development
360-degree view of suppliers
Supplier Dashboard
Technology
Process modification in SAP development
level (ABAP, ABAP objects, Java)
Interface modifications via Web Dynpro
Form creation (interactive)/Modification of
existing forms
Portal modifications
Interface design for other systems
Provision of standard solutions
(within the SAP development environment)
SAP process integration (PI)
Purchase-2-Pay
Purchase requisition/shopping cart
Approval workflow
Purchase order
Invoice verification/goods receipt/service entry
Commodity Management
Order Collaboration
Pro
cessDesign
Impl
ementation
-4-
apsolut solution
portfolio
RFXs and auctions
SAP SRM Bidding
SAP SRM Auctioning
SAP Sourcing
Ariba Sourcing
Technology
SAP Process Integration
SAP Enterprise Portal
SAP ABAP objects/WD
SAP NetWeaver technology
SAP Fiori
Adobe Interactive Forms
Supplier Management
SAP SLC Supplier Lifecycle Management
apsolut SSM Smart Supplier Management
Ariba Supplier Information Performance Management
Ariba Network
Catalog Management
Master data Management
Catalog Services
Ariba PunchOut
Purchase-2-Pay
SAP MM Materials Management
SAP SRM Employee Self Service
SAP SUS Supplier Self Service
SAP SNC Supply Network Collaboration
SAP Invoice Mangement by Open Text
Ariba Procure-to-Pay
Ariba Invoice Management
Spend Performance Management
SAP Business Warehouse/BI
SAP Spend Performance Mgmt
SAP Business Objects
Adobe Flash
Ariba Spend Visibility
Contract Lifecycle Management
SAP SRM Contract Management
SAP CLM Contract Lifecycle Management
SAP MM Materials Management
Ariba Contract Management
Pro
cessDesign Impl
ementation
As one of the first consulting firms to focus its expertise entirely on the optimization of
business processes for strategic and operational purchasing in relation to SAP and ARIBA
products, apsolut GmbH ranks among the leading consulting firms in this area. We offer best
practices and solutions tailored to the individual needs of our customers (APPsolut Solution
Add-ons).
Supplier
Management
Long gone are the days when purchasing departments were limited to operational tasks, such
as handling orders and negotiating prices. More and more companies are now outsourcing
important parts of their value creation processes to allow themselves to focus on their core
competencies. This requires a strategic supplier management solution designed to establish la-
sting partnerships with selected suppliers and consistently develop these relationships further.
A solution such as this allows companies to consolidate their profit situation, identify potential
savings and procurement risks, and strengthen their competitive position.
Oursolutions:TheSAPSupplierLifecycleManagement(SAPSLC)andtheAribaSupplier
Information Performance Management provides you an innovative approach that enables
companies to strategically manage and control their relationships with suppliers. SAP SLC
integrates seamlessly into the existing SAP environment and maps the entire.
The following functions are supported:
Supplier registration and qualification
Supplier evaluation and classification
Supplier development
Supplier portfolio management
Supplier phase-out
Our services
Regardless of whether you want to use Ariba cloud solutions, like to work with SAP
on premise solutions, or if you prefer to work with a combination of both (hybrid). ap-
solut supports you with the implementation and seamlessly integrates the solution into
your existing strategy, process, and IT environment using best practices. We also apply
tried-and-tested change management measures in the process.
-5-
Electronic RFXs and reverse auctions are becoming increasingly popular. They allow companies to
reduce their material and process costs as well as fully exploit all opportunities associated with
the relevant procurement market, for instance, by comparing prices and identifying new suppliers.
Audit-compliant, electronic support for the entire procurement process is also achieved through
the automation of RFXs – without any media incompatibility problems.
ElectronicRFXsincreasethetransparencyofsupplierrelationshipsandhelptostrategicallycontrol
purchasing processes. RFX platforms, such as SAP Bidding Engine, SAP Sourcing and Ariba
Sourcing and Ariba Discovery enable companies to map the entire electronic RFX process and
live auctions. SAP Bidding Engine, which is part of the SAP Supplier Relationship Management
(SAP SRM) solution, integrates seamlessly into the purchasing processes and ERP landscape. The
sourcing solutions includes the following functions – we support you also in the selection of the
optimal SAP/Ariba product:
Transfer of requirements from ERP/SRM Approval
RFXs/requests for quotation Purchase order or
Electronic tenders from suppliers contract creation
Quotation comparison and negotiation
SAP Sourcing focuses purely on strategic purchasing and offers a similar scope of functions
to SAP Bidding Engine. It also includes other useful functions, such as project management,
supplier management, and contract management. Data from existing back-end systems can
also be transferred for use in SAP Sourcing.
RFXs and auctions
-6-
Our services
Regardless of whether you want to use Ariba cloud solutions, like to work with SAP
on premise solutions, or if you prefer to work with a combination of both (hybrid). ap-
solut supports you with the implementation and seamlessly integrates the solution into
your existing strategy, process, and IT environment using best practices. We also apply
tried-and-tested change management measures in the process.
Faced with economic uncertainty, increasing process automation in companies, as well as the
globalization of supply chains, modern purchasing organizations cannot operate without a cen-
tral contract management system. It is especially difficult for international purchasing organiza-
tions to communicate the correct service agreements, conditions, and prices quickly if supplier,
material, and condition masters are not consistent across the group.
SAP continues to strengthen its position as leader in strategic and operational contract ma-
nagement for purchasing with its current product portfolio. This includes functionality that in-
tegrates the contract management system with upstream and downstream processes, such
as the tendering procedure, taking the flexibility of purchasing to a whole new level. Other
options, which allow legal contract documents to be drafted together with lawyers and the
results made available to the partner for further processing through the system, reduce process
throughput times considerably. Of course, all contracts with suppliers can be made available as
a source of supply in SAP’s own solutions like the SRM system or also in many ERP systems.
Furthermore, modern service-oriented architecture allows agreements and their conditions to
be made available in the systems of other providers.
