SAP SRM which is the acronym for SAP Supplier Relationship Management. SAP software is a product that aids with the procurement of products and goods through a web-based platform. businesses and organizations can procure all kinds of products like direct and indirect material, products, and services and this can be integrated with modules like SAP ERP and other non-SAP backend software systems for both accounting purposes and planning.
SAP SRM allows you to structure and optimize your procurement process to operate effectively with suppliers to get long term benefits and also to carry out the procurement cycle, forecasting, and to work with partners. You can cut down the time span and cost of the procurement cycle by using innovative and effective methods to manage business processes with key suppliers.
SAP SRM totally supports the procurement cycle, for example, starting from source and purchase to pay through the complete procurement process with suppliers and managing effectively the supplier demands to build a long-term relationship.
SAP SRM allows you to further stress supplier performance management and it also helps you to streamline the procurement operations, put compliance with contracts and purchasing requirements, and to further improve the overall cost management and expenditure.
SAP SRM presents a competitive advantage by utilizing both talents and ideas from key supply partners and translates this into software products and service offerings for end users. One unique tool for handling performance and identifying the areas for improvement is the joint, two-way performance scorecard. A balanced scorecard is made up of a mixture of both quantitative and qualitative measures, including how the key participants that are involved view the quality of the relationship. Advanced organizations carry out a 360-degree scorecard, where surveys are carried out on strategic suppliers for feedback on their performance, the results of which are translated into the scorecard.
1. SAP Bidding Engine: The bidding engine defines the rules for bidding and bidders can use it to submit bids in the system. It can be used to create and process requests for bids; bidders can submit bids. Suppliers access the bid invitations using a web browser.
2. SAP Business Intelligence: BI is primarily used and requires Application server ABAP on the same system.
3. SAP Enterprise Buyer: SAP EB promotes self-service procurement. It is a Web-based solution that provides the complete procurement process for the procurement of both direct and indirect goods and services. It is the execution hub for the majority of processes within SAP SRM.
4. SAP Exchange Infrastructure: Also known as SAP NetWeaver Process Integration, SAP NetWeaver PI is a middleware solution that organizations can use to exchange data between SAP SRM and business partner systems or electronic marketplaces, over the Internet. It provides open integration technologies that support process-centric collaboration among SAP and non-SAP applications, both within and beyond enterprise boundaries.
5. Supplier Self-services: Supplier self-services are a hosted Internet application that provides an integrated application for organizations to collaborate with their business partners. Organizations can invite strategic suppliers that are smaller in size and those that do not have the capability to exchange business documents electronically using XML or EDI. By enabling smaller suppliers with supplier self-service capabilities, your organization can ensure that documents are delivered to the supplier electronically via a hosted solution.
6. SAP Catalog Content Management: The SRM-MDM catalog solution enables organizations to manage enterprise and supplier content. Users can search for products and services using a robust search tool with added flexibility to search cross-catalogs, comparisons, and get detailed information on products or services.
7. SAP Enterprise Portal: This is used as an entry point for users to manage applications and information related to SRM. It provides role-based and secure access to applications and services.
There are lots of features of SAP SRM and some of them are:
1. Catalog Management.
2. Procure-To-Pay Optimization
3. Self-Service Procurement.
4. Plan-Driven Procurement.
5. Operational and Centralized Sourcing.
6. Services Procurement.
7. Operational Reporting.
8. Centralized Contract Management.
9. Workforce Mobility.
There are various benefits that you can get by using SAP SRM software products and by integrating it with other SAP ERP modules and non-SAP systems for both the planning and optimization of product procurement. The Following are some of the key benefits of SAP SRM
1. Catalog Management: With SAP SRM, suppliers can easily manage the catalog data and this data can be effectively and easily be integrated with various business processes like finance, accounting, and planning.
2. Procure to Pay Optimization: Using SAP SRP software products, you can streamline the procure-to-pay lifecycle and further improve communication with suppliers and further optimize the cost management in the organization.
3. Self Service Procurement: With SAP SRM, End-users can search for a product by using multiple product catalogs and this helps them to find and purchase products that are compliant with the purchase and procurement policy of the company.
4. Reporting Functionality: Using the SAP SRM enterprise suite, you can generate reports that are related to procurement activities, compliance, and contract management, and managing the costs in the procurement process.
5. Contract Management: You can manage contracts by using a secure central repository. This helps to reduce compliance violations and allows end-product-users to follow the business processes during self-service procurement.
1. Enhance Coordination: SAP SRM provides innovative methods to coordinate your business processes with your key suppliers and make them more effective.
2. Enhance Optimization: SAP SRM enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus to gain long-term benefits from all your supplier relationships.
3. Forecasting: With SAP SRM you can examine and forecast purchasing behavior, shorten procurement cycles, and work with your partners in real-time. This allows you to develop long-term relationships with all those suppliers that have proven themselves to be reliable partners.
4. Gain knowledge of strategic sourcing and contract management
5. Increase your business earning potential
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