SAP SRM


SAP Spend Management: SRM

When an organization has many suppliers, it is critical to manage them efficiently and build long-term relationships. Establishing long-term relationships allows for more ideas and feedback to flow freely, streamlined operations, cost reductions, and improved customer service.

SRM Defined

SRM stands for Supplier Relationship Management, which falls under supply chain management. The main purpose is to establish two-way relationships between organizations and suppliers via a web-based platform. It covers innovative methods to coordinate business processes with suppliers, so they are more productive. SRM is integrated with the vendor’s systems for greater efficiencies with interactions. With SAP Supplier Relationship Management (SAP SRM), organizations can examine purchasing history, shorten procurement cycles, and collaborate with partners all in real time.

SAP Spend Management: SRM

When an organization has many suppliers, it is critical to manage them efficiently and build long-term relationships. Establishing long-term relationships allows for more ideas and feedback to flow freely, streamlined operations, cost reductions, and improved customer service.

SRM Defined

SRM stands for Supplier Relationship Management, which falls under supply chain management. The main purpose is to establish two-way relationships between organizations and suppliers via a web-based platform. It covers innovative methods to coordinate business processes with suppliers, so they are more productive. SRM is integrated with the vendor’s systems for greater efficiencies with interactions. With SAP Supplier Relationship Management (SAP SRM), organizations can examine purchasing history, shorten procurement cycles, and collaborate with partners all in real time.

Key Capabilities are:

  1. Operational Procurement: Catalog management, invoice creation, processing purchase orders, and shopping cart management.
  2. Strategy Sourcing: RFx and bids management and centralized sourcing.
  3. Operational Contract Management: Centrally managing supplier contracts.
  4. Supplier Self-Service: Self-service capabilities for suppliers.
  5. Services Procurement: Managing services for procurement.
  6. Operational Reporting: With workforce mobility option.

The significance of SRM is that it automates and streamlines the processes for materials that are ordered frequently, optimizing procurement. It allows organizations to maintain long-term relationships with the right suppliers who have proven historically to be reliable partners. SRM supports supplier information management, compliance, risk management, and performance management.

Benefits of SRM

  • Coordinates business operations
  • Automates workflows
  • Standardizes goods and services acquisitions

It is important to note the difference between SRM and procurement. SRM focuses on contracts and relationships, while procurement focuses on purchases, like ordering, invoicing, or paying. SAP has a cloud-based B2B sourcing and procurement application called Ariba where buyers and suppliers can do business in a networked structure. It provides capabilities such as supplier management, strategic sourcing, supply chain, procurement, services procurement and external workforce, and selling and fulfillment.

Vendor partners offering SRM include apexanalytix, SAP, smartShift.

Key Considerations for SAPinsiders are:

  • Increase Supplier Compliance with Sustainable Business Networks. Discover why accurate records of supplier compliance in procurement and ongoing supplier management activities is an important activity.
  • Simplify Supplier Qualification with SAP Supplier Lifecyle Management. Learn the functionality of how to simplify and foster supplier relationships, by reading this article.
  • Understanding the Key Aspect of Supply Chain Visibility. Kumar Singh, SAPinsider describes what supply chain visibility is, how organizations struggle, and explains one method to kickstart your approach.

145 results

  1. Overcome Security Challenges with Customizations in mySAP SRM

    Published: 15/March/2007

    Reading time: 31 mins

    Find out about the minimal authorization customizations that you must implement in mySAP Supplier Relationship Management (SRM) so employees can browse online catalogs, create a shopping cart, and check its status when procuring supplies. In addition, learn how to configure the system so SRM managers can approve or reject shopping carts. Key Concept mySAP SRM…...…
  2. How to Set Up SAP Supplier Lifecycle Management Business Scenario Capabilities

