Central procurement hub in S4 HANA 1809 on premise

[ashish_shah]

Overview

S4 HANA 1809 on premise is a big release for Sourcing and procurement since its bringing the most awaited feature - Central procurement hub.

What is it?

One central SAP S4 HANA instance for all the procurement activities - like requisitioning, ordering , receiving and invoicing irrespective of the existing SAP back end system versions used for financial transactions.

Who needs it?

For the customers who are currently using SAP SRM with multiple SAP ERP back systems on different versions , for the digital transformation of their procurement business this is an apt solution.

For the customers who want to standardize and centralize their procurement processes, this is a perfect solution.

For Global organizations , this can be one stop shop for all the procurement needs.

Whats new in 1809?

In 1809 SAP has decided to release Central procurement hub with Central contracts, Central Purchase orders , Central purchase requisitioning ( already released with 1709 FPS 01) and Centralized assignment of source of supply.

Some glimpse of what to expect in S4 HANA 1809 on premise Central procurement hub features:

Central Procurement Hub - an Idea being implemented

Transform SAP SRM

Customers who have been using SAP SRM today as their Central procurement system can envision this below transformation path:

Current scenario:

 

 



Target Scenario:



 

Best of both the worlds

SAP is also planning to tightly integrate a very popular feature of SAP Ariba - Guided Buying with SAP S4 HANA 1809



 

Stay tuned for more information on Central procurement hub, i am sure this will transform the way Procurement processes will run in future with every organization.

Follow me on LinkedIn and Twitter

Please write your comments to improve this blog.