Supplier Management: Reduce risk, improve performance and drive supplier value.


Published on

Supplier Management:
Reduce risk, improve performance and drive supplier value.

By Frank Eck, SAP AG

Presented at the SAP Procurement & Logistics Day 2012.

Published in: Technology

Supplier Management: Reduce risk, improve performance and drive supplier value.

  1. 1. Supplier ManagementReduce risk, improve performance and drive suppliervalueFrank Eck, SAP AG
  2. 2. Current Strategies on the CPO Agenda In light of recent global events, what different Key Take Awaysstrategies are you adopting or do you plan to adopt?  Internal Collaboration 80,00%  68% stated they are now working 70,00% much more closely with the business 60,00%  63% said they are more involved 50,00% in strategic decisions 40,00%  Supplier Risk Mgmt 30,00% 20,00%  66% have created new approaches to supplier risk mgmt 10,00%  63% are proactive about 0,00% commodity mgmt  45% formalized a supplier mgmt program (in addition to those who had this already)  New Investments  Over 40% invested in technology and intelligence© 2011 SAP Inc. All rights reserved. 2
  3. 3. SAP Procurement Suite Spend Contract Operational Invoice Sourcing Analytics Management Procurement Management Supplier Management SAP Supplier Lifecycle Management New! SAP eInvoicing for Compliance OnDemand SAP Spend SAP SAP SRM & SAP ERP SAP Invoice Mgmt Performance SAP Sourcing Contract Lifecycle (w/ SAP Cart Approval by OpenText Management Management mobile app) SAP Data SAP SRM SAP Supplier Self-ServiceEnrichment and SAP SRM Central Contract Classification Bidding Engine Management SAP Information Interchange OnDemand OnDemand SAP Commodity Procurement New! New! © 2011 SAP Inc. All rights reserved. 3
  4. 4. SAP Supplier Lifecycle ManagementProcess Coverage and Timing Supplier Planned Registration 2013 Supplier Phase Out Planned Q4 2012 Supplier Qualification Supplier Development 360° Category Supplier Management Performance Management Supplier Order Collaboration (UI Integration) Supplier Classification© 2011 SAP Inc. All rights reserved. 4
  5. 5. Integrated Supplier Lifecycle ManagementGlobal & Local Procurement ProcessesSAP delivers: Leading procurement solutions for central and de-central procurement processes Strong Integration scenarios on process, data and user interface level between SAP Supplier Lifecycle Management and ERP/SRM Supplier Collaboration Supplier Registration Division 1 Division 2 Division 3 Division 4 Supplier Supplier Phase Out Qualification Supplier Supplier Development Evaluation Supplier Order Supplier Collaboration Classification Central and Strategic P2P P2P P2P P2P Procurement Activities (ERP) (ERP) (ERP) (ERP) CPO Focus Automation Focus© 2011 SAP Inc. All rights reserved. 5
  6. 6. Change Master Data Creation Paradigmwith SAP Supplier Lifecycle Management SAP ERP ready Process Readiness Transaction & FIN ready SAP SRM readyAccounts Payable ready Transaction Phase Catalog ready Collaboration readyTransaction ready Exploration PhaseRFQ, RFP, Auctions Registration Phase RFI, ClassificationCheck & ApprovalRegistration Data Enrichment Prospect Prospect Prospect Supplier Supplier Supplier Supplier registered, registered, classified released for approved for approved for to be pushed to not approved approved bidding SAP SRM usage SUS usage backend(s)© 2011 SAP Inc. All rights reserved. 6
  7. 7. SAP Supplier Lifecycle ManagementEnd-to-End Orchestration – from Interested Party to ERP Vendor Interested Potential Supplier Lifecycle Mgmt Supplier Supplier Supplier Sell-Side Master Data Self Service Registration Approval Approval Approval Supplier Lifecycle Interested Potential Approval as Supplier Mgmt Supplier Supplier Bidder Buy-Side Qualification Level Distribution Distribution Bidder SAP SRM 5.0+ Supplier SAP ERP 6.0+© 2011 SAP Inc. All rights reserved. 7
  8. 8. SAP Supplier Lifecycle ManagementDeployment Options for “Sell Side“ Supplier Internet SAP Supplier Lifecycle Mgmt SAP Supplier Lifecycle Mgmt as SAP DMZ as Central Hub SRM-SUS Add-On SAP SLC SAP SLC SRM(>7.01) DMZ Intranet SAP Supplier Lifecycle Mgmt SAP Supplier Lifecycle Mgmt SAP Supplier Lifecycle Mgmt as Central Hub as SAP SRM Add-On as SAP ERP Add-On SAP SLC SAP SLC SAP ERP(s) SAP SRM SAP ERP SAP SLC SAP SAP SAP SRM ERP(s) ERP(s) V 1.0 V 1.0 V 1.1© 2011 SAP Inc. All rights reserved. 8
