Procure to Pay & Spend Analytics

Best Practices & Demos

Kenneth Yip
Business Solution Manager
SAP Hong Kong
SAP Procurement Solution
Automates the Procure to Pay Process

SAP Delivers Efficiency, Flexibility, and Insight

 Automates requisition and order

management with easy to use catalog
 Centralized sourcing reduces cost and
cycle times
 Centralized contracts drives compliance to
contracts and policies
 Supplier connectivity enables transaction
efficiency
 Supplier qualification & evaluation enables
supplier management
 Spend reporting delivers enterprise wide
insight
 Integration with Business Suite/ ERP

© 2011 SAP AG. All rights reserved. Internal 2

Procurement Operation Module

Decentralized Centralized
Procurement Procurement

Regional Office
Departments

User  Shopping Cart  Contract Management

 Branch User  Good Receipt  Operational Expense Budget Mgt
 Dept. User  Return  Project-based Budget Mgt
 Pur. Order management
 Pur. Order Approval
 Inventory Management
 Vendor Management
Approval
Pur. Approval  Vendor Performance Evaluation
 Branch Mgr
 Spend Analysis
 Dept. Mgr
 Cost Center Owner

© 2011 SAP AG. All rights reserved. Internal 3

Procurement Excellence
Complete and flexible solution for organizations in all industries

Expert User Casual User

User Interface
and Access Familiar Forms
Channels Applications

NetWeaver
Business Mobile
Client Web Browser

End-to-End
Business Process

© 2011 SAP AG. All rights reserved. Internal 4

New User Experience in Purchase Requisition

User Story

 Employees need to buy products and services for the company.

 Often these purchase are catalog driven so users can quickly find
the items they need and comply with the company's supplier
agreements.
 The purchases can be routine or infrequent, but in either case,
users now expect the same user-friendly interfaces that they
experience in their personal online purchasing.

User Benefits
 Casual users can buy products and services that they need with
little or no training.
 Improve compliance with company purchasing rules and
contracts
 Reduces the number of steps to get information, such as order
tracking
 Ability to process multiple items efficiently
 Reduce errors and re-processing

Key Capabilities & Challenges

• Familiar, web-shopping, user interface
• Cross-catalog search (internal and external catalogs)
• Customizable
• Guidance to enter the right information

© 2011 SAP AG. All rights reserved. Internal 5

Catalogue Scenarios

1. External Supplier Catalogs 2. Content Broker/Marketplace

- Suppliers update catalogs - Multi-supplier catalog
Company Boundary - Maintained and hosted by external
catalog broker
World-Wide
Procurement
Corporate Corporate
Purchasing Purchasing
Access via
Portal System
internet
Access via
internet
Corporate Internal
Purchasing Catalog
Catalog
DB

3. Catalog Hosted by Company 4. Internal Catalog

- Purchasing dept. maintains catalog - Purchasing from Company stock
(within company boundaries)
- Content provided by suppliers

© 2011 SAP AG. All rights reserved. Internal 6

 SAP Invoice Management
Automated paper-to-post invoice management
Inbox Invoice Invoice Collaboration & Invoice Payment
(incoming Recognition Verification Monitoring Completion
mail / fax)

Prü fung und

VERIFY AND EXCEPTION
PREPARE TRANSFORM APPROVE PAY
COMPLETE
Vervollständigung HANDLING

Scanning OCR Trigger workflows Comment Post invoices

UMWANDLUNG
Archiving Validation

Automated reconciliation and posting

Open Text OCR Option for

Archiving for SAP Invoice
SAP® Solutions* Management SAP Invoice Management ERP (FI/AP)

* or another SAP ArchiveLink-certified repository, not part of Open Text Vendor Invoice Management

© 2011 SAP AG. All rights reserved. Internal 7

Document Processing: OCR Validation

High productivity handling

OCR exceptions using
synchronized
image and data views

© 2011 SAP AG. All rights reserved. Internal 8

SAP Supplier Lifecycle Management

Supplier Management is a Supplier

Registration
holistic approach to managing
supplier relationships.
Supplier Supplier
It deals with the supply base as a Phaseout Qualification
whole to constantly determine /
the right mix of suppliers.

It covers the whole lifecycle from

start to finish of individual
suppliers: from onboarding,
continuous development, to an Supplier Supplier
eventual phaseout. Development Evaluation

Homogeneous pools of suppliers

are managed by category
managers within a purchasing
category. Supplier Order Supplier
Collaboration Classification

