mySAP Supplier Relationship Management (SRM) Sourcing and supplier management through Internet
Since 1996, SAP provides Internet solutions. 1999 came a new solution for electronic procurement for: mySAP E-Procurement, which being used in the Procurement B2B (business to business) known has become. Later, this solution into SAP Enterprise Buyer, has been renamed; now it is enabled by mySAP SRM (Supplier Relationship Management) supplemented. This further development of e-procurement is used to optimize customer-supplier relationship. (See also: Key Areas mySAP SRM, S.288 f.) Companies of all stripes are using the Internet for some time not only to to develop new markets, but also to optimize their supply chain and to advance the related procurement effectively. Unlike the traditional procurement process, where the buyers still in the large extent communicates directly with the seller (s), underpinning the success of companies increasingly reliant on automation within the logistics chain. This applies to goods and money flows as well as for information (see also SCM - Supply Chain Management, P. 293 ff). The procurement process via the Internet can be a company in large scale to bring added value and cost savings. It has been shown over many years that the famous 80:20-rule in the Procurement their validity. This rule states that companies 80% their needs by 20% of suppliers to cover. Conversely, states that: 80% (!) of the suppliers only delivers 20% of demand. Recent studies have shown that this ratio almost exactly with the Direct consumption (~ 80%) and Indirect materials (~ 20%) covers.
Note Direct materials go directly into production (eg raw materials) or are intended for distribution. The procurement is often complicated and the reliability of the supplier or the high product quality stand in the foreground. Indirect materials are internal to the repair, maintenance or operation of machinery and for the Administration used, e.g. Office supplies, office furniture, computers.
Logistics solutions, Enterprise Portals and Business Intelligence It follows that the administrative costs of indirect materials is disproportionate to the actual value of the products. On the other hand is the direct materials purchasing process much more complicated (Tenders, negotiations), and requires closer monitoring (Quality and supplier assessment) and control (planning), order processing. With mySAP SRM, a company has the option of purchasing parts to decentralize and to relieve the purchasing department. This can concentrate on purchasing essential tasks. The procurement Catalog allows users to desired materials from select different supplier catalogs and order (see and workflow). Of course, items can also manually in the order to be covered.
Wherever SAP R / 3 ERP software (Enterprise Resource Planning) So as the operating system (internal) process management and optimization is used, which expands the Supplier Relationship Management Procurement by the possibilities of strategic evaluations (planning and controls for use by the Business Warehouse = BW) and provides the integration of the Internet in the entire procurement process. The processes and cooperation in the field of Materials Management (Material Management = Find) MM now, instead of increasing company-wide. Besides the procurement of indirect materials through catalogs supports mySAP SRM is now also the procurement of direct materials.
Note Enterprise Resource Planning is the planning of company Resources and combines production, finance, human resources, sales and Materials Management Systems.
Note The Business Warehouse is based on a complex database with many pre-configured content and information models, corporate and external data, and predefined reports. mySAP SRM has also the objective of cross-enterprise collaboration and the overall procurement strategy for both direct and indirect to optimize materials and thus the value of the procurement side to increase or lead to cost savings.
This will be achieved primarily through:
• Optimizing the Supplier Selection
• Reduction of lead times
• Reduce Costs
• Goal-oriented procurement strategies
Through the evaluation of business processes such as in purchasing with the help of mySAP SRM, it is possible, targeted work on these improvements, to control and automate the procurement and cooperation with suppliers (especially in planning) through a direct purchase and integration to improve. Since each company's own procurement needs has, mySAP SRM consists of several components, which are supported by SAP R / 3.
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