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The SAP® Supplier Relation-
ship Management (SAP
SRM) application offers a
fully integrated procure-to-
pay solution for automating
core procurement processes
– including services procure-
ment. You can optimize the
efficiency of your procure-
ment organization with cen-
tralized sourcing and con-
tracts, as well as obtain
unified access to function­
ality and information across
SAP SRM and to relevant
data in the SAP ERP applica-
tion. The application provides
a customizable user inter-
face, flexible user-role defi­
nitions, and clear insight
into spend and supplier data.
And you can keep upgrade
costs low by using enhance-
ment packs to access new
functionality.
SAP Value of Upgrade
SAP Supplier Relationship
Management
SAP® Supplier Relationship
­Management 7.0
4	 SAP Supplier Relationship
­Management
	 5	 New Business Benefits of
SAP Supplier ­Relationship
Management
	 5	 Reduce Total Cost of Owner-
ship
	 5	 Improve Enterprise Processes
and Visibility
	 5	 Increase and Facilitate Contract
Compliance
	 5	 Optimize Services Procurement
	 5	 Streamline Sourcing Activities
	 6	 Functional Value of SAP Sup-
plier ­Relationship Management
	 6	 User Interface
	 7	 Operational Procurement
	 8	 Self-Service Procurement
	 9	 Plan-Driven Procurement
	10	 Services Procurement
	
	11	 Catalog Management
	12	 Centralized Sourcing
	13	 Centralized Contracts
	14	 Supplier Collaboration
	15	 Supplier Evaluation
	16	 Technical Benefits of SAP Sup-
plier ­Relationship Management
	16	 Easier Upgrades with
­Enhancement Packs
	16	 Harmonized User Interface
Across SAP SRM and Other
SAP Applications
	16	 Business Rule Framework
­Workflow Technology
	16	 Shift to Web Dynpro for ABAP
	16	 Enterprise Services
	17	 For More Information
CONTENT
Preface
This document summarizes the key business benefits and new functionality
of release 7.0 of the SAP® Supplier Relationship Management (SAP SRM)
­application. Written specifically for customers who are currently using SAP SRM
2005, it presents the reasons for considering an upgrade to the new release.
If you are currently using a release other than SAP SRM 2005, please contact
your SAP sales representative for information on the value of upgrading to SAP
SRM 7.0. Although this document gives you some insight into the benefits of
the new release, it does not describe all of its benefits and functions – only those
that result from the upgrade from SAP SRM 2005 to SAP SRM 7.0. Please refer
to www.sap.com/srm for a general description of SAP SRM 7.0.
This document cannot provide the detailed analysis you need to determine the
specific value of upgrading to SAP SRM 7.0 in your particular business situation.
It can, however, prompt a detailed discussion of your situation with an SAP
representative.
The latest release of the
SAP® Supplier Relationship
Management application
(SAP SRM), part of the
SAP Business Suite family
of business applications,
delivers a fully integrated
procure-to-pay solution for
automating core procure-
ment processes. In addition
to helping you optimize the
efficiency of your procure-
ment organization, the appli-
cation provides a customiz-
able user interface, flexible
user-role definitions, and
clear insight into spend and
supplier data.
SAP SRM 7.0 delivers exceptional
functionality enhancements as well as
reduced total cost of ownership (TCO)
going forward. Like the other SAP
Business Suite applications, future
functionality for SAP SRM will be
­provided via convenient enhancement
packs.
Key investment areas of the SAP SRM
7.0 release include:
•	Nondisruptive delivery of new func-
tionality – Offers a stable core and
reduced upgrade costs by using
enhancement packs for delivering
new functionality
•	Enhanced usability through flexible
user interface technology – Provides
flexible user interface, roles, and work
lists across the SAP SRM and SAP
ERP applications
•	Centralized sourcing – Provides
enhanced sourcing functionality
to support better negotiations with
suppliers and enable the initiation
of sourcing events directly from
SAP ERP
•	Centralized contracts – Provides
centralized contract management
by offering a single contract as a
source of supply for SAP SRM and
SAP ERP
•	Services procurement – Enables you
to source service requisitions created
in SAP ERP as well as facilitate ser-
vice-related supplier collaboration
SAP® Supplier Relationship ­Management
Efficient, Flexible, and Comprehensive
­Procurement Processes
The SAP Supplier
­Relationship Manage-
ment application, an
integral part of SAP
Business Suite, is
the foundation for
managing procure-
ment processes.
4 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Reduce Total Cost of Ownership
SAP SRM 7.0 enables you to reduce
the TCO of your SAP investment. All
future functionality will be delivered
via convenient enhancement packs.
This approach gives you the flexibility
to select just the features required by
your business – rather than having to
include all available enhancements. As
a result, you can leverage innovation
without disruption to your business
environment, efficiently adapting your
business in response to change.
Improve Enterprise Processes
and Visibility
With SAP SRM 7.0, users throughout
your enterprise have access to all of
the information, insight, and processes
they need, which facilitates strategic
business decisions across the organi-
zation. A streamlined, intuitively navi-
gated user interface improves cross-
enterprise visibility, facilitates a wide
range of activities, and offers a common
look and feel for all users. You can also
personalize the user interface for specific
job and task demands – further increas-
ing efficiency and effectiveness and the
overall user experience.
With this release, you also gain unified
access to functionality and information
across SAP SRM and relevant data in
the SAP ERP application. The software
provides a single, consolidated view of
the procure-to-pay process; one view
for all purchase orders and queries;
and a comprehensive service access
area that consolidates access for each
user in a personalized dashboard based
on what’s relevant to that individual
regarding his or her role. This is driven
by harmonization of users and roles
across the entire SAP Business Suite.
Increase and Facilitate Contract
Compliance
SAP SRM 7.0 provides expanded func-
tionality that improves contract compli-
ance, control, and efficiency. Contract
management processes are integrated
end to end and enable you to set up
and maintain a single, global contract
as a source of supply within SAP SRM
and SAP ERP. This not only increases
efficiency but also eliminates the risk of
employees using out-of-date contracts.
In addition, you can enforce compliance
with contracts by giving global users
access to all of your operational con-
tracts through a central, online reposi-
tory. As a result, you can enjoy signifi-
cant savings through extended contract
enforcement. The application also facili-
tates better communication by using
collaboration rooms accessible to inter-
nal and external users.
Optimize Services Procurement
SAP SRM 7.0 supports services pro-
curement with improved, collaborative
functionality and enhanced integration
with SAP ERP. You can procure service
types commonly used in major industries,
such as time-based and deliverable-
based services.
Using a collaborative negotiation plat-
form for buyers and suppliers, you can
electronically request quotes for services
and related goods from various suppliers,
compare spot bids, and negotiate more
effectively. At the same time, you benefit
from enhanced sourcing functionalities
and supplier collaboration, which enable
you to define requirements more accu-
rately and align resources to those
requirements more closely. The appli-
cation helps you simplify compliance
enforcement and reduce dependence
on manual, offline, and otherwise ineffi-
cient processes, as well as better man-
age your total spend.
Streamline Sourcing Activities
SAP SRM 7.0 gives you improved con-
trol over bid and auction activities; this
is enabled by major enhancements that
bring greater insight and discipline to
your sourcing organization. The appli­
cation includes enhanced bidding func-
tionality to facilitate easier comparison
and awarding of bids, such as expressive
bidding for suppliers, a bid comparison
view, and bid tracking, versioning, and
withdrawal functions. You can also im­-
prove the speed and efficiency of auc-
tions by allowing the market to determine
final prices. And finally, because the
software improves accuracy, account­
ability, and transparency throughout
processes, you benefit from more fair
and flexible sourcing.
