Sourcing and Procurement
The role of purchasing is changing from cost optimization to that of a strategic partner in the company. In addition, there are challenges such as global volatility or unstable supply chains to overcome. Anyone who want to ensure their sourcing and procurement is fit for the future relies on SAP solutions for digitalization and automation.
Purchasing more quickly and profitably
Sourcing and procurement tasks are wide-ranging: They range from procurement through the search for the best suppliers and invoice management to quality management. The automated sourcing and procurement solutions from SAP rationalize these processes and, at the same time, offer almost real‑time insights into data concerning costs, suppliers and the market. They can all be integrated seamlessly into the SAP S/4HANA Cloud. Read more about some of the central solutions we are successfully implementing for our customers.
Collaborative solutions
SAP Collaborative Problem Solving and SAP Supplier Problem Solving are two different solutions that both support customers and suppliers, through standardized processes, and help them solve problems together. They both run on the SAP Business Technology Platform (SAP BTP). Analysis and resolution of defects can be improved through the standardized processes. The solutions are integrated into SAP S/4HANA quality management and support the 8D method, a widespread industry standard for solving quality problems systematically in eight steps.
SAP Collaborative Problem Solving is available in both SAP S/HANA and SAP S/4HANA Cloud, but can only be used to find solutions to quality problems that may occur at various points in the value chain with internal partners such as customers or suppliers.
SAP Supplier Problem Solving facilitates collaboration with external suppliers from whom goods or services are procured in the event of quality problems which are identified during incoming goods inspection or during production.
Quality management in SAP S/4HANA
Quality management in SAP S/4HANA is a vital part of ensuring and improving the quality of products and processes. With SAP S/4HANA, quality management can be integrated into the entire value chain – from procurement through production to sales. Quality planning, quality controls and quality improvement are the cornerstones of quality management.
Quality planning
Quality planning is an important process for ensuring the quality of products, processes and services. To this end, there are a range of quality tools and strategies which are used in the early stages of product design and product development:
- Failure mode and effects analysis (FEMA) is used to prevent failures and ensure a high quality level. The causes, likelihood and severity of failures are analyzed and corresponding corrective or preventive measures are proposed.
- Test plans are documents setting out how to implement integrated test planning in the incoming goods inspection and during production.
- Test planning defines criteria in order to continuously test products or processes.
- The initial sample test or product part approval process (PPAP) is a process for having product parts or components approved by customers before series production or delivery.
Quality control
Quality inspections are another element of quality assurance. Quality inspections are prepared, conducted and monitored in purchasing, production or sales scenarios, for example. Inspection lots – a group of objects that undergo inspection together – are used for this. They may consist of a specific batch or delivery of products, for example. Once the inspection results have been determined, the inspection lot is finalized with the usage decision. The usage decision defines whether the inspected objects should be accepted, rejected or rectified. By defining rules, the system automatically determines the scope of the next inspection based on the last inspection results.
Quality improvement
Quality improvement offers tools for optimizing processes and products. As a result, you get better insights into your quality-related data and are better able to achieve the business quality targets. Notifications that demonstrate the problem-solving process, including the cause of the problem, should be used here to implement preventive measures that prevent the same problem from occurring again and to conduct quality analyses on the basis of inspection results, for example.
Operational Procurement
The automated and digitalized process of operational procurement in SAP S/4HANA makes it possible to process various types of requisitions more efficiently and more quickly. Automatic reminders, notifications and clear responsibilities help to optimize the approval of orders or requisitions, for example. Consolidated analyses and relevant information in a personalized procurement overview help you to make confident purchasing decisions. The procurement process can also be integrated into other processes.
Supplier Management and Procurement Analysis
Who delivers on time? Where is there a risk of default? What is the quality of the ordered products like? SAP Supplier Management offers you transparency, reporting and monitoring in order to build strong supply relationships. The software helps companies to manage information concerning their suppliers, the life cycle and risk of their suppliers in one place. Supplier assessment also becomes more flexible with the help of individual supplier assessment criteria such as weighting and score. The solution offers real-time analyses of parts per million in order to facilitate discussion of possible measures for quality improvement with suppliers. Likewise, real-time supplier assessments which are automatically created from transaction data can be analyzed. You gain additional perspectives for supplier assessment by managing activities with suppliers or internal employee surveys. You can also keep an eye on contracts and conditions, as well as discounts. Your benefits: Reduced risk, improved compliance and better profitability.
Overview of the classification and segmentation of suppliers in order to find the right mix of suppliers.
Detailed insights thanks to reports and monitoring of real-time transaction data.
Identification of cost savings on the basis of clear cost transparency.
SAP Procurement Analytics is a tool which is included in SAP S/4HANA Sourcing and Procurement. It offers real-time reporting and monitoring as well as transparency regarding costs. It also has built-in analyses for procurement in SAP S/4HANA Sourcing and Procurement which contribute to illustrating the value of the analyses built into S/4HANA for companies’ procurement line in order to analyze operational data in real time.
Machine learning in Purchasing
Advanced decision-making for purchasing
Expand your purchasing capacity with machine learning. Machine learning helps to optimize the procurement process. It improves efficiency, increases accuracy and improves the user experience. Users are automatically recommended product groups for free-text items, new catalog items to be created or options for materials with no purchase contract, for example. Image-based ordering, prediction of delivery dates and intelligent approval are also possible.
Always keeping an eye on the discount
The SAP Payment Block Cash Discount at Risk app helps to prevent your discount being lost as a result of blocked supplier invoices by automatically notifying the appropriate employees in accounting or in purchasing. Since the payment block is actively displayed to them, they have enough time to analyze the underlying problems with the detailed data context. They receive recommendations on the basis of historic system data and are therefore able to prevent the loss of the discount.
Our Approach
The first and most important step: we determine which solution is right for your company in a detailed analysis or in a joint workshop. Because every process is unique.
Our experts develop tailor-made solutions to optimize your purchasing and procurement processes. This paves the way to greater competitiveness and success.
We are not only experienced in purchasing and procurement, but also cover the entire spectrum of business SAP knowledge – from finance and sales to supply chain management. We contribute our many years of experience from projects at manufacturing companies in a wide range of industries.
We will be glad to help.
Do you need support with sourcing and procurement? Talk to us!
