SAP Sourcing Webcast - RFX Topics Including RFX Rounds and

SAP Sourcing RFX Topics Including RFX Rounds and Awards

October 2014

© 2014 SAP AG. All rights reserved. 2

SAP Sourcing / CLM 2014 Webcast Series

Goal

• Spread the knowledge about SAP Sourcing

• Build and leverage the SAP Sourcing community

Audience

• SAP Consulting and Field Services

• Partner Consulting

• SAP Sourcing Customers

Upcoming Webcasts

• Hosting & New possibilities (Nov 13th)

• New Workflow Embedded Editor (Dec 11th)


SAP Sourcing CLM 10.0 Ramp-Up

SAP Sourcing CLM 10.0 is currently in ramp-up

SAP anticipates it will be generally available by end of 2014

SAP Sourcing CLM 10.0 features - http://scn.sap.com/community/sourcing/blog/2013/12/20/new-features-in-sap-sourcing-sap-clm-100

Technical Overview and ERP Integration - http://scn.sap.com/docs/DOC-55313

http://scn.sap.com/community/sourcing/blog/2013/12/20/new-features-in-sap-sourcing-sap-clm-100






















http://scn.sap.com/docs/DOC-55313






SAP Sourcing/CLM Upcoming Trainings

Which trainings are being offered?

• TSO100: Functional Training

• TSO150: Technical Training

• TSO180: Integration Training

Where are these classes ?

• SAP Americas in Newtown Square, PA (USA)

• SAP Germany in Walldorf (Germany)

When are these classes ?

• Newtown Square in November

• France in October

How to sign up ?

• www.training.sap.com

• Search for TSO100/150/180

• Contact: [email protected]

• [email protected]

mailto:[email protected]

mailto:[email protected]


Topics

RFx Rounds

Business Process

Functionality Overview

RFx Awards

Some Things to Think About


RFx Rounds: Business Process


RFx Rounds are typically used:

To solicit information about potential suppliers

To help you qualify suppliers

To understand market pricing about the goods and services you

are sourcing

To eventually award business to a qualified supplier or set of

qualified suppliers that meet your organization’s requirements

Commonly used RFx Rounds are:

Request for Information

Request for Proposal

Request for Quotation

Auction

RFx Rounds Overview


Request for Information (RFI) is typically used to:

Gather information about suppliers and their capabilities

Learn something about what’s new in the market for a particular

goods and services

Determine how suppliers will respond to an NDA or

Confidentiality Agreement

Ask key questions that help to eliminate suppliers that cannot

meet your needs

The objective is to help you decide which suppliers should be

invited to the next round – usually an RFP or RFQ

Request for Proposal (RFP) is often used to:

Solicit more detailed information from the suppliers

Begin to get an understanding of pricing for a particular category

RFx Rounds Overview (cont’d)


Request for Proposal (RFP) is often used to:

Determine how suppliers will respond to key terms and conditions

that are important to you as the buyer

Ask both objective and open ended question to understand the

various solutions that each of the suppliers can propose

Request for Quotation (RFQ) is most typically used to:

Focus on pricing for a set of detailed requirements which have

been refined and clarified through the sourcing process

Auction

The focus is typically strictly on pricing and is designed to get to

the final best possible pricing in a competitive, time-constrained

event from qualified suppliers

RFx Rounds Overview (cont’d)

