Transform Sourcing and Procurement on S/4HANA

Christine Hofmann, SAP

October, 2017

PUBLIC
Disclaimer

The information in this presentation is confidential and proprietary to SAP and may not be disclosed without the permission of SAP.
Except for your obligation to protect confidential information, this presentation is not subject to your license agreement or any other service
or subscription agreement with SAP. SAP has no obligation to pursue any course of business outlined in this presentation or any related
document, or to develop or release any functionality mentioned therein.
This presentation, or any related document and SAP's strategy and possible future developments, products and or platforms directions and
functionality are all subject to change and may be changed by SAP at any time for any reason without notice. The information in this
presentation is not a commitment, promise or legal obligation to deliver any material, code or functionality. This presentation is provided
without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a
particular purpose, or non-infringement. This presentation is for informational purposes and may not be incorporated into a contract. SAP
assumes no responsibility for errors or omissions in this presentation, except if such damages were caused by SAP’s intentional or gross
negligence.
All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from
expectations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates,
and they should not be relied upon in making purchasing decisions.

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Agenda

Value and Scope of S/4HANA Sourcing and Procurement

Release Highlights SAP S/4HANA 1709

Roadmap S/4HANA Sourcing and Procurement

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Value and Scope of
S/4HANA Sourcing and Procurement
 SAP S/4HANA Business Scope
S/4HANA Enterprise Management functional scope

 The SAP S/4HANA lines-of-

business (LoB) solutions
combine a modern and simplified
core built on the
SAP HANA platform with
best-in-class LoB solutions
and connection to business
networks.

 These solutions are designed to

help meet the new
requirements of lines of
business in the digital
economy: real-time information
on Big Data, personalized
customer experiences,
omnichannel, connected devices,
people, and businesses.

 The LoB solutions can continue

to be consumed as standalone
solutions or as part of the SAP
S/4HANA LoB solutions, giving
more choice to customers,
allowing true hybrid scenarios
and incremental deployments.

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S/4HANA Sourcing and Procurement
Integrated Platform for Strategic Sourcing and Operational Procurement

Transport
Management
Fieldglass
Warehouse
Sales
Management

Digital Core
ERP
ERP
ERP
Project
Delivery
System

S/4HANA
Procure

SRM
Production Financial
Concur Planning Accounting Ariba Cloud
Solutions

Asset Quality
Management Management

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 SAP S/4HANA and SAP Ariba – Integration Scenarios

Visualized integration scenarios range from native integration to project based integration. SAP Ariba is enriching every type of procurement combination in SAP S/4 HANA, without requiring customers to use these
capabilities.
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 SAP S/4HANA and SAP Ariba – Integration Scenarios

Visualized integration scenarios range from native integration to project based integration. SAP Ariba is enriching every type of procurement combination in SAP S/4 HANA, without requiring customers to use these
capabilities.
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SAP S/4HANA Sourcing and Procurement
Solution Capabilities and End to End Solutions

Operational Self-Service Requirement Purchase Order Service Purchasing Purchase Order

Purchasing Requisitioning Processing Processing and Entry Collaboration

Collaborative
Sourcing and Operational Contract
Source Assignment
Contract Management
Management

Invoice and
Payables Invoice Processing Accounts Payable Invoice collaboration
Management

Supplier Classification and

Supplier Evaluation
Management Segmentation

Procurement Real-Time Reporting

Spend Visibility
Analytics and Monitoring

Existing Ariba Integration Existing Fieldglass Integration

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Why S/4HANA
New value scenarios across the entire Procurement landscape

Collaborative Sourcing
Operational Invoice and Payables Supplier Procurement
and Contract
Purchasing Management Management Analytics
Management

Up-to date Supplier Real-time Insight to

Increased Efficiency Holistic Sourcing Monitor your Invoices
Tracking Action

 Unified user experience for  Built-In Integration to Ariba  Reverse and Release  Assign suppliers, activities  Real-time calculation of key