How to evaluate and choose the right SAP
Procurement and Supplier Collaboration
solution for your organization
Uttam Agiwal, CPIM, PMP
LEARNING POINTS
 NTT Data and Global SAP Practice
 Procure to Pay Process
 SAP Procurement & Supplier Collaboration Solutions
 Solutions Options
 How to choose right mix of Solution?
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NTT Data and Global SAP Practice
 World’s sixth largest IT Service provider & systems
integrator
 Founded 1967 in Japan as the technology arm of the
NTT Group
 $15B in annual revenues
 60,000 professionals operating in 36 countries
 More than 10,000 employees in India
 Serving 80 of the Global Top 100 organizations
3
NTTDATA & Global SAP Practice - cont'd
Global delivery provides high quality around-the-clock services for
2,500 clients in all global regions with scalable services
► Solution driven trusted end-to-
end lifecycle partner
► Balanced delivery model with
6,100+
SAP professionals
across 32 Countries
large onsite and scalable nearand offshore
► Integrated service delivery
approach for small, medium and
large enterprises
► Client options include service
level and value realization based
engagement models in projects
and managed services.
Data & Appl. Delivery Center
Appl. Delivery Center
Partner Center
Core and Advanced SAP Technologies | In depth business expertise in 17 Industries | Proven Methodology
and Toolsets | 21 Delivery Centers with 2,700+ offshore resources |
Highest process maturity and standards
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Procure to Pay Cycle
Spend
Reporting
Supplier
Collaboration
Requisition and
Purchase Order
Management
Supplier
Registration &
Qualification
Strategic
Sourcing
Contract
Management
5
SAP Procurement & Supplier Collaboration
Solution
1. SAP ERP Material Management
2. SAP Supplier Relationship Management (SRM)
3. SAP Sourcing
4. SAP Contract Lifecycle Management
5. SAP Supplier Self-Service (SUS)
6. SAP Supplier Lifecycle Management (SLC)
7. SAP Spend Performance Management (SPM)
8. ARIBA
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP ERP Material Management
 Module of SAP ERP System
 Tightly integrated with other SAP ERP
modules – SD, PP, FI, CO, PM, PS & ECM
 Supports majority of Operational
Procurement Processes
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Supports limited Strategic Sourcing
Processes
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP ERP Material Management
 Supports all types of purchases – Direct,
Indirect and Services
 Supports Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Transaction based solution
 Extensive ABAP Reports and Queries
available for Purchasing Analytics
Requisition and
Purchase Order
Management
Contract
Management
8
SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Relationship Management (SRM)
 SAP New Dimension Product
 Integrated with SAP ERP
 Supports majority of Operational
Procurement Processes
 Supports majority of Strategic Sourcing
Processes
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
9
SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Relationship Management (SRM)
 Supports all types of purchases – Direct,
Indirect and Services
 Uses SAP ERP Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Role based solution
 Few Non-BI reports and standard SRM-BI
content available for Purchasing Analytics
Requisition and
Purchase Order
Management
Contract
Management
10
SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Sourcing
 Originally product of Frictionless Commerce,
acquired by SAP in 2006.
 Integrated with SAP ERP
 Supports majority of Strategic Sourcing
Processes
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Supports majority of Supplier Registration
and Supplier Qualification Processes
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Sourcing
 Supports Project Management, Project
Collaboration, Supplier Qualification, RFx
and Auction
 Uses SAP ERP Master Data Definitions
 Role based solution
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Extensive Queries available for Sourcing
Analytics
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Contract Lifecycle Management (CLM)
 Originally product of Frictionless Commerce,
acquired by SAP in 2006.
 Integrated with SAP ERP and SAP SRM
 Supports Contract Authoring and
Collaboration Processes
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Provides powerful search functionality to
locate specific clauses.
