SRM SourcingProduct Management SAPMarkets

SAP Markets 2002, Title of Presentation, Speaker Name *

Strategic vs. Operational PurchaserPart of enterprise management teamResponsible for strategic evaluations and decisionsCross-product (category) decisionsNo transactional use of software tools

Part of purchasing department Operational decision makingDaily supplier relationship managementTransactional use of software toolsSpecialist for specific product categories

StrategicPurchaserOperationalPurchaser

SAP Markets 2002, Title of Presentation, Speaker Name *

Strategic vs. Operational PurchaserStrategicPurchaserOperationalPurchaserSoftware RequirementsSoftware RequirementsAccess to external market dataPermanent monitoring / reporting on demandSupport by SEM tools for scenario managementWorkflow-based, cross-application procurement toolAccess to centrally maintained master dataPredefined communication channels with business partnersOperational purchaser will use sourcing cockpit for daily tasks!

SAP Markets 2002, Title of Presentation, Speaker Name *

Sourcing Cockpit as Part of the SRM InitiativeSAPMarkets SRMProcure Enable SuppliersExecuteAnalyzeSourceDesignPlanmySAP SRM / SourcingThe sourcing cockpit focuses on operational procurement tasks.It enables seamless communication with your suppliers.The sourcing cockpit relies on data that is based on strategic decisions.

SAP Markets 2002, Title of Presentation, Speaker Name *

Evolution: E-SourcingEBPBackendSAP & Non-SAP Catalog ESS PO cockpit Local orders Tendering BW Reporting Direct procurement Contract Management Content WorkbenchLESLESLESLESLES + + + Assignment / evaluation of local contracts Vendor list Sourcing cockpit SUS C-Room OPI DAB + BBP 1.0BBP 2.0 / EBP 1.0EBP 2.0EBP 3.0EBP 3.5

SAP Markets 2002, Title of Presentation, Speaker Name *

Activities: Goods receipt ASN Invoicing FulfillmentActivities: Negotiating contracts Auctions Supplier management Vendor listSelection / Decision / Negotiation Operational ProcurementActivities: Manage require- ments(aggregation) Select SoS Determine new SoS for specific demands (Tendering) Create PO

Strategic EvaluationBased on: Product innovation (Make or buy) Vendor evaluation Sales forecast Sourcing strategy External market dataFrom Strategic to Operational SourcingPermanent analysis / monitoringAnalytics / SEMTools for Negotiation / Tendering E-Procurement / Materials Management /AnalyticsE-Procurement / Materials Management / Order Management

SAP Markets 2002, Title of Presentation, Speaker Name *

From Strategic to Operational SourcingStrategic EvaluationBased on: Product innovation (Make or buy) Vendor evaluation Sales forecast Sourcing strategy External market dataActivities: Goods receipt ASN InvoicingActivities: Negotiating contracts Auctions Supplier management Vendor list FulfillmentSelection / Decision / Negotiation Operational ProcurementActivities: Manage require- ments (aggregation) Select SoS Determine new SoS for specific requirements (Tendering) Create PO

Permanent analysis / monitoringAnalytics / SEMTools for Negotiation / Tendering E-Procurement / Materials Management E-Procurement / Materials Management / Order ManagementSourcing Cockpit

SAP Markets 2002, Title of Presentation, Speaker Name *

Internal and externalrequirements Dynamic Auction and Bidding Collaboration Room Service Provider Vendor List (VL) Contracts Business Warehouse Information Catalog, Product Master Vendor Master DataCreate purchase orderCreate requirements via shopping cart or external systemTransferrequirements to sourcing cockpitSourcing CockpitInternetIntranetWorklistOperational Purchasers View

SAP Markets 2002, Title of Presentation, Speaker Name *

Work Areas in the Sourcing CockpitWorklist Search areaRequirementgroupingAreaDetailsPurchasers can search for requirements using different criteria such as product category or delivery date.The system automatically creates a worklist. The worklist contains all requirements of the purchasing group for which the purchaser is responsible.Within the group area, purchasers can group requirements together into a single purchase order. The system can indicate which requirements can be grouped into one purchase order.

