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8/3/2019 2005 04 Sapphire Eu SPS04
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EXPERIENCE YOU CAN TRUST
INSIGHTS YOU CAN USE
INNOVATION YOU CAN PROFIT FROM
Bernd BergmannDirector NetWeaver & ESA Adoption,SRM Strategy, SAP AG
Evolving your EnterpriseArchitecture for SupplierRelationship Management
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EXPERIENCE YOU CAN TRUST
INSIGHTS YOU CAN USE
INNOVATION YOU CAN PROFIT FROM
Enterprise Service Architecture for SRM
Your ESA Roadmap for SRM
The Challenges in SRM Today
mySAP SRM powered bySAP NetWeaver Start ESA Today
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SAP AG 2005, SAPPHIRE Copenhagen / SPS04 / Bergmann / 3
Management Concerns and Business Challenges
Legal regulations
Capture innovation from
suppliers
Adaptiveness
Measurement of realizedcost savings
Measurement of execution-compliance on a global basis
Cost reduction
Sourcing strategy by
category Achieving optimal mix of
suppliers
Multiple strategiesimplementation
Track supplier contractcompliance
Actionable intelligence
Supply Strategy
Development
Profitability (performance,benchmarking)
Control of external andinternal processes
Visibility/Intelligence
Ability to flexibly shift bet-
ween different strategies andbusiness models (e.g. Cost,Innovation, QualityLeadership
Business flexibility
Top line
growth through
business
process
innovation
Bottom line
growth through
increased
productivity
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Collaboration with suppliers Supplier on-boarding
The IT Challenges in Supply Management Transformation
Consolidation &
Standardizationof technologies
Composition
that leveragesexisting
investments Automate processes
Execution of cost savings Lowering of IT-Costs
Cost reduction
Only for high-volume
transactions and somesuppliers
Transitioning
Increase supplierconnectivity
Supporting changemanagement measures
Skill transfer and training
Change management
Supplier and product dataquality
Harmonize data fragmentedby division, country, spendcategory
Data quality
Cross-functional process
integration Avoid value leakage from
non-integrated systems
Process integration
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EXPERIENCE YOU CAN TRUST
INSIGHTS YOU CAN USE
INNOVATION YOU CAN PROFIT FROM
Enterprise Service Architecture for SRM
Your ESA Roadmap for SRM
The Challenges in SRM Today
mySAP SRM powered bySAP NetWeaver Start ESA Today
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eBidding in SRM: Evolving Business Process
eBidding as competitive
differentiator
Supplier qualification
(eBidding) standardized
eBidding out-tasked
(option)
eBidding extended by
an order of magnitude
COMMO-
DIZATION
INVENTION
INNOVATION STANDARD-
IZATIONCONSOLIDATE
COREFocus: Differentiation
CONTEXTFocus: Productivity
COMPOSE
RETIREINVENT
SCALE
INSOURCE
OUT-TASK
Extended from 10s to
100s of events
Leverage industry
best practices
Automotive company
looking to lower theirprocurement costs
Out-task services
(supplier discovery &check, etc) to lower-cost
countries
CategoryMgmt
T d IT Dil i S i E ti C l
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Todays IT Dilemma in Sourcing Execution: Complex,Custom Built Integration
is extremely difficult: New platform
New skills
New integration
Hard-wired Enterprise
Systems
Innovation cannot easily
leverage existing investments
People as
Human Integrators(Process is captured only in peoples
heads)
COMPOSE
CONSOLIDATE
N-tier
suppliers
(partner)
N-tier
suppliers
(partner)ShippingShipping
SupplierMgmt
SupplierMgmt
RFx(Internal)
RFx(Internal)
Procure-ment
Procure-ment
CategoryManager
SupplierPurchaserMaterialManager
Requisi-tioner
ESA Increases Business Process Flexibility at Lower
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PLM(Internal)
ERP(Internal)
ESA Increases Business Process Flexibility at LowerCost
Sourcing Delivered as Best Practice in mySAP SRM
Ease of consolidation
and standardization of
loosely coupled
systems to a tightly
integrated SRM
system deliveringcross-functional
processes
CONSOLIDATE
SAP NetWeaverComposition Platform
Purchaser
SupplierMgmt
SourcingCRM
(Internal)Procure-
ment
Consolidate
(SRM)
Category