You can also increase clarity in sourcing
processes with online chat functionality,
which enables you to instantly address
supplier inquiries.
New Business Benefits of SAP Supplier
­Relationship Management
Delivering a Whole New Level of Business Value
5SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Functional Value of SAP Supplier
­Relationship Management
Improving Core Procurement Operations
SAP has made substantial investments
to improve the overall functionality of
SAP SRM – for example, in terms of
the user interface and core functions
used to support daily activities, such as
sourcing and procurement. In addition,
substantial investments have been
made to further harmonize SAP SRM
with SAP ERP to achieve procurement
excellence. The following sections
­summarize these enhancements and
their overall business benefits.
User Interface
The improved user interface in SAP SRM
7.0 includes an updated, user-friendly
work center. This can be personalized to
help make it easier for individual users
to navigate. New interface functionality
accelerates and automates supply man-
agement processes and helps deepen
supplier relationships. Leveraging this
better user experience, you’ll realize
benefits summarized in the following
table.
New or Enhanced Functionality Business Benefits
Personalized, intuitive user experience
•	Common look and feel and consistent
­navigation throughout the application
•	End-user profiles that define role-based
­access and enable users to see person-
alized information at a glance, trigger
actions, and easily access services and
documents
•	Work center portal that gives buyers
­access to well-organized and relevant
­information, services, and documents
•	Rapid user adoption through enhanced
user experience
•	Increased productivity that results in
faster, easier access to information
•	Reduced training time and costs
Greater user efficiency and faster task completion
•	Enhanced task management through
­improved access to the universal work
list for consolidated workflow items,
alerts, and notifications across all SAP®
applications, as well as a personal object
work list for activities specific to the
SAP Supplier Relationship Management
application – all with a single, click-to-
launch action
•	Streamlined purchase-order, query, and
search processes
•	Ability to define regularly used queries
and reports
•	Streamlined shopping cart navigation and
single-screen information presentation
•	Increased efficiency and productivity
of users performing daily tasks, such as
issuing purchase orders, confirmations,
invoices, and supplier performance
­questionnaires
•	Accelerated order processing and query
changing
•	Rapid, personalized access to important
information, including tasks and relevant
data
•	Faster shopping cart processes to support
a more efficient procurement process
SAP SRM provides a
single, consolidated
view of all purchase
­orders and queries, with
personalized access
­areas that consolidate
functionality for each
user via personalized,
role-based dashboards.
6 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Operational Procurement
With SAP SRM 7.0, requisition and
purchase-order processes are faster,
more efficient, and less prone to error.
Advanced requisition functions enable
enhanced team purchasing, easier
­configuration of delivery dates, and
multiple approaches to efficient handling
of general ledger accounts. Purchase-
order processing is enhanced through
convenient access to purchase orders
and related documents. The following
table outlines high-level functions and
benefits that are shared by all areas
of operational procurement, including
self-service procurement, plan-driven
procurement, and services procurement.
New or Enhanced Functionality Business Benefits
Enhanced requisition handling
•	Team purchasing
•	Delivery date configuration
•	Multiple approaches to general ledger
­account handling
•	Line-item approvals
•	User-friendly approach to finding default
account codes
•	More-flexible accounting controls
•	Shorter order cycles through the
­reassignment of tasks
•	Increased flexibility
•	Support for sophisticated procurement
processes
•	Greater compliance assurance through
more-specific approvals
•	Streamlined requisitioning to efficiently
purchase goods and services
•	Ability to meet varied corporate strategies
and facilitate compliance
Streamlined purchase orders
•	Ability to quickly look up previously
­generated purchase orders and other
­documents
•	Simple cut-and-paste functionality to
­rapidly create new purchase orders and
other documents
•	Quick access to past documents to
­support replication of best practices
•	Improved efficiency and time savings
7SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Self-Service Procurement
Procurement departments are often
burdened by the administrative tasks
involved in the procurement of routine
maintenance, repair, and overhaul items
and services, such as office supplies,
machine parts, janitorial goods, repairs,
and professional services. Centralizing
the purchasing process means that your
procurement department will likely get
bogged down in organizing and process-
ing requisitions and answering queries
about the status of transactions. These
routine tasks prevent your staff from
focusing on strategic issues. At the same
time, paper-based processes are slow,
error prone, and costly. Transaction
costs are often extremely high in com-
parison with the value of the goods and
services purchased. And they impede
transparency, preventing corporate
decision makers from understanding
the impact of purchasing choices and
making it difficult to consolidate pur-
chasing power across the enterprise.
Self-service procurement functionality
within SAP SRM 7.0 empowers your
employees to create and manage their
own requisitions. The application pro-
vides a convenient procurement environ-
ment, enabling every employee in the
enterprise to search for and buy items
while helping to ensure that transactions
comply with corporate purchasing poli-
cies and internal controls. Costs are
cut, cycle-time delays are shortened,
and errors that arise from paper-based
processes and inefficient communica-
tion with suppliers are reduced. Equally
important, decentralization of the trans-
action processing enables you to reduce
overhead and allows purchasing pro-
fessionals to focus on managing rela-
tionships instead of transactions.
New features and innovations support-
ing self-service procurement are sum-
marized in the table above.
New or Enhanced Functionality Business Benefits
•	Enhanced authorization concept, invoice
accuracy, and support of flexible integration
scenarios
•	Storage of transactional data and other
related procurement documents (pow-
ered by the SAP® Records Management
­application) in one central folder
•	Automatic back-end enterprise resource
planning purchase order or contract
­creation based on an accepted quote in
the SAP Supplier Relationship Manage-
ment application
•	Ability to use alternate items to fulfill
­purchase requisition orders
•	Increased level of compliance across
all sourceable products and services
•	Improved availability and quality of
­purchasing documents, reducing ­
maverick purchasing
•	Support of simplified, integrated
­processes to streamline the entire
­procure-to-pay cycle
•	Flexible purchasing processes to meet
demand
SAP SRM 7.0 helps
­reduce the TCO of your
SAP investment. All
­future functionality will
be delivered via conve-
nient enhancement
packs – an approach
that gives you the flexi-
bility to select just the
features required by
your business, rather
than having to include
all available enhance-
ments. As a result, you
can leverage innovation
without disruption to
your business environ-
ment, efficiently adapt-
ing your business in
­response to change.
8 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Plan-Driven Procurement
Plan-driven procurement supports
the automated procurement of goods,
which is especially important for the
procurement of direct materials. In a
highly integrated procurement process,
demand for materials can come from
several different planning applications
that reside outside of SAP SRM.
These applications may include material
requirements planning applications
for production planning; automated
­production systems for advanced,
­constraint-based planning; project
applications for project planning; or
plant maintenance applications for
maintenance and repair planning.
SAP SRM 7.0 supports a plan-driven
procurement scenario that links and
uses many processes in the value
chain. It integrates requirements with
sourcing, order management, contract
management, collaboration, costing,
and payment. Demand from production
is transferred to SAP SRM through an
open XML interface. And you can auto-
matically assign contracts to demand,
trigger, and send out a purchase order.
New features and innovations support-
ing plan-driven procurement are sum-
marized in the table above.
New or Enhanced Functionality Business Benefits
•	Better identification and automated
­handling of exception situations
•	Improved ability to effectively source a
competitive offer and maintain quality
­standards – even in a rush-order situation
•	Ability to transfer SAP® ERP application
purchase requirements containing attach-
ments to the SAP Supplier Relationship
Management application
•	Enhanced integration with SAP ERP
­regarding text transfers, revisions, and
PO transfer consistency checks
•	Increased scope and depth of compli-
ance, even as exceptions occur
•	Ability to speed up the sourcing process
during material shortages
•	Improved quality of products purchased
•	Increased delivery reliability for customer
orders
9SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Services Procurement
Services procurement is often seen as
complex and not standardized, because
the requirement of a service is typically
undefined in quantity, duration, and
price at the point of purchase. This
assumption implies that the service is
not specified until the supplier confirms
it. This ambiguity is one reason that,
while other categories of spend have
uncovered significant cost-saving
potential in the purchasing process,
services have generally not been con-
sidered part of cost-saving measures.
