Strategic Sourcing

Best Practice Scenario: Strategic Sourcing

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 Flow details Strategic Sourcing

Roles involved to Strategic Sourcing

• Strategic Buyer

Business Value of Strategic Sourcing

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.

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Key Benefits of Strategic Sourcing

• 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

Application

• SAP Business ByDesign

Continue to review the other Business Processes SAP Business ByDesign

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