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Author's profile photo Tammy Powlas

Intelligent Procurement in S/4HANA Webcast Summary

This was a recent ASUG webcast
Source: SAP
From manual to automate..
Want to automate, streamline
Digital procurement is “nothing special any more”; no paperwork required
Move towards automated procurement

Intelligent procurement – proactive insight to action
Machine learning not new; now have the CPU and power to run it
Brings things to your attention

Automated Procurement – pattern, automate it
– trigger based on ML algorithm
– RPA bot for automation
– IoT – monitor PO delivery

Autonomous Procurement
– sophisticated, strategic sourcing decisions
– when create a sourcing event – RFQ, which suppliers to invite
“on the horizon”

Strategic – good relations with suppliers

Day to day – still need to process
– automate effort, bring “smartness” to save topic

Source: SAP – what is Intelligent Procurement today
IoT – sensor data – smart watches, smart homes
– monitor PO deliveries
– tag with sensor, purchaser is notified

Automation – RPA is one example
– repetitive tasks to automate
– use RPA to create purchase requisition with Excel
– import incoming invoices
– automate entire procure to pay process (being investigated)

– improve buying experience for employees for self service procurement – requestor can order via catalog
– system asks ‘did you find what you were looking for’

Machine Learning
– blue lines -already delivered by SAP
– need license – “Procurement Intelligence”

More sophisticated use cases use SAP Cloud Platform

Blockchain – one use case, avoid fraud in RFQ

Conversational AI
– Alexa, Siri
– Smart buying – requisition by chat bot – by chat or voice

Operational Bot: Source: SAP
“show me all overdue purchase orders” – a short cut

Situational Handling- Source: SAP
– core functionalities – proactively inform end users on things that require attention
– no additional license, need to activate them – SAP delivers template, and you adjust with your needs

Three things – trigger, related information, proposed action

related information – historic information

Proposed action – alternative suppliers

Source: SAP

UX In Procurement
– overview
– most important items at a glance

Source: SAP

What delivered, where delivered, which use case available

Links provided by SAP

SAP S/4HANA Intelligent Technologies
Requisitioners: Xci0M

Operational Purchasers:
Strategic Purchasers:

Reduce Free Text items with SAP S/4HANA Procurement:

Reduce Off Contract Spend with SAP S/4HANA Procurement

(Prototype with Hololens : )

Avoid Delivery Deficits with SAP S/4HANA Procurement

Optimize Corporate Purchasing with Machine Learning

More information about SAP Procurement Intelligence:

Information about iRPA
SAP S/4HANA 1909 Release Highlights

Introduction to Fiori 3

Secure Bidding with Blockchain


Q: How are recommendations from ML different from MRP runs?
A: What is here is not directly related from MRP; this covered that the requisition is in place

Q: For those not on S/4, can chat bots be implemented in ECC?
A: Propose material group use case – embedded in S/4HANA – algorithm on SCP, could connect via ECC but it would be a custom implementation

Source: SAP

Source: SAP

Source: SAP

Legal disclaimer; things in the future are subject to change during the webcast


I think this helped me understand where I need additional licenses and where I would need SAP Cloud Platform (also additional licenses)

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      Author's profile photo Kamal Kant
      Kamal Kant


      Do you have any detailed document to link S4 On Premise and SCP system, it will be helpfull


      Author's profile photo Tammy Powlas
      Tammy Powlas
      Blog Post Author

      Hello - thank you for reading/commenting.

      I don't have detailed documents but I am taking the free Open SAP courses on RISE with SAP and ABAP in the Cloud at - I think they are getting into these topics; I recommend looking at the free Open SAP courses