What’s new and coming in SAP Procurement Solutions?

Paul Hodgson: Solution Principal

SAP UK & Ireland Presales

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Demand for

Rapid

Productivity

Globalization Sustainability Economic Recovery

Focus on Efficiency

Growing

Supplier Risk

Importance of

Governance

Continued

Focus on Costs

Global trends are driving change in procurement practices

SAP Procurement Solutions – Current and Future

SAP Procurement Portfolio Enables the End-to-End Source-to-Pay Process

Spend

Analytics

Process

Adherance

Sourcing

Contract

Management

Operational

Procurement

Invoice

Management

Supplier Mgt: Across ALL categories and sources of spending

– direct, indirect, and services

Enablers:

Master Data Harmonisation + Integration

SAP Spend Performance Management 3.0 (Q1 2012)

What-If Simulations Use of TCO, Formulas

Advanced Analytics Savings Analysis, DPOs

UI-Based DEC Capability Enhanced Starter Kits

Leverage of BusinessObjects Charting, Xcelcius

Updated Landing Page Favorites, Recents

3rd Party Risk Rating

3rd Party Credit Rating

3rd Party Legal Rating

Government/ Public data

Newsfeeds

Integrated Data Management Enables Accurate Spend Visibility of Reliable Spend Data

Global Business Compendium

Transactional Knowledge

Base

Phase 1: Supplier Data Standardization & Enrichment

Phase 2: Spend Data Classification

SAP SRM Non-SAP Spend data

P-Card/ T&E

SAP extractors (ECC, SRM)

Data Integrator ETL license for non-SAP systems

Support to bring in 3rd party data feeds

Global coverage

150M+ businesses

$ 250B+ Spend Transactions over 50+ Industries

Supplier Financial / Risk data

Diversity / Government watch lists

Over 150 pre-built spend analysis models

Out of the box support for supplier risk analysis

Set and Track Performance Targets with Spend Advisor

Comprehensive set of Analytics functionality

Briefing Book supports stakeholder collaboration

Data Integration*

Spend Data Validation, Enrichment and Classification

Spend and Supplier Risk Analysis*

* Note: Spend and Supplier Risk Analysis is a separately priced solution “Spend Performance Management, Data Integration is part of that .

SAP ERP SAP SRC/CLM

Beyond Analytics

Key Features

Business Simulations for

better decision making (

What-if analysis)

Performance Management

ability to set targets and

measure in comparison to

actual. Track spend targets

against price or volume

Business Synergy (Identify

Leakage and take actions to

better leverage the supplier

base)

Data Enrichment and Classification 1.0 OnDemand Solution Overview

How can I aggregate all my spend data in one place and be sure it’s

accurate?

Easily manage accuracy and completeness of company-wide spend data from multiple sources

Gather data from SAP and non-SAP sources

Data Collection

My supplier identities are obscured due to poor data quality and lack of

content!

Increase leverage opportunities with normalized suppliers

Improve decision-making with enriched content

Enrichment

How do I know what I’m really buying?

Increase visibility to both direct and indirect spend

Improve understanding of spend activity with a consistent structure for goods and services

Classification

How can I add my own knowledge into the

process?

Incorporate subject matter expertise with the Revision tool

Changes apply to current cycle and future cycles for continuous improvement

Revision

SAP BusinessObjects BI Platform - Universe Integration Advanced Graphical Analyses and iPad Integration

SAP BusinessObjects

Spend Performance

Management

Flex UI

SAP NetWeaver BW

SAP BusinessObjects

Analysis

SAP BusinessObjects Web Intelligence

SAP BusinessObjects

BI Platform

SAP BusinessObjects

Explorer

iPad Client (SAP BusinessObjects

Explorer )

SAP Sourcing OnDemand - Wave 8 (generally

available)

Terms Management

Pricing Conditions

Workflow Delegations

Sourcing Activity

New Dashboard

Supplier Scorecarding

Improved Scorecard Definition Process

RFx Editability Highly enhanced

Pricing Conditions can be created manually or loaded from an ERP system

Each Pricing Conditions has different attributes

like an ID, Name, a longer description for RFx

Response, etc.

Multiple conditions per line item

Integrated for ERP Contract Publishing

Sourcing activity dashboard - purchasing overview

Content Controls Embedded Values in MS Word

Data Synchronization Between the Header and MS Word

Electronic Signatures With EchoSign

Clause Change Management Driving Dynamic Workflow

SAP CLM Wave / Version 7.0 SAP CLM OnDemand Wave 8

Electronic signature management

Clause change management

SRM Central Contracts Integration Publishing to SRM and Multi-ERP

Extended Browser Support Chrome, Firefox, IE9.0

Enhanced Supplier Survey Collaborative Web UI

Enhanced Authentication Open SAML 2.0

SAP Sourcing OnDemand Wave 9*

*Planned as of Nov 2011, subject to change

SAP SRM 7.0 EHP1 with SAP ECC 6.0 EHP 5 – What is new?

