SAP SRM (Supplier Relationship Management) is a SAP product that facilitates the procurement of goods via a web-based platform. Organizations can procure all type of products like direct and indirect material, services and this can be integrated with SAP ERP modules and other non-SAP backend systems for accounting and planning.
SAP SRM allows you to optimize your procurement process to work effectively with suppliers to get long term benefits and also to perform forecasting, procurement cycle and to work with partners. You can reduce the time span and costing of procurement cycle using innovative methods to manage business processes with key suppliers.
SAP SRM supports the full procurement cycle, i.e., starting from source and purchase to pay through complete procurement process with suppliers and effectively managing supplier to build long-term relationship.
SAP SRM helps you to emphasize supplier performance management and helps you to streamline the procurement operations, put compliance with contracts and purchasing policies, and improve overall cost management and expenditure.
There are various benefits and key functionalities that you can achieve by using SAP SRM product and by integrating with other SAP ERP modules and non-SAP systems for planning and optimization.
Following are the key benefits of SAP SRM −
Suppliers can easily manage catalog data and this data can easily be integrated with business processes like accounting, finance and planning.
Using SAP SRP product, you can streamline procure to pay lifecycle and improve communication with supplier and cost management.
End-users can search products using multiple product catalog and helps them to find and purchase product that are compliant with purchase and procurement policy of the company.
Using SAP Supplier Relationship management, you can create reports related to procurement activities, compliance and contract management, and managing costing in procurement process.
You can manage contracts using secure central repository. This helps to reduce compliance violations and allows end-users to follow business processes during self-service procurement.
Following are the technical benefits of SAP SRM −
Live Auction Cockpit to perform real time monitoring and bidding process in procurement process.
SAP NetWeaver Business Intelligence to perform data warehousing, analytics and web-based reporting.
Easy transactions between SAP SRM and online transaction processing system OLTP.
SAP bidding engine to create quotations and to process them.