The document summarizes a strategic sourcing workshop that reviewed implementation levels across procurement modules like supplier onboarding, sourcing, and contracts. It provided interactive exercises for groups to discuss their current level, changes needed to reach the next level, and obstacles to overcome. The workshop aimed to develop strategies to advance implementation and set goals to measure results from moving to a higher level of procurement maturity.

1. PUBLIC
Lukas Borak, SAP
June 13, 2017
Strategic Sourcing Workshop

2. 2PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Review Implementation Levels Across Modules
 Interactive Discussion to Develop Strategies for Moving to the Next Level
 Present Results to the Group
 Concluding Thoughts
Workshop Objectives

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The strategic sourcing process
Identify opportunity Source and negotiate Contract
Supplier management
Registration and onboarding
Qualification process
Diversity/green/certifications
Risk management
Surveys
Quantitative and qualitative
scorecard
Performance management
Source
Process compliance
eRFX
Reverse auctions
Knowledge/repository
SAP Ariba Discovery
Contract
Process compliance
Repository
Authoring
Compliance
Expiring contracts
Reporting and analysis

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 Centralized process
– Use a single process template with conditions addressing process variations based on business need
– Enforce rules and process outlined by management for all projects
 Knowledge management
– Center of excellence procurement experts become system experts as well
– Provide support from 100% project ownership to project management and system or process expertise for
users throughout the organization
 Results driven
– Group spend from various departments and business units to maximize results on combined bids
– Gather insights from across the company with procurement specialists working with every department and
business unit
Centralized procurement model

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 Decentralized process
– Use multiple templates or conditions to address process variations across departments, business units,
regions, or other entities
– Enforce rules and process outlined by management for all projects, but maintain flexibility for various
groups
 Knowledge management and training
– Consider who will act as the system administrator and expert for each department, business unit, or region
– Develop a training plan for users and administrators – consider regional, office, and team experts
 Access controls and permissions
– Set access controls to limit project, document, and report visibility to appropriate parties
– Use system and team level permissions to control who has what access to each project specific to their
role in the organization
– Let team member roles drive the process, access, and permissions
Decentralized procurement model

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Supplier onboarding implementation levels
Basic
 SPQ
Supplier information is
collected through the
Supplier Profile
Questionnaire (SPQ)
during supplier
registration. Custom
SPQ questions allow
the buyer to define
what information is
necessary to
complete registration.
Developed Advanced Sophisticated Optimized
 SPQ
 Onboarding
process
A custom onboarding
process with tasks
and team members is
created within the
Supplier Workspace
template to better
manage supplier
onboarding.
Customized approval
flows are triggered
based on supplier
data.
 SPQ
 Multistage
onboarding
process
 Supplier tier
segmentation
Suppliers are
segmented to apply
different levels of due
diligence activities
appropriately to each
supplier. Segments
are created based on
defined criteria, such
as spend amount,
which directly relate to
the risk level of doing
business with that
supplier.
 SPQ
 Multistage
onboarding
process
 Supplier tier
segmentation
 SQM
Based on
segmentation, some
suppliers may require
further qualification.
Supplier qualification
management (SQM)
projects can facilitate
internal and external
surveys and project
management
activities alongside
the SPQ and
onboarding process.
 SPQ
 Multistage
onboarding
process
 Supplier tier
segmentation
 SQM
 Ongoing review
A thorough program
will use recurring
phases and tasks to
evaluate suppliers
during onboarding as
well as on an ongoing
basis for current and
future work.

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Sourcing implementation levels
Basic
 Quick events
Quick events are
created and run for
online bidding of
RFIs, RFPs, and
auctions. Internal
sourcing project tasks
are handled offline.
Developed Advanced Sophisticated Optimized
 Events
 Full project
container
The sourcing team
continues to focus on
events as the main
functionality of the
system, but uses
sourcing projects
without tasks and
phases as a container
for related events
within the same
project.
 Events
 Sourcing process
The full sourcing
process task and
phase capabilities are
used to manage the
sourcing process.
Templates drive the
tasks and approvals
required in the
process, and all team
members are
engaged within the
system.
 Events
 Sourcing process
 Auctions
In addition to running
RFIs and RFPs
through the tool,
auction functionality is
utilized to maximize
competition and
savings when
appropriate.
 Events
 Sourcing process
 Auctions
 Savings tracker
Savings tracker forms
are introduced to
advance the reporting
capabilities of
sourcing event bid
results along with
implemented savings
details.

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Contracts implementation levels
Basic
 Contract repository
Contract managers
complete the contract
process outside of the
system, but create
workspaces and load
documents for
reporting and
repository benefits.
Developed Advanced Sophisticated Optimized
 Contract repository
 Process
Contract teams use
the built-in phases
and tasks to manage
the contracting
process within the
system. Contract
document templates
are not stored in the
system, but
completed documents
will be loaded for
storage and approval.
Electronic signature
capability may be
used.
 Contract repository
 Process
 Document
management
Contract documents
are stored in the
system and managed
through templates
and version control.
Review and
negotiation tasks are
completed with flat file
documents. No
authoring capability is
used, but DFS will be
applicable.
 Contract repository
 Process
 Document
generation
Contract documents
are prepared to use
some authoring
functionality.
Document properties
are used to populate
contracts based on
project field selection,
and bookmarking/
style mapping is
applicable, but a
clause library and
conditions are not
developed.
 Contract repository
 Process
 Full contract
authoring
Clause library is
developed with
preferred, alternate,
and fall-back clauses.
Conditions drive
which clauses are
utilized to generate fit-
for-purpose contracts.
Clause level
approvals and
controls are available.

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 Discuss where your organization sits in the
implementation scale
 Use the handouts to identify what would need to be
done to get your organization to the next level
 Discuss what obstacles you would need to overcome
 And feel free to add more to the list
Your task today

10. 10PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Per group
– Next level is:__________
– Top five changes needed
– Top three obstacles
Results

11. 11PUBLIC© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ
 Set achievable goals
 Make a note of “reach” goals
 Plan out the change management required
 Consider phased deployment
 Create hard and soft incentives
 Plan on measuring results: create KPIs
Final guiding thoughts

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13. Thank you.
Contact information:
Lukas Borak
Senior Consultant, Best Practice Center
lukas.borak@sap.com
+420 225 37-2638