SAP Markets 2002, Title of Presentation, Speaker Name *

Sourcing Cockpit: Screen

SAP Markets 2002, Title of Presentation, Speaker Name *

Functions in Detail: Process FlowSystem boundarySystem boundaryShopping CartShopping CartExternal DemandApprovalSourcing CockpitPurchase OrderBE Purchase Req.BE Purchase OrderTransferTransferCustomizable transferIn Customizing, you can choose which products appear in the sourcing cockpit.This is controlled by the product category and whether or not a source of supply exists. With a BAdl it is possible to control the transfer to the sourcing cockpit more specifically, using criteria other than the product category

SAP Markets 2002, Title of Presentation, Speaker Name *

Functions in Detail (1)Search for supply proposal Display product detailsBusiness Information WarehouseFeatureDescriptionCoverage and priceProfessional purchasers can display product details for a requirement in the external catalog via a hyperlink. The system enables purchasers to find an appropriate source of supply for a requirement. Sources of supply can be contracts, product links or vendors. The corresponding vendor evaluation report can be viewed with BW. In the requirement list, purchasers can also find the purchasing history in BW for a specific item. The system shows how many items of the requirement a specific vendor can cover and, at which price. The potential sources of supply can be sorted by those criteria.

SAP Markets 2002, Title of Presentation, Speaker Name *

Functions in Detail (2)FeatureDescriptionCreate contracts Purchaser can issue a contract requirement, which can be discussed and negotiated in the C-ROOMPurchasers can access external vendor directories to search for sources of supply via the Open Partner Interface Open Partner Interface

SAP Markets 2002, Title of Presentation, Speaker Name *

Restrictions (1)No additional items can be added to shopping cartPurchasers can only change shopping cart items.It is not possible to add additional items to an existing shopping cart. (This requires an additional approval step, which is not possible with 3.5).Only limited functionality of OPI interfaceIdea is an interface for external service providers offering supplier information. This will only be partially covered (only one way, that is, with no transfer of supplier data, in EBP 3.5).No requirements from the SAP APO scenarioDirect procurement scenario with SAP APO creates purchase orders.As the requirement object of the sourcing cockpit is a shopping cart, requirements from APO will not appear in the sourcing cockpit at the moment.

SAP Markets 2002, Title of Presentation, Speaker Name *

Restrictions (2)No requirements for the classic scenarioIf a customer uses the classic scenario (PO generated in the backend system), requirements will not appear in the sourcing cockpit.No different delivery address at item levelWhen grouping, requirements have to have the same delivery address. It is not currently possible to have different addresses at item level.

In the beginning of the IT-era organizations mainly focussed on streamlining internal processes.In the early-ninetees, the idea of automation the supply chain came up and solutions which were able to connect companies business customers as well as suppliers changed the whole mind-set of procurement organizations.The only hurdle was the heterogenious system landscape and documents formats of the corresponding business partners. EDI/EDIFACT was the first attempt to find a common format for business document exchange. The only problem was the many one-to-one relationsships between business partners. In order to connect a new partner to your system a new physical interface had to be defined, maintained and changed in case of a system upgrade/change of one of the partners.The idea of Marketplaces in the new world is now to define first of all a common technical infrastrucure which is bases on Web/XML-technology. Once an organization has connected ist system to the Marketplace it can communicate with any company participating in this community.But Marketplace is more than just a technical infrastructure. In order to become a realy Marketplace from a business administrations perspective it should also provide:Value added services e.g. for dynamic pricing (Marketplace for pricing)Hosting services for electronic commerce applications such as e-procurement, e-selling

