SAP S/4HANA for central procurement overview

SAP S/4HANA for central procurement, what it’s all about?

 

The Procurement line of business in larger companies is organized mostly either globally or structured in divisions and channels, responsible for regions, countries and locations. They manage the spend processes often in distributed procurement landscapes with numerous ERP back-end systems.

Procurement is particularly impacted by this lack of centralization to improve and automate scale and volume in order to save costs and process more efficient.

SAP S/4HANA for central procurement provides a unified interconnection Hub, that allow procurement teams to work as a shared service across multiple ERP systems of global organizations, divisions, and channels.

It delivers the benefits of a centralized procurement system without requiring a massive shift of already established local procure to pay process flows. It operates across such buying channels without the need to rework them.

SAP S/4HANA for central procurement, solution overview

 

SAP S/4HANA for central procurement delivers company-wide visibility based on roles and permissions across a company’s ERP landscape. Lead buyers can access contracts, requisitions, orders, status and spending across the company.

Usually a purchaser works in one or multiple SAP ERP or SAP S/4HANA back-end systems. With central procurement, they can use a single SAP S/4HANA system to monitor, process and analyze the relevant documents centrally.

A strategic purchaser or commodity manager is able to structure global contracts hierarchically and to distribute them into local sources of supply in terms of outline or scheduling agreements.

The solution covers the following business scenarios:

  • Central Requisitioning (2FI)

  • Central Sourcing (3ZF)

  • Central Purchase Contracts (2ME)

  • Central Purchasing (2XT)

  • Central Purchasing Analytics (1JI, 2ME, 2XT)

  • Guided Buying for Central Procurement with SAP Ariba Buying (3EN)

Source: https://blogs.sap.com/2020/11/25/sap-s-4hana-for-central-procurement-overview/