SAP for Wholesale Distribution
The Business Process of Procure-to-Pay Management
SAP for Wholesale Distribution allows you to reduce the cost of goods sold, streamline operations, and decrease overhead costs by enabling you to better manage strategic and operational relationships with suppliers.
SAP for Wholesale Distribution covers the key activities involved in facilitating procure-to-pay management, including:
- Supplier management – With SAP for Wholesale Distribution, you can manage the full spectrum of sourcing activities, from contract management to strategic sourcing, including reverse auctioning. Plus, support for strategic sourcing enables you to aggregate global spend data for use in strategic negotiations with suppliers.
- Purchasing – SAP for Wholesale Distribution supports both investment buying and expense management. Software for load building enables you to aggregate purchases to obtain better contractual agreements based on economies of scale, reducing cost of goods sold.
- Supplier collaboration – SAP for Wholesale Distribution enables you to collaborate with your suppliers, so you can help them forecast more accurately and reduce the cost of goods sold. Support for supplier-managed inventory makes the replenishment of stock more predictable and reliable. You can reduce your safety stock and capital investment while maintaining – or even improving – service levels.
- Supplier agreements monitoring and cost recovery – With SAP for Wholesale Distribution, you can manage the chargeback process, including direct price agreements between suppliers and customers and the subsequent settlement of price differences. You can also manage one-time or periodic settlement of cumulative, retrospective, or end-of-period rebates with either suppliers or customers.
Procure-to-pay management is enabled with SAP applications such as SAP ERP and SAP Supplier Relationship Management (SAP SRM). To find out how these applications can help you improve your procure-to-pay management, please complete the "Contact SAP" form and request information about enterprise resource planning or supplier relationship management.