SRM stands for Supplier Relationship Management. It is an extended form of ERP where data gets transferred between SAP R/3 and the SRM screen (vice versa) so that every Vendor’s coordination will be better and which will fully avoid the paper work and unwanted confusions. It is very effective for the companies which have large number of users who can directly purchase the material using the Shopping Cart in which the materials can be selected from the available Catalogs.
- SAP SRM enables the organization to achieve the following business benefits: Sustainable cost savings- which enables the companies to achieve a closed loop from source-to-pay.
- Contract compliance – provides visibility into enterprise expenditures and enables the procurement organization to effectively demonstrate according to corporate guidelines.
- Competitive advantage – gives the tools to partner with key suppliers, define supplier management approach, and determine the key metrics.
Entries should be created in the EBP system to link the EBP purchase orders, requisition and reservation to the backend R/3 system. The logical system ID should reflect that of the EBP application server and client in which the number ranges are being configured. PO, RQ, RS were used to easily distinguish each number range.
Number ranges must be established for EBP shopping carts as well as any potential purchasing document so that unique numbers can be generated in the backend R/3 system from EBP. The EBP system needs a number range established that automatically takes the next available number and assigns it to the document which will be created in R/3.configuration must also be established in R/3 to correlate with the ranges in EBP so that conflict never arise when purchasing document.
Before the Internet Transaction Server (ITS) can process EBP requests, entries in table must be maintained to initiate a connection to a physical URL, which controls the menu on the left hand side of the screen that shows all of the transactions users have access to. The URL varies depending on which the EBP client the configuration is performed in and it also consists of base address for the integrated ITS instance. To enable EBP purchasing for each client, this configuration needs to be performed once.
Organizational attributes serve many purposes in EBP system. The primary purpose is to set attributes that define the users` shopping experience. Examples of such attributes are company code, plant and cost centers that the user can order against, etc.
A user or supplier record cannot be assigned to an organizational unit it has a business partner recorded. This means, if Business Partner relationships are not established, users cannot be imported into the organizational structure from the User_Gen Transaction. Then the following error occurs: ‘Business partner of organizational unit does not exist’.
An internal number range must be defined to build numerically local bid invitation for RFQ`s and Auction in the Bidding Engine and Live Auction application. These bids does not have a link to any R/3 purchasing document, they are completely local to the ERP system.
We use transaction SMQ1 in this case. The first thing that should be checked when downloading customizing objects is a possible stuck queue. The R/3 system uses the outbound queue (SMQ1) which is less likely to get stuck initially.
The key business process in SAP SRM includes:
- Procure to pay- we can integrate catalogue based requisition and gain the benefits of e-procurement.
- Catalogue management- manages catalogue data as master data that is deeply integrated.
- Centralize sourcing- gain visibility into the demand for goods and services.
- Centralized contract management- consolidates contract information.
- Supplier collaboration- links supplier to our purchasing processes through the supplier portal.
A Purchasing Organization is the organizational unit within a business responsible for the procurement of goods and services for plants belonging to a particular region. It also negotiates terms and conditions of contracts and purchases from vendors and also assumes legal responsibility for those purchases for the Plants that PO is responsible for. Those Plants are dependent on its assignment.
If Stake reference of SRM then, In SRM all the stake holders are partners. eg vendor, employees etc.