  9. 9. Develop the best suppliers and collaborate seamlessly Supplier Data Management  Self-service registration and profile Supplier Management management minimizes cost and improves accuracy  Single source of truth simplifies Supplier Data landscape Management Transactional Collaboration Transactional  Network tools support one-time supplier Collaboration on-boarding and transaction routing Performance and Risk Management Performance and Risk Management  Evaluation and development optimize the supply base and innovation  Risk tracking and management help ensure supply and protect the brand© 2011 SAP Inc. All rights reserved. 9
  10. 10. SAP Supplier Lifecycle Management 1.0It’s All New! Onboard & Qualify Suppliers Self-Service Data Maintenance Categorize and Maintain Portfolios Distribution to SRM & ERP Evaluation & Development with Streamwork Integration© 2011 SAP Inc. All rights reserved. 10
  11. 11. All Supplier Information at a Single Location© 2011 SAP Inc. All rights reserved. 11
  12. 12. SAP Supplier Lifecycle ManagementExtending the Core Processes - OutlookBased on the existing SAP Supplier Lifecycle Management capabilities, SLC will evolveinto the following areas Strategic Buyer Portal Procurement Analytics Provide 360° view of  Embedded analytical suppliers and purchasing capabilities categories.  Optional BI usage Activities and information  In-memory search pushed to buyers. capabilities Alert and notification  Business content tagging monitoring Supplier Portal Intuitive and social-media like screen designs  Single entry for suppliers to collaborate with company experts  Networked services to easily communicate and collaborate with business partners© 2011 SAP Inc. All rights reserved. 12
  13. 13. Why Choose SAP Supplier Lifecycle Management?  Delivers the complete supplier management process in a single solution  Centralizes supplier information and increases transparency of supplier decisions  Ensures selection of most qualified suppliers  Reduces costs through superior supplier effectiveness and performance  Successfully drives ROI through low-TCO deployment options© 2011 SAP Inc. All rights reserved. 13
  14. 14. Leading Companies Trust Our Procurement Expertise Retail Consumer Financial Industries Services Process Discrete Manufacturing Manufacturing Services Public Services© 2011 SAP Inc. All rights reserved. 14
  15. 15. SAP keeps looking forward Frank Eck Chief Product Owner SAP Supplier Lifecycle Management SAP AG Dietmar-Hopp-Allee 16 69190 Walldorf T +49 6227 745244 M +49 160 3603064 E
  16. 16. Legal disclaimerThe information in this presentation is confidential and proprietary to SAP and may not be disclosed withoutthe permission of SAP. This presentation is not subject to your license agreement or any other service orsubscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in thisdocument or any related presentation, or to develop or release any functionality mentioned therein. Thisdocument, or any related presentation and SAPs strategy and possible future developments, products andor platforms directions and functionality are all subject to change and may be changed by SAP at any timefor any reason without notice. The information in this document is not a commitment, promise or legalobligation to deliver any material, code or functionality. This document is provided without a warranty of anykind, either express or implied, including but not limited to, the implied warranties of merchantability, fitnessfor a particular purpose, or non-infringement. This document is for informational purposes and may not beincorporated into a contract. SAP assumes no responsibility for errors or omissions in this document, exceptif such damages were caused by SAP´s willful misconduct or gross negligence.All forward-looking statements are subject to various risks and uncertainties that could cause actual resultsto differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates, and they should not be relied upon in makingpurchasing decisions.© 2011 SAP Inc. All rights reserved. 16