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Author's profile photo Sabine Rau

SAP S/4HANA 2021 Release Highlights for Sourcing and Procurement

SAP S/4HANA 2021 was released this week and I am pleased to present you the highlights in the area of Sourcing and Procurement. Note that this blog does not cover the complete range of new features and functions as I had to select a few to spotlight.

Here are my favorites:

  • Flexible Workflow for Purchase Requisitions
  • Manage Preferred Supplier Lists for Product Sourcing
  • Price History for Central Purchase Contracts
  • Contract Consumption Display and Print Preview in Central Purchase Contracts
  • New CDS views for Analytics
  • Delivery Insights for Ordered Items
  • Sourcing and Central Procurement with SAP Ariba Sourcing
  • Service Procurement with Ariba Network and SAP Fieldglass

Operational Procurement

The Flexible Workflow for Purchase Requisitions allows you to flexibly define approval processes according to your business requirements. In this case you can configure workflows to optimize the approval process for purchase requisitions.

You can always add one or more approvers to the PR approval workflow to determine who is responsible to approve or reject the Purchase Requisition. With the Review Activities in PR Approval Workflow app you can even define multiple reviewers in PR Approval Workflows, along with review steps that can be defined with step conditions like determination rules including deadlines for the reviewer tasks. Reviewers are then responsible for monitoring the progress of the workflow.

This helps to monitor the progress of the PR approval workflows and provides great transparency by showing who has reviewed the task in approval details.

Sourcing

With the Manage Preferred Supplier Lists app for Product Sourcing, you can create and manage lists of suppliers that your company advices you to use during the sourcing process. This includes standard supplier lists that are available for all users, as well as user-specified supplier lists created for your own use, such as by material group or purchasing category. The time-consuming manually search for suppliers is eliminated and you can find the best suppliers by using your own supplier list.

Supplier%20List

Supplier List

Central Procurement

Price History for Central Purchase Contracts: Using this new SAP Fiori app, you can monitor the price and condition history of central purchase contracts leveraging embedded analytics. Analyzing prices in the context of contract history and condition changes provides an additional perspective for evaluation, adds to the foundation of future negotiations, and offers increased transparency into price volatility.

To highlight a few capabilities:

  • Price trends for central contract line items
  • Differentiation by plant-independent and plant-specific price conditions
  • Reasons for price changes on the price-condition level stored within the line-item history of the central contract

Price%20History

Price History

Contract Consumption Display and Print Preview in Central Purchase Contracts: For increased transparency, the SAP Fiori object page for central purchase contracts has been enhanced with an embedded chart to visualize the contract consumption. Furthermore, the usability has been increased through an integrated print preview. As a Central Purchaser you are automatically informed when an item of a central purchase contract is about to be consumed. This minimizes the risk of central purchasers missing to react in case of the complete consumption of items in a central purchase contract.

Contract%20Consumption

Contract Consumption

Procurement Analytics

CDS views for Analytics: With the data-extraction enablement you are now able to extract detailed data on purchasing documents and this data can be further used to feed business intelligence systems to conduct detailed analysis and identify trends over time.

Extract the scheduling agreement header, scheduling agreement items and scheduling agreement schedule lines, purchase info records, purchase requisition items, and source list via ABAP CDS-based extraction. You can extract the mentioned business documents data from SAP S/4HANA systems.

The CDS view provides the data to answers to business question concerning purchase requisition or purchase order document changes.

Using Delivery Insights for Ordered Items you will get a notification if the goods that you ordered have been damaged during delivery.

The handling units of ordered items are equipped with sensors in order to monitor the product’s environmental conditions. You can monitor all kinds of sensor data such as temperature, humidity, acceleration, location, or radiation. As soon as sensor data exceeds a threshold that was defined in SAP IoT, a notification to the relevant parties (Purchaser, Supplier etc.) in SAP S/4HANA is triggered. Based on the Situation Handling framework, this notification not only provides detailed contextual information but also allows direct insight to action. Thus, involved parties can proactively react to critical supply situations, anticipate potential quality issues, increase on-time delivery performance, and ultimately improve customer satisfaction.

Delivery%20Insights

Delivery Insights

Note: This scenario requires an additional subscription to SAP IoT service

Integration

Sourcing with SAP Ariba Sourcing: The enhanced integration of the sourcing process between SAP S/4HANA and SAP Ariba Sourcing enables buyers to identify the best sources of supply for Purchase Requisitions in SAP S/4HANA  using the vast supplier network. With an improved sourcing integration flow, a new, simplified, intuitive user experience for your sourcing project is created.

Central Procurement with SAP Ariba Sourcing: If the integration with SAP Ariba Sourcing is enabled for central procurement, you can bundle purchase requisitions from different SAP S/4HANA or SAP ERP backend systems into external sourcing requests and transfer them to SAP Ariba Sourcing through SAP Ariba Cloud Integration Gateway. Based on the supplier quotations that are received and awarded in SAP Ariba Sourcing, follow-on documents are created in the SAP S/4HANA hub system or in the connected backend systems.

Use the Guided Sourcing UI for improved usability, faster adoption, and satisfaction for end-users with drastic time reduction in creating the Sourcing event in SAP Ariba Sourcing for PRs from the Central System. Users can still work with integrated scope items 4BL and 4QN without Guided Sourcing, and thanks to an easy configuration they can switch to Guided Sourcing anytime at their convenience and without disruption.

 

Process%20Flow%204QN

Process Flow 4QN

 

Service Procurement with Ariba Network and SAP Fieldglass (4R2): A seamless digital process from requisition to payment through SAP S/4HANA, Ariba Network, and SAP Fieldglass. Use SAP S/4HANA to manage contract data, requisitions, Purchase Orders, invoice management, and payment. SAP Fieldglass solutions for external workforce and proof of service management and the Ariba Network for supplier portal, supplier system integration, and supplier invoicing.

Thanks for reading and stay tuned!

 

For the complete SAP S/4HANA scope, you may want to check:

SAP S/4HANA 2021 – Highlights in Seconds

SAP S/4HANA Community

SAP S/4HANA Feature Scope Description

SAP Help Portal

SAP Fiori Application Library

SAP S/4HANA Cloud and SAP S/4HANA 2021 Product Release

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      5 Comments
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      Author's profile photo Muthu Govindasamy
      Muthu Govindasamy

      Thanks Rau. Vendor list APP will be very useful for business.

      Author's profile photo Muthu Govindasamy
      Muthu Govindasamy

      Is this Manage supplier list applicable for only central purchasing?

      Author's profile photo Sabine Rau
      Sabine Rau
      Blog Post Author

      Hi Muthu,

      are you referring to manage preferred supplier list? It is part of SAP S/4HANA Product Sourcing and parts of the features of Product Sourcing are recquiring additonal license. For working with supplier lists the Business role SAP_BR_CENTRAL_PURCHASER must be assigned to you.

      Best

      Sabine

      Author's profile photo Muthu Govindasamy
      Muthu Govindasamy

      Thanks Rau.

      under which component i can raise an incident for Product sourcing?

      Muthu

      Author's profile photo Muthu Govindasamy
      Muthu Govindasamy

      Thanks Rau.

      Hope no connected system required . only one S/4 hana on premise system sufficient? and i can perform all below scenarios if the customer bought SAP Product Sourcing.

      Sourcing Projects

      Supplier Quotations

      Preferred supplier list

      Procurement Project

      Supplier list for Sourcing

      Awarding scenarios &

      Negotiations

       

      thanks

      Muthu