SAP SOURCING BUSINESS PROCESS QUALITY, EXPERIENCE, DELIVERY
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1 Management SAP SOURCING BUSINESS PROCESS Your s Are Your Business
2 Did you know 90% of enterprises view effective creation, monitoring and management of contracts as either very important or critical to their overall business success.
3 GlobalCorp s Business Dilemma 1. IT Hardware costs have spiralled out of control 2. They have multiple suppliers supplying the same items 3. They have a number of different support contracts with different terms and conditions 4. They are not maximising their purchasing power with one large strategic contract and making the most of volume discounts
4 GlobalCorp s Vision 1. Reduce IT Hardware costs 2. Use one strategic supplier to maximise their purchasing power so they can realise volume discounts 3. Standardise support contracts with the same terms and conditions 4. Monitor supplier performance against the contract
5 Solving GlobalCorp s Dilemma The Business Process A Simple Example IT Hardware Spending
6 Gain Visibility into Spending The Sourcing Manager uses his portal to access Spend Analysis by Commodity.
7 Gain Visibility into Spending The Sourcing Manager can analyse the breakdown of Spend by Commodity. He sees IT spend is a large portion of the overall spend.
8 Gain Visibility into Spending Drilling down most of the IT Spend is in Hardware.
9 Gain Visibility into Spending The Sourcing Manager can see that 24% of their IT Hardware costs are coming from purchasing printers. They are currently being supplied by 11 different suppliers, each with their own support agreement, and with different contract terms.
10 Gain Visibility into Spending Drilling down they can also analyse dollar and percentage spend by supplier.
11 Source More Strategically The Sourcing Manager creates a project to source a new strategic printer supplier for GlobalCorp. Here he can create and issue an RFP. Then he can evaluate the responses based on his score criteria.
12 Source More Strategically The suppliers can enter their responses online through the supplier portal.
13 Source More Strategically The Sourcing Manager can then view the response online.
14 Source More Strategically The results of all the responses can be compared. The top responses can be selected to create a supplier auction.
15 Source More Strategically During the auction the Sourcing Manager can see the bids realtime and view the savings. Best Info Tech Inc wins the Auction.
16 Create and Negotiate s The Sourcing Manager now creates a Master Agreement from the Auction.
17 Create and Negotiate s The Sourcing Manager can then select clauses from the RFP as well as standard clauses from the Library Clauses to generate the contract.
18 Create and Negotiate s The is then automatically generated in Microsoft Word.
19 Create and Negotiate s The can then be checked out and sent to the supplier for review.
20 Create and Negotiate s The Supplier can review the contract and request changes.
21 Create and Negotiate s Once the supplier has reviewed the contract and added their changes it is sent back and checked into the system.
22 Create and Negotiate s The contract can then be sent to the Business Unit for final signoff.
23 Create and Negotiate s Once the has been approved by the business unit the operational contract is generated.
24 Create and Negotiate s The contract is now operational in the system. All purchases will now be tracked against the contract.
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