ManagerSupplierRequisitioner
Event
Mgmt
Bidding AwardingPre-Event
processing
Create
Contract
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PLM(Internal)
ERP(Internal)
SAP NetWeaverComposition Platform
Moving the supply-
base to low cost
countries:
Purchasing activities
delegated / out tasked
but the OEM retainscontrol over the
sourcing process
ESA Enables New Business Strategies
Event
Mgmt
Bidding AwardingPre-Event
processing
Create
Contract
Supplier
(external)
Service
Provider
(external)
SRM
PurchaserCategory
Manager
Service
ProviderRequisitioner
IT Needs to Adapt to Changing Business ModelsOUT-TASK
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SAP NetWeaverComposition Platform
ESA Enables Greater Process Innovation
Datacleansing
& pricing
RFQ
execution
Bid
comparison
Receivecustomer
RFQ
Approval
& KPI
comparison
Supplier
(external)Supplier
(external)
SalesRepresentative
CategoryManager
Material
ManagerPurchaser
SalesRepresentative
Flexibility for Business Process Innovation
COMPOSE
Create Innovative
Composites - Based onmySAP SRM Sourcing(example xCQM)
Integrate real-timestructured andunstructured data
Accelerate the quotationresponse time andoptimize the quotingprocedure
Improve the quality andaccuracy of quotations
PLM(Internal)
ERP(Internal)
SRM
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ActivateService
RFQ
CreationInitiateBidding
Extensibility
The Unique Value of Business Flexibility in Sourcing
Efficiency/
Automation
User Productivity
Linking supplier bidding systems with own system Varied sourcing options for different categories
Better supplier evaluation optimization
Consolidate Supplier info from multiple systems
Centralized sourcing: aggregate demand from various sources(plants, etc)
Collaborative RFQ creation
Identify demand check inventory level trigger an automaticsourcing process
Identifying new suppliers and on-boarding them
Flexible ProcessInnovation /Extensibility
Increased User
productivity/Collaboration
Increased ProcessEfficiency /
Automation
Pre-Eventprocessing
BiddingEventManagement
Optimization AwardingCreate
Contract
Category Manager Supplier
Spendvisibility
New Services
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The Unique Value of IT Flexibility in Sourcing
Open standards to achieve interoperability with Supply chain
partners
Flexible process Implementation for multiple Product categories
User-specific information for real-time exception detection, alerts
and workflow (e.g. allowing faster demand aggregation) Robust engagement arrangements internally & externally
Consolidated and harmonized real time information from multiple
systems
Consolidated view to aid Decision Support
Increased
Flexibility inDeployment andExtensibility
Increased
Collaborationand Visibility
Ease of Integration
and Consolidation
Deployment
Flexibility
Business Process Platform
Collaboration
PLM
ERP
L
egacy
S
ervice
Provider
Supplier
SRM
Integration
Category
ManagerRequisitionerSupplier Purchaser
Procure to Pay Scenario on Customer and Supplier
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Procure to Pay Scenario on Customer and SupplierSide
Buying/customer side (P2P)
Selling/supplier side (O2C)
Logical deployment unit
Purchase
Order
Processing
Payment
Processing
Internal
Request
Processing
CustomerInvoice
Processing
SalesOrder
Processing
Supplier
Invoice
Processing
Payment
Processing
Sales OrderQuote
Processing
Goodsand
Service
Confirmation
ServiceConfirmation
Processing
Purchase
Request
Processing
RFQ
Processing
Due
Item
Processing
DueItem
Processing
P bli S t R i S ifi T d i P
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Public Sector Requires Specific Tendering Process
PublicSector
Tendering
Purchase
Order
Processing
Internal
Request
Processing
Supplier
Invoice
Processing
Payment
Processing
Goodsand
Service
Confirmation
Purchase
Request
Processing
Due
Item
Processing
Tendering
Financing
Bidders
Schedules
Description of Services
Bid Invitation
Receive Bids
Bid Opening
Evaluate Bids
Bidder Proposal
Bid Acceptance
Amendments
AI D S i
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AI Demo Scenario
Shopping
Cart
Processing
Supplier
Creation
Create Po
Match SC
Sourcing
Cockpit Approve
Shopping
Cart
Status?
Shopping
Cart
Status?
