In the last blog of this series we learned more about the business aspects of efficient procurement with the SAP S/4HANA 1610 release. Overall we can say that the enhancements in procurement with the 1610 release are generating greater efficiency, time and cost-savings through simplification and the elimination of process duplication.
Raising efficiency with the Procurement Overview Page
Throughout SAP S/4HANA, the purchaser receives support in his daily work with the Procurement Overview Page, which is part of the real-time reporting and monitoring. With this SAP Fiori app it is easy to monitor critical business events, purchasing spend and supplier performance. Users are able to see all relevant information, analytical and transactional, on one screen, and can show all data in real-time as well as can drill-down for further details or perform direct actions. This app provides its user with a set of actionable cards that you can easily rearrange as required.
For instance can the user filter down to one specific supplier and all the charts on the screen will automatically show only the required information. This makes it so much more efficient to work as the user no longer needs to start different transactions and reports separately. Everything is visible on one single page. The purchaser immediately sees his or her most relevant tasks and can navigate to KPI drilldowns, worklists, or specific object pages to get more detailed information if needed.
Examples of operational cards are the monitoring of contracts, so that you see which contracts are about to expire and require your attention, as well as purchase requisitions, showing you where a source of supply is missing. When users go into this card they can get an overview of all purchase requisitions that have not been converted into a purchase order yet and you can see possible sources of supply that can be assigned.
Examples of analytical cards are the purchasing spend by supplier and material group, and the monitoring of the supplier performance.
In the supplier performance, for example, a company’s suppliers are evaluated to obtain a basis for your business relationship with them and for optimizing your supply base. Based on the feedback you gather through questionnaires, you obtain a scorecard for each supplier evaluated. The scorecard helps you to assess a supplier’s strengths and shortcomings and to initiate measures for improvement. This enables purchasers to easily compare suppliers within a peer group.
You can filter the content of cards by various criteria, such as by suppliers, purchasing categories, material groups, and purchasing groups. This enables you to make informed decisions and take immediate action.
New SAP Fiori Apps for Collaborative Sourcing and Contract Management
There are many other enhancements in the procurement functionality with the 1610 release. Increase supplier relationship and performance by using activity and task management functions, leverage purchasing category in real-time analytics to monitor the key performance indicators (KPIs) along business responsibilities, and visualize planned spend versus actual spend per purchasing category.
Next to that several new SAP Fiori apps have been delivered in the collaborative sourcing and contract management, like Manage Purchasing Info Records, Manage Contracts, Manage Source List, Manage Source of Supply, Manage Request for Quotation and Supplier Quotation.
Let us now take a closer look at the Manage Source of Supply app, which is part of the Source Assignment. The user uses the source assignment solution to identify potential sources of supply based on past purchase orders and existing long-term purchasing agreements. Sourcing enables you to find the most qualified and reliable suppliers, negotiate with them, and create both scheduling agreements and purchase contracts.
In this SAP Fiori app users are able to manage contracts, info records, quota arrangements and source lists. With the button “Simulate SoS Assignment” in the lower right corner, it is possible to check which sources of supply are valid for a certain material, plant and date. The relevance column indicates importance of source of supply, which gives immediate insight.
One last significant topic is integration. SAP S/4HANA offers a standard integration to the Ariba Business Network for sending request for quotations to create a sourcing request in SAP Ariba Sourcing. The awarded quotes are sent back from SAP Ariba Sourcing via Network to SAP S/4HANA. The integration is built integrated in standard output management – no separate add-on for the integration is required.
Stay tuned for the next use case, SAP Extended Warehouse Management, which will come up next week.
Discover the full scope and benefits of SAP S/4HANA 1610
- SAP S/4HANA 1610 Release Highlights Brochure
- SAP S/4HANA 1610 Release Information
- Discover SAP S/4HANA
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Here the link to Part 3 a:
Link to the series: