SAP S/4HANA Product Expert Training

SAP Product Sourcing

Praveen Kunigal Athmaramasetty
Swapnil Chandak
Vera Thome-Fix From Product Experts
To Product Experts

INTERNAL - Authorized for Partners

 Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not
be disclosed without the permission of SAP. Except for your obligation to protect
confidential information, this presentation is not subject to your license agreement or
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any course of business outlined in this presentation or any related document, or to
develop or release any functionality mentioned therein.

This presentation, or any related document and SAP's strategy and possible future
developments, products and or platforms directions and functionality are all subject to
change and may be changed by SAP at any time for any reason without notice. The
information in this presentation is not a commitment, promise or legal obligation to
deliver any material, code or functionality. This presentation is provided without a
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All forward-looking statements are subject to various risks and uncertainties that could
cause actual results to differ materially from expectations. Readers are cautioned not to
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dates, and they should not be relied upon in making purchasing decisions.

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 Feel free to ask your questions after the call
here:
SAP S/4HANA Cloud, Public Edition Community

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Source to Pay
This Generic Business Process includes all activities associated with managing the comprehensive sourcing and procurement of goods and services. It
starts with procurement planning and managing spend, followed by sourcing and supplier selection, negotiating and managing supplier contracts, and
preparing and executing operational procurement. The next steps are goods receipt, initiating potential returns and claims, processing supplier invoices
and accounts payable, including final payment to the supplier, and managing supplier data. The source-to-pay process varies mainly based on the type
of product or service being purchased. Variants of S2P cover, for example, procurement of indirect and direct products, services, and solutions (such
as combination of products and services), as well as MRO and field service materials.

Plan to Optimize Source to Contract Plan to Optimize Procure to Receipt Request to Resolution Invoice to Pay Manage Suppliers and
Sourcing and (generic) Fulfillment (generic) (generic) (generic) (generic) Collaboration (generic)
Procurement (generic)

Included Topics
Product Sourcing Procurement Ariba Buying

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 Agenda

• Introduction to SAP Product Sourcing solution suite

• Key Innovations
• Product sourcing overview - Analytical App
• Mass management of line items in sourcing project - Using Microsoft
excel template
• Collecting and managing carbon-footprint data from suppliers during
sourcing process
• Direct initiation of negotiation and award process from quotation
comparison application

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 Launch
Plan

Product
Sourcing
Design

Demand
Procurement
project aggregation
from multiple
SAP Product Sourcing Suite
management

Suite of
ERPs
for Automotive and Industrial
Mass
renegotiation
direct
material
Sourcing and
auto-population
Manufacturing
of contracts sourcing
of contract
solutions
terms
from SAP
Contract
Contracts
Renegotiation
Supplier Real-time
collaboration commodity
pricing*

Manufacturing Procurement

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SAP Product Sourcing – Automotive and Industrial Manufacturing
Solution Landscape

SAP BTP Stack SAP S/4HANA Stack SAP BTP Stack

Product Sourcing Supplier
Procurement Quotation Mgmt
Planning SAP Business
Quotation Awarding
Sourcing Supplier Quotations Network
Parts Project
Versions & Renegotiations Scenarios &
import & assignment to Comparison Award
Projects

Milestones & Tasks

Scheduling

Bundle parts according to

Central Procurement Corporate
Contract Price
sourcing needs Supplier Network
Renegotiation
PO / Source of Central
Demand Aggregation
Supply Assignment Contracts
Renegotiations

Enterprise Contract
Management Legend

Core Component
Legal Additional
Transaction Documents
Optional SAP Component

Single point of access for suppliers

Icertis Contract Intelligence* Native / pre-built integration

Contract Authoring, Review, Risk & Obligation Mgmt. Native integration in Private cloud & OP Version
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Product Bundles (Mandatory)

Quotation Management & Contract Price

Scenario Product Sourcing
Renegotiation (Public cloud only)

7020618
8012656 SAP S/4HANA Cloud for supplier quotation and
On-premise SAP S/4HANA for product sourcing
price renegotiation
(On-premise)
QTM + CPR
8011484 8012656 SAP S/4HANA Cloud for supplier quotation and
Public Cloud SAP Product Sourcing price renegotiation
QTM + CPR

