Integrated Sourcing and Procurement: Product Demo

Discover how SAP software such as SAP BusinessObjects Spend Performance Management, SAP E-Sourcing, and SAP ERP allow you to close the loop between the strategic sourcing cycle and the procurement order cycle, achieve sustainable cost savings, and generate business value.

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    • Integrated sourcing and procurement. This demonstration shows how SAP solutions allow you to manage and optimize spend analytics, strategic sourcing, and operational procurement. Enabling you to close the loop between the strategic sourcing cycle and the procurement order cycle, achieve sustainable cost savings, and generate business value. Spend analytics. Keith Anderson is a chief procurement officer. His dashboard in the SAP Spend Analytics application lets him easily see opportunities for cost savings. For example, by looking at top spend by commodity, he can find opportunities to consolidate spend. By looking at off-contract spend by buyer, he can find opportunities to create contracts at lower prices. And by looking at top projects, he can identify bottlenecks and take action to move projects forward. Keith sees that one of his projects has a red status, indicating that there's a sourcing problem. By clicking on the project, he drills down into the SAP E-Sourcing application for details. He can see that there's a request for general sourcing help, and that there's a delay in approval. He can contact the approver to move the project forward. Next, Keith reviews spend by commodity in SAP Spend Analytics to find opportunities for cost savings. He sees a commodity group with a high supplier count and a wide variance between minimum and maximum unit price. When he drills down, he finds that Acme Bolts, the supplier awarded the highest spend, is providing hex bolts at the highest price. Keith will ask his strategic buyer to negotiate a lower price with Acme Bolts or consolidate spend with another supplier. Strategic sourcing. Steve Miller is a strategic buyer. He uses SAP E-Sourcing to review and award bids, and to initiate contract creation. He ran a reverse auction for the hex bolts, and Acme Bolts came in with the lowest bid. Steve can drill down for complete details on the request for proposal. He creates a master agreement directly from the auction. The agreement can then be transformed into an operational contract in the ERP system. Steve approves the operational contract, which is available for use throughout the organization. Operational procurement. Wilfred Royce is an operational buyer. He uses the SAP ERP application to create a purchase request for the hex bolts just negotiated by Steve. The operational contract created by Steve is automatically offered as a source of supply. The purchase order is automatically created and sent to the supplier. The software generates an exception report if the supplier confirms a different delivery date, price, or quantity. For this purchase request, the supplier can deliver only 900 of the requested 1,000 hex bolts. Wilfred accepts the change, which automatically changes the purchasing document. After delivery is confirmed, the invoice will automatically be created and settled. Finally, Keith Anderson, the chief procurement officer, uses the SAP Spend Analytics application to verify the newly negotiated unit price for the hex bolts. SAP solutions allow you to close the loop on sourcing and procurement, achieve sustainable cost savings, and generate business value.
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