Check
Budget
Financials
Financing
Candidates
Schedules
Documents
Create
RFQPublishing
Quotations
Opening
Evaluation
Selection
Employee Employee Employee Employee/
Buyer
BuyerBuyer
Create
RFQ
RequestStatus
RequestStatus
Check ifbudget
available Create
Vendor Create
PO
Automated Automated
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EXPERIENCE YOU CAN TRUST
INSIGHTS YOU CAN USE
INNOVATION YOU CAN PROFIT FROM
Enterprise Service Architecture for SRM
Your ESA Roadmap for SRM
The Challenges in SRM Today
mySAP SRM powered bySAP NetWeaver Start ESA Today
mySAP SRM is Powered by SAP NetWeaver
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mySAP SRM is Powered by SAP NetWeaver
Supply Strategy Development
SAPBusiness Intelligence
Spend Analysis
SAPMaster Data Management
RequisitioningSAPMobile Business
Supplier Negotiation
SAPWeb ApplicationServer
Order Collaboration
SAPEnterprise Portal
Supplier Connectivity
SAPExchangeInfrastructure
Supply Strategy Development
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Supply Strategy Development
Capture, analyze, and follow up on supplier performance
Typical issues Data captured in multiple systems
Rudimentary analytical capabilities
Inability to track supplier compliance No actionable intelligence
SAP NetWeaver enables Category management (e.g. actionable
dashboard with category specific
supplier data accumulated from
multiple systems)
Spend Analysis
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Spend Analysis
Create a common view of data
Typical issues
Many (incomplete) data sources
Inaccurate supplier and product data
Multiple classification schemas
Limited visibility on total spend
SAP NetWeaver
enablesMaster data harmonization
Business Unit A
Product ID:
1447 Battery1447Batter
Business Unit CProduct ID:
455-BJ-Spain
Business Unit B
Product ID:
34 987 01
34 987 02
34 987 03
Supplier Selection
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Supplier Selection
Conduct online reverse auctions
Typical issues
Scalability and stability
Security
Chat and message archiving
Real-time monitoring
SAP NetWeaver
enables Adding a new level of security
and scalability to
Web-based business(e.g. Live Auction Cockpit)
Self-Service Procurement
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Self-Service Procurement
Anytime, anywhere access
Typical issues
Reliance on manual processes
Long lead times Low user acceptance
No access outside office
SAP NetWeaver enablesMobile procurement (e.g. remote
approval & replenishment orders)
Accommodating mobile professionals may removeone of the final barriers to effective spend capture
Order Collaboration
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Order Collaboration
Build a supplier portal
Typical issues
High transaction costs
No inventory visibility Limited involvement in design
SAP NetWeaver enables
Web-based supplier
self-service (e.g. online
registration & status
monitoring)
Supplier Connectivity
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Supplier Connectivity
Exchange Electronic Documents
Typical issues
Thousands of suppliers
High cost for EDI connections Emerging standards for XML
Vastly different supplier needs
SAP NetWeaver enables Processes extended to suppliers
(e.g. inventory data exchange)
SAP Supplier Network
PHONE, FAX
PROCESS
COLLAB.
SUPPLIER
PORTAL
DOC.
EXCHANGE
100%
SUPPLIER INTERACTIONS TOMORROW
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EXPERIENCE YOU CAN TRUST
INSIGHTS YOU CAN USE
INNOVATION YOU CAN PROFIT FROM
Enterprise Service Architecture for SRM
Your ESA Roadmap for SRM
The Challenges in SRM Today
mySAP SRM powered bySAP NetWeaver Start ESA Today
ESA: Start Today With SAP Solutions Powered bySAP NetWeaver
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SAP NetWeaver
Process Efficiency Process/Business
Model Innovation
Integrate
Com
pose
Mo
del
Process Flexibility
Strategic approach to ESA
Tactical Approach
Evolve ITinfrastructure
Evolve
business
practices
Enable flexibleshift between differentsourcing strategies bycategory
Increasecollaborationwith suppliers
Increasevisibility/analytics
in Sourcing
Value
Your ESA Roadmap with SRM Powered by SAP NetWeaver
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p y
Extend your usage of mySAP SRMUse the procurement and sourcing best practices delivered with mySAP SRMbased on a common platform & open, standardized interfaces.
Increase analytical capabilitiesSynchronize execution across multiple internaland external groups based on common analytical datawith SAP BI.
Expand your supply-baseExtend your sourcing processes by integratinginternal & external application and leveragingIndustry standards with SAP NetWeaver XI
Extend user productivityCreate your own Enterprise Portal roles with role-specific iViews providinguser-specific information, real-time exception detection, alerts and workflow.
Functionality
Value
Biz
Value
Biz
Value
Biz
Value
Biz
Value
ESA: Turn IT into an Enabler of Flexible BusinessStrategies
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Strategies
Consolidate and
Standardize processesfor higher Productivity
Build processes fast, cost
efficient and in high qualityfor Differentiation
SAP NetWeaver
Business Process Platform
Legacy3rd
PartyBuyer
EnterpriseServices
Repository
Composite Apps
by SAP
SAPPartner
SAPSRM
SAPERP
PlatformApplication components
Legacy Custom
Dev
Composite Apps
by PartnersComposite Apps
by Customer
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