With SAP SRM, you can manage
resources and monitor costs over the
entire range of services. The software
supports analytics, sourcing, contract
management, and supplier collabora-
tion so you can optimize services pro-
curement processes. Functionality cov-
ers a wide range of procured services,
such as planned and unplanned mainte-
nance, temporary labor, and construc-
tion. New features and innovations are
summarized in the table above.
New or Enhanced Functionality Business Benefits
•	Support for service types commonly used
in major industries, such as time-based
and deliverable-based services
•	Support for complex nature of services,
including model specifications and service
hierarchies
•	Ability to leverage information contained
in contracts to help ensure compliance
with approved suppliers
•	Specialized service-delivery ­management
within supplier self-service, enabling supplier-
initiated service entries, lump-sum services,
and tracking of contractual limits
•	SRM-MDM catalog access for purchaser
and bidder as a repository for service
specifications
•	Greater control and visibility over total
spend
•	Advanced demand aggregation and
­spot-bidding capabilities
•	Simplified compliance enforcement
•	Enhanced supplier collaboration
•	Centralized repository of services
­capabilities for improved process
­efficiency and accuracy
10 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Catalog Management
In SAP SRM 7.0, enhancements to
­catalog management functionality allow
you to quickly load files directly from
suppliers or from the SRM-MDM cat­
alog repository. You can also import
content such as purchase records,
­contracts, and other related material
masters from SAP ERP – quickly and
efficiently. The software also makes it
easier for you to interface with supplier
contracts, manage images, consolidate
and approve content, and publish on
the Web. Once catalog content is pub-
lished, users enjoy a best-in-class per-
formance and search experience.
New features and innovations support-
ing catalog management are summa-
rized in the following table.
New or Enhanced Functionality Business Benefits
Easier loading of catalog files from suppliers and SAP® applications
•	Ability to import content from the SAP ERP
application, such as purchase information
records and contracts
•	Enhanced contracts interface in the
SAP Supplier Relationship Management
­application
•	Simplified image management for catalog
items
•	Ability to publish content on the Web
•	Easier content consolidation and approval
•	More-accurate and timely catalog content
•	Superior management of catalog data
that saves time and lowers costs
•	Enriched product content that offers
­users clear, accurate choices
•	Ability to provide wider access to catalog
items through Web publishing
•	Enhanced catalog content management
Support for master data management hierarchies
•	Support for services-related hierarchies
•	Corresponding changes to the Open
­Catalog Interface for supplier-provided
­content
•	Extended support for the complexities
of services procurement
•	Lower cost of creating and maintaining
catalog data
Enhanced user interface
•	Running total for shopping cart included
on all screens
•	Improved message handling, including
­status and warning messages
•	Customizable user interface (empty tabs
and fields are automatically hidden when
not required by user, and images can be
displayed or hidden)
•	Advanced search functionality
•	Increased user productivity and efficiency
•	Faster issue resolution
•	Faster user access to information, data,
and views that are relevant to them
•	Ability to provide better access to goods
and services for purchase
SAP SRM 7.0 sup-
ports a plan-driven
procurement scenario
that links and uses
many processes in
the value chain. It inte-
grates requirements
with sourcing, order
management, contract
management, collab­
oration, costing, and
payment.
11SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Centralized Sourcing
Support for centralized sourcing helps
procurement professionals find the best
source of supply – for example, through
spot bidding, reverse auctions, and
demand aggregation activities. Suppliers
are invited to sourcing events (such
as requests for quotation and reverse
auctions) to exchange information, col-
laborate on documents, submit quotes,
and negotiate terms. Completion of the
sourcing process results in the creation
of operational contracts or purchase
orders for procurement execution.
SAP SRM 7.0 provides live-auction func-
tionality and brings insight and ­discipline
to sourcing practices. For example, the
software supports “request for” docu-
ments and competitive bidding events.
And new functionality facilitates improved
competition and flexible sourcing, which
increases accuracy, accountability, and
transparency throughout the sourcing
process, as shown in the following table.
New or Enhanced Functionality Business Benefits
Efficient request-for-x (RFx) bid processing
•	Response modification within RFx docu-
ments, such as suppliers suggesting
­alternate, supplemental, or substitute
items down to the line-item level
•	Enhanced analytics to support bid selec-
tion, such as a bid comparison view and
weighted scoring
•	Creation of a temporary contact person
for a bidding event
•	Chat functionality between buyers and
­suppliers
•	Enhanced bid tracking, versioning, and
withdrawals
•	Ability to limit bids to one per company
•	Electronic confirmation of bidder’s
­participation
•	Online, offline, and surrogate bid
­submissions
•	Bidding in alternative currencies
•	Award, contract, and PO integration
•	More-efficient and fair bidding process
•	Faster, easier viewing and comparing of
bidding-process results
•	More agile, adaptive sourcing
•	Enhanced supplier and buyer communica-
tion and internal and external collaboration
throughout the negotiation process
•	Fewer errors and incorrect bids
•	Support for companies’ specific sourcing
strategies
•	Access to an auditable trail of supplier
participation for internal and external
­compliance activities
•	Widening of the competitive market by
enabling varied bid submissions
•	Support for sourcing events for a geo-
graphically dispersed supply base
•	Shorter supply cycle times and reduced
process costs
Enhanced auction management
•	Real-time auction monitoring and bidding
•	Creation of temporary contact person
•	Dutch auction functionality
•	Ability to view all award-relevant informa-
tion and actions on a single screen
•	Faster auction resolutions for sourcing
events
•	Flexible auction management
•	Faster auction resolutions or lower prices
for sourcing events
•	Enhanced usability through a streamlined
user interface
Deeper integration
•	Integration of demand requirements and
contracts in multiple back-end applications
•	Single contract as a source-of-supply
between the SAP® Supplier Relationship
Management (SAP SRM) and SAP ERP
applications
•	Simplified global sourcing through unified
information
•	Reduced procurement costs through
tight integration between SAP SRM and
SAP ERP
12 SAP Value of Upgrade – SAP Supplier Relationship Management 7.012
Centralized Contracts
SAP SRM provides you with tools for
centralized, systematic contract man-
agement. Through tight integration with
SAP ERP, you can use a single contract
as the source of supply for your pur-
chases. Based on the purchase require-
ments, SAP SRM identifies the optimal
contract to fill the need while taking into
consideration such factors as price,
delivery times, and location. It can also
account for different types of discounts,
such as value discounts, quantity-based
stepladder discounts, group discounts,
or rebates based on released values.
These functions are used together to
automate contract compliance, helping
you extract the most value from expertly
negotiated agreements.
New functionality regarding centralized
contracts is summarized in the table
above.
New or Enhanced Functionality Business Benefits
•	Single, central contract in the SAP® Supplier
Relationship Management application that
is shared via integration with the SAP ERP
application
•	Multiple alert thresholds, such as expiration
date, target value, and target quantity
•	Ability to determine payment terms on a
line-item level
•	Ability to determine currency on a contract
distribution level
•	Contract cockpit that enables efficient
searches for existing contracts
•	Support for greater compliance between
negotiated terms and operational contracts
•	Improved visibility into and management
over contracts
•	Flexible contract management
•	Enhanced global supplier negotiations
•	Fast, more-efficient access to relevant
contract information
SAP SRM supports
an ­efficient procure-
ment ­organization
with end-to-end pro-
cess support, ­flexible
user interfaces ­and
role definitions, and
clear insight into
spend and supplier
data.
13SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Supplier Collaboration
The supplier self-service functionality
built into SAP SRM enables suppliers
to access supply-side transactions and
other relevant information. They can
also update their catalog data, process
acknowledgments, track payment
­status, suggest changes to orders,
and receive information on inventory
and supply-and-demand plans. The result
is reduced process costs, increased
automation, and transparency into the
procurement process. Suppliers can
also respond to services procurement–
related requisitions.
New features supporting supplier collab-
oration are summarized in the table
above.
New or Enhanced Functionality Business Benefits
•	Ability to submit services procurement
­requisition responses, confirmations,
and invoices
•	Supplier-provided catalog content
•	Enhanced supplier collaboration
•	Assurance of up-to-date, accurate catalog
items
14 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Supplier Evaluation
SAP SRM enables you to better manage
suppliers – the key to improving quality,
enhancing collaboration, and reducing
supplier risk. The software eases clerical
and administrative burdens with numer-
ous supplier evaluation methods, such
as event-triggered surveys, ad hoc sur-
veys, and quantitative questionnaires.
Flexible reporting and response moni-
toring enable you to improve operations,
which ultimately reduces costs and
improves efficiency.
New features supporting supplier eval-
uation are summarized in the table
above.
New or Enhanced Functionality Business Benefits
•	Multiple supplier evaluation methods,
­including event-driven, ad hoc, and
­quantitative evaluation surveys
•	Predefined key performance indicators
(KPIs) and evaluation templates
•	Grouping and weighting function for score
analysis based on commodity type and
participating internal department
•	Alerts for low supplier performance scores
•	Integration with the SAP NetWeaver®
­Business Intelligence component for data
consolidation and reporting
•	Effective tracking of numerous KPIs
­related to supplier performance, such
as on-time performance, quality, and
­user-determined qualitative items
•	Support for standardized, best-practice
supplier evaluations
•	Sophisticated performance analysis
•	Risk mitigated by enabling immediate
­corrective action plans for low-performing
suppliers
•	Consolidated view of supplier performance
The improved user
­interface in SAP SRM
7.0 includes an updat-
ed, user-friendly work
center. This can be
personalized to help
make it easier for us-
ers to navigate. New
interface functionality
accelerates and auto-
mates supply man-
agement processes
and helps deepen
supplier relationships.
15SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
From a technical perspective, the latest
release of SAP SRM offers substantial
benefits over previous releases,
including:
•	Easier and less costly upgrades
•	A new user interface that’s consis-
tent with all other SAP Business
Suite applications
•	Support for flexible workflow
processes
•	An architecture based on Web
­Dynpro development environment
for ABAP
•	Support for enterprise services to
support key interfaces with other
SAP applications
Easier Upgrades with
­Enhancement Packs
As part of the SAP Business Suite, SAP
SRM 7.0 will deliver future enhancements
via enhancement packs that are readily
consumed. You can leverage new func-
tionality and SAP innovations without dis-
rupting existing functionality or investing
in costly upgrades that reduce total cost
of ownership. When you activate an
enhancement package, you can choose
the specific functions you want to
implement.
Harmonized User Interface
Across SAP SRM and Other
SAP Applications
SAP SRM 7.0 offers a harmonized
user interface across multiple SAP
applications, including SAP ERP. The
application includes a universal work
list that users can configure and use
to retrieve data within SAP SRM and
other SAP applications. For example,
a buyer can query purchasing data
across the SAP SRM and SAP ERP
applications from a single launch point.
Additionally, users gain access to
­purchasing-related activities within
SAP SRM through a personal object
work list. This is made possible through
a homogenous user interface for object
work lists across application roles.
Key benefits of this harmonized user
interface include:
•	Improved usability and process
­efficiency enabled by a common
­procurement user interface and
cross-application search functionality
•	Faster access to – and a comprehen-
sive overview of – the work environ-
ment and all related business objects
•	Easy access to up-to-date information
Business Rule Framework
­Workflow Technology
SAP SRM 7.0 contains new Business
Rule Framework workflow technology.
This provides you with the flexibility
to create workflow processes specific
to your business needs. If necessary,
you can maintain your former business
workflow solution even when you
upgrade to the SAP SRM 7.0 release.
Shift to Web Dynpro for ABAP
SAP SRM 7.0 contains new architecture
based on Web Dynpro for Java, which
gives you the ability to readily make
changes to the user interface. For
example, you can edit field names and
locations, and you can hide entire areas
of a screen. You can even make certain
fields read-only for specific users. By
modifying the user interface, you can
customize the user experience and
improve usability.
Enterprise Services
Enterprise services make it possible to
transfer data smoothly from one appli-
cation to another. The result is an unin-
terrupted flow of information and accu-
rate and timely access to data. SAP
SRM 7.0 supports enterprise services
to enable the following data transfers:
•	Transfer of an SAP ERP purchase
request to SAP SRM
•	Creation of an SAP SRM sourcing
request from an SAP ERP purchase
request
•	Distribution of a central contract
between SAP ERP and SAP SRM
•	Transfers relating to services pro-
curement activities between SAP
ERP, SAP SRM, and supplier self-
service functions
Technical Benefits of SAP Supplier
­Relationship Management
Simplifying Upgrades and Harmonizing User
Interfaces, Data Exchanges, and Workflows
16 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
SAP SRM 7.0 enables you to integrate
and optimize procurement processes
across the enterprise. With its new and
enhanced functionality, you can inno-
vate and grow your business, as well
as expand and deepen your supplier
relationships.
The new functionality available in SAP
SRM 7.0 facilitates communication
within your enterprise and across your
supplier network. This enables you to
improve sourcing strategies, accelerate
and automate processes and cycle times,
unify disparate data and applications,
evaluate and track suppliers, reduce
costs, and improve performance. You
can also realize sustainable results in
reporting, supplier management, invoice
management, centralized sourcing,
operational procurement, centralized
contract management, and catalog
management functions.
With SAP SRM 7.0, you have an
­enterprise-wide solution that closes
the loop on supplier relationship pro-
cesses in an end-to-end manner – and
ultimately trans­forms purchasing and
supplier management operations and
organizations. For more information
about SAP SRM, please contact your
SAP customer engagement manager
or visit us online at www.sap.com/srm.
For More Information
Learn More About SAP SRM
17SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
18 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
Quick facts www.sap.com/contactsap
50 084 193 (08/10)
©2008 by SAP AG.
All rights reserved. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet,
PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP
products and services mentioned herein as well as their respective
logos are trademarks or registered trademarks of SAP AG in
Germany and in several other countries all over the world.
Business Objects and the Business Objects logo, BusinessObjects,
Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and
other Business Objects products and services mentioned herein as
well as their respective logos are trademarks or registered trademarks
of Business Objects S.A. in the United States and in several other
countries all over the world. Business Objects is an SAP company.
All other product and service names mentioned are the trademarks
of their respective companies. Data contained in this document
serves informational purposes only. National product specifications
may vary.
These materials are subject to change without notice. These materials
are provided by SAP AG and its affiliated companies (“SAP Group”)
for informational purposes only, without representation or warranty of
any kind, and SAP Group shall not be liable for errors or omissions with
­respect to the materials. The only warranties for SAP Group products
and services are those that are set forth in the express warranty
­statements accompanying such products and services, if any. Nothing
herein should be construed as constituting an additional warranty.
Summary
The SAP® Supplier Relationship Management (SAP SRM) application helps you improve
supplier communications, streamline operations, and enhance cost management. As a
­result, you can reduce costs while maintaining access to high-quality products and a reliable
supply base.