SAP and Ariba contract management solutions are the central repository for all legal and ope-
rative contracts in purchasing. Integration with the SAP sourcing process facilitates effective
contract negotiations and the intentional release of orders allows companies to control con-
tract usage and comply with key performance indicators, such as prices, validity, release order
limits, tolerances, and currencies.
Contract
Management
-7-
Our services
Regardless of whether you want to use Ariba cloud solutions, like to work with SAP
on premise solutions, or if you prefer to work with a combination of both (hybrid). ap-
solut supports you with the implementation and seamlessly integrates the solution into
your existing strategy, process, and IT environment using best practices. We also apply
tried-and-tested change management measures in the process.
Consumer goods procurement, also known as Self-Service Procurement, is the genesis of
Supplier Relationship Management. However, Self-Service Procurement has long outgrown
its consumer status. In many companies, SRM solutions now determine the workflow of all
indirect goods, including investments and services. Accordingly, the demands placed on SRM
have risen in the past few years. As a result of extensive approval guidelines, SRM is now an
integral part of the company and is intended to represent the internal purchasing portal for all
employees. As a result, the buyers obtain a strategic tool for controlling and monito-
ring employee requirements. Consequently, reduced material costs, process expenditures,
and process lead times are all attainable, and have already been achieved in many companies.
Meet apsolut, your expert SAP and Ariba consulting partner, both for SAP SRM/MM
and Ariba optimizations and implementations.
The SAP Materials Management (SAP MM), SAP Supplier Managemet (SAP SRM) and
Ariba Procure-to-Pay solutions supports your entire procurement cycle. Does your accounting
department often have invoice-related queries? Do you have many purchase orders that are not
completedandcannotbearchived?Ifyouranswertothesequestionsis“yes”,itishightime
that you set up automated Purchase-2-Pay processes. This will improve the quality of your
purchasing processes, save you time and money, and provide you with an accurate overview of
your liabilities.
Purchase-2-Pay
Our services
As experienced Ariba and SAP SRM and MM implementation and consulting partners,
we assist you in choosing the right process and optimizing your system. During system
training with your employees, we demonstrate to them how procurement processes
can be improved when supported by the system.
-8-
Electronic catalogs and product information systems really come into their own when used for
the procurement of indirect goods, as most processes for indirect procurement are cumbersome
and generate high process costs. They allow users to access structured product data quickly
and efficiently, compare this with the characteristics and prices of other products, and order the
required item directly from the provider.
Product catalogs are therefore used primarily in online shops, ERP and e-procurement systems,
and on supplier websites. You need a catalog and content management system to manage
electronic product catalogs. This involves using search engines to provide users with an over-
view of the products they are looking for in just a few clicks. You need other modules for che-
cking and approving the product catalogs transmitted by the supplier.
Master data management ensures that the associated catalog data, such as materials, sup-
pliers, material groups, and classification standards, is always consistent, accurate, and up-
to-date.
Catalog
Management
Our services
apsolut assists you in the selection and implementation of suitable electronic catalogs,
as well as a content management system, the MDM tool, the Ariba PunchOut catalog
and also helps with the preparation of the MDM data in the SAP SRM environment.
Alternatively, we handle the content management for you in your catalog solution, or
provide SRM MDM catalogs, or the Ariba PunchOut catalog to you as an ASP solution.
-9-
In the face of ever-rising data volumes, purchasing departments are finding it increasingly dif-
ficult to obtain precise and reliable information to enable effective decision-making. A syste-
matic spend performance management system remedies this situation by providing you with a
complete overview of your direct and indirect expenses, and enabling you to identify savings
opportunities as well as reduce supplier risk. Purchasers are always in the picture about the
strengths and weaknesses of their suppliers and are in a stronger position when it comes to
negotiating supply contracts and conditions.
With 135 predefined reports, role-based dashboards, and what-if analyses, SAP Spend Perfor-
mance Management (SAP SPM) is an off-the-shelf solution that maps your purchasing data
clearly in flexible reports. You can adapt all reports quickly and easily to changing requirements.
The latest data from the systems is always used for the reports. Thanks to the dynamic inter-
face, you can perform what-if analyses using real-time data. We support you in the selection of
the optimal SAP/Ariba product.
Below is a selection of the top reports supported:
Procurement volume by material group and supplier (with/without reference to orders)
Supplier scorecards (hard/soft facts)
Order volume with/without contract Order values per purchaser
Price development per product Order processing costs
Purchasing dashboard
Spend Performance
Management
Our services
apsolut seamlessly integrates Ariba Spend Visibility SAP SPM into your system lands-
cape. Besides SAP ERP and BW, other databases are compatible with SAP Crystal
Reports. Other interfaces are also available in SAP BusinessObjects in addition to web
service connections, XML data, portal data, Flash variables and LCDS connections.
-10-
Any company that supports customers with the optimization of their operative and strategic
purchasing with SAP SRM must demonstrate more than just sound process knowledge. Only
the combination of IT and SAP know-how together with the latest technology will ensure that
the SAP SRM solution provides the best possible support for a company’s procurement orga-
nization.
Technology
Below are just some of our services and preferred technologies:
SAPNetWeaver:Providesthetechnicalbasisfortheservice-orientedarchitecture(SOA)and
allowsexternalsystems,AribaCloudsolutionsandInternetservicestobeconnectedefficiently
to SAP products.
SAP NetWeaver Portal: Provides users with centralized access to all the systems they
need – for instance, the shopping cart of an e-shop in SAP SRM or the associated order in
SAP ERP. This simplifies the use of the portal and saves time and money.
Application and process-controlled workflows: Enable you to set up, define, and
implement approval processes, for instance for shopping carts, contracts, purchase orders,
and goods receipt in SAP SRM.
SAP Adobe Interactive Forms: Enable you to transfer relevant data from SAP applica-
tions to interactive forms, which can be exchanged with other users in PDF format. This
improves the communication with the suppliers.