    Published: 03/October/2014

    Reading time: 23 mins

    Become acquainted with basic technical activities that are invaluable for productive use and successful implementation and operation of SAP Supplier Lifecycle Management 1.0 business scenarios. Key Concept SAP Supplier Lifecycle Management (SAP SLC) is a system designed to enhance the management of supplier-related business scenarios – Supplier Registration, Supplier Master Data Management, Supplier Qualification, Supplier…...…
  3. Protect Your SRM Org Plan with HR Structural Authorizations

    Published: 01/August/2005

    Reading time: 19 mins

    /HRMaintaining your Supplier Relationship Management (SRM) organizational plan became easier starting with SRM 4.0. Now you can use SAP Human Resources (HR) structural authorizations to make necessary changes. Find out what HR structural authorizations are and how to implement them. Key Concept HR structural authorizations provide protection of time-dependent organizational data according to organizational plan…...…
  4. Going Under the Knife: How Johns Hopkins University Transformed Training from Classroom Lectures to a Hands-On Experience

    Published: 25/February/2011

    Reading time: 15 mins

    ManagementJohns Hopkins University and Heath System runs a complex SAP environment that includes financial, supply chain, and HR solutions and more than 10,000 users. Learn how the training demand for those users led Johns Hopkins to move from its original demo-only class structure to build a standalone training client in which students can get hands-on…...…
  5. Sneak Peek: Sustainable Procurement as an Embedded Process in Supplier Management Activities

    Published: 01/December/2010

    Reading time: 8 mins

    The Sustainability Executive Advisory Committee (EAC) of SAP is developing several roadmaps to enable functions and processes to address corporate sustainability reporting (CSR), planning, and monitoring activities. Stay ahead of the curve on sustainability by previewing these conceptual roadmaps and the expected releases of related SAP functionality. Key Concept Sustainable procurement processes can be embedded…...…
  6. The Road to SAP S/4HANA from ECC6

    Published: 01/April/2018

    Reading time: 28 mins

    Sponsor: SAP SAP S/4HANA provides the opportunity for IT to lead digital transformation efforts. With SAP S/4HANA, IT can not only improve its own operations, but also deploy technology innovation to bring transformation and productivity gains to the business. Not sure how to get there? Join us to learn more about the path to SAP…
  7. Part 1: Save Time by Enabling Shopping Cart Catalog Functionality with SAP ECC 5.0/6.0

    Published: 15/November/2008

    Reading time: 18 mins

    Discover how to implement the catalog functionality to streamline your procurement process, boost productivity, and improve the accuracy of your purchasing records. Key Concept The Materials Management (MM) component is part of SAP ERP Central Component 5.0 and 6.0 software packages. SAP practitioners with knowledge of the MM and Purchasing submodules and the e-Procurement process…...…
  8. Best Practices for Managing the Contract Life Cycle

    Published: 16/May/2013

    Reading time: 16 mins

    /Project ManagementContract life cycle management (CLM) is an application category that is increasingly gaining popularity among business users. SAP offers three solutions. Understand the strengths and weaknesses of each solution and learn which one is suitable for which business requirements. Key Concept In simple terms, a contract can be considered a set of documents, governed…...…
  9. National Grid Transmits Procurement to the Cloud with SAP Ariba Solutions

    Published: 28/June/2016

    Reading time: 9 mins

    In keeping with its commitment to efficiency, National Grid needed to simplify its procurement process for its customers and internal users. After a move to SAP ERP and SAP Supplier Relationship Management (SAP SRM), the business decided a move to the cloud would improve its system scalability as well as the supplier experience. Learn how…
  10. Ask the BW Expert: How Do I Know if the New SAP BW 3.1 Content Release is Worthwhile for Me?

    Published: 01/March/2003

    Reading time: 10 mins

    The 3.1 content release offers a wide range of new business content for SAP and third-party applications. Here, the author outlines what’s new in this release by SAP application, industry, and third-party application.   The SAP BW 3.1 Content Release, available since last December, offers new Business Content for a range of solutions including mySAP…...…