Business Challenges
•	Achieve greater visibility into supplier relationships and performance
• Generate sustainable savings through sourcing
• Eliminate risk of procurement noncompliance
• Standardize and centralize processes
• Manage invoices
Supported Business Processes and Software Functions
•	Operational procurement – Accelerate processes, shorten the order cycle, and foster
standardization
• Catalog management – Avoid maverick buying, improve compliance, and allow users
to search among millions of items in seconds
• Centralized sourcing – Reduce costs and cycle times, improve sourcing process trans-
parency, and facilitate bidding competition among suppliers
• Centralized contracts – Extract maximum value from negotiated agreements by enabling
better contract compliance and execution
• Services procurement – Manage resources, monitor and reduce costs, and improve
­procurement ­processes
• Supplier collaboration – Link suppliers to your purchasing processes, collaborate with
suppliers throughout the life cycle, and enable integration with suppliers of all sizes
• Supplier evaluation – Better manage suppliers and improve quality
• Reporting and analysis – Capture, consolidate, and present data across the enterprise
Business Benefits
•	Reduce process costs and lower purchasing prices by building collaborative supplier
relationships
• Accelerate cycle times and supply management activities by automating procurement
processes
• Unify disconnected, disparate applications and data sources with a flexible platform
• Evaluate suppliers, streamline the procurement process, and achieve data visibility
with an integrated, end-to-end solution
For More Information
Contact your SAP representative, or visit us online at www.sap.com.

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Srm 7.0 value of upgrading

  • 1. The SAP® Supplier Relation- ship Management (SAP SRM) application offers a fully integrated procure-to- pay solution for automating core procurement processes – including services procure- ment. You can optimize the efficiency of your procure- ment organization with cen- tralized sourcing and con- tracts, as well as obtain unified access to function­ ality and information across SAP SRM and to relevant data in the SAP ERP applica- tion. The application provides a customizable user inter- face, flexible user-role defi­ nitions, and clear insight into spend and supplier data. And you can keep upgrade costs low by using enhance- ment packs to access new functionality. SAP Value of Upgrade SAP Supplier Relationship Management SAP® Supplier Relationship ­Management 7.0
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  • 3. 4 SAP Supplier Relationship ­Management 5 New Business Benefits of SAP Supplier ­Relationship Management 5 Reduce Total Cost of Owner- ship 5 Improve Enterprise Processes and Visibility 5 Increase and Facilitate Contract Compliance 5 Optimize Services Procurement 5 Streamline Sourcing Activities 6 Functional Value of SAP Sup- plier ­Relationship Management 6 User Interface 7 Operational Procurement 8 Self-Service Procurement 9 Plan-Driven Procurement 10 Services Procurement 11 Catalog Management 12 Centralized Sourcing 13 Centralized Contracts 14 Supplier Collaboration 15 Supplier Evaluation 16 Technical Benefits of SAP Sup- plier ­Relationship Management 16 Easier Upgrades with ­Enhancement Packs 16 Harmonized User Interface Across SAP SRM and Other SAP Applications 16 Business Rule Framework ­Workflow Technology 16 Shift to Web Dynpro for ABAP 16 Enterprise Services 17 For More Information CONTENT Preface This document summarizes the key business benefits and new functionality of release 7.0 of the SAP® Supplier Relationship Management (SAP SRM) ­application. Written specifically for customers who are currently using SAP SRM 2005, it presents the reasons for considering an upgrade to the new release. If you are currently using a release other than SAP SRM 2005, please contact your SAP sales representative for information on the value of upgrading to SAP SRM 7.0. Although this document gives you some insight into the benefits of the new release, it does not describe all of its benefits and functions – only those that result from the upgrade from SAP SRM 2005 to SAP SRM 7.0. Please refer to www.sap.com/srm for a general description of SAP SRM 7.0. This document cannot provide the detailed analysis you need to determine the specific value of upgrading to SAP SRM 7.0 in your particular business situation. It can, however, prompt a detailed discussion of your situation with an SAP representative.
  • 4. The latest release of the SAP® Supplier Relationship Management application (SAP SRM), part of the SAP Business Suite family of business applications, delivers a fully integrated procure-to-pay solution for automating core procure- ment processes. In addition to helping you optimize the efficiency of your procure- ment organization, the appli- cation provides a customiz- able user interface, flexible user-role definitions, and clear insight into spend and supplier data. SAP SRM 7.0 delivers exceptional functionality enhancements as well as reduced total cost of ownership (TCO) going forward. Like the other SAP Business Suite applications, future functionality for SAP SRM will be ­provided via convenient enhancement packs. Key investment areas of the SAP SRM 7.0 release include: • Nondisruptive delivery of new func- tionality – Offers a stable core and reduced upgrade costs by using enhancement packs for delivering new functionality • Enhanced usability through flexible user interface technology – Provides flexible user interface, roles, and work lists across the SAP SRM and SAP ERP applications • Centralized sourcing – Provides enhanced sourcing functionality to support better negotiations with suppliers and enable the initiation of sourcing events directly from SAP ERP • Centralized contracts – Provides centralized contract management by offering a single contract as a source of supply for SAP SRM and SAP ERP • Services procurement – Enables you to source service requisitions created in SAP ERP as well as facilitate ser- vice-related supplier collaboration SAP® Supplier Relationship ­Management Efficient, Flexible, and Comprehensive ­Procurement Processes The SAP Supplier ­Relationship Manage- ment application, an integral part of SAP Business Suite, is the foundation for managing procure- ment processes. 4 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 5. Reduce Total Cost of Ownership SAP SRM 7.0 enables you to reduce the TCO of your SAP investment. All future functionality will be delivered via convenient enhancement packs. This approach gives you the flexibility to select just the features required by your business – rather than having to include all available enhancements. As a result, you can leverage innovation without disruption to your business environment, efficiently adapting your business in response to change. Improve Enterprise Processes and Visibility With SAP SRM 7.0, users throughout your enterprise have access to all of the information, insight, and processes they need, which facilitates strategic business decisions across the organi- zation. A streamlined, intuitively navi- gated user interface improves cross- enterprise visibility, facilitates a wide range of activities, and offers a common look and feel for all users. You can also personalize the user interface for specific job and task demands – further increas- ing efficiency and effectiveness and the overall user experience. With this release, you also gain unified access to functionality and information across SAP SRM and relevant data in the SAP ERP application. The software provides a single, consolidated view of the procure-to-pay process; one view for all purchase orders and queries; and a comprehensive service access area that consolidates access for each user in a personalized dashboard based on what’s relevant to that individual regarding his or her role. This is driven by harmonization of users and roles across the entire SAP Business Suite. Increase and Facilitate Contract Compliance SAP SRM 7.0 provides expanded func- tionality that improves contract compli- ance, control, and efficiency. Contract management processes are integrated end to end and enable you to set up and maintain a single, global contract as a source of supply within SAP SRM and SAP ERP. This not only increases efficiency but also eliminates the risk of employees using out-of-date contracts. In addition, you can enforce compliance with contracts by giving global users access to all of your operational con- tracts through a central, online reposi- tory. As a result, you can enjoy signifi- cant savings through extended contract enforcement. The application also facili- tates better communication by using collaboration rooms accessible to inter- nal and external users. Optimize Services Procurement SAP SRM 7.0 supports services pro- curement with improved, collaborative functionality and enhanced integration with SAP ERP. You can procure service types commonly used in major industries, such as time-based and deliverable- based services. Using a collaborative negotiation plat- form for buyers and suppliers, you can electronically request quotes for services and related goods from various suppliers, compare spot bids, and negotiate more effectively. At the same time, you benefit from enhanced sourcing functionalities and supplier collaboration, which enable you to define requirements more accu- rately and align resources to those requirements more closely. The appli- cation helps you simplify compliance enforcement and reduce dependence on manual, offline, and otherwise ineffi- cient processes, as well as better man- age your total spend. Streamline Sourcing Activities SAP SRM 7.0 gives you improved con- trol over bid and auction activities; this is enabled by major enhancements that bring greater insight and discipline to your sourcing organization. The appli­ cation includes enhanced bidding func- tionality