SAP S/4HANA Sourcing and Procurement offers an integrated way to manage procurement and associated business processes....
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The immediate business benefit is having an integrated product that streamlines procurement processes by offering better business controls while eliminating redundant data entry efforts. Corporate buyers and procurement personnel can look forward to better spend management through greatly streamlined procurement, workforce management, and travel and expense management, to name a few benefits.
Sourcing and Procurement is part of Enterprise Management, SAP's umbrella S/4HANA business suite, under which is housed lines of business applications (such as Sourcing and Procurement) and their attendant functionality. A little history of this product can be helpful in understanding just what it offers: SAP S/4HANA Sourcing and Procurement includes SAP Business Network, which is comprised of Ariba, Fieldglass and Concur. When SAP acquired Ariba, a cloud-based product for global procurement, the move led to more questions than answers about the integration and implementation roadmap, but subsequently, SAP also acquired two more cloud-based products -- Fieldglass and Concur. Fieldglass offers temporary and contract workforce management, while Concur caters to travel and expense management needs of a company. Together, these cloud-based applications began to make business sense when SAP bundled them and renamed them as SAP Business Network. Using Ariba for procurement can lead to organizational efficiencies by cutting ordering costs. Fieldglass integrates with Ariba whenever a company procures services using Ariba. And finally Fieldglass ensures that all travel and expenses claims by employees were timely processed, and without the need to enter redundant data to eventually reduce data footprints.
With direct access to the range of Business Network functionality, SAP's Sourcing and Procurement is a robust product that offers organizational efficiencies. Here's a look at what it offers:
- Operational procurement provides automatic vendor selection by choosing the most competitive price of a product or service. The procurement analytics provide real-time key performance indicators (KPIs) including procurement and invoicing spends, delivery dates and quantities' deviations and supplier evaluation.
- Invoice and payables management manages all incoming suppliers' invoices and their timely payments.
- Sourcing and contract management can automatically assign the most relevant sources of supply for materials and services. Corporate buyers no longer have to spend time or effort identifying the best suppliers for specific materials or services. The system does that automatically by identifying and assigning the vendor that best meets the price and delivery requirements of the material or service. For contract and other procurement choices, there's instant and detailed information availability on contract quantity, value, status, and validity.
- Supplier information and master data provides major efficiencies in organizing and cataloguing millions of suppliers and service providers by using classification. Supplier information such as how well a vendor is performing helps a company decide which suppliers and services providers should continue its business relationships.
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