SAP Open Catalog Interface: Is an open and standardized catalog data interface for
exchanging data between SAP Enterprise Buyer Professional (EBP) and the e-commerce
systems of suppliers.
SAP BusinessObjects: Is generally considered to be the leading market provider for for
matted reporting as well as ad-hoc reporting on the basis of relational data sources. SAP
Business Objects is based on the tried-and-tested BusinessObjects Enterprise platform
that consists of the front-end InfoView, the Central Management Console (CMC), and the
CMS as a repository for all BusinessObjects documents.
-11-
With standardization as its goal, Continental set about simplifying and improving its existing
SAP SRM platform and purchasing processes, with apsolut providing application level support.
With more than 21,000 users, the automotive components supplier runs one of the largest SAP
SRM systems in Germany. This figure was reached in 2007 when Continental acquired the Sie-
mens VDO automotive supplier division and it migrated the division’s SAP purchasing solution
to its own SAP SRM 4.0 platform. However, this brought to light the weaknesses of the 10-year-
old-plus solution: the system had undergone many enhancements and modifications, which
made it impossible to support and develop further. Added to this was the lack of consistency in
the purchasing processes across the group, which meant that there were many different user
interfaces and high-maintenance interfaces to the SAP R/3 systems.
Launch of the ePOS program
To modernize the SAP SRM platform, Continental launched the ePOS program (Enhanced Stra-
tegic and Operational Procurement Applications On Central SRM and Portal System). The tech-
nical basis for this was the upgrade to SAP SRM 7.0, as well as the implementation of the SAP
portal solution, and a new catalog system. In parallel to this, the purchasing processes and SAP
SRM user interfaces were standardized for the requester, approver, and purchaser roles.
SAP Enterprise Portal provides users with centralized access to all the systems they need and
provides consolidated data in the portal and in their worklists. This saves time and reduces
costs.
Continental
Sets the course for
standardization
-12-
User report
Continental expects to make further savings from the new catalog solution with its Supplier
Self-Services function, which integrates suppliers into the maintenance processes. As the au-
tomotive components supplier currently has around 650 catalog suppliers on board, this shifting
of tasks should result in considerable time savings.
Rollout across 250 locations worldwide
Continental has now rolled out the new SAP purchasing platform, together with the catalog
and portal solution, to 250 locations in 13 countries. The excellent cooperation with apsolut
meant that the project was implemented on time and within budget. The SAP consulting firm
provided application level support for the upgrade and was responsible for the preliminary
study, blueprint, implementation, pilot project, and rollout. Project manager Armin Schmitt,
Corporate Functions IT manager in the SRM area at Continental praises the apsolut team: “The
expertise of the apsolut colleagues blended perfectly with our project teams at every
phase of the project.”
Plans for wider usage
In the next project phases, Continental wants to make the portal technology available to the
purchasers of production materials as well. The company also plans to install a sourcing cockpit
and SAP functions for electronic RFxs and e-bidding. The automotive supplier is currently alrea-
dy working together with apsolut on the development of a blueprint for contract management
for production materials.
-13-
Stora Enso, the Finnish Group specializing in wood and paper products, relies on the power of
integrated purchasing processes and has implemented SAP SRM 7.0 to introduce key inno-
vations for the procurement of indirect goods. The great flexibility of SAP consulting partner
apsolut contributed to the success of the project.
At Stora Enso, employees previously had to follow country-specific processes when ordering of-
fice supplies, work clothing, or services. These processes were mapped in a high-maintenance
landscape running on an SAP back-end and SAP SRM 3.0 system as well as various satellite
solutions. It is no wonder that there was a serious lack of transparency, especially as many
transactions were completed without any ordering system at all.
Modern shopping cart system
The implementation of SAP SRM 7.0 addressed these deficiencies. Thus, the “Self Service Pro-
curement” module, which was already available in SAP SRM 3.0, was enhanced and updated.
Today, the company’s approximately 1,500 users have access to a fast, user-friendly shopping
cart system that allows them to create and manage their own purchasing transactions. Stora
Enso is making increasing use of electronic catalogs in order to automate purchasing processes
further.
Thanks to the seamless integration of SAP SRM 7.0 in the SAP portal solution, employees
have role-based access to the purchasing solution. One new feature allows Stora Enso to use
the organizational structures from the SAP HR system directly for access permissions, which
eliminates the need to define the organization in duplicate.
Stora Enso
The power of integrated
purchasing processes
-14-
User report
Greater efficiency and transparency
The wood and paper products group is also achieving greater quality, efficiency, and transpar-
ency through the implementation of a supplier portal, which allows the collaborative manage-
ment of ordering processes. With the new contract management system, all global and local
supplier contracts can be stored in the centralized SRM system, allowing internal prices to be
compared, purchasing volume pooled, and sourcing benefits achieved.
The new supplier management function allows targeted supplier development, which leads
to higher delivery reliability and fewer complaints. The project partner simplified the supplier
registration process by implementing its own apsolut solution module. The new SAP SRM
functions tap further savings potential for electronic RFxs and auctions.
Flexible project partner
When a key employee at Stora Enso dropped out of the project, the SAP SRM 7.0 implemen-
tation was under extreme time pressure. The fact that the project was still completed within a
reasonable period of around 18 months is partly due to the flexibility of the apsolut team.
„The apsolut team reacted quickly and efficiently to our requirements, which made
us more certain than ever that we had chosen the right partner for our project. During
the selection process, we were won over by apsolut’s high level of SAP and pro-
cess expertise, combined with its extensive experience and flexibility“, says project
manager Jürgen Schellewald, purchasing manager at Stora Enso, summing up the
project.
-15-
Following the merger between Sparkassen Informatik und FinanzIT, Finanz Informatik imple-
mented new processes and SAP SRM to bring its purchasing organization up-to-date. As a
long-standing SAP consulting partner, apsolut was a driving force behind the project.