to facilitate easier comparison and awarding of bids, such as expressive bidding for suppliers, a bid comparison view, and bid tracking, versioning, and withdrawal functions. You can also im­- prove the speed and efficiency of auc- tions by allowing the market to determine final prices. And finally, because the software improves accuracy, account­ ability, and transparency throughout processes, you benefit from more fair and flexible sourcing. You can also increase clarity in sourcing processes with online chat functionality, which enables you to instantly address supplier inquiries. New Business Benefits of SAP Supplier ­Relationship Management Delivering a Whole New Level of Business Value 5SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 6. Functional Value of SAP Supplier ­Relationship Management Improving Core Procurement Operations SAP has made substantial investments to improve the overall functionality of SAP SRM – for example, in terms of the user interface and core functions used to support daily activities, such as sourcing and procurement. In addition, substantial investments have been made to further harmonize SAP SRM with SAP ERP to achieve procurement excellence. The following sections ­summarize these enhancements and their overall business benefits. User Interface The improved user interface in SAP SRM 7.0 includes an updated, user-friendly work center. This can be personalized to help make it easier for individual users to navigate. New interface functionality accelerates and automates supply man- agement processes and helps deepen supplier relationships. Leveraging this better user experience, you’ll realize benefits summarized in the following table. New or Enhanced Functionality Business Benefits Personalized, intuitive user experience • Common look and feel and consistent ­navigation throughout the application • End-user profiles that define role-based ­access and enable users to see person- alized information at a glance, trigger actions, and easily access services and documents • Work center portal that gives buyers ­access to well-organized and relevant ­information, services, and documents • Rapid user adoption through enhanced user experience • Increased productivity that results in faster, easier access to information • Reduced training time and costs Greater user efficiency and faster task completion • Enhanced task management through ­improved access to the universal work list for consolidated workflow items, alerts, and notifications across all SAP® applications, as well as a personal object work list for activities specific to the SAP Supplier Relationship Management application – all with a single, click-to- launch action • Streamlined purchase-order, query, and search processes • Ability to define regularly used queries and reports • Streamlined shopping cart navigation and single-screen information presentation • Increased efficiency and productivity of users performing daily tasks, such as issuing purchase orders, confirmations, invoices, and supplier performance ­questionnaires • Accelerated order processing and query changing • Rapid, personalized access to important information, including tasks and relevant data • Faster shopping cart processes to support a more efficient procurement process SAP SRM provides a single, consolidated view of all purchase ­orders and queries, with personalized access ­areas that consolidate functionality for each user via personalized, role-based dashboards. 6 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 7. Operational Procurement With SAP SRM 7.0, requisition and purchase-order processes are faster, more efficient, and less prone to error. Advanced requisition functions enable enhanced team purchasing, easier ­configuration of delivery dates, and multiple approaches to efficient handling of general ledger accounts. Purchase- order processing is enhanced through convenient access to purchase orders and related documents. The following table outlines high-level functions and benefits that are shared by all areas of operational procurement, including self-service procurement, plan-driven procurement, and services procurement. New or Enhanced Functionality Business Benefits Enhanced requisition handling • Team purchasing • Delivery date configuration • Multiple approaches to general ledger ­account handling • Line-item approvals • User-friendly approach to finding default account codes • More-flexible accounting controls • Shorter order cycles through the ­reassignment of tasks • Increased flexibility • Support for sophisticated procurement processes • Greater compliance assurance through more-specific approvals • Streamlined requisitioning to efficiently purchase goods and services • Ability to meet varied corporate strategies and facilitate compliance Streamlined purchase orders • Ability to quickly look up previously ­generated purchase orders and other ­documents • Simple cut-and-paste functionality to ­rapidly create new purchase orders and other documents • Quick access to past documents to ­support replication of best practices • Improved efficiency and time savings 7SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 8. Self-Service Procurement Procurement departments are often burdened by the administrative tasks involved in the procurement of routine maintenance, repair, and overhaul items and services, such as office supplies, machine parts, janitorial goods, repairs, and professional services. Centralizing the purchasing process means that your procurement department will likely get bogged down in organizing and process- ing requisitions and answering queries about the status of transactions. These routine tasks prevent your staff from focusing on strategic issues. At the same time, paper-based processes are slow, error prone, and costly. Transaction costs are often extremely high in com- parison with the value of the goods and services purchased. And they impede transparency, preventing corporate decision makers from understanding the impact of purchasing choices and making it difficult to consolidate pur- chasing power across the enterprise. Self-service procurement functionality within SAP SRM 7.0 empowers your employees to create and manage their own requisitions. The application pro- vides a convenient procurement environ- ment, enabling every employee in the enterprise to search for and buy items while helping to ensure that transactions comply with corporate purchasing poli- cies and internal controls. Costs are cut, cycle-time delays are shortened, and errors that arise from paper-based processes and inefficient communica- tion with suppliers are reduced. Equally important, decentralization of the trans- action processing enables you to reduce overhead and allows purchasing pro- fessionals to focus on managing rela- tionships instead of transactions. New features and innovations support- ing self-service procurement are sum- marized in the table above. New or Enhanced Functionality Business Benefits • Enhanced authorization concept, invoice accuracy, and support of flexible integration scenarios • Storage of transactional data and other related procurement documents (pow- ered by the SAP® Records Management ­application) in one central folder • Automatic back-end enterprise resource planning purchase order or contract ­creation based on an accepted quote in the SAP Supplier Relationship Manage- ment application • Ability to use alternate items to fulfill ­purchase requisition orders • Increased level of compliance across all sourceable products and services • Improved availability and quality of ­purchasing documents, reducing ­ maverick purchasing • Support of simplified, integrated ­processes to streamline the entire ­procure-to-pay cycle • Flexible purchasing processes to meet demand SAP SRM 7.0 helps ­reduce the TCO of your SAP investment. All ­future functionality will be delivered via conve- nient enhancement packs – an approach that gives you the flexi- bility to select just the features required by your business, rather than having to include all available enhance- ments. As a result, you can leverage innovation without disruption to your business environ- ment, efficiently adapt- ing your business in ­response to change. 8 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 9. Plan-Driven Procurement Plan-driven procurement supports the automated procurement of goods, which is especially important for the procurement of direct materials. In a highly integrated procurement process, demand for materials can come from several different planning applications that reside outside of SAP SRM. These applications may include material requirements planning applications for production planning; automated ­production systems for advanced, ­constraint-based planning; project applications for project planning; or plant maintenance applications for maintenance and repair planning. SAP SRM 7.0 supports a plan-driven procurement scenario that links and uses many processes in the value chain. It integrates requirements with sourcing, order management, contract management, collaboration, costing, and payment. Demand from production is transferred to SAP SRM through an open XML interface. And you can auto- matically assign contracts to demand, trigger, and send out a purchase order. New features and innovations support- ing plan-driven procurement are sum- marized in the table above. New or Enhanced Functionality Business Benefits • Better identification and automated ­handling of exception situations • Improved ability to effectively source a competitive offer and maintain quality ­standards – even in a rush-order situation • Ability to transfer SAP® ERP application purchase requirements containing attach- ments to the SAP Supplier Relationship Management application • Enhanced integration with SAP ERP ­regarding text transfers, revisions, and PO transfer consistency checks • Increased scope and depth of compli- ance, even as exceptions occur • Ability to speed up the sourcing process