Under pressure to deliver constant profitability, procurementorganizations like yours must effectively manage and increase visibility into expenditures and streamline the process of selectingsuppliers. Continually battling maverick spending – with inter-nal departments purchasing materials or services from supplierswith which you have no contracts – your procurement groupmust also aggregate expenditures and identify new areas for sav-ings. Your procurement unit also struggles to source from sup-pliers using time-consuming, manual processes. Traditional com-munication methods – such as phone calls, faxes, and e-mails – often result in long cycle times and difficulties in standardizing and sharing best practices for procurement.

At the same time, procurement continues to evolve from a back-office function into one that drives strategic, competitive advan-tage. As a procurement professional, you increasingly need asolution that helps you collaborate across departments, discoverand qualify suppliers, collaboratively plan projects with suppliers,and continually evaluate and govern your suppliers. For mostprocurement organizations, this evolution – which involvesautomating a myriad of manual processes – occurs over severalyears.

SAP® solutions for e-sourcing enable negotiation activities such as auctions, requests for proposals, information and quotation,plus services to deliver the right offering you need to begin thechange. The Web-based, hosted offerings help you attain bottom-line savings and accelerate time to benefit by cutting costs andencouraging user adoption. With the SAP solutions for e-sourcing, your procurement operations can grow over time;when you’re ready, you can easily and quickly move to other SAP e-sourcing solutions and retain your existing investment.

SAP® solutions for e-sourcing

are hosted, Web-based offer-

ings that help you maximize

savings through fast, flexible,

and sustainable sourcing. With

multiple solutions, deployment

options, and support services,

only SAP addresses the suppli-

er relationship management

needs of your entire procure-

ment organization – now and

in the future.

SAP® SOLUTIONS FOR E-SOURCING: ENABLINGPROCUREMENTTRANSFORMATION Managing Spend for Continuous Profitability

SAP Solution BriefSAP Solutions for E-Sourcing

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The Right Solutions to Meet Your Needs

SAP solutions for e-sourcing help you generate results by offeringyou the right solution at the right time using the right deliverymodel. As your procurement department evolves, each step in itsprogression increases your need for automated purchasing sys-tems and processes. As you increase the number of spend cate-gories under management, for example, you must collaboratewith business units to drive additional savings.

With SAP solutions for e-sourcing, you can create a collaborativeenvironment in which you work jointly with enterprise-widedepartments to reach key decisions – such as defining require-ments and evaluating supplier proposals and contract reviews –that affect your entire sourcing process.

SAP solutions for e-sourcing offer the following options:

• SAP E-Sourcing on-demand solution

• SAP E-Sourcing Enterprise solution

• SAP E-Sourcing Enterprise Plus solution

Generate Rapid Savings with the SAP E-Sourcing

On-Demand Solution

The SAP E-Sourcing on-demand solution provides a path to earlysourcing success with a low up-front investment. This offeringequips you with the tools you need to make fast decisions andachieve quick savings.

The SAP E-Sourcing on-demand solution offers:

• Project management and reporting Manage activities, tasks, milestones, and alerts. Capture sup-porting documents and files into one repository. Track a port-folio of savings opportunities.

• Requests for information, quotations, and proposalsCreate, manage, and analyze all types of requests. Source sim-ple or complex negotiation activities in direct, indirect, andservices categories. Conduct multiple rounds of sourcing activ-ities without reentering data.

• Support for reverse auctionsManage advanced bidding rules, such as bid visibility, automaticextensions, ranked-bidding format, weighted-bidding format,staggered start and end times for individual items, and reserveprices.

Increase Your Reach with the SAP E-Sourcing Enterprise

Solution

The SAP E-Sourcing Enterprise solution provides a flexible con-figuration toolset to help you generate maximum value fromyour e-sourcing process. You can model the solution based onyour unique needs – without any custom coding. As a result, youreduce sourcing cycle times, increase the number of spend cate-gories under management, and standardize on best practices.

The SAP E-Sourcing Enterprise solution offers:

• Flexible configuration Create templates, reports, page views, user-access rights androles, and new data fields to capture information and processesspecific to your organization.

• Project management Link all sourcing activities to specific projects to track resultsand decisions during each project’s duration. Monitor projectstatus, manage employee workload, and track opportunities forsavings.

• Configurable request process managementConduct simple or complex sourcing activities in direct, indi-rect, and service categories by automating the creation ofrequests for information, proposals, and quotations. Analyzebids using collaborative scoring, weighted scoring for multipleattributes, total cost calculations, side-by-side comparisons, andpricing and savings reports.

• Auction managementCreate tailored negotiation environments with a wide variety ofauction functions and settings. Interact in real time usinginstant messaging, pricing curves and savings charts that auto-matically refresh, and a countdown clock. Weighted biddinghelps buyers consider pricing and other factors to evaluate sup-plier bids and integrated bid-analysis reports to determineawards.

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• Bid optimization managementIdentify the lowest total-cost and best-value award strategieswith rules-based functions. Easily determine optimal awardallocation by comparing reports and charts.

• Integration with your SAP infrastructure Connect with other SAP enterprise business solutions throughout-of-the-box integration with the materials managementfunctionality of the mySAP™ ERP application, the mySAP ERPFinancials solution, and the mySAP Supplier RelationshipManagement application.