Key message: Enterprise Buyer as On-ramp solution and MarketBuyer as Hosted solution are the major enablers for doing electronic procurement over Marketplaces.In the beginning of the IT-era organizations mainly focussed on streamlining internal processes.In the early-ninetees, the idea of automation the supply chain came up and solutions which were able to connect companies business customers as well as suppliers changed the whole mind-set of procurement organizations.The only hurdle was the heterogenious system landscape and documents formats of the corresponding business partners. EDI/EDIFACT was the first attempt to find a common format for business document exchange. The only problem was the many one-to-one relationsships between business partners. In order to connect a new partner to your system a new physical interface had to be defined, maintained and changed in case of a system upgrade/change of one of the partners.The idea of Marketplaces in the new world is now to define first of all a common technical infrastrucure which is bases on Web/XML-technology. Once an organization has connected ist system to the Marketplace it can communicate with any company participating in this community.But Marketplace is more than just a technical infrastructure. In order to become a realy Marketplace from a business administrations perspective it should also provide:Value added services e.g. for dynamic pricing (Marketplace for pricing)Hosting services for electronic commerce applications such as e-procurement, e-selling

Key message: Enterprise Buyer as On-ramp solution and MarketBuyer as Hosted solution are the major enablers for doing electronic procurement over Marketplaces.You can now manage catalog content directly in the Enterprise Buyer system. Rather than maintaining product data manually, you can import catalog data from external sources such as marketplaces, content providers, and vendors.The imported catalog content is processed in the Enterprise Buyer system and stored in the product master. The information about which products are to be published and how these products are to be presented is held in a virtual product catalog in the Enterprise Buyer system. On the basis of this catalog definition, the required product data is transferred periodically to the purchasing catalog.

Round TripBuyer connects directly to supplier systems for deep integration capabilities like ATP, real-time pricing, dynamic configuration etc.All the benefits of supplier capabilities, plus integration to buyers business rules, approval flows and cost controlsRequires strong supplier e-business capabilitiesManaged ContentSupplier pushes content to a marketplace / intermediary / private exchange for content management serviceBuyers subscribe to managed content (includes contract pricing, technical details, etc). MarketSet Hosted Order ManagementFor small to medium suppliers, SAPMarkets offers hosted selling and catalog management capabilities, including customer pricing, status updates, etc.Only an ISP connection and a browser required for the suppliers

Round TripBuyer connects directly to supplier systems for deep integration capabilities like ATP, real-time pricing, dynamic configuration etc.All the benefits of supplier capabilities, plus integration to buyers business rules, approval flows and cost controlsRequires strong supplier e-business capabilitiesManaged ContentSupplier pushes content to a marketplace / intermediary / private exchange for content management serviceBuyers subscribe to managed content (includes contract pricing, technical details, etc). MarketSet Hosted Order ManagementFor small to medium suppliers, SAPMarkets offers hosted selling and catalog management capabilities, including customer pricing, status updates, etc.Only an ISP connection and a browser required for the suppliers

Round TripBuyer connects directly to supplier systems for deep integration capabilities like ATP, real-time pricing, dynamic configuration etc.All the benefits of supplier capabilities, plus integration to buyers business rules, approval flows and cost controlsRequires strong supplier e-business capabilitiesManaged ContentSupplier pushes content to a marketplace / intermediary / private exchange for content management serviceBuyers subscribe to managed content (includes contract pricing, technical details, etc). MarketSet Hosted Order ManagementFor small to medium suppliers, SAPMarkets offers hosted selling and catalog management capabilities, including customer pricing, status updates, etc.Only an ISP connection and a browser required for the suppliers

OCI is SAPMarkets' standard format for catalog interfaceOCN is a virtual global network to deliver multi-supplier content and content management services to fulfill the needs of buyers, exchanges and suppliers. It enables frictionless B2B e-commerceOCN Partners WW Grainger, Compaq, Newark Electronics, VWR International, SupplyAccess , Structured Content, Content EuropeOCI is SAPMarkets' standard format for catalog interfaceOCN is a virtual global network to deliver multi-supplier content and content management services to fulfill the needs of buyers, exchanges and suppliers. It enables frictionless B2B e-commerceOCN Partners WW Grainger, Compaq, Newark Electronics, VWR International, SupplyAccess , Structured Content, Content Europe