By Marcy Rizzo
Recent market research conducted with the SAP Insider subscriber-base (SCM expert) reveals that companies looking to reduce working capital expenditures and seeking ways to gain a faster return on their IT investment are turning toward streamlining and automating procurement processes; direct, indirect and services spend processes.
One useful article that I came across at One Stop SAP.com, covers SAP Supplier Relationship Management (SRM) 7.0, as a way to accomplish the task of reducing Total Cost of Ownership (TCO). It is titled: SAP SRM 7.0 bolsters firms' procurement processes (follow the link below for the full article) and suggests that there are four candidates for SRM 7.0:
- The first group of potential SRM 7.0 users includes customers of best-of-breed providers such as Ariba using a legacy installed version with an eventual plan to migrate off or sunset their current investments (on which they're most likely playing paying 18% to 22% maintenance.
- The second group of candidates currently use on-demand solutions from other providers such as Ketera, Coupa and Global eProcure.
- The third group, which will probably account for at least 50% of the SAP SRM 7.0 users in the next few years, are companies using previous versions of SAP SRM.
- The fourth group comprises companies considering the implementation of any e-procurement or procure-to-pay system, including SAP SRM, for the first time.
This forthright article speaks to the improvements of SAP SRM 7.0 from earlier versions, as SAP addressed many of the issues that sent potential customers to best-of-breed products. It also provides a critical look at the shortcomings of the new SAP SRM, and offers different implementation scenarios that counter most of these challenges.
One of the key issues that have come up for our past attendee’s, based upon evaluation feedback from our annual SAP Procurement and Materials Management Conference is also addressed in the article: how to make the user interface friendly and easily customized by role. Let me know what you think!