SAP rapid-deployment solution for integrated

contract management in procurement

Solution Summary, 22.08.2012
2012 SAP AG. All rights reserved. 2
Solutions for specific business needs
Business challenges
Missing a fully integrated end-to-end
contract management solution from
contract authoring to contract
execution
Missing a central contract repository
with pre-aligned contract templates
and clauses as well as approver and
reviewer groups
Different and inconsistent processes
for strategic contracts and related
operational contracts
Lack of transparency and reporting
on contracts example: expiring
contracts with aggregated spend per
supplier
Improving strategic execution
Impediment to fulfill compliance of
sourcing strategy
2012 SAP AG. All rights reserved. 3
Business benefits
Reduce costs and cycle times and improve
transparency and savings from procurement
contracts
Automate the pass-through of contract terms and
conditions from SAP CLM to SAP SRM to
increase contract utilization and enforce contract
compliance
Avoid issues with customized integration between
SAP CLM and SAP SRM that are hard to support
and implement with a prebuilt SAP solution
Optimize contract negotiations by initiating timely
renewals and leveraging the full contract history
Integrate contract management and ensure compliance
SAP rapid-deployment solution for
integrated contract management in
procurement

Integrated contract management solution enables:
Contract lifecycle from contract creation to
utilization
Increased contract usage during the procure-to-
pay process
Reduced off-contract maverick spending and
savings leakage
Improved visibility of contracts to employees and
purchasing team
2012 SAP AG. All rights reserved. 4
Whats included Solution scope
Whats included solution scope
SAP rapid-deployment solution for integrated contract management in procurement enables customers to capture and
realize savings from their sourcing process. This rapid-deployment solution helps ensure that the specific terms and
conditions from the legal contract document in the SAP Contract Lifecycle Management (SAP CLM) application are passed
into the SAP Supplier Relationship Management (SAP SRM) application and activated for use for purchases going through
SAP SRM and the SAP ERP application. Having an accurate and complete contract in SAP SRM is critical to preventing
savings leakage. Contract terms and conditions set up in SAP SRM can be distributed to one or more integrated back-end
SAP software systems to help ensure that all purchase orders and invoices are tagged against the contract to maximize
contract usage and savings.
Integrated Contract Management with SRM
Integrate contract management from collaborative contract creation in the SAP Sourcing application and
central contract handling in SAP SRM to operational procurement in one or more SAP ERP systems by
the rapid deployment of this preconfigured process.
Integrated Contract Management with ERP)
An advanced contract management solution, enabling integration of existing procurement processes
with central, cross-system contract management functionality that enhances the procure-to-pay process.
Central Contract Management
A contract management solution, enabling integration of existing procurement processes with central
contract management functionality that enhances the procure-to-pay process by operational contract
creation functionality.
2012 SAP AG. All rights reserved. 5
Whats included Service scope
Go live in as few as 10 weeks
Enablement of an integrated contract management
process
Implementation on different deployment options:
Business process managed with possibility of
distributing contract conditions from strategic, document
based contracts into multiple back-end systems via SAP
SRM as hub or directly into one SAP ERP back-end
system
Business process managed based on operational
contracts in SAP SRM only and distribution into single or
multiple back-end systems
Automated basis customization and operational contract
management functionality
Predefined configuration scripts for strategic contract
management (SAP CLM)
Descriptive SAP NetWeaver Process Integration (SAP
NetWeaver PI) offering for the integration of SAP CLM with
SAP SRM or SAP ERP Central Component (SAP ECC)
Standard document text schemas, security and user
authorizations, and portal business content
Master data migration from SAP ECC to SAP SRM or SAP
CLM
A special step-by-step guide describes each activity
during the deployment
2012 SAP AG. All rights reserved. 6
Deployment Integrated Contract
Management with SAP
SRM
Central Contract
Management
Integrated Contract
Management with SAP
ERP
System / Landscape SAP CLM SAP SRM
Hub SAP ERP
SAP SRM SAP ERP SAP CLM SAP ERP
SAP SRM 7.0 / 7.01 X
SAP SRM 7.02 X X
SAP ECC 6.05 X X
SAP ECC 6.06 X X X
IC 1.0 for SAP SRM X
SAP CLM 7.0 X
SAP CLM 9.0 X X
SAP PI 7.0 / 7.1 X X
SAP NW Version
SAP CLM 9.0: SAP NW 7.3
(Java)
SAP CLM 7.0: SAP NW CE 7.1
SAP CLM 9.0: SAP NW 7.3
(Java)
System landscape options
2012 SAP AG. All rights reserved. 7
DEV / QA Environment Production Environment
System landscape: Integrated Contract Management with SAP SRM
Delivery option: One or multiple back-ends, classic or extended classic scenario
SAP ERP
SAP SRM
with IC for SAP SRM
SAP BW
SAP ERP
SAP SRM
with IC for SAP SRM
Suppliers via Internet
Optional / Not in scope
SAP PI
SAP NWBC
or Portal
SAP Contract Lifecycle
Management
SAP PI
SAP NWBC
or Portal
SAP Contract Lifecycle
Management
F
I
R
E
W
A
L
L

2012 SAP AG. All rights reserved. 8
DEV / QA Environment Production Environment
System landscape: Integrated Contract Management with SAP ERP
Delivery option: One back-end, classic scenario
SAP ERP
SAP Contract Lifecycle
Management
SAP BW
SAP ERP
SAP Contract Lifecycle
Management
Optional / Not in scope
SAP PI SAP PI
SAP Portal
Suppliers via Internet
F
I
R
E
W
A
L
L

2012 SAP AG. All rights reserved. 9
DEV / QA Environment Production Environment
System landscape: Central Contract Management
Delivery option: One or multiple back-ends, classic or extended classic scenario
SAP ERP
SAP SRM
SAP BW
SAP ERP
SAP SRM
Optional / Not in scope
F
I
R
E
W
A
L
L

SAP PI
SAP NWBC
or Portal
SAP PI
SAP NWBC
or Portal
SAP Rapid-Deployment solutions
The fastest way to run your business better