You can use this business process to process all your requirements and optimize your source of supply for each individual item. You can identify saving opportunities and evaluate suppliers in their ability to provide materials and services at low cost, high quality, and according to schedule.

Once you have determined the best source of supply (e.g. via RFXs or auctions) for your requirements, you can collaborate in project teams both internally and with your suppliers, and establish on-going relationships based, for example, on contracts and global outline agreements.

mySAP SRM offers a lean yet powerful tool within mySAP BI to consolidate and harmonize master data (vendors, products, product categories) for reporting purposes. This local master data alignment allows you to identify and group duplicate vendors or products coming from the various procurement systems. In the spend analysis reporting, such a group will appear only as one consolidated entry instead of multiple entries (that is, one for each original item).

A huge variety of analyses are available, ranging from "Top Suppliers", "Number of suppliers per product category" to "Purchasing Volume per quarter" and many more.

The purchase order processing is part of the (operational) procurement of materials and services. The main task is to convert demands to purchase orders (with or without reference to a contract) or delivery schedules for a scheduling agreement and to monitor the fulfillment of these documents.

Release Processing means the receiving of Scheduling Agreement Releases/Delivery Schedules from a customer side ERP system, for visibility and access of these material requirements from the point of view of a Supplier. The supplier can compare release updates and create subsequent ASN message to indicate shipment of goods.

Supplier Managed Inventory Processing is a replenishment process were the Supplier assumes responsibility of the replenishment planning and execution, instead of the Customer (or Customer's ERP/MRP system). The Supplier recieves updates on gross demand (dependent requirements) and stock in SAP ICH, and uses min/max stock level logic to calculate a suitable replenishment plan, and consequently creates PO's and ASNs to indicate plan commitment and shipments, which updates the Customer's ERP system accordingly.

Invoice is a document that states the invoice recipient's obligations to the vendor or service provider.

An invoice is normally created after the goods receipt or service performance has been confirmed. It includes general invoice information, such as total amount, total tax, freight costs, vendor and invoice recipient, and detailed information (header information, item information, approval preview).

The invoice can be processed in SRM or in ERP.