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…As an SRM consultant, most of the challenges I’ve faced over the past few months have spilled beyond the procurement space. The products that are now available as a part of the SAP SRM suite offering are more robust to address several integrated challenges in the supply chain, however, the central theme is always around “Compliance & De-risking”, that never changes…

What that means:  It simply means that we have a suite offering that can extend beyond just procurement and address an enterprise-wide Supply Chain need.

In a recent engagement with an Oil field services major, there were multiple questions of extending SAP E-Sourcing / CLM to address the Tender and Contract Management process for the Sales side peocesses.

However, primarily, we are using the SAP E-Sourcing application for the Procurement Buy-side for running the Auctions Engine and Category Management.

How do we actually achieve this? Is this possible at all?

What’s the effort involved and What’s the complexity?

 Yes, its achievable and we can have the Contexts Configured in such a way that the same application can be modeled for enterprise-wide usage (Both Buy & Sell side).

The development efforts in modelling the solutions are a Complexity High stature by themselves, but the crux of the business requirements are achievable making SAP CLM: An enterprise-wide Contracts Management solution, driving both the operational sales contract and also the attached Legal contract governing the relationship with the customer. 

The best part is that, we can also use the standard integration provided by SAP for SAP ES and ECC integration to push the outline agreement to use it as the source of truth to quote for Customer Sales Tender requests. further driving contract compliance.

In-short, the solution addresses the following business process:

A Tender is Created in SAP E-Sourcing from a Referenced Sales opportunity from Sales force.com thats further submitted to the customer and upon awarding is converted into an MSA coupled with an internal dollar based approval + Legal Approval further making the Negotiated contract available in SAP ECC for the sales team to use for future quotes and 3 way invoice matching for customer receivables.

In addition to making it available for SAP ECC, there are many other extends for disparate enterprise-wide need. Ex. Call-offs, Analytics etc.

SAP CLM 

 

I think to start off, its a great model driven philosophy and extend the capabilities of the application to be 4 x 4.

I am keeping this discussion open to see, if such challenges are knocking your door, lets collaborate to understand any business situations that are similar on your side?

…Happy reading

Tridip Chakraborthy 

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4 Comments

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  1. Muthuraman Govindasamy
    It is very informative . so master contract will be available in ECC as source of supply as purchasing contract.

    What are the advantages are there compare to GOA and CLM . What are the challenges you have faced for this integration?

    Request always starts in e-Sourcing right?

    you are truely living e-Sourcing consultant.I have read your fitting replies in e-sourcing SDN arena. Good job . keep up the good work.

    Muthu

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  2. Vaibhav Modi
    Hey Tridip,
    A very informative blog. Even I am working on one such requirement. But over here client has CRM (non SAP) and wants to push Sales Quatation or a doc in CLM as Master Agreement and then go for Approval / Negotiation and finally into ECC.

    Your blog is very good overview for me.
    Looking forward to have more on this.

    Thanks Buddy,
    Vaibhav Modi

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  3. Tridip Chakraborthy Post author
    Hi Vaibhav
    good to know that the blog helped you construct your scenario, do let me know what your end to end process is and we can see how we can design the most effective simple interfaces to realize the Sales Side Contract Management requirements.
    Whatever the CRM system is, the process will be 80% same for most cases
    Lets share the best practices with the community
    Regards
    Tridip
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  4. pankaj jadhav
    Hello Tridip,

    This is really a good initative as very agressive market demand is coming this way.

    I am also working on the same please give your valuable comments, for process where legal sales contract will be created in CLM (sales side with appropriate screen changes) and same will be published to R/3. I identify integration points
    1. Master data (finished products, customer)
    2. Organisational data (comp code, sales org, distribution channel etc.)
    3. Transactional data (sales agreement with differents document types)

    To integrate these I am working on field to field mapping in PI.

    again Thanks for this Blog.

    Thanks and Regards,
    Pankaj Jadhav
    +91-9689888661

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