Strategic Sourcing Scenario Overview

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Strategic SourcingScenario Overview
Re-negotiating Purchasing Contracts
Processing Requests for Quotation
Creating Purchasing Contracts
Determining Source of Supply
Scenario Explorer
Scenario Description
Open Legend

• The Strategic Sourcing business scenario enables
  you to identify and select suitable new suppliers
  and to manage relationships with existing
  suppliers in order to meet the routine purchasing
  requirements of your company. It involves the
  definition of requirements for a product, through
  to the identification and selection of the most
  suitable suppliers, and finally to the
  negotiation and creation of a purchasing contract
  with the chosen supplier.

Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this
scenario
Strategic Buyer
2
Strategic SourcingScenario Overview
Re-negotiating Purchasing Contracts
Processing Requests for Quotation
Creating Purchasing Contracts
Determining Source of Supply
Scenario Explorer
Scenario Description
Open Legend
Legend
Close Legend

• The Strategic Sourcing business scenario enables
  you to identify and select suitable new suppliers
  and to manage relationships with existing
  suppliers in order to meet the routine purchasing
  requirements of your company. It involves the
  definition of requirements for a product, through
  to the identification and selection of the most
  suitable suppliers, and finally to the
  negotiation and creation of a purchasing contract
  with the chosen supplier.

Process mainly driven by the user Process mainly
driven by the system Manual process not
supported by the system Process that
communicates with third-party software
(mouse-over for details) Process with relevance
to Financials Related scenario Info button with
more information
Scenario/Processes
Business Value
Scenario Flow
Further Information
The following business roles are involved in this
scenario
Strategic Buyer
ltRole Namegt
ltRole Namegt
ltRole Namegt
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Strategic SourcingProcess Details Renegotiating
Purchasing Contracts
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Renegotiating Purchasing Contracts
Processing Requests for Quotation
Creating Purchasing Contracts
Determining Source of Supply
Start contract renegotiation
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Scenario Explorer
Process Description
Further Information

• The Renegotiating Purchasing Contracts business
  process enables your purchasing department to
  renegotiate expiring contracts. A strategic buyer
  initiates the negotiation process either directly
  with the current supplier or with additional
  suppliers. The system automatically creates a
  sourcing request. The buyer may then create an
  RFQ (Request for Quotation) from one or more
  sourcing requests.

Performed by Strategic Buyer
Scenario/Processes
In the Work Center Sourcing and Contracting
Business Value
Scenario Flow
Further Information
See also Sourcing Negotiate a Purchasing Contract
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Strategic SourcingProcess Details Processing
Requests for Quotation
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Processing Requests for Quotation
Re-negotiating Purchasing Contracts
Creating Purchasing Contracts
Determining Source of Supply
Group sourcing request items
Create a request for quotation
Enter quotes
Compare quotes and create follow-up documents
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Scenario Explorer
Process Description
Further Information

• The Processing Requests for Quotation business
  process enables your purchasing department to
  bundle your companys purchasing requirements and
  to find appropriate sources of supply for the
  materials and services required. This includes
  finding sources of supply for purchase requests,
  for example, and for the negotiation of new or
  expiring purchasing contracts.
• You can invite new or existing suppliers to
  participate in requests for quotation and compare
  the quotes received easily in the system to
  determine most suitable supplier for your
  requirements.
• Once you have determined the winning quote, the
  bidders are notified about the outcome of the
  request for quotation process, and follow-up
  documents, such as purchase orders or contracts,
  can be created.

Performed by Strategic Buyer
Scenario/Processes
In the Work Center Sourcing and Contracting
Business Value
Scenario Flow
Further Information
See also Request for Quotation Processing Compare
Quotes
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Strategic SourcingProcess Details Creating
Purchasing Contracts
X
Creating Purchasing Contracts
Re-negotiating Purchasing Contracts
Processing Requests for Quotation
Determining Source of Supply
Approve purchasing contract
Create purchasing contract
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Scenario Explorer
Process Description
Further Information

• The Creating Purchasing Contracts business
  process enables your purchasing department to
  manage the entire lifecycle of a purchasing
  contract. A contract is defined for a best price
  or discount on the purchased products. Contracts
  allow companies to reduce their operational costs
  and gain a greater control over spending and the
  supplier performance by managing their contract
  renewals.
• Strategic buyers can create, modify and approve a
  contract, and initiate a contract negotiation
  with suppliers. Buyers can create a contract from
  a supplier quote during the contract negotiation
  process, or manually, without a preceding
  document. A released purchasing contract can be
  used as a source of supply for the procurement of
  products through a purchase order or a supplier
  invoice. The releases made against the contract
  by these documents are updated in the contract
  release history.

