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Why Sourcing and Procurement Will Never Be the Same with SAP S/4HANA

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Learn how SAP S/4HANA is transforming sourcing and procurement.

Get more information here: http://scn.sap.com/community/business-trends/blog/2016/08/01/why-sourcing-and-procurement-will-never-be-the-same-with-sap-s4hana

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Why Sourcing and Procurement Will Never Be the Same with SAP S/4HANA

  1. 1. Meet Steve! (-$125) (+$) ? ? ? ? ? X-Quantity X-Date X-Price -Quantity -Date -Price $ Steve’s a procurement officer at a manufacturing company that just unveiled a promotion. The promotion was met with an overwhelming demand, and Steve’s supplier is now struggling to deliver the required quantities. He’s also a procurement officer working for a similar company facing the same issue of overwhelming demand and a struggling supplier. Luckily, his company runs SAP S/4HANA for Sourcing and Procurement. Despite the fact that the company has sourced that exact same item from other vendors in the past, Steve has no search function that enables him to easily locate these vendors. Mark quickly types in the required material number in his S/4HANA Google-like search box. He instantly locates all the suppliers that have delivered the material in the past. Even after the painstaking process of identifying suppliers, Steve doesn’t have access to real-time supplier analytics to evaluate whether the new suppliers can actually meet the surge in demand. Mark has access to real-time KPIs including procurement spends, delivery dates, and quantity deviations. He quickly evaluates the suppliers and chooses one that can meet the demand spike. Because his system isn’t integrated with his suppliers’, Steve relies on fax, email, and mail to send purchase orders, order confirmations, and invoices—taking weeks for anything to get done. After confirming the supplier can deliver, Mark sends the purchase order via the Ariba Network, which immediately confirms receipt order and electronically submits the invoice. Steve doesn’t have an easy way to measure and track his spend across different suppliers and materials. He can’t negotiate efficiently with suppliers and often misses his target budget spend. Mark can easily track his spend across different suppliers and materials to compare against goals, enabling him to effectively negotiate his spend and meet his budget targets. While stock-outs lost customers and revenue for Steve’s company, Mark was able to take advantage of the seasonal promotion and meet the spike in customer demand. As digital technology continues to transform procurement functions, SAP S/4HANA is the solution to help your company run live. For more information about SAP S/4HANA, visit sap.com/s4hana. 2. Supplier Evaluation 3. Supplier Collaboration 4. Spend Management 1. Material Search 3. Supplier Collaboration 4. Spend Management 1. Material Search 2. Supplier Evaluation 3. Supplier Collaboration 4. Spend Management 1. Material Search 2. Supplier Evaluation 3. Supplier Collaboration 4. Spend Management 1. Material Search 2. Supplier Evaluation 3. Supplier Collaboration 4. Spend Management 1. Material Search 3. Supplier Collaboration 4. Spend Management 1. Material Search 2. Supplier Evaluation 3. Supplier Collaboration 4. Spend Management Transforming Sourcing and Procurement with SAP S/4HANA Now meet Mark!

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