© 2014 SAP AG. All rights reserved. 10 10

RFx Rounds and Strategic Sourcing Overview

Key Steps in Strategic Sourcing

Project / Process

Plan

Data Collection

& Analysis

Sourcing Strategy

Development

Sourcing

strategy

Evaluate

outsourcing

Total cost of

ownership

Supplier Selection

Process

Multi-round

RFX

Supplier

conference

Reverse

Auctions

Implementation

Plan to

implement

Supplier

relationship

process

Identify key

metrics

Ongoing Supplier &

Category

Management

Step 1 Step 2 Step 3 Steps 4 Steps 5 Steps 6

RFx Reverse Auction

Industry analysis

Internal analysis

RFI / Supplier

qualification

Establish

methodology

Identify key

stakeholders


RFx Rounds: Functionality Overview


Setup: Multiple Round Settings on RFx Document Type

• Key Settings on RFx Type

Enable Multiple Rounds

Round Name

Keep Root Document ID in

IDs for New Rounds

Suffix of New Round IDs

Note: You cannot change the RFx

Document Type from one round to

another so you will typically want to have

both Questions and Line Items enabled

in the RFx Type you are using when you

are considering multiple rounds


Creating a New Round

The RFx must be “Closed for Response”

Under the Actions menu, select “New Round”


Questions can be carried to the next round as: Active, Locked or Retired

The Status can be set on questions Individually, at the Group level, or at the Section

level

Creating a New Round (cont’d)



You can also select the Line Items to be carried to the new round



Once you have completed your selections from the previous round, the new round

will be created

Note that the RFX ID now reflects Round 02 and the Level for the Round is 2



Note that the rounds are automatically linked to each other in the Document Links

on the Header tab


Supplier Perspective


Responding to a New Round

Note that the supplier clearly sees that this is now Round 2


Responding to a New Round (cont’d)

Note that one question was locked in Round 2 – the supplier can see the response

but cannot change it

The second question was left as an Active question – this means that the supplier

can edit their previous response



Questions that were retired from the previous round are not visible to the supplier at

all



Line Items carried over from a previous round are always open for input from the

supplier


RFx Awards


RFx Awards

Once the supplier responses are in and you no longer need to run additional rounds,

you can begin your final evaluation


RFx Award Options

You can choose to do a Simple Award where, after evaluating responses, you

choose the supplier to whom you want to award the business

You can choose to do a Scenario Award which allows you to define various rules to

be used and optimize how the Line Items are allocated based on selected criteria


Award Scenarios Manual Allocation

When you begin the scenario-building process, you can choose to do Manual allocations. If you choose Manual allocations, you can also then choose to have the system award each of the Line Items based on either Lowest Price or Lowest Cost. These will often be the same unless you have included other cost factors.


Award Scenarios Lowest Cost

In this case, the system has allocated based on the lowest cost associated with each Line Item.


Award Scenarios Comparing Results

Two or more scenarios can be compared by selecting the desired scenarios and using the Compare function.


Award Scenarios Compare Two Or More Scenarios

Results can then be exported to Excel or PDF as well as viewed on screen.


Award Scenarios Comparing The Detailed Results

Details associated with each Line Item are also available for review in the comparison.


Award Scenarios Side by Side Line Item Comparison For Each Scenario

Details associated with each Line Item are also available for review in the scenario comparison.





Many times, users are pressed for time and do not take the

time to conduct multiple rounds but:

Leveraging multiple RFx Rounds can help you to qualify potential

suppliers more quickly

Qualifying suppliers through the process typically means that

some suppliers are eliminated from subsequent rounds which

facilitates evaluations and decision-making in the more detailed

rounds

End results often exceed expectations


Results: Contract Labor Category

• Business Issue

• Requirement to organize and reduce IT contract labor supply base while driving cost reduction for 42 job positions in 3 different geographies with varying cost structures.

• Approach

Multi-round RFx process to qualify suppliers with 96 suppliers invited; 65 suppliers were down selected and invited to participate in the final auction.

• Results:

Savings in excess of 20%

Reduction of supply base of over 50%


Results: Insurance Premiums

• Business Issue

Out-of-network health insurance

claims-handling costs were rising

dramatically.

• Approach

Multi-round RFP process to qualify

suppliers and obtain baseline

pricing. Because the pricing and

qualifications of the suppliers who

participated in the RFP process

were comparable, a reverse

auction was held to finalize

pricing.

• Results:

Savings in excess of 20%


Thank You!

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SAP Sourcing Webcast - RFX Topics Including RFX Rounds and