The benefits of SAP supplier relationship management (SRM)Enhancing supplier relationship management using SAP SRMChapter 2: SAP SRM - - An Introduction By submitting your personal information, you agree that Tech. Target and its partners may contact you regarding relevant content, products and special offers. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy. SAP supplier relationship management (SRM) is used with enterprise resource planning (ERP), product lifecycle management (PLM) and supply chain management (SCM) applications to ensure an effective implementation of cross- application business processes. This chapter discusses how SAP SRM evolved from a B2. ![]() Business Management Solutions. Powerful business-wide solutions for growing and large businesses that have outgrown their financial solution. More powerful, flexible. Accounting software describes a type of application software that records and processes accounting transactions within functional modules such as accounts payable. Hi, My company is switching from Microsoft Dynamic GP to AX 2012 & I'm trying to do some test of requisition purchasing workflow. Reading & learning from several. ![]() B solution, defines the SAP components involved in SAP SRM, and explains how SAP SRM can help procurement professionals build strategic supplier relationships and streamline the procure- to- pay process. In this section, find out how SAP SRM is integrated with other SAP enterprise applications. SAP SRM provides real- time integration with ERP as the backbone, ensuring real- time data validation across SAP modules like Financial Accounting and HR. Enhancing supplier relationship management using SAP SRM, Ch. Table of contents: The benefits of SAP supplier relationship management (SRM) Understanding supply processes and concepts in SAP SRMImplementing SAP Enterprise Buyer and other SAP supply components. Chapter 2: SAP SRM - - An Introduction. Evolution of SAP SRM"With the SAP Supplier Relationship Management (SAP SRM) solution, we want to enable our customers to unleash the value potential of a holistic and strategic approach to purchasing and supply management by offering a purchasing platform for continuous savings and value generation"— Peter Kirschbauer, General Manager, SAP AG, SAP Applications. SAP introduced its e- procurement solution in 1. Since then, the solution offering and its acceptance have seen tremendous growth. The SAP SRM solution has been the fastest- growing SAP application in two of the last three years, up to 2. Customers that were early adopters of this solution remember the solution branding as Business to Business Procurement (BBP) or Enterprise Buyer Professional (EBP).Over the years, the solution has grown from a web- based catalog requisitioning solution aimed at operational excellence to the solution today that offers complete supply management.Figure 2. 1 provides a chart that shows the progression of this solution from B2. . B to SAP SRM. In 1.SAP introduced the B2.B Procurement 1. 0 solution and has since rebranded the offering from BBP to EBP to the solution available today as Supplier Relationship Management (SRM).The solution release generally available to customers today is SAP SRM 5. Recently SAP has announced plans to rebrand the SAP SRM 6. SRM 2. 00. 7. Based on current information SRM 2. SRM and SAP Enterprise Applications. The SAP SRM solution integrates seamlessly with enterprise resource planning (ERP), product life- cycle management (PLM), and supply chain management (SCM) applications to ensure an effective implementation of crossapplication business processes (see Figure 2. Note: SRM is a separate solution, independent of the R/3 or ERP solution offered by SAP. It is common for people to forget that SAP SRM is installed and implemented within its own three- tiered architectural landscape, independent from the SAP R/3 or ERP landscape. However, it is still an SAP system; the GUI for SRM is the same as for native SAP R/3, with an IMG for core- configuration. The difference lies in the actual end user interface for SRM.End users only require a Web browser to access all the transactions.Figure 2. 3 provides an example. here. Note: Until SAP SRM 5.ITS or BSP technology.From SRM 2. 00. 7 (or SRM 6.SAP will phase out ITS and BSP by introducing a portal user interface for SRM based on Web Dynpro. Benefits of SAP SRMOften it's not easy to clearly understand the business benefits within a solution offering or a new business process unless at some level we're able to understand the underlying business challenges within the organization. Once we as users realize and understand the challenges faced, we then can be open to hearing about the solutions. We frequently question why we need to change our current system or business processes. It is advisable for organizations to review the challenges faced by their internal business systems and processes and then review the business benefits offered by SAP SRM. Figure 2. 4 illustrates the business impact of strategic sourcing within organizations. According to a study done by A. T. Kearney, procurement organizations spend as much as 8. With SAP SRM, their purchasing professionals (buyers, contract administrators, etc.) can focus their efforts on building strategic supplier relationships and streamlining the procure- to- pay process. Example: Organizations using SAP SRM empower end users to keep track of their orders using real- time status checking. Requisitioners do not have to call the purchasing department to find out the status of their shopping cart request; they can use the Check Status application in SRM to monitor the status of their order. Using the Biller Direct application, your organization can enable suppliers to view the status of their invoices and view in real time what payments have been disbursed. This reduces drastically the time spent by the purchasing and accounts payable departments in handling end user and supplier calls. Opportunities and Business Benefits Within SAP SRMSolutions driven solely by technological enhancements only provide a siloed response to the competitive and strategic needs of organizations today. World- class business solutions need to use advancements in technology as a strategic advantage to provide solutions that cater to the unique business processes that exist in organizations. Organizations that are leaders in their markets and industries are better at using IT to enable business strategy. The SAP SRM solution provides benefits that exist in three realms, which are listed as follows and illustrated in Figure 2. Process benefits. Technology benefits. People benefits. 2. Process Benefits. SAP SRM is based on SAP best practices that stem from proven business and industry expertise. In addition, with the SAP SRM solution, SAP provides a wide range of pre- configured business scenarios that organizations can quickly deploy and benefit from with improved efficiency in their business processes. Let's examine some process benefits now: Overall reduction in requisitioning, order processing, and supply- management cycle time are a direct result of the streamlined procure- to- pay processes within SAP SRM. Efficiencies in business process eliminate costly process- related errors and increase productivity by implementing adequate internal controls. SAP SRM replaces manual procurement processes with a streamlined requisitioning and approval process. Delays caused by lengthy manual approvals are replaced by faster electronic workflows and online status displays. Web- based catalogs provide a quick and easy mechanism for finding negotiated goods and services, comparative prices, and required attributes. Additionally, catalog- based selection ensures compliance with approved vendors. An Internet- based request for proposal (RFQ) and bidding process reduces the source evaluation cycle time. Greater visibility of the historical spending data reduces the source determination time. Purchasing professionals can optimize sourcing decisions based on such criteria as past supplier performance data to determine the best source for goods and services. This helps to continuously enhance the sourcing knowledge within the organization. Synchronization of back- office functions by integrating with corporate finance and ERP systems. SAP SRM offers the capability to integrate with one or many SAP and non- SAP back- end systems. Improved contract compliance and governance are achieved by driving spending towards selected suppliers with negotiated products and prices. Spending analysis within SAP BW matches contracts with purchase transactions to monitor off- contract spending. Technology Benefits. SAP SRM provides real- time integration with ERP as the backbone, ensuring real- time data validation across SAP modules like Financial Accounting and HR.
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