Enhancing Supplier Relationship Management Using SAP SRM

1 Sachin SethiEnhancing Supplier Relationship Management Using SAP SRMBonn 311/3/09 2:39:09 PMContents at a GlancePART I How SRM Fits Within an Organization1 Introduction to Supplier Relationship Management .. 29 PART II What Is SAP SRM?2 SAP SRM An Introduction .. 413 Operational Procurement .. 554 Strategic Sourcing and Contract Management .. 1395 Supplier Enablement .. 197 PART III SAP SRM Implementation, Integration, and Upgrades6 Catalog and Content Management Crafting Your Catalog Strategy .. 2397 Choosing Implementation Scenarios .. 2718 Organizational Structure .. 2939 Integration with SAP ERP Financials and SAP Project System .. 33510 The Role of Workflow in SAP SRM .. 36711 Managing Security in SAP SRM .. 41312 Dependency of Master Data in SAP SRM and SAP ERP .. 45513 Architecture and Technology of SAP SRM .. 48114 Upgrade A How-To Approach .. 49915 Performance Reporting via SAP NetWeaver BW.

2 52916 SAP NetWeaver Portal and SAP SRM .. 56117 Customer Case Studies .. 57518 SAP E-Sourcing .. 58519 SAP Solution Manager and SAP SRM .. 597 PART IV Industry Solutions20 Procurement for Public Sector .. 613 PART V Selected Configuration in SAP SRM21 Selected Configuration in SAP SRM .. 623 AppendicesA SRM Functionality Matrix .. 643B Jobs that Require Scheduling .. 645C Using Different Browsers with SAP SRM .. 651D Using Business Add-Ins with SAP SRM .. 653E Customer Fields in SAP SRM .. 669F Business Objects in SAP SRM .. 673G Authorization Objects .. 675H Quiz for Testing your SAP SRM Knowledge .. 679I System Refresh Procedures .. 691J Organization Structure Attributes .. 693K Useful Transactions and Function Modules .. 703L The Author .. 711/3/09 2:39:09 PM9 ContentsPreface .. 2 1 PART I How SRM Fits Within an Organization1 Introduction to Supplier Relationship Management .

3 E-Procurement and SRM .. 3 The SRM Vendor Landscape .. 3 Why SAP SRM? .. 3 Summary .. 3 7 PART II What Is SAP SRM?2 SAP SRM An Introduction .. Evolution of SAP SRM .. 4 SAP SRM and SAP Enterprise Applications .. 4 Benefits of SAP SRM .. 4 Opportunities and Business Benefits Within SAP SRM .. 4 Process Benefits .. 4 Technology Benefits .. 4 People Benefits .. 4 Dissecting SAP SRM .. 4 Core Supply Processes .. 4 Operational Procurement .. 4 Strategic Sourcing .. 4 Supplier Enablement .. 5 SAP Components .. 5 SAP Enterprise Buyer (SAP EB) .. 5 SAP Bidding Engine .. 5 Supplier Self-Services .. 5 SAP Catalog Content Management (SRM-MDM Catalog) .. 5 SAP NetWeaver BW .. 5 SAP NetWeaver Process Integration .. 5 SAP NetWeaver Portal .. 5 Summary .. 5 911/3/09 2:39:09 PM10 Contents3 Operational Procurement .. Self-Service Procurement.

4 5 Step 1: Create Shopping Cart .. 6 Step 2: Approve Reject? .. 9 Step 3: PO Processing .. 9 Step 4: GR Processing .. Step 5: Invoice Processing .. Services Procurement .. Create with Limit .. Request for External Staff .. Services with MM-SRM Integration .. Confirmation and Invoice Entry .. Plan-Driven Procurement .. Summary .. 1384 Strategic Sourcing and Contract Management .. Strategic Sourcing .. Supplier Screening and Selection .. Source of Supply Determination (Sourcing) .. RFQ and Bidding .. The Bidding Engine Bid Invitation in Detail .. Bid Evaluation in Detail .. Live Auction .. Contract Management .. Contract Initiation .. Contract Creation and Negotiation .. Contract Review .. Contract Utilization .. Contract Monitoring .. Contract Renegotiation .. Contract Distribution .. What s New in Sourcing and Contract Management ?

5 Central Contract Management concept .. Initial Upload of Contract from SAP ERP to SAP SRM .. New Strategic Sourcing Offering On-Demand Sourcing .. Summary .. 1965 Supplier Enablement .. Supplier Enablement Using SAP SRM .. 1011/3/09 2:39:09 Direct Access of SUS Application via BSP URL .. Business Package or iView in the SAP NetWeaver Portal .. Supplier Registration .. Buyer Organization Registers the Supplier .. Supplier Self-Registration .. Supplier Collaboration: Order Collaboration .. Service Procurement with Supplier Integration (EB-SUS) .. Plan-Driven Procurement Scenario with Supplier Integration (MM-SUS) .. Payment Status .. Supplier Collaboration: Inventory and Replenishment .. SAP NetWeaver Portal Business Package for Supplier Collaboration .. Supply Network Planning .. Design Collaboration Using SAP PLM .. Design Collaboration Using SAP SRM.