during material shortages • Improved quality of products purchased • Increased delivery reliability for customer orders 9SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 10. Services Procurement Services procurement is often seen as complex and not standardized, because the requirement of a service is typically undefined in quantity, duration, and price at the point of purchase. This assumption implies that the service is not specified until the supplier confirms it. This ambiguity is one reason that, while other categories of spend have uncovered significant cost-saving potential in the purchasing process, services have generally not been con- sidered part of cost-saving measures. With SAP SRM, you can manage resources and monitor costs over the entire range of services. The software supports analytics, sourcing, contract management, and supplier collabora- tion so you can optimize services pro- curement processes. Functionality cov- ers a wide range of procured services, such as planned and unplanned mainte- nance, temporary labor, and construc- tion. New features and innovations are summarized in the table above. New or Enhanced Functionality Business Benefits • Support for service types commonly used in major industries, such as time-based and deliverable-based services • Support for complex nature of services, including model specifications and service hierarchies • Ability to leverage information contained in contracts to help ensure compliance with approved suppliers • Specialized service-delivery ­management within supplier self-service, enabling supplier- initiated service entries, lump-sum services, and tracking of contractual limits • SRM-MDM catalog access for purchaser and bidder as a repository for service specifications • Greater control and visibility over total spend • Advanced demand aggregation and ­spot-bidding capabilities • Simplified compliance enforcement • Enhanced supplier collaboration • Centralized repository of services ­capabilities for improved process ­efficiency and accuracy 10 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 11. Catalog Management In SAP SRM 7.0, enhancements to ­catalog management functionality allow you to quickly load files directly from suppliers or from the SRM-MDM cat­ alog repository. You can also import content such as purchase records, ­contracts, and other related material masters from SAP ERP – quickly and efficiently. The software also makes it easier for you to interface with supplier contracts, manage images, consolidate and approve content, and publish on the Web. Once catalog content is pub- lished, users enjoy a best-in-class per- formance and search experience. New features and innovations support- ing catalog management are summa- rized in the following table. New or Enhanced Functionality Business Benefits Easier loading of catalog files from suppliers and SAP® applications • Ability to import content from the SAP ERP application, such as purchase information records and contracts • Enhanced contracts interface in the SAP Supplier Relationship Management ­application • Simplified image management for catalog items • Ability to publish content on the Web • Easier content consolidation and approval • More-accurate and timely catalog content • Superior management of catalog data that saves time and lowers costs • Enriched product content that offers ­users clear, accurate choices • Ability to provide wider access to catalog items through Web publishing • Enhanced catalog content management Support for master data management hierarchies • Support for services-related hierarchies • Corresponding changes to the Open ­Catalog Interface for supplier-provided ­content • Extended support for the complexities of services procurement • Lower cost of creating and maintaining catalog data Enhanced user interface • Running total for shopping cart included on all screens • Improved message handling, including ­status and warning messages • Customizable user interface (empty tabs and fields are automatically hidden when not required by user, and images can be displayed or hidden) • Advanced search functionality • Increased user productivity and efficiency • Faster issue resolution • Faster user access to information, data, and views that are relevant to them • Ability to provide better access to goods and services for purchase SAP SRM 7.0 sup- ports a plan-driven procurement scenario that links and uses many processes in the value chain. It inte- grates requirements with sourcing, order management, contract management, collab­ oration, costing, and payment. 11SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 12. Centralized Sourcing Support for centralized sourcing helps procurement professionals find the best source of supply – for example, through spot bidding, reverse auctions, and demand aggregation activities. Suppliers are invited to sourcing events (such as requests for quotation and reverse auctions) to exchange information, col- laborate on documents, submit quotes, and negotiate terms. Completion of the sourcing process results in the creation of operational contracts or purchase orders for procurement execution. SAP SRM 7.0 provides live-auction func- tionality and brings insight and ­discipline to sourcing practices. For example, the software supports “request for” docu- ments and competitive bidding events. And new functionality facilitates improved competition and flexible sourcing, which increases accuracy, accountability, and transparency throughout the sourcing process, as shown in the following table. New or Enhanced Functionality Business Benefits Efficient request-for-x (RFx) bid processing • Response modification within RFx docu- ments, such as suppliers suggesting ­alternate, supplemental, or substitute items down to the line-item level • Enhanced analytics to support bid selec- tion, such as a bid comparison view and weighted scoring • Creation of a temporary contact person for a bidding event • Chat functionality between buyers and ­suppliers • Enhanced bid tracking, versioning, and withdrawals • Ability to limit bids to one per company • Electronic confirmation of bidder’s ­participation • Online, offline, and surrogate bid ­submissions • Bidding in alternative currencies • Award, contract, and PO integration • More-efficient and fair bidding process • Faster, easier viewing and comparing of bidding-process results • More agile, adaptive sourcing • Enhanced supplier and buyer communica- tion and internal and external collaboration throughout the negotiation process • Fewer errors and incorrect bids • Support for companies’ specific sourcing strategies • Access to an auditable trail of supplier participation for internal and external ­compliance activities • Widening of the competitive market by enabling varied bid submissions • Support for sourcing events for a geo- graphically dispersed supply base • Shorter supply cycle times and reduced process costs Enhanced auction management • Real-time auction monitoring and bidding • Creation of temporary contact person • Dutch auction functionality • Ability to view all award-relevant informa- tion and actions on a single screen • Faster auction resolutions for sourcing events • Flexible auction management • Faster auction resolutions or lower prices for sourcing events • Enhanced usability through a streamlined user interface Deeper integration • Integration of demand requirements and contracts in multiple back-end applications • Single contract as a source-of-supply between the SAP® Supplier Relationship Management (SAP SRM) and SAP ERP applications • Simplified global sourcing through unified information • Reduced procurement costs through tight integration between SAP SRM and SAP ERP 12 SAP Value of Upgrade – SAP Supplier Relationship Management 7.012
  • 13. Centralized Contracts SAP SRM provides you with tools for centralized, systematic contract man- agement. Through tight integration with SAP ERP, you can use a single contract as the source of supply for your pur- chases. Based on the purchase require- ments, SAP SRM identifies the optimal contract to fill the need while taking into consideration such factors as price, delivery times, and location. It can also account for different types of discounts, such as value discounts, quantity-based stepladder discounts, group discounts, or rebates based on released values. These functions are used together to automate contract compliance, helping you extract the most value from expertly negotiated agreements. New functionality regarding centralized contracts is summarized in the table above. New or Enhanced Functionality Business Benefits • Single, central contract in the SAP® Supplier Relationship Management application that is shared via integration with the SAP ERP application • Multiple alert thresholds, such as expiration date, target value, and target quantity • Ability to determine payment terms on a line-item level • Ability to determine currency on a contract distribution level • Contract cockpit that enables efficient searches for existing contracts • Support for greater compliance between negotiated terms and operational contracts • Improved visibility into and management over contracts • Flexible contract management • Enhanced global supplier negotiations • Fast, more-efficient access to relevant contract information SAP SRM supports an ­efficient procure- ment ­organization with end-to-end pro- cess support, ­flexible user interfaces ­and role definitions, and clear insight into spend and supplier data. 13SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 14. Supplier Collaboration The supplier self-service functionality built into SAP SRM enables suppliers to access supply-side transactions and other relevant information. They can also update their catalog data, process acknowledgments, track payment ­status, suggest changes to orders, and receive information on inventory and supply-and-demand plans. The result is reduced process costs, increased automation, and transparency into the procurement process. Suppliers can also respond to services procurement– related requisitions. New features supporting supplier collab- oration are summarized in the table above. New or Enhanced Functionality Business Benefits • Ability to submit services procurement ­requisition responses, confirmations, and invoices • Supplier-provided catalog content • Enhanced supplier collaboration • Assurance of up-to-date, accurate catalog items 14 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 15. Supplier Evaluation SAP SRM enables you to better manage suppliers – the key to improving quality, enhancing collaboration, and reducing supplier risk. The software eases clerical and administrative burdens with numer- ous supplier evaluation methods, such as event-triggered surveys, ad hoc sur- veys, and quantitative questionnaires. Flexible reporting and response moni- toring enable you to improve operations, which ultimately reduces costs and improves efficiency. New features supporting supplier eval- uation are summarized in the table above. New or Enhanced Functionality Business Benefits • Multiple supplier evaluation methods, ­including event-driven, ad hoc, and ­quantitative evaluation surveys • Predefined key performance indicators (KPIs) and evaluation templates • Grouping and weighting function for score analysis based on commodity type and participating internal department • Alerts for low supplier performance scores • Integration with the SAP NetWeaver® ­Business Intelligence component for data consolidation and reporting • Effective tracking of numerous KPIs ­related to supplier performance, such as on-time performance, quality, and ­user-determined qualitative items • Support for standardized, best-practice supplier evaluations • Sophisticated performance analysis • Risk mitigated by enabling immediate ­corrective action plans for low-performing suppliers • Consolidated view of supplier performance The improved user ­interface in SAP SRM 7.0 includes an updat- ed, user-friendly work center. This can be personalized to help make it easier for us- ers to navigate. New interface functionality accelerates and auto- mates supply man- agement processes and helps deepen supplier relationships. 15SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 16. From a technical perspective, the latest release of SAP SRM offers substantial benefits over previous releases, including: • Easier and less costly upgrades • A new user interface that’s consis- tent with all other SAP Business Suite applications • Support for flexible workflow processes • An architecture based on Web ­Dynpro development environment for ABAP • Support for enterprise services to support key interfaces with other SAP applications Easier Upgrades with ­Enhancement Packs As part of the SAP Business Suite, SAP SRM 7.0 will deliver future enhancements via enhancement packs that are readily consumed. You can leverage new func- tionality and SAP innovations without dis- rupting existing functionality or investing in costly upgrades that reduce total cost of ownership. When you activate an enhancement package, you can choose the specific functions you want to implement. Harmonized User Interface Across SAP SRM and Other SAP Applications SAP SRM 7.0 offers a harmonized user interface across multiple SAP applications, including SAP ERP. The application includes a universal work list that users can configure and use to retrieve data within SAP SRM and other SAP applications. For example, a buyer can query purchasing data across the SAP SRM and SAP ERP applications from a single launch point. Additionally, users gain access to ­purchasing-related activities within SAP SRM through a personal object work list. This is made possible through a homogenous user interface for object work lists across application roles. Key benefits of this harmonized user interface include: • Improved usability and process ­efficiency enabled by a common ­procurement user interface and cross-application search functionality • Faster access to – and a comprehen- sive overview of – the work environ- ment and all related business objects • Easy access to up-to-date information Business Rule Framework ­Workflow Technology SAP SRM 7.0 contains new Business Rule Framework workflow technology. This provides you with the flexibility to create workflow processes specific to your business needs. If necessary, you can maintain your former business workflow solution even when you upgrade to the SAP SRM 7.0 release. Shift to Web Dynpro for ABAP SAP SRM 7.0 contains new architecture based on Web Dynpro for Java, which gives you the ability to readily make changes to the user interface. For example, you can edit field names and locations, and you can hide entire areas of a screen. You can even make certain fields read-only for specific users. By modifying the user interface, you can customize the user experience and improve usability. Enterprise Services Enterprise services make it possible to transfer data smoothly from one appli- cation to another. The result is an unin- terrupted flow of information and accu- rate and timely access to data. SAP SRM 7.0 supports enterprise services to enable the following data transfers: • Transfer of an SAP ERP purchase request to SAP SRM • Creation of an SAP SRM sourcing request from an SAP ERP purchase request • Distribution of a central contract between SAP ERP and SAP SRM • Transfers relating to services pro- curement activities between SAP ERP, SAP SRM, and supplier self- service functions Technical Benefits of SAP Supplier ­Relationship Management Simplifying Upgrades and Harmonizing User Interfaces, Data Exchanges, and Workflows 16 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 17. SAP SRM 7.0 enables you to integrate and optimize procurement processes across the enterprise. With its new and enhanced functionality, you can inno- vate and grow your business, as well as expand and deepen your supplier relationships. The new functionality available in SAP SRM 7.0 facilitates communication within your enterprise and across your supplier network. This enables you to improve sourcing strategies, accelerate and automate processes and cycle times, unify disparate data and applications, evaluate and track suppliers, reduce costs, and improve performance. You can also realize sustainable results in reporting, supplier management, invoice management, centralized sourcing, operational procurement, centralized contract management, and catalog management functions. With SAP SRM 7.0, you have an ­enterprise-wide solution that closes the loop on supplier relationship pro- cesses in an end-to-end manner – and ultimately trans­forms purchasing and supplier management operations and organizations. For more information about SAP SRM, please contact your SAP customer engagement manager or visit us online at www.sap.com/srm. For More Information Learn More About SAP SRM 17SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
  • 18. 18 SAP Value of Upgrade – SAP Supplier Relationship Management 7.0
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  • 20. Quick facts www.sap.com/contactsap 50 084 193 (08/10) ©2008 by SAP AG. All rights reserved. SAP, R/3, xApps, xApp, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP Business ByDesign, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects S.A. in the United States and in several other countries all over the world. Business Objects is an SAP company. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. These materials are subject to change without notice. These materials are provided by SAP AG and its affiliated companies (“SAP Group”) for informational purposes only, without representation or warranty of any kind, and SAP Group shall not be liable for errors or omissions with ­respect to the materials. The only warranties for SAP Group products and services are those that are set forth in the express warranty ­statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional warranty. Summary The SAP® Supplier Relationship Management (SAP SRM) application helps you improve supplier communications, streamline operations, and enhance cost management. As a ­result, you can reduce costs while maintaining access to high-quality products and a reliable supply base. Business Challenges • Achieve greater visibility into supplier relationships and performance • Generate sustainable savings through sourcing • Eliminate risk of procurement noncompliance • Standardize and centralize processes • Manage invoices Supported Business Processes and Software Functions • Operational procurement – Accelerate processes, shorten the order cycle, and foster standardization • Catalog management – Avoid maverick buying, improve compliance, and allow users to search among millions of items in seconds • Centralized sourcing – Reduce costs and cycle times, improve sourcing process trans- parency, and facilitate bidding competition among suppliers • Centralized contracts – Extract maximum value from negotiated agreements by enabling better contract compliance and execution • Services procurement – Manage resources, monitor and reduce costs, and improve ­procurement ­processes • Supplier collaboration – Link suppliers to your purchasing processes, collaborate with suppliers throughout the life cycle, and enable integration with suppliers of all sizes • Supplier evaluation – Better manage suppliers and improve quality • Reporting and analysis – Capture, consolidate, and present data across the enterprise Business Benefits • Reduce process costs and lower purchasing prices by building collaborative supplier relationships • Accelerate cycle times and supply management activities by automating procurement processes • Unify disconnected, disparate applications and data sources with a flexible platform • Evaluate suppliers, streamline the procurement process, and achieve data visibility with an integrated, end-to-end solution For More Information Contact your SAP representative, or visit us online at www.sap.com.