The goal of the restructuring process was to ensure that external IT services were processed
promptly and paid on time. These services constitute a major part of the procurement volume
of Finanz Informatik. Furthermore, the IT service provider of the Sparkassen financial group
wanted to have accurate and up-to-date commitment values at all times for corporate manage-
ment purposes. The processes required to do this were defined initially within the scope of a
business concept.
Power users for purchase requisitions
A key step is the bundling of purchase requisitions in the form of power users in the business
departments. They can familiarize themselves so well with the new SAP SRM solution that in-
correct entries are minimized; at the same time, fewer SAP licenses are necessary. In addition,
the power users are responsible for the direct posting of incoming delivery notes and activity
reports, which were previously posted in the central purchasing department and were a consi-
derable burden, particularly at the end of the month.
To streamline the approval processes, business area contact persons were named, who now
only inform the person responsible for a cost center by e-mail that a transaction has been ap-
proved. Manual activities are reduced through the electronic activity reports of suppliers, which
are posted automatically into SAP SRM.
Finanz Informatik
Benefits from transpa-
rent purchasing
transactions
-16-
User report
Seamless integration into the SAP back-end system
The second stage of the project was to implement the business concept in the SAP SRM solu-
tion, which was seamlessly integrated into the SAP system landscape of Finanz Informatik. As
a result, large amounts of the data required for a purchasing transaction, such as cost centers
or material groups, can be transferred automatically from the SAP back-end system into SAP
SRM.
There is no need for time-consuming manual data entry, as the data in the purchasing process
is available without any additional master data maintenance. In addition, SAP SRM provides
Finanz Informatik with the strategic advantage of being able to view the entire purchasing
transaction – from the approval, to the purchase order, to the goods receipt. Thus, for example,
the supplier services can be compared more accurately and better conditions negotiated.
Practical ideas for implementation
Throughout the project, Finanz Informatik was supported by SAP consulting firm apsolut, which
had already nurtured close partnerships with both of the predecessor companies.
“The apsolut consultants won us over with their understanding of the fundamental
purchasing processes. They were always able to understand what we needed or
wanted and come up with practical ideas for the technical implementation of these
requests,” says Dieter Nefigmann, project manager for Finanz Informatik, describing
the expertise of the SAP partner.
-17-
Faster, clearer, and more cost-effective procurement of construction and other services: this is
the successful result of an SAP SRM 7.0 upgrade implemented by Infraserv Höchst in collabo-
ration with apsolut.
The industrial service provider and site operator of the “Industriepark Höchst” industrial park
offers its customers from the chemicals, pharmaceuticals, and related process industries highly
complex technical infrastructures. To achieve this, some 2,800 suppliers from all over Europe
supply the company with materials, as well as construction and other services.
Although the procurement of services in particular requires an active supplier and contract
management system, the company operated largely on the basis of manual contract release
orders until now. This meant that employees had to create their requirements within certain
sizes based on existing service framework agreements. To do this, they filled in an order form
in the SAP ERP system.
New functions implemented
Infraserv Höchst was already running SAP SRM 4.0 for the catalog-based procurement of C-
items. The industrial service provider was one of the first companies to perform a technical
upgrade to SAP SRM 7.0 and implement the new functions.
The focus was on strategic contract and supplier management, the procurement and tracking of
services, the processing of free-text orders, as well as a bidding tool.
Infraserv Höchst
Optimizes the procure-
ment of services
-18-
User report
With the support of SAP consulting firm apsolut as project partner, the company was won over
by the high level of expertise in strategic and operative SAP purchasing.
Höchst project manager Ralf Sommer sang the praises of apsolut: “The consultants respon-
ded excellently to our requirements right from the start, and have implemented the
right solution for our central purchasing department and the business users.” On the
whole, the SAP SRM 7.0 implementation ran smoothly, thanks to thorough preparation in the
form of requirement specifications and the close collaboration with apsolut.
Greater transparency, lower costs
A key benefit of the new SAP SRM solution is the transparency of the purchasing processes
and the associated cost savings. Infraserv Höchst can define the right number of suppliers and
select the right suppliers in each case.
Costs are reduced through strategic negotiation, execution, and control of supplier contracts.
Added to this is the time saved with operational purchasing based on the newly integrated
SRM processes. Now that the users no longer create their requirements in purchase requi-
sitions, but using SRM shopping carts instead, the throughput time for an order is now just a
matter of hours. “All in all, we have managed to visibly streamline the procurement of
construction and other services and, at the same time, reduce process costs,“ adds
Ralf Sommer, summing up the project successes.
-19-
Branch Offices Germany
apsolut GmbH
T +49 (0) 521 163 909 0
F +49 (0) 521 448 104 09
Bielefeld (headquarter)
Nikolaus-Dürkopp-Str. 2 B
33602 Bielefeld
Eschborn
Ludwig-Erhard-Str. 30 - 34
65760 Eschborn
Hamburg
Beim Strohhause 31
20097 Hamburg
Stuttgart
Gutenbergstr. 13
70771 Leinfelden-Echterdingen
Branch Office Spain
apsolut Spain S.L.
Malaga
Calle Pepita Barrientos nº7
Edificio Galia Litoral
Módulo Nº 401
29004 Malaga
Branch Office United Kingdom
apsolut UK Ltd.
London
Angel House
225 Marsh Wall
Canary Wharf
London. E14 9FW
Branch Office India
apsolut Software India Pvt. Ltd.
Hyderabad
Kanaka Durga Mansion
Plot No. 52 & 53, KPHB Colony - 5th Phase
Kukatpally - Cyberabad
500072 Hyderabad
Andhra Pradesh
Vijayawada
Flat No: SF 3, D.NO: 12-468/1/A
Viceroy Heights
522501 Tadepalli, Vijayawada
Andhra Pradesh
Branch Office China
apsolut China CO., LTD.
Tianjin
Hai Yi International Center 3 – 1613,
Rongyuan Road No. 2,
Huayuan Industrial Area,
300384 Tianjin
Contact us at:
info@ap-solut.com

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SAP and ARIBA purchasing solutions brochure

  • 1. Solution Portfolio Pro cessDesign Impl ementation Supplier Management RFXs and auctions Contract Managment Purchase-2-PayCatalog Management Spend Performance Management Technology Our experience is your assurance. apsolut process & IT-consulting in the purchasing SAP & ARIBA environment.