© 2011 SAP AG. All rights reserved. Internal 9

SAP Supplier Lifecycle Management
Supplier Registration: Key Features

Flexible and brandable UI based on CSS

Supplier maintains key company data

Supplier maintains contact data

Integration of hierarchical categories (eclass,

UNSPC…) supported, including type-ahead
search

Workflow-based approval of registration

requests

Workflow-based assignment of registered

suppliers to purchasing categories

© 2011 SAP AG. All rights reserved. Internal 10

SAP Supplier Lifecycle Management
Supplier Data Maintenance: Key Features

Flexible and brandable UI based on CSS

Supplier maintains master data

Supplier adds new users

Supplier uploads attachments

Supplier maintains qualification requests

Supplier maintains certificates

Category manager approves/rejects

supplier data changes

Seamless integration with SAP SRM-SUS

UI

© 2011 SAP AG. All rights reserved. Internal 11

SAP Supplier Lifecycle Management
Supplier Qualification: Key Features

Flexible and brandable UI based on HTML for supplier UIs

Central library of reusable questions

Easy translation of questions using XML upload and

download

Create and reuse questions and questionnaires in an easy

way

Support of multiple language questionnaires

Category manager triggers qualification from supplier list

Category manager monitors qualification progress

Supplier receives invitation for qualification by e-mail and

answers qualification questionnaires

Supplier can upload certificates as attachments

Category manager validates qualification results

Qualification scorecard using scores and weightings

© 2011 SAP AG. All rights reserved. Internal 12

SAP Supplier Lifecycle Management
Supplier Portfolio: Key Features

Central company and contact data

Classification of supplier importance

Time-dependent sustainability
scorecards

Structured attachments

Qualification results

Certificates

Overview of distribution to back

ends

Workflow-based supplier promotion

Based on SAP Business Partner

© 2011 SAP AG. All rights reserved. Internal 13
SAP BusinessObjects
Spend Performance Management

Maximize Savings – Minimize Supplier Risk

Gain full spend visibility

 Automated data capture from SAP and non-SAP
 Data accuracy for faster insights
Increase spend under management
 Set up performance targets
 Collaborate effectively to act on insights
Rapidly identify savings opportunities Data Enrichment &
 Find and act on savings potential Classification

 Pro-actively monitor contract compliance

ERP

Reduce supplier risk GL

BI
 Pin-point supplier risks and supply concentration
P-Cards
 Find and act on qualified alternate suppliers T&E
* Note: The Data Enrichment & Classification service is an add-on service
separately priced.

© 2011 SAP AG. All rights reserved. Internal 14

Together With SAP Procurement Solutions, Close
The Loop From Strategy To Execution

CPO

Identify Savings And Negotiate Savings With Capture Savings Compliance To Deliver
Realized Savings Cost Supply
Supplier Risk Right Suppliers
savings Continuity

Spend Strategic Contract Operational Spend

Analysis Sourcing Management Procurement Analysis

Spend Performance SAP Sourcing Contract SRM / ERP Spend Performance

Management Lifecycle Management
Management

Business Value / Benefits

• Visibility to all Procurement Processes • Procurement Transactions Tracking and
• Savings and Supplier Risk Insights Monitoring
• Compliance and Risk Monitoring • Actionable Integration with SAP Procurement

© 2011 SAP AG. All rights reserved. Internal 15

Problem: Disconnected, Silo’ed Spend Analysis

SAP Financials
Budgeting & Planning

i2
Baan

T&E P-Cards

JD Edwards

Different groups
Different views of spend
No leverage, no control for savings
Disconnected, disparate spend analysis
 Sector, business unite, diffusion, differences
 Too many systems, can’t assemble data

© 2011 SAP AG. All rights reserved. Internal 16

 SAP BusinessObjects Spend Performance Management
Best-in class comprehensive solution

Data Enrichment and Classification

On-Demand Service Offering Powerful, Actionable
Data Integration
and Easy to Use!
Supplier Enrichment Accurate Classification

BW
GL/AP

Business Transaction
Compendium Multiple Knowledge Multivariate
master Base
files Analyses
P-Cards Supplier data

• Extractors (SAP) • Standardize content • Massive knowledge base • Web based

• Data Integrator • Validate supplier data • Multiple variables for • Analyze Opportunities
• Self-service data • Deduplicate supply base extensive coverage • Monitor KPIs
management portal • Augment supply data • Proven over thirty years • Track compliance
• Preprocess Validation • Superior accuracy • Assess Risk

© 2011 SAP AG. All rights reserved. Internal 17

 Spend Performance Management
Data Model and Data Flow
Analytical Content
Data Layers
andTransformations
MultiProvider Spend
Analysis
0XSA_MP01
Data
Union

Purchase Budget External Supplier

Reporting Layer Contracts Invoices
Projects Orders And Factors Invoices
Invoices
0ASA_C07
Counts
0ASA_C04 Forecast monthly data
0ASA_C01
0ASA_C05 0ASA_C11 0ASA_C13 0ASA_C02
0XSA_C01
Transformation 3:
Data Aggregation
Key Figure
Calculation

Detail Layer Projects Contracts PO Budget External Invoices

And
0ASA_DS16 Forecast
Factors 0ASA_DS00
0ASA_DS13 0ASA_DS09 0ASA_DS14 0ASA_DS15
Transformation 2:
Cross-Process
Integration
Key Figure Calculation

Projects Contracts Budget and External Invoices

PO
Inbound Layer 0ASA_DS07 Forecast Factors 0ASA_DS01
0ASA_DS05 0ASA_DS04 0ASA_DS11 0ASA_DS12
Transformation 1:
Basic Transformations,
Currency/Unit/Date
Format
Spend Analytics Data Management Layer
Conversion
Data Management

© 2011 SAP AG. All rights reserved. Internal 18

A purpose-built business analytical application
with packaged content

Spend-Related Insight

• Over 135 packaged reports Comparison to

Savings potential • Role-based dashboards Plan/Budget
• Over 35 dimensions & measures
• Create new reports & dashboards
(self-service) - Ad hoc Analysis
• Flexible navigational dimensions
• Formula Builder & Briefing Books
• Business Simulations
• Advanced Analysis

Price Variance Contract Performance

© 2011 SAP AG. All rights reserved. Internal 19

© 2012 SAP AG. All rights reserved.
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