Integrating SAP SRM with S 4 HANA

Sap Srm Integration With S 4 Hana

In the near future, operative purchasing, collaboration with suppliers, and tenders will be processed through a supplier network. SAP S/4HANA in combination with the Ariba Network offers significant benefits.

Since SAP launched SAP S/4HANA, it has become clear that purchasing, supply-chain processes, and collaboration with suppliers could also benefit from the solution. However, this doesn’t mean the immediate replacement of current products such as SAP Supplier Relationship Management (SAP SRM).

Kai Finck, the senior vice president and head of SAP Ariba Center of Excellence, states that SAP will continue to offer support for SAP SRM 7.0 until 2025. However, he emphasizes that the future lies in integrating SAP S/4HANA with cloud-based solutions from SAP Ariba through SAP S/4HANA Sourcing & Procurement.

Benefits of SAP Ariba Integration with SAP S/4HANA

The following scenarios outline the benefits of SAP Ariba cloud solutions in combination with SAP S/4HANA.

Doing Business with Suppliers

Companies and suppliers can digitalize the source-to-pay process end to end, and across all purchasing categories. A catalog order, for example, is automatically, and electronically forwarded to the supplier in real time. Amendments to the order can be transferred at any time, and the invoices are received electronically. Details such as invoice amount, address, and value-added tax rate are checked automatically.

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According to Finck, this ensures that the process of receiving invoices can be completely automated, eliminating the need for paper-based invoices.

It is estimated that three-quarters of all company invoices are still paper-based, and every fifth one contains errors. The automated process thus reduces the effort for accounts payable, and radically accelerates the overall process. Finck predicts that employees will be able to process three times as many invoices as they have done in the past:

Calling for Tenders in the Cloud

In addition to managing order and invoice procedures, the Ariba Network also facilitates the complete tender and award process in partnership with suppliers. When customers want to purchase PCs, component parts, or services, they submit their request through the cloud-based Ariba Network to suppliers. They then select the most suitable supplier from the available options and proceed to establish a contract with them.

Catalogs and Guided Buying

SAP Ariba solutions ensure compliance with companies’ purchasing policies, and handle the entire process.

Optimizing Material Planning

SAP S/4HANA is responsible for assessing the demand for production materials, while the SAP Ariba platform verifies if the supplier has the capability to meet that demand. According to Finck, this involves a process where SAP S/4HANA sends material requirements to the SAP Ariba Network, which then communicates these requirements to suppliers.

A benefit of SAP S/4HANA is that the material planning no longer takes place at large intervals, as is still often the case in companies. Instead, it’s event-driven, and takes just a few minutes, so it can take place more than once a day.

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With the SAP S/4HANA framework, suppliers can receive real-time updates and make adjustments more efficiently than ever before, saving time and effort.

SAP S/4HANA Integration with SAP Ariba: Streamlining Operations, Reducing Expenses, Ensuring Compliance

Finck highlights the following benefits of SAP S/4HANA Sourcing & Procurement.

Reduced costs and improved efficiency

The integration of SAP SRM with S/4HANA enables businesses to enhance their purchasing and accounting processes for improved collaboration between companies and suppliers. This facilitates real-time communication and allows for agile responses to changes in demand.

Regulatory Compliance

Preparing SRM customers for the integration of S/4HANA sourcing and procurement involves ensuring that they are ready to transition smoothly to the new system. This includes understanding the changes that will occur, updating their processes and systems accordingly, and training their employees on how to effectively use S/4HANA. By taking these steps, SRM customers can ensure a successful integration with S/4HANA and maximize the benefits of this advanced platform.

What ECC module functionality does SAP Global Trade Services replace with S 4 Hana?

SAP S/4HANA offers global trade services (GTS) that replace the foreign trade functions found in SAP ECC. With automation, SAP GTS accelerates processes that were previously manual in SAP ECC. These automated tasks include embargo checking, license checks, and import and export declarations.

– SAP S/4HANA provides global trade services (GTS).

– GTS replaces the foreign trade functions in SAP ECC.

– Automation is used to speed up manual processes from SAP ECC.

– Embargo checking is automated with GTS.

– License checks are automated with GTS.

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– Import and export declarations are also automated with GTS.

An introduction to SAP S 4 HANA Enterprise management

SAP S/4HANA serves as the digital core that seamlessly integrates an enterprise with individuals, business networks, the internet of things (IoT), big data, and other essential elements. By leveraging SAP S/4HANA, businesses can effectively manage their operations in real-time and harness the full potential of a digital core.

The future outlook for SAP SRM

However, even if you choose to transition to a different platform, it is crucial to address the eventual end of support for SAP SRM. While moving away from this legacy system may provide short-term benefits in terms of enhanced functionality and efficiency, it does not eliminate the need for long-term planning.

Is SAP SRM effective?

SAP SRM, also known as SAP Supplier Relationship Management, is a powerful solution that enables businesses to streamline their procurement processes and enhance collaboration with suppliers. By leveraging this tool, organizations can effectively reduce unnecessary expenses associated with procurement activities while fostering long-term partnerships with suppliers.

Furthermore, SAP SRM facilitates improved relationships with suppliers by providing a centralized platform for communication and collaboration. Through this platform, both parties can easily exchange information regarding product specifications, pricing negotiations, delivery schedules, and other important details. This enhanced transparency helps build trust between buyers and suppliers while enabling them to work together more efficiently.