SAP Supplier Relationship Management (SAP SRM) enables access to all contracts in a secure repository, enabling procurement to monitor, identify, and reduce maverick buying. When integrated with the SAP ERP application, SAP SRM can serve as a centralized repository for all operational procurement contracts.

SAP SRM assesses requirements and identifies the optimal contract to fill a specified need, taking into consideration such factors as price, delivery time, and location. The application can account for different types of discounts, such as value discounts, quantity-based stepladder discounts, group discounts, or rebates based on aggregated released values.

SAP SRM supports the following contract management processes:

• Contract creation – Create an operational contract from a bidding event, renewal, or net new. SAP SRM enables mass updates and appending of contracts based on a winning bid via an easy wizard interface.
• Contract execution – Use contracts as a "source of supply" across SAP SRM and one or more integrated back-end systems, track contract usage, and drive compliance to negotiated terms – achieving realized savings.
• Contract monitoring – Track contract performance and compliance to agreed-upon terms and conditions using configurable alerts.