  • 2. Dear reader,... Although Goethe’s verse famously stated that all theory is gray, this brochure provides you with much more than just a theoretical introduction to the SAP and ARIBA purchasing modules in which we specialize. It also presents a selection of practical user reports in which you can find out how we help our customers benefit from the enormous performance and savings opportunities that SAP and ARIBA offers purchasing and procurement organizations today. As a leading consulting firm specializing in the SAP and ARIBA environment, apsolut is the first service provider in Germa- ny to focus its consulting expertise entirely on SAP’s procurement solution. Editorial -2- We have particular expertise and experience in the following: strategic Supplier Ma- nagement, electronic RFXs and auctions, Contract Management, Purchase-2-Pay, Catalog Management, and Spend Perfor- mance Management. Our holistic approach to consulting and support means that we sup- port you through all stages of your project, from the initial idea and analysis of its poten- tial, through process and solution consulting, to project implementation, rollout and opera- tion of the right solution for you. Using Infra- serv Höchst, Finanz Informatik, Stora Enso, and Continental as examples, this brochure explains how SAP projects like these are implemented in practice. These companies represent just a handful of apsolut’s satisfied customers from more than 170 well-known in- ternational customers. We hope you will find our brochure an in- teresting read. Best regards Your apsolut team
  • 3. -3- We have particular expertise and experience in the following: strategic Supplier Manage- ment, electronic RFXs and auctions, Contract Management, Purchase-2-Pay, Catalog Management and Spend Performance Management. Our holistic approach to consulting and support means that we support you through all stages of your project, from the initial idea and analysis of its potential, through process and solution consulting, to project implementati- on, rollout and operation of the right solution for you. apsolut process consulting Catalog Management Multi-supplier catalog Supplier selection Technical content service Price and product range checks Catalog data approval Web shop system integration via OCI Contract Livecycle Management Operational contracts Strategic contract management Legal documents & clauses Approvals Distribution & Utilization (release orders) Monitoring/Alerting RFXs and auctions RFxs Bids Price Comparisons Negotiations Auctions Spend Performance Management Spending habits/savings opportunities Price variances Comparisons (planned/actual) Contract performance Supplier evaluation Purchasing dashboard Supplier Management Registration Qualification Evaluation Development 360-degree view of suppliers Supplier Dashboard Technology Process modification in SAP development level (ABAP, ABAP objects, Java) Interface modifications via Web Dynpro Form creation (interactive)/Modification of existing forms Portal modifications Interface design for other systems Provision of standard solutions (within the SAP development environment) SAP process integration (PI) Purchase-2-Pay Purchase requisition/shopping cart Approval workflow Purchase order Invoice verification/goods receipt/service entry Commodity Management Order Collaboration Pro cessDesign Impl ementation
  • 4. -4- apsolut solution portfolio RFXs and auctions SAP SRM Bidding SAP SRM Auctioning SAP Sourcing Ariba Sourcing Technology SAP Process Integration SAP Enterprise Portal SAP ABAP objects/WD SAP NetWeaver technology SAP Fiori Adobe Interactive Forms Supplier Management SAP SLC Supplier Lifecycle Management apsolut SSM Smart Supplier Management Ariba Supplier Information Performance Management Ariba Network Catalog Management Master data Management Catalog Services Ariba PunchOut Purchase-2-Pay SAP MM Materials Management SAP SRM Employee Self Service SAP SUS Supplier Self Service SAP SNC Supply Network Collaboration SAP Invoice Mangement by Open Text Ariba Procure-to-Pay Ariba Invoice Management Spend Performance Management SAP Business Warehouse/BI SAP Spend Performance Mgmt SAP Business Objects Adobe Flash Ariba Spend Visibility Contract Lifecycle Management SAP SRM Contract Management SAP CLM Contract Lifecycle Management SAP MM Materials Management Ariba Contract Management Pro cessDesign Impl ementation As one of the first consulting firms to focus its expertise entirely on the optimization of business processes for strategic and operational purchasing in relation to SAP and ARIBA products, apsolut GmbH ranks among the leading consulting firms in this area. We offer best practices and solutions tailored to the individual needs of our customers (APPsolut Solution Add-ons).
  • 5. Supplier Management Long gone are the days when purchasing departments were limited to operational tasks, such as handling orders and negotiating prices. More and more companies are now outsourcing important parts of their value creation processes to allow themselves to focus on their core competencies. This requires a strategic supplier management solution designed to establish la- sting partnerships with selected suppliers and consistently develop these relationships further. A solution such as this allows companies to consolidate their profit situation, identify potential savings and procurement risks, and strengthen their competitive position. Oursolutions:TheSAPSupplierLifecycleManagement(SAPSLC)andtheAribaSupplier Information Performance Management provides you an innovative approach that enables companies to strategically manage and control their relationships with suppliers. SAP SLC integrates seamlessly into the existing SAP environment and maps the entire. The following functions are supported: Supplier registration and qualification Supplier evaluation and classification Supplier development Supplier portfolio management Supplier phase-out Our services Regardless of whether you want to use Ariba cloud solutions, like to work with SAP on premise solutions, or if you prefer to work with a combination of both (hybrid). ap- solut supports you with the implementation and seamlessly integrates the solution into your existing strategy, process, and IT environment using best practices. We also apply tried-and-tested change management measures in the process. -5-
  • 6. Electronic RFXs and reverse auctions are becoming increasingly popular. They allow companies to reduce their material and process costs as well as fully exploit all opportunities associated with the relevant procurement market, for instance, by comparing prices and identifying new suppliers. Audit-compliant, electronic support for the entire procurement process is also achieved through the automation of RFXs – without any media incompatibility problems. ElectronicRFXsincreasethetransparencyofsupplierrelationshipsandhelptostrategicallycontrol purchasing processes. RFX platforms, such as SAP Bidding Engine, SAP Sourcing and Ariba Sourcing and Ariba Discovery enable companies to map the entire electronic RFX process and live auctions. SAP Bidding Engine, which is part of the SAP Supplier Relationship Management (SAP SRM) solution, integrates seamlessly into the purchasing processes and ERP landscape. The sourcing solutions includes the following functions – we support you also in the selection of the optimal SAP/Ariba product: Transfer of requirements from ERP/SRM Approval RFXs/requests for quotation Purchase order or Electronic tenders from suppliers contract creation Quotation comparison and negotiation SAP Sourcing focuses purely on strategic purchasing and offers a similar scope of functions to SAP Bidding Engine. It also includes other useful functions, such as project management, supplier management, and contract management. Data from existing back-end systems can also be transferred for use in SAP Sourcing. RFXs and auctions -6- Our services Regardless of whether you want to use Ariba cloud solutions, like to work with SAP on premise solutions, or if you prefer to work with a combination of both (hybrid). ap- solut supports you with the implementation and seamlessly integrates the solution into your existing strategy, process, and IT environment using best practices. We also apply tried-and-tested change management measures in the process.