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Contract Lifecycle Management (CLM)
 Supports contract templates and clause
libraries to generate legal agreements
 Uses SAP ERP Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Role based solution
 Extensive Queries available for Contract
Analytics
Requisition and
Purchase Order
Management
Contract
Management
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Self-Service (SUS)
 Part of SAP SRM suite
Spend Reporting
 Integrated with SAP ERP and SAP SRM
 Supports Supplier Registration and
Qualification Processes
Supplier
Registration &
Qualification
Supplier
Collaboration
 Supports majority of Supplier Collaboration
Processes.
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
15
SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Self-Service (SUS)
 Supports all procurement documents – PO,
ASN, GR and Invoice
 Uses SAP ERP Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Role based solution
 No reporting available for Purchasing
Analytics
Requisition and
Purchase Order
Management
Contract
Management
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Lifecycle Management(SLC)
 New SAP solution covering the lifecycle of
Supplier
 Integrated with SAP ERP
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
 Supports Supplier Registration and
Qualification Processes
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Supports Supplier Portfolio and Performance
Management.
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Supplier Lifecycle Management(SLC)
 Covers the lifecycle of Supplier from
Registration to Phase-out.
 Uses SAP ERP Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Role based solution
 Reports available for Supplier Performance
Management
Requisition and
Purchase Order
Management
Contract
Management
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Spend Performance Management (SPM)
 Analytical tool based on SAP Business
Objects
 Integrated with SAP ERP, SAP SRM and
SAP Sourcing.
 Supports spend data Validation,
Enrichment and Classification.
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Supports Spend and Supplier Risk Analysis
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SAP Procurement & Supplier Collaboration
Solution - cont'd
SAP Spend Performance Management (SPM)
 Provides out-of-box Analytics to empower
Business Users
 Supports aggregating spend data from
SAP and non-SAP systems
 Role based solution
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Extensive Dashboards & Reports available
for Spend Analytics
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SAP Procurement & Supplier Collaboration
Solution - cont'd
ARIBA
 Part of SAP Cloud Solution Portfolio,
acquired by SAP in 2012
 Integrated with SAP ERP and SAP SRM
 Supports majority of Strategic Sourcing,
Contract Management and Operation
Procurement Processes
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
 Supports majority of Supplier registration,
qualification and collaboration Processes
21
SAP Procurement & Supplier Collaboration
Solution - cont'd
ARIBA
 Biggest Business Network for Collaborative
Commerce
 Uses SAP ERP Master Data Definitions
Spend Reporting
Supplier
Registration &
Qualification
Supplier
Collaboration
Strategic
Sourcing
 Role based solution
 Extensive Dashboards & Reports available
for Spend Analytics
Requisition and
Purchase Order
Management
Contract
Management
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Solution Option 1
SAP SRM
Spend
Reporting
Supplier
Registration &
Qualification
SAP SUS
Supplier
Collaboration
Strategic
Sourcing
SAP CLM
Requisition and
Purchase Order
Management
Contract
Management
SAP SPM
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Solution Option 2
SAP ERP MM
Spend
Reporting
Supplier
Registration &
Qualification
SAP Sourcing
Supplier
Collaboration
Requisition and
Purchase Order
Management
Strategic
Sourcing
Contract
Management
SAP SUS
SAP CLM
SAP SPM
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How to choose right mix of Solution?
Option 1 – SAP SRM
Spend
Reporting
Supplier
Collaboration
Requisition
and Purchase
Order
Management
Supplier
Registration &
Qualification
Strategic
Sourcing
Contract
Management
SAP SRM
SAP SUS
SAP CLM
 Simplified user interface for casual users
 Extensive Catalog Support
 Dependent on ERP system for master data
SAP SPM
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How to choose right mix of Solution?
Option 2 – SAP ERP MM
Spend
Reporting
Supplier
Collaboration
Requisition
and Purchase
Order
Management
Supplier
Registration &
Qualification
Strategic
Sourcing
Contract
Management
SAP ERP MM
SAP Sourcing
SAP SUS
 Complex transaction best suited for advanced users
 Limited Catalog Support
 Strong master data support
SAP CLM
SAP SPM
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