6 Design Collaboration via Bidding Engine by Purchasing Professional .. Design Collaboration via a cFolders Project by an Engineering Professional .. Summary .. 236 PART III SAP SRM Implementation, Integration, and Upgrades6 Catalog and Content Management Crafting Your Catalog Strategy .. Building a Robust Catalog Strategy .. Types of Catalogs .. What are RoundTrip and Punch-Out? .. A Single Catalog Solution Might Not be Enough .. Connect with Your Suppliers for Onboarding .. Standardize Commodities .. Catalog and Content Management Using SAP SRM .. The SRM-MDM Catalog .. The MDM Console, Data Manager, and Import Manager .. SAP NetWeaver MDM Organize Content Import .. SAP NetWeaver MDM Manage Content .. SAP CCM Search .. Integration Scenarios for SRM and ERP .. Configuration of the SRM-MDM Catalog Scenarios .. 1111/3/09 2:39:09 Use of SAP NetWeaver PI.

7 Set up the Open Catalog Interface (OCI) for SRM .. Customizing the Web Service Call Structure in SAP SRM to Access Supplier Catalogs and SRM-MDM Catalog .. Relevant URL Links .. Relevant OSS Notes .. Summary .. 2707 Choosing Implementation Scenarios .. Overview SAP SRM Implementation Scenarios .. The Classic Scenario .. Which Organizations Should Look at This Scenario? .. Restrictions of the Classic Scenario .. Impact on the SAP SRM Organizational Structure .. Impact of Classic Scenario When Integrating Enterprise Buyer with Supplier Self-Services .. Technical Extras .. The Extended Classic Scenario .. Which Organizations Should Consider This Scenario? .. Restrictions of the Extended Classic Scenario .. Impact on the SRM Organizational Structure .. Impact of Extended Classic Scenario When Integrating Enterprise Buyer with SUS .. Purchase Order Consistency Check.

8 Technical Extras .. The Standalone Scenario .. Which Organizations Should Consider this Scenario? .. Restrictions of the Standalone Scenario .. Impact on the SRM Organizational Structure .. Impact of Standalone Scenario When Integrating Enterprise Buyer with SUS .. Technical Extras .. Decoupled Scenario .. Running Scenarios in Parallel .. Technical Extras .. Things to Remember and to Watch Out For .. Relevant OSS Notes .. Summary .. 1211/3/09 2:39:09 PM13 Contents8 Organizational Structure .. Overview of the Organizational Structure in SAP SRM .. The Details Area of the Organizational Structure .. Basic Data Tab .. Address Tab .. Function Tab .. Responsibility Tab .. Attributes Tab .. Extended Attributes Tab .. Check Tab .. Uploading Attributes via a Function Module .. Customizing Attribute Maintenance.

9 Customizing Delivered Standard Attributes .. Create a New Attribute in the Organizational Structure .. Maintaining Attribute Rights by Role .. Deleting Organizational Objects in SRM .. Best Practices for Creating and Managing the Organizational Structure .. Key Organizational Structure Challenges .. Transport the Organizational Structure .. Integration with SAP ERP HCM A Key Decision .. Need for SAP SRM Integration with the SAP ERP HCM Organizational Structure .. SAP ERP HCM Integration Scenarios When to Integrate .. Distributing the SAP ERP HCM Organizational Plan .. Maintenance of Organizational Structure After HR Integration .. Responsibility Matrix for Setting Up the Organizational Structure During an Implementation .. Pros and Cons of Creating an Organizational Structure in SAP EB or Distributing from SAP ERP HCM .. Creating an Organizational Structure in SAP SRM.

10 Integrating and Using the SAP ERP HCM Organizational Structure .. Impact of the Extended Classic Scenario on SAP SRM Organizational Structure .. System Refresh Procedure Steps .. Things to Remember .. What s New in the Organizational Structure? .. Summary .. 1311/3/09 2:39:10 PM14 Contents9 Integration with SAP ERP Financials and SAP Project System Financial Accounting in SAP .. Integration of SAP ERP Financials with SAP SRM .. Integration at the Master Data Level .. Transaction Level Integration .. Account Determination Based on Expense vs. Stocked Items .. Overview of the Purchase-to-Pay Cycle .. Classic Scenario: SAP SRM and Backend System is SAP ERP .. Extended Classic Scenario: SAP SRM and Backend System in SAP ERP .. Standalone Scenario: SAP SRM with Non-SAP Backend System .. Budget Check in SAP SRM .. Integration with Project System.