Reduce Procurement Cost with SAP-Supplier Relationship Management

In today’s economy, companies need to do more with less and do it faster and more efficiently than ever before.Procurement executives always face daunting challenges like,

  • Standardised and streamlined practises for procurement of goods and services
  • How to reduce procurement costs by closing the loop from source to pay?
  • How to automate operational processes to increase efficiencies?
  • Has our department got greater visibility into supplier relationships and performance?
  • What are the different ways to boost procurement processing and cycle times?
  • Can we minimize paper-based transaction and realized saving from spot sourcing?

SAP Supplier Relationship Management (SAP SRM) provides you with innovative methods to coordinate your business processes with your key suppliers and make them more effective. SAP SRM enables you to optimize your procurement strategy, to work more effectively with your supplier pool, and thus to gain long-term benefits from all your supplier relationships.


SAP SRM’s Procure-to-Pay will help you stay flexible by ensuring control and compliance between your vendors, contracts, regulations, buyers, and finance organizations. You can scale your resources to dynamically manage suppliers, processes, budgets, approvals, and payments on a global basis. SAP SRM Procure-to-Pay comes with Best-In-Class features that are automatically updated with each new release. SRM can be handled cloud base as well as in unified SAP On-premises.

Key solution in SAP SRM:

Across the SAP install base, companies today are looking to transform their purchasing function from tactical procurement to strategic supply management.

  • Innovations for Operational sourcing: Shopping Cart Modifications, Embedded Supplier Analytic & Enhanced Bid Comparison to determine awards.
  • Contract Life cycle Management to support full contract management process for contract execution and compliance.
  • Innovation for Contract Management: Electronic signature, advanced clause change support, Bar-code generation for contract documents, e-RFx & e-auction.
  • Spend Analysis identifies saving opportunities by enriching, classifying and analysing company spend data.
  • Supplier Life-cycle Management, Order collaborations, Collaborative Invoice to Pay & Commodity Management.

Following Diagram illustrates SRM Procure-to-Pay Collaborative approach with all Stakeholders :



SAP SRM Benefts:

With the SAP SRM solution, SAP pre-configured business scenarios can quickly deploy and gain following benefits:

  • Proactive compliance across contracts,Processes,regulations and supplier strategies
  • Maximize value and ROI of your sourcing negotiations with fast time to value
  • Actively controls global spend with flexible management and visibility tools
  • Rapid enablement of new supplier with consolidated procurement tool that unifies all ERP’s
  • User-customizable dashboards across all aspects of managed commerce
  • Advanced contract compliance with Mobile approvals
  • Seamless receipt and reconciliation processes
  • Flexible global processes, budget checking, and approvals with dynamic purchasing groups


SAP SRM application helps you streamline operations, improve purchasing compliance, and enhance cost management.As a result, you can manage spending while maintaining access to high-quality products and a reliable supply base.