It is estimated that sourcing accounts for up to 75% of the total opportunity for procurement savings within an enterprise. But to capitalize on such opportunities, companies must carefully weigh cost-reduction goals against issues of quality, risk, and innovation. SAP SRM helps companies strike this balance using a systematic approach for formulating and optimizing a global sourcing strategy.

With tools for analyzing global spend, evaluating historical buying patterns, consolidating and anticipating supply needs, and tracking current market trends, the solution can help companies evaluate the capacity of suppliers around the world to deliver high-quality goods that match specific corporate needs.

Although developing a strategy is important, companies also need the means to execute that strategy. That’s why SAP SRM delivers sophisticated collaboration tools that cut across business units, helping users quickly assemble category specific or cross-category internal teams to leverage organizational knowledge for unit cost reductions and other targeted business needs.

Integrating processes from analyzing spend to taking actions on identified opportunities, and tracking/measuring the results while sharing knowledge in a collaborative framework are the key features of this solution.