SAP Supplier Relationship Management (SRM) enhances the procure to pay process for customers running the SAP ERP system. For more information, contact Cohesion, Inc on 650 591 9122, demo@cohesion.biz or visit http://www.cohesion.biz

1. Supplier Relationship Management
(SRM) Functionality in SAP Business
All-in-One
Executive Summary

2. Procurement Organization Continues to Gain
in Strategic Importance
Procurement organization aspires
Business has pressure to
to increase purchasing power
Percentage of all authorized spending goes through procurement process
 Control spiraling purchasing costs
 Minimize sourcing and purchasing Not Fulfill By
inefficiencies Procurement
Process
Fulfilled By
 Enforce contract compliance 51% Procurement
Process
 Automate supplier collaboration 49%
Source: Technology Buyer Insight Survey, Forrester Research (Feb 2010)
Business Priorities Goals
 Ensuring lean, compliant  Improving operational execution
procurement operations and savings realization
 Gaining efficiency and savings  Closing the loop with suppliers, users
through integrated processes and finance
 Minimizing purchasing complexities  Delivering easy-to-use procure-to-pay solution
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3. Out of Control Procure-to-Pay Processes Are
Contributing to High Costs
Operational Issues:
 Maverick buying and disparate purchasing practices limits
purchasing power
 Ineffective purchasing policy compliance
 Slow, error-prone, and inefficient procurement operations
 Lack of visibility of purchasing transactions leading to
spiraling costs
 Inability of purchasing professionals to focus on strategic
sourcing, supplier negotiation and other activities that
generate business value
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4. Only SAP Delivers Integrated End-to-End
Solutions for Midsize Companies
SRM SRM ERP ERP
Supplier Create Accounts Payable
Self-Service
Sourcing with and Process Invoice
Procurement
RFQ Purchase Order Processing
Key advantages of SRM functionality in SAP Business All-in-One
 Tight integration with the SAP ERP application in SAP Business All-in-One
 Best-in-class functionality for supplier relationship management
 Intuitive, user-friendly design for quick adoption with minimal training
 Experienced, qualified partners who can provide a quick, cost-effective deployment
 Attractively priced for mid-size companies
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5. Streamline Self-service Procure-to-Pay
Processes with Automation and Workflow
Strategic Sourcing
Self-service
Approve purchase Issue Request for
Issue Request for
Procurement for
with Requests
requisition Quotation (RFQ)
Quotation (RFQ)
Quotation
Confirm participation
Confirm participation
Request goods viavia
Request goods self-
and submit quotation /
and submit quotation /
purchase requisition
service procurement bidbid response
response
Supplier
Access and browse Select quotation / /
Select quotation
Select quotation/bid winner
from online catalogs Manager bid winner
bid winner
Operational
Purchaser
Generate operational
reporting and analyze Create , process and
key performance monitor purchase order
metrics Employee Finance
Automate matching
Process accounts
of invoice to SRM
payable invoice
purchase order ERP
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6. The Benefit: Deliver Value by Maximizing
Savings, Compliance, and Efficiency
Benefits of Self-Service Procurement
and Supplier Sourcing with Request For
Quote (RFQ):
■ Lower inventory and carrying costs by having
less on-hand inventory
■ Free up staff to focus on strategic issues such as
negotiating lower prices with suppliers
■ Enforce employee level compliance and
standardize procurement processes company-
wide
■ Reduce the complexity and time of the procure-
to-pay cycle by integrating all related activities
■ Increase effectiveness with centralized sourcing
■ Increase transaction effectiveness with supplier
connectivity and collaboration
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7. The SAP Advantage: Best-in-Class Functionality
for Supplier Relationship Management
Included in SRM functionality for SAP Business All-in-One
Part of SAP SRM 7.0 [can be added; additional licensing may be required]
Purchasing
Global Spend Analysis Category Management Compliance Management
Governance
Sourcing Bid Evaluation
Central Sourcing Hub RFx/Auctioning
and Awarding
SAP NetWeaver
Contract Management Legal Contract
Contract Authoring Contract Negotiation Contract Execution Contract Monitoring
Repository
Collaborative Direct / Plan-Driven Catalog Content
Self-Service Procurement Services Procurement
Procurement Procurement Management
Supplier Direct Document Exchange Supplier Network
Web-based Supplier Interaction
Collaboration
Supply Base Supplier Identification Supplier Development and Supplier Portfolio Management
Management and Onboarding Performance Management
The SRM Functionality in SAP Business All-in-One is based on SAP SRM 7.0, so you can:
 Leverage the latest innovations in SAP’s market leading SAP SRM product
 Start with the most relevant processes for your company and expand easily as needed
 Scalable architecture enables growth from 10 to 1,000-plus users
 Work within your budget—the solution is priced affordably for midsize companies
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8. SAP Supplier Relationship Management
Delivering a unified procure-to-pay solution
Empower Your Team Increase Effectiveness Attain Excellence
 Enable employees to  Enable adoption with intuitive  Achieve company-wide
manage their own requisitions and interactive user interface purchase compliance to
reduce costs and gain
 Automate routing and  Foster collaboration across economies of scale
approval of requisition your supplier network
requests and purchase orders  Extend full business value
 Reduce complexity with by integrating procurement
 Conduct centralized sourcing orchestrated workflow and processes with SAP ERP
to find the best source of improved visibility
supply  Adapt quickly as your
purchasing needs change
and new requirements arise
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9. Many Customers Are Seeing the Benefits of
SAP Supplier Relationship Management Solution
Reduce Costs
 Up to 20% reduction in cost in most major spend categories
 60% - 70% savings via automated bid process
 Up to 10% reduction in inventory carrying costs
Reduce Cycle Time
 Up to 75% reduction in purchase order process cycle time
 50% improvement in RFQ process cycle time
 Reduce purchase cycle time from 10 to 2 days
Increase Effectiveness
 Up to 40% of procurement transactions conducted via electronic bidding
 Up to 80% increase in supplier compliance
 20% reduction in special request POs
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10. Key Take-Aways
Business Benefits
 Optimize procurement and sourcing
 Ensure compliance through transparency
 Manage suppliers for competitive advantage Maximize
procurement
process
Product Capabilities effiectiveness
 Designed specifically for midsize companies
 Pre-configured support for self-service
procurement and supplier sourcing
 State-of-the-art Web UI
Quick return
on investment
Implementation Services
 Experienced, qualified partners
 Quick, cost-effective deployment
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11. Thank you!
© SAP AG 2010. All 12
2009 / Page rights reserved. / Page 12