Sustain Savings with the SAP E-Sourcing Enterprise Plus

Solution

The SAP E-Sourcing Enterprise Plus solution enables you to sustain savings as you expand the scope of spend you manage.Building on the SAP E-Sourcing Enterprise solution functionali-ty, the SAP E-Sourcing Enterprise Plus solution helps you betteridentify and prioritize sourcing opportunities, comply with andmeasure contracts, and view and analyze your supply base.

The SAP E-Sourcing Enterprise Plus solution offers:

• Contract management Generate, negotiate, and manage contracts with a single,searchable contract repository. Create a library of standard con-tracts and contract clauses to promote and enforce your orga-nization’s legal standards during the contract-generationprocess. Configure an approval process using such factors as acontract’s monetary value and spend category. Automate allcontract activity, such as rebidding, auditing, renewing, andrenegotiating prior to expiration. Track rebates and thresholds.

• Supplier managementEmploy a single, searchable repository to support a supplierportal in which suppliers can register themselves, maintain andmodify their own profiles and category records, send updatedfiles like certificates, participate in collaborative discussions,respond to bid requests and auctions, view scorecard perfor-mance, and view active contracts and sourcing events. Definemetrics for supplier performance scorecards. Use an activitylibrary to define standard events, tasks, and activities that youcan easily apply to suppliers’ records.

• End-user biddingCustomize category-specific templates, terminology, and busi-ness processes for sourcing events. Allow nonpurchasing usersto initiate requests for quotations and track them from specifi-cation to award.

• Executive dashboards Support project portfolio management, business process man-agement, and performance analysis.

• Spend and compliance managementAchieve comprehensive reporting and analysis. Realize effectivespend data cleansing and comprehensive reporting and analysis.

SAP® SOLUTIONS FOR E-SOURCING COMPARISON CHART

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Sourcing

Projects; requests for proposals,quotations, and information; andauctions

✔ ✔ ✔

Bid optimization ✔ ✔End-user bidding ✔

Supplier management

Supplier repository, profile self-registration and self-maintenance ✔ ✔ ✔

Supplier-performance scorecards ✔

Contract management

Contract repository, documentgeneration, revision tracking andnegotiation, and approval workflow

✔

Spend and compliance

Spend-data cleansing, classifica-tion, and analysis ✔

Analytics

Standard reports ✔ ✔ ✔Custom reports ✔ ✔

Multiple language versions

Product user interface and onlinehelp

✔ ✔ ✔

Advanced configuration

Support for creation of unlimitednumber of custom fields, modifi-cation of page layouts and fieldlabels, and workflow

✔ ✔

Hosting model

Multiple tenants Single tenant Single tenant

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Choose the SAP E-Sourcing Solution That’s Right for You

The appropriate SAP solution for e-sourcing depends on yourorganization’s size, the supplier relationship management (SRM)components you need, and the level of configuration and inte-gration necessary. With SAP solutions for e-sourcing, you cangrow with the solution over time, your move to other solutions isfast and easy, and you protect your existing investment.

Undisputed ROI, Quick Payback

You can achieve clear results with SAP solutions for e-sourcing.Lower your total cost of ownership by eliminating the need forcostly hardware, upgrades, or maintenance. Attain high returnson your investment with a rapid implementation that helps yougenerate savings quickly.

Secure, Scalable Hosting

SAP-managed hosting provides the benefits of a secure, reliable,and scalable foundation without the associated investment in ITinfrastructure and strain on your internal IT resources. Hostingfosters fast ROI, and rapid implementation helps you generatesavings quickly.

Greater Savings and Value

E-sourcing activities result in better decisions that optimize theoverall value contribution from suppliers. Through analysistools, you are able to evaluate and compare supplier bids on fac-tors that are most important to your organization. For example,your procurement team can weigh and collaboratively score RFPresponses based on factors such as existing supplier performancescorecards, on-time delivery rates, price, and so on. Through SAPsolutions for e-sourcing, you are able to develop and source froma qualified supply base that delivers the best value to your enterprise.

Sustainable Results

Templates with embedded sourcing process and category infor-mation can help you repeat best practices, reduce cycle time, andshare knowledge among category managers. Use templates forsourcing projects, proposal requests, and auctions to employ thecollective knowledge from colleagues and sourcing events.Automated sourcing events and analytical functions help youeliminate cumbersome, time-consuming, and paper-based sup-plier negotiations and awards.

Services for a Total E-Sourcing Solution

Initial success generates long-term e-sourcing acceptance.Available services include product training and support for auc-tion events involving requests for proposals, quotations, andinformation, and this helps increase user adoption and overallvalue. The solution helps you initiate events, hold mock-negotiation requests for proposals and auctions, and manage live events.

Find Out More

If you would like to know more about the SAP solutions for e-sourcing – and learn what they can do for your procurementorganization – visit www.sap.com/srm/e-sourcing/index.epx.

Powered by SAP NetWeaver®

SAP solutions for e-sourcing are powered by the SAP NetWeaver®platform. SAP NetWeaver unifies technology components into asingle platform, allowing organizations to reduce IT complexityand obtain more business value from their IT investments. It provides the best way to integrate all systems running SAP ornon-SAP software.

SAP NetWeaver also helps organizations align IT with their busi-ness. With SAP NetWeaver, organizations can compose andenhance business applications rapidly using enterprise services.As the foundation for enterprise service-oriented architecture(enterprise SOA), SAP NetWeaver allows organizations to evolvetheir current IT landscapes into a strategic environment thatdrives business change.

www.sap.com/contactsap

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