Supplier Relationship Management

Topics: Data management, Supply chain management, Procurement Pages: 5 (1362 words) Published: July 27, 2011
Sourced from the SAP website
Supplier Relationship Management (SRM) Software from SAP
Supplier relationship management is a comprehensive approach to managing an enterprise's interactions with the organizations that supply the goods and services it uses. The goal of supplier relationship management (srm) is to streamline and make more effective the processes between an enterprise and its suppliers just as customer relationship management (crm) is intended to streamline and make more effective the processes between an enterprise and its customers. Srm includes both business practices and software and is part of the information flow component of supply chain management (scm). Srm practices create a common frame of reference to enable effective communication between an enterprise and suppliers who may use quite different business practices and terminology. As a result, srm increases the efficiency of processes associated with acquiring goods and services, managing inventory, and processing materials.

According to proponents, the use of srm software can lead to lower production costs and a higher quality, but lower priced end product. Srm products are available from a number of vendors, including 12 technologies, manugistics, peoplesoft, and sap.

Sap srm simplifies and automates procurement. The sap srm process integrates supplier qualification, negotiation, and contract management more tightly and cost-effectively with other enterprise functions and their suppliers’ processes – through a single framework with support for multichannel suppliers. Features & Functions:

Procurement Software for Your SRM System
SAP Supplier Relationship Management (SAP SRM) provides the insight and analysis you need to manage your source-to-pay process. Procurement organizations are given a variety of deployment options for purchase order management and can perform manual requisitioning in SAP SRM and conduct receiving and financial settlement in SAP SRM or the ERP back-end. Plus, by integrating catalog-based requisitioning with the traditional procure-to-pay process, your company can gain the benefits of e-procurement without losing your back-end ERP processes. SAP SRM provides the resources you need to execute operational activities in the following procurement areas: * Requisitioning – Create requisitions automatically with SAP ERP through a materials requisition process run, or create them manually with SAP SRM using shopping carts, based on text descriptions, material numbers, or catalog entries. * Order management – Assign sources of supply, validate restrictions, and perform order generation and tracking. * Receiving – Capture the process of receiving goods and services to prepare for follow-on processes such as automated financial settlement. Purchasers can use self-service functions in SAP SRM and back-office functions in SAP ERP. * Financial settlement – Handle financial transactions through SAP SRM and SAP ERP to make financial settlement more efficient by using tools for invoice management, evaluated receipt settlement, and invoice payment Catalog Management

The catalog in SAP SRM provides effective master data management for spend and supplier data. With SAP SRM, you can effectively manage catalog data and integrate with business processes, as well as support complex hierarchies. The catalog in SAP SRM enables effective master data management through: * Master data consolidation – Perform data cleansing and de-duplication; data normalization, including categorization and taxonomy management; and interactive consolidation. * Master data harmonization – Automate synchronization of master data information and distribution capabilities. * Centralized master data management – Create central data and conduct ongoing data quality checks. * Product content management – Implement powerful capabilities for loading, aggregating, and searching product data and supporting intelligent image management and...
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