Private Cloud 8012657 SAP S/4HANA Cloud for product sourcing, private edition
Product Sourcing (PCE) + QTM + CPR

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Optional Product SKU’s

Product Name On-Prem Pvt. Cloud Public Cloud

SAP S/4 HANA for Procurement Planning - - 8008713
SAP S/4HANA for Enterprise Contract Management (ECM) 7020318 8008780 8009439
SAP S/4HANA for Central Procurement 7020281 8008772 8008365
SAP Central Procurement* 8014312

* S/4 HANA stack built into the SKU. More information here

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Sourcing and Procurement in SAP S/4HANA Cloud, Public Edition
Product sourcing overview Application (Release 2302 CE & 2023 FPS 0)

A sourcing manager needs transparency into business-critical issues related to

sourcing projects and quotations. The product sourcing overview page provides
these insights with navigation option to the transactional Fiori apps for sourcing
projects and supplier quotations. The analytical content can be filtered according to
responsibilities (e.g. material group) and saved as individual variants.

Value Proposition
• Obtain a transparent view of the sourcing process
• Expedite business actions

Capabilities
• Display the following cards on the overview screen:
• Sourcing projects by status
• Sourcing projects by manufacturing plant and procurement projects
• Total target amount of sourcing projects by material group
• Supplier quotations by status
• Quotations by supplier and material group
• Quotations pending submission by the supplier
• Sourcing projects by submission deadline and target amount

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Feature Demo
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Sourcing and Procurement in SAP S/4HANA Cloud, Public Edition
Managing line items of the sourcing project using standard Microsoft Excel template (Release 2308
CE & 2023 FPS 0)
This feature enables sourcing manager to quickly Create/change/delete large
number of items in a sourcing project using standard Microsoft excel template.

Value Proposition
• Quickly edit/create large number of line items in a sourcing project
• Use of standard excel template makes it easier to mass change or create data
in excel
• System validations ensures full visibility to the number of items changed or
being created after uploading the excel. User can decide to save the changes
or discard the draft

Capabilities
• Download standard MS excel template with existing line items in the sourcing
project
• Modify the existing item details or add new line items in the excel template and
then upload the excel template
• Review the modified/created items in the UI and then either save or discard the
draft

For more information, see: Manage Sourcing Projects

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Feature Demo
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Sourcing and Procurement in SAP S/4HANA Cloud, Public Edition
Collecting and managing carbon-footprint data from suppliers during sourcing processes (Release 2308
CE and 2023 FPS 0)
This feature enables sourcing manager to collect carbon footprint information from
the suppliers during the sourcing process. Collected footprint information will be
used to make carbon conscious award decision.

Value Proposition
• Early insights into carbon footprint associated with the items sourced from
vendors
• Carbon conscious award decisions expedites organization’s goal to achieve net
zero target
• Better control over scope 3 emissions

Capabilities
• Sourcing manager would request carbon footprint information for select/all items
in the sourcing project
• Suppliers share the carbon footprint information via supplier quotation
• Sourcing manager compares carbon footprint information in quotation
comparison application

For more information, see: Manage Sourcing Projects

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Feature Demo
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Procurement in SAP S/4HANA Cloud, Public Edition
Direct initiation of negotiations or awarding scenarios directly from the quotation-comparison application (Release
2302 CE and 2023 FPS 0)
This feature enables sourcing manager to initiate negotiation or awarding scenario
directly from quotation comparison application.

Sourcing manager will be able to compare multiple submitted supplier quotations. In

the context of comparison, he will be able to choose below follow on actions.
• Create Price/Quantity negotiation
• Create awarding scenario

Value Proposition
• Ease of initiating follow on action after reviewing the supplier submitted quotations
in quotation comparison application

Capabilities
• Compare supplier submitted quotations in the quotation comparison application
• Select the relevant quotations to initiate price/quantity negotiation
• Select the relevant quotations to create negotiation scenario

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