  • 7. Faced with economic uncertainty, increasing process automation in companies, as well as the globalization of supply chains, modern purchasing organizations cannot operate without a cen- tral contract management system. It is especially difficult for international purchasing organiza- tions to communicate the correct service agreements, conditions, and prices quickly if supplier, material, and condition masters are not consistent across the group. SAP continues to strengthen its position as leader in strategic and operational contract ma- nagement for purchasing with its current product portfolio. This includes functionality that in- tegrates the contract management system with upstream and downstream processes, such as the tendering procedure, taking the flexibility of purchasing to a whole new level. Other options, which allow legal contract documents to be drafted together with lawyers and the results made available to the partner for further processing through the system, reduce process throughput times considerably. Of course, all contracts with suppliers can be made available as a source of supply in SAP’s own solutions like the SRM system or also in many ERP systems. Furthermore, modern service-oriented architecture allows agreements and their conditions to be made available in the systems of other providers. SAP and Ariba contract management solutions are the central repository for all legal and ope- rative contracts in purchasing. Integration with the SAP sourcing process facilitates effective contract negotiations and the intentional release of orders allows companies to control con- tract usage and comply with key performance indicators, such as prices, validity, release order limits, tolerances, and currencies. Contract Management -7- Our services Regardless of whether you want to use Ariba cloud solutions, like to work with SAP on premise solutions, or if you prefer to work with a combination of both (hybrid). ap- solut supports you with the implementation and seamlessly integrates the solution into your existing strategy, process, and IT environment using best practices. We also apply tried-and-tested change management measures in the process.
  • 8. Consumer goods procurement, also known as Self-Service Procurement, is the genesis of Supplier Relationship Management. However, Self-Service Procurement has long outgrown its consumer status. In many companies, SRM solutions now determine the workflow of all indirect goods, including investments and services. Accordingly, the demands placed on SRM have risen in the past few years. As a result of extensive approval guidelines, SRM is now an integral part of the company and is intended to represent the internal purchasing portal for all employees. As a result, the buyers obtain a strategic tool for controlling and monito- ring employee requirements. Consequently, reduced material costs, process expenditures, and process lead times are all attainable, and have already been achieved in many companies. Meet apsolut, your expert SAP and Ariba consulting partner, both for SAP SRM/MM and Ariba optimizations and implementations. The SAP Materials Management (SAP MM), SAP Supplier Managemet (SAP SRM) and Ariba Procure-to-Pay solutions supports your entire procurement cycle. Does your accounting department often have invoice-related queries? Do you have many purchase orders that are not completedandcannotbearchived?Ifyouranswertothesequestionsis“yes”,itishightime that you set up automated Purchase-2-Pay processes. This will improve the quality of your purchasing processes, save you time and money, and provide you with an accurate overview of your liabilities. Purchase-2-Pay Our services As experienced Ariba and SAP SRM and MM implementation and consulting partners, we assist you in choosing the right process and optimizing your system. During system training with your employees, we demonstrate to them how procurement processes can be improved when supported by the system. -8-
  • 9. Electronic catalogs and product information systems really come into their own when used for the procurement of indirect goods, as most processes for indirect procurement are cumbersome and generate high process costs. They allow users to access structured product data quickly and efficiently, compare this with the characteristics and prices of other products, and order the required item directly from the provider. Product catalogs are therefore used primarily in online shops, ERP and e-procurement systems, and on supplier websites. You need a catalog and content management system to manage electronic product catalogs. This involves using search engines to provide users with an over- view of the products they are looking for in just a few clicks. You need other modules for che- cking and approving the product catalogs transmitted by the supplier. Master data management ensures that the associated catalog data, such as materials, sup- pliers, material groups, and classification standards, is always consistent, accurate, and up- to-date. Catalog Management Our services apsolut assists you in the selection and implementation of suitable electronic catalogs, as well as a content management system, the MDM tool, the Ariba PunchOut catalog and also helps with the preparation of the MDM data in the SAP SRM environment. Alternatively, we handle the content management for you in your catalog solution, or provide SRM MDM catalogs, or the Ariba PunchOut catalog to you as an ASP solution. -9-
  • 10. In the face of ever-rising data volumes, purchasing departments are finding it increasingly dif- ficult to obtain precise and reliable information to enable effective decision-making. A syste- matic spend performance management system remedies this situation by providing you with a complete overview of your direct and indirect expenses, and enabling you to identify savings opportunities as well as reduce supplier risk. Purchasers are always in the picture about the strengths and weaknesses of their suppliers and are in a stronger position when it comes to negotiating supply contracts and conditions. With 135 predefined reports, role-based dashboards, and what-if analyses, SAP Spend Perfor- mance Management (SAP SPM) is an off-the-shelf solution that maps your purchasing data clearly in flexible reports. You can adapt all reports quickly and easily to changing requirements. The latest data from the systems is always used for the reports. Thanks to the dynamic inter- face, you can perform what-if analyses using real-time data. We support you in the selection of the optimal SAP/Ariba product. Below is a selection of the top reports supported: Procurement volume by material group and supplier (with/without reference to orders) Supplier scorecards (hard/soft facts) Order volume with/without contract Order values per purchaser Price development per product Order processing costs Purchasing dashboard Spend Performance Management Our services apsolut seamlessly integrates Ariba Spend Visibility SAP SPM into your system lands- cape. Besides SAP ERP and BW, other databases are compatible with SAP Crystal Reports. Other interfaces are also available in SAP BusinessObjects in addition to web service connections, XML data, portal data, Flash variables and LCDS connections. -10-
  • 11. Any company that supports customers with the optimization of their operative and strategic purchasing with SAP SRM must demonstrate more than just sound process knowledge. Only the combination of IT and SAP know-how together with the latest technology will ensure that the SAP SRM solution provides the best possible support for a company’s procurement orga- nization. Technology Below are just some of our services and preferred technologies: SAPNetWeaver:Providesthetechnicalbasisfortheservice-orientedarchitecture(SOA)and allowsexternalsystems,AribaCloudsolutionsandInternetservicestobeconnectedefficiently to SAP products. SAP NetWeaver Portal: Provides users with centralized access to all the systems they need – for instance, the shopping cart of an e-shop in SAP SRM or the associated order in SAP ERP. This simplifies the use of the portal and saves time and money. Application and process-controlled workflows: Enable you to set up, define, and implement approval processes, for instance for shopping carts, contracts, purchase orders, and goods receipt in SAP SRM. SAP Adobe Interactive Forms: Enable you to transfer relevant data from SAP applica- tions to interactive forms, which can be exchanged with other users in PDF format. This improves the communication with the suppliers. SAP Open Catalog Interface: Is an open and standardized catalog data interface for exchanging data between SAP Enterprise Buyer Professional (EBP) and the e-commerce systems of suppliers. SAP BusinessObjects: Is generally considered to be the leading market provider for for matted reporting as well as ad-hoc reporting on the basis of relational data sources. SAP Business Objects is based on the tried-and-tested BusinessObjects Enterprise platform that consists of the front-end InfoView, the Central Management Console (CMC), and the CMS as a repository for all BusinessObjects documents. -11-
  • 12. With standardization as its goal, Continental set about simplifying and improving its existing SAP SRM platform and purchasing processes, with apsolut providing application level support. With more than 21,000 users, the automotive components supplier runs one of the largest SAP SRM systems in Germany. This figure was reached in 2007 when Continental acquired the Sie- mens VDO automotive supplier division and it migrated the division’s SAP purchasing solution to its own SAP SRM 4.0 platform. However, this brought to light the weaknesses of the 10-year- old-plus solution: the system had undergone many enhancements and modifications, which made it impossible to support and develop further. Added to this was the lack of consistency in the purchasing processes across the group, which meant that there were many different user interfaces and high-maintenance interfaces to the SAP R/3 systems. Launch of the ePOS program To modernize the SAP SRM platform, Continental launched the ePOS program (Enhanced Stra- tegic and Operational Procurement Applications On Central SRM and Portal System). The tech- nical basis for this was the upgrade to SAP SRM 7.0, as well as the implementation of the SAP portal solution, and a new catalog system. In parallel to this, the purchasing processes and SAP SRM user interfaces were standardized for the requester, approver, and purchaser roles. SAP Enterprise Portal provides users with centralized access to all the systems they need and provides consolidated data in the portal and in their worklists. This saves time and reduces costs. Continental Sets the course for standardization -12- User report
  • 13. Continental expects to make further savings from the new catalog solution with its Supplier Self-Services function, which integrates suppliers into the maintenance processes. As the au- tomotive components supplier currently has around 650 catalog suppliers on board, this shifting of tasks should result in considerable time savings. Rollout across 250 locations worldwide Continental has now rolled out the new SAP purchasing platform, together with the catalog and portal solution, to 250 locations in 13 countries. The excellent cooperation with apsolut meant that the project was implemented on time and within budget. The SAP consulting firm provided application level support for the upgrade and was responsible for the preliminary study, blueprint, implementation, pilot project, and rollout. Project manager Armin Schmitt, Corporate Functions IT manager in the SRM area at Continental praises the apsolut team: “The expertise of the apsolut colleagues blended perfectly with our project teams at every phase of the project.” Plans for wider usage In the next project phases, Continental wants to make the portal technology available to the purchasers of production materials as well. The company also plans to install a sourcing cockpit and SAP functions for electronic RFxs and e-bidding. The automotive supplier is currently alrea- dy working together with apsolut on the development of a blueprint for contract management for production materials. -13-
  • 14. Stora Enso, the Finnish Group specializing in wood and paper products, relies on the power of integrated purchasing processes and has implemented SAP SRM 7.0 to introduce key inno- vations for the procurement of indirect goods. The great flexibility of SAP consulting partner apsolut contributed to the success of the project. At Stora Enso, employees previously had to follow country-specific processes when ordering of- fice supplies, work clothing, or services. These processes were mapped in a high-maintenance landscape running on an SAP back-end and SAP SRM 3.0 system as well as various satellite solutions. It is no wonder that there was a serious lack of transparency, especially as many transactions were completed without any ordering system at all. Modern shopping cart system The implementation of SAP SRM 7.0 addressed these deficiencies. Thus, the “Self Service Pro- curement” module, which was already available in SAP SRM 3.0, was enhanced and updated. Today, the company’s approximately 1,500 users have access to a fast, user-friendly shopping cart system that allows them to create and manage their own purchasing transactions. Stora Enso is making increasing use of electronic catalogs in order to automate purchasing processes further. Thanks to the seamless integration of SAP SRM 7.0 in the SAP portal solution, employees have role-based access to the purchasing solution. One new feature allows Stora Enso to use the organizational structures from the SAP HR system directly for access permissions, which eliminates the need to define the organization in duplicate. Stora Enso The power of integrated purchasing processes -14- User report
  • 15. Greater efficiency and transparency The wood and paper products group is also achieving greater quality, efficiency, and transpar- ency through the implementation of a supplier portal, which allows the collaborative manage- ment of ordering processes. With the new contract management system, all global and local supplier contracts can be stored in the centralized SRM system, allowing internal prices to be compared, purchasing volume pooled, and sourcing benefits achieved. The new supplier management function allows targeted supplier development, which leads to higher delivery reliability and fewer complaints. The project partner simplified the supplier registration process by implementing its own apsolut solution module. The new SAP SRM functions tap further savings potential for electronic RFxs and auctions. Flexible project partner When a key employee at Stora Enso dropped out of the project, the SAP SRM 7.0 implemen- tation was under extreme time pressure. The fact that the project was still completed within a reasonable period of around 18 months is partly due to the flexibility of the apsolut team. „The apsolut team reacted quickly and efficiently to our requirements, which made us more certain than ever that we had chosen the right partner for our project. During the selection process, we were won over by apsolut’s high level of SAP and pro- cess expertise, combined with its extensive experience and flexibility“, says project manager Jürgen Schellewald, purchasing manager at Stora Enso, summing up the project. -15-
  • 16. Following the merger between Sparkassen Informatik und FinanzIT, Finanz Informatik imple- mented new processes and SAP SRM to bring its purchasing organization up-to-date. As a long-standing SAP consulting partner, apsolut was a driving force behind the project. The goal of the restructuring process was to ensure that external IT services were processed promptly and paid on time. These services constitute a major part of the procurement volume of Finanz Informatik. Furthermore, the IT service provider of the Sparkassen financial group wanted to have accurate and up-to-date commitment values at all times for corporate manage- ment purposes. The processes required to do this were defined initially within the scope of a business concept. Power users for purchase requisitions A key step is the bundling of purchase requisitions in the form of power users in the business departments. They can familiarize themselves so well with the new SAP SRM solution that in- correct entries are minimized; at the same time, fewer SAP licenses are necessary. In addition, the power users are responsible for the direct posting of incoming delivery notes and activity reports, which were previously posted in the central purchasing department and were a consi- derable burden, particularly at the end of the month. To streamline the approval processes, business area contact persons were named, who now only inform the person responsible for a cost center by e-mail that a transaction has been ap- proved. Manual activities are reduced through the electronic activity reports of suppliers, which are posted automatically into SAP SRM. Finanz Informatik Benefits from transpa- rent purchasing transactions -16- User report
  • 17. Seamless integration into the SAP back-end system The second stage of the project was to implement the business concept in the SAP SRM solu- tion, which was seamlessly integrated into the SAP system landscape of Finanz Informatik. As a result, large amounts of the data required for a purchasing transaction, such as cost centers or material groups, can be transferred automatically from the SAP back-end system into SAP SRM. There is no need for time-consuming manual data entry, as the data in the purchasing process is available without any additional master data maintenance. In addition, SAP SRM provides Finanz Informatik with the strategic advantage of being able to view the entire purchasing transaction – from the approval, to the purchase order, to the goods receipt. Thus, for example, the supplier services can be compared more accurately and better conditions negotiated. Practical ideas for implementation Throughout the project, Finanz Informatik was supported by SAP consulting firm apsolut, which had already nurtured close partnerships with both of the predecessor companies. “The apsolut consultants won us over with their understanding of the fundamental purchasing processes. They were always able to understand what we needed or wanted and come up with practical ideas for the technical implementation of these requests,” says Dieter Nefigmann, project manager for Finanz Informatik, describing the expertise of the SAP partner. -17-
  • 18. Faster, clearer, and more cost-effective procurement of construction and other services: this is the successful result of an SAP SRM 7.0 upgrade implemented by Infraserv Höchst in collabo- ration with apsolut. The industrial service provider and site operator of the “Industriepark Höchst” industrial park offers its customers from the chemicals, pharmaceuticals, and related process industries highly complex technical infrastructures. To achieve this, some 2,800 suppliers from all over Europe supply the company with materials, as well as construction and other services. Although the procurement of services in particular requires an active supplier and contract management system, the company operated largely on the basis of manual contract release orders until now. This meant that employees had to create their requirements within certain sizes based on existing service framework agreements. To do this, they filled in an order form in the SAP ERP system. New functions implemented Infraserv Höchst was already running SAP SRM 4.0 for the catalog-based procurement of C- items. The industrial service provider was one of the first companies to perform a technical upgrade to SAP SRM 7.0 and implement the new functions. The focus was on strategic contract and supplier management, the procurement and tracking of services, the processing of free-text orders, as well as a bidding tool. Infraserv Höchst Optimizes the procure- ment of services -18- User report
  • 19. With the support of SAP consulting firm apsolut as project partner, the company was won over by the high level of expertise in strategic and operative SAP purchasing. Höchst project manager Ralf Sommer sang the praises of apsolut: “The consultants respon- ded excellently to our requirements right from the start, and have implemented the right solution for our central purchasing department and the business users.” On the whole, the SAP SRM 7.0 implementation ran smoothly, thanks to thorough preparation in the form of requirement specifications and the close collaboration with apsolut. Greater transparency, lower costs A key benefit of the new SAP SRM solution is the transparency of the purchasing processes and the associated cost savings. Infraserv Höchst can define the right number of suppliers and select the right suppliers in each case. Costs are reduced through strategic negotiation, execution, and control of supplier contracts. Added to this is the time saved with operational purchasing based on the newly integrated SRM processes. Now that the users no longer create their requirements in purchase requi- sitions, but using SRM shopping carts instead, the throughput time for an order is now just a matter of hours. “All in all, we have managed to visibly streamline the procurement of construction and other services and, at the same time, reduce process costs,“ adds Ralf Sommer, summing up the project successes. -19-
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