Performed by Strategic Buyer
Scenario/Processes
In the Work Center Sourcing and Contracting
Business Value
Scenario Flow
Further Information
See also Purchasing Contract Processing
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Strategic SourcingProcess Details Determining
Source of Supply
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Determining Source of Supply
Re-negotiating Purchasing Contracts
Processing Requests for Quotation
Creating Purchasing Contracts
Create a fixed source of supply
Create a quota arrangement
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Scenario Explorer
Process Description
Further Information

• The Determining Source of Supply business process
  allows strategic buyers to prioritize the sources
  of supply available for a product, by defining
  quota arrangements and fixed sources of supply.
  When multiple contracts exist for a single
  product, buyers can define quota arrangements to
  define the distribution of purchase orders among
  several suppliers. If buyers want to prioritize a
  contract or a list price rather than using a
  quota arrangement, they can create a fixed source
  of supply. If both fixed source of supply and
  quota arrangement exist for a product, the fixed
  source of supply prevails over quota arrangement.
  

Performed by Strategic Buyer
Scenario/Processes
In the Work Center Sourcing and Contracting
Business Value
Scenario Flow
Further Information
See also Source Determination
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Strategic Sourcing Business Value
Request
Quote
Award
Contract
Invite Bidders
Publish Request for Quotation
Create and Approve Contract
Monitor Contract
Receive Quotes
Evaluate Quotes
Award Quotes
Communicate Decision
Scenario Explorer
Overview
Key Benefits

• Bundling of multiple sourcing requests into
  single request for quotation of different types
  such as basic requests for information, complex
  requests for quotations, and contract
  negotiations leads to higher volume and less
  transactions.
• Integration into entire supply base as well as to
  external supplier directories combined with
  automatic bidder proposal allows easy
  identification of most suitable bidders
• Collaboration support through bidder
  communication using integrated SAP Interactive
  Forms software (by Adobe) increases transparency
  and traceability
• Seamless integration of request for quotation and
  contract management enables direct contract
  creation out of awarded supplier quote.
• The single access point for contract information
  including built-in alert for expiring contracts
  makes it easier for buyers to prepare, analyze,
  and monitor contracts throughout the entire life
  cycle.
• Built in analytics and reports gives immediate
  access to strategic reporting information such as
  contract usage and maverick spend.

For midsize companies that want to increase
sourcing efficiency through active management of
the contract life cycle a transparent sourcing
process is essential. You can benefit from new
sources of supply, gain higher discounts from
greater volume and a reduced number of
suppliers. SAP Business ByDesign helps
efficiently manage the strategic sourcing process
from bidder invitation and request for quotation
through quote evaluation to contract creation.
Scenario/Processes
Business Value
Scenario Flow
Further Information
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Strategic SourcingScenario Flow Variant Start
from Purchasing Contract
Sourcing and Contracting
Creating Purchasing Contracts
Determining Source of Supply
Scenario Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information
Legend Variants
Variants of the Scenario
Work center in which process is performed
Dotted line optional
Process mainly driven by the user

• Start from Purchasing Contract
• Start from RFQ
• Start from Purchasing Contract Renegotiation

Work Center
Business document flow
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Strategic SourcingScenario Flow Variant Start
from RFQ
Sourcing and Contracting
Creating Purchasing Contracts
Determining Source of Supply
Processing Requests for Quotation
Scenario Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information
Legend Variants
Variants of the Scenario
Work center in which process is performed
Dotted line optional
Process mainly driven by the user

• Start from Purchasing Contract
• Start from RFQ
• Start from Purchasing Contract Renegotiation

Work Center
Business document flow
10
Strategic SourcingScenario Flow Variant Start
from Purchasing Contract Renegotiation
Sourcing and Contracting
Creating Purchasing Contracts
Determining Source of Supply
Processing Requests for Quotation
Renegotiating Purchasing Contracts
Scenario Explorer
Scenario/Processes
Business Value
Scenario Flow
Further Information
Legend Variants
Variants of the Scenario
Work center in which process is performed
Dotted line optional
Process mainly driven by the user

• Start from Purchasing Contract
• Start from RFQ
• Start from Purchasing Contract Renegotiation

Work Center
Business document flow
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Strategic SourcingFurther Information
Scenario Explorer
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