Highlights

Usage of central contract also

for services

Functional improvement in the

bidding engine

Embedded contract analytics for

central contracts

Central purchasing hub

Highlights

Offline bidding via SAP

Interactive Forms software by

Adobe

Bid response processing within

supplier self-services

Enhanced supplier registration,

qualification and on-boarding

Supplier collaboration

Highlights

New shopping cart as part of

ERP employee self-services

Additional scenarios for the one-

client deployment

Usage of SAP SRM without a

portal installation

Preconfigured scenarios for

BAiO customers

SAP ERP

e-procurement

SAP Business Suite 7 Innovations 2011 SAP SRM 7.0 EHP 2 and SAP ERP 6.0 EHP 6

Highlights

Availability of Sustainability

information in Catalog While

Shopping

Enhanced Supplier & Info

Record Masters

Sustainable Supplier Evaluation

and Monitoring

Sustainable Procurement

Highlights

Unknown Account Assignment

Category

Enhancements for Public and

Regulated Industries

Un-Bundled Service Line Items

SRM Catalog Visibility – Flat

and Hierarchical Views

Improved ERP Integration for

Info Record & Source List

Updates

Continuous Procurement

Innovation

Highlights

Quick Quote (RFx) from

Shopping Cart

Shopping Cart Modifications

from Sourcing

Improved Sourcing Decisions

with Embedded Analytics

Enhanced Bid Comparison

Streamlined Operational

Sourcing

Sustainability parameters in catalog

Context/Use Case

Managers can approve employees’ shopping carts

from a mobile device

SAP Cart Approval

Return to Table of Contents

Value Added for Customer

View list of shopping carts to be processed

View shopping cart

View product details

Approve/reject shopping carts with comments

View requestor/approver details

VA

LUE

DES

CR

IPTI

ON

SAP Supplier Lifecycle Management **

Supplier Management is a holistic approach to managing supplier relationships.

It deals with the supply base as a whole to constantly determine the right mix of suppliers.

It encompasses the whole lifecycle cradle to grave of individual suppliers from on boarding via continuous development to an eventual phase out.

Homogeneous pools of suppliers are managed by Category Managers within a

Purchasing Category.

** Dates are indicative, subject to change

Supplier Registration

Supplier Qualification

Supplier Evaluation

Supplier Classification

Supplier Order Collaboration

Supplier Development

Supplier Phase Out

Category

Management

Sep

2011

Sep

2011

Sep

2011

Sep

2011

Q1

2012

Q1

2012 Q3

2012

Q3

2012

A holistic application to manage

supplier information and performance

that works with SAP ERP and SAP

SRM

SAP Supplier Lifecycle Management

SAP Supplier Lifecycle Management as ERP Add-On

SAP

ERP

SAP SRM

SAP Supplier Lifecycle Management as SRM Add-On

ERP

A cloud-based business social network to predict supplier risk and manage operational performance

Supplier InfoNet - Minimizing supplier disruption in a complex world

Is There a Problem With One of The

Suppliers Hidden Below Them?

Leverage Social Networking Models to

understand risk with your supplier’s

connected suppliers

React to problems that were unforeseen

before

Will They Behave The Same in

The Future?

We track news alerts, government data &

financial information to predict future

behavior

We leverage cutting-edge machine

learning tools to improve on these

predictions

Do They Perform Well for

Others?

Compare your experience with others in

your industry, across a multitude of

KPI’s

-Delivery, Quality, Financial

Track a Supplier’s Global KPI

performance over time

Views into your sub-tier supply base

Pooled KPI Benchmarks Strong Predictions of Operational

Risk

SAP Rapid-Deployment Solutions You get what you need to run your business ‘out-of-the-box’

Clearly defined scope

Includes pre-configured content and knowledge transfer to key users

Fast-track implementation methodology

Fix Scope

Based on the proven SAP SRM solution for Self-Service Procurement

Start fast, with what’s most important, and expand later

Seamless integration with your existing ERP

Enables you to go live in as little as 10 weeks

Fix Timeline

Flexible pricing – ‘only pay for what you need’

Attractive fixed-price services

Reduced resource requirement from Business and IT

Fix Price

Customer

Sales

Performance

Management

Sales

Analytics

Sales

Contracts

Management

Quotation

Management

Order Capture

Opportunity

Management

Activity

Management

Account &

Contact

Management

Sales

Planning

&

Forecasti

ng

SAP SRM Rapid-Deployment for Self-Service Procurement Package contents high-level

Full project support including going live

Shopping cart functionality including:

2 external catalogs (OCI compliant suppliers)

Internal goods/services (material and service masters) without service hierarchies

Free-text

Different deployment modes and one backend connection

Standard SAP process controlled workflow (optional 4 levels of approval)

Replication of product categories, materials, services, UoM, & suppliers from ERP- backend system (depending upon scenario)

SAP Ecosystem

SAP Procurement solutions Extended by partners

Infrastructure vendors

Software vendors

BPO services partners

System integrators

Spend

Analytics

Supplier Management

Sourcing Contract

Management

Operational

Procurement

Invoice

Management

SAP Procurement portfolio Enables choice of deployment

On Premise

SAP

On Demand

SAP

BPO Enabled through Partners

Get Going with SAP Procurement Solutions!

SAP value discovery offer Helps you identify and prioritise quick wins

Set a Baseline with SAP’s Benchmarking Program, and Track Ongoing Progress Through BusinessObjects Dashboards

Delivers the complete processes for sourcing, supplier mgt and contract creation

Why Do Executives Choose

SAP Source to Pay Solutions?

Optimised contract compliance

Delivers deep bi-directional integration within the source to contract process and into ERP

Flexible deployment options: On Premise, On Demand, BPO (Hybrid)

Ensures standard automated and auditable Procure to Pay processes

Reduces risk in contract terms and conditions

Thank You!

• Contact information:

• Paul Hodgson

• Solution Principal – Source to Pay

• SAP UK&I

• +44 (0)7966 975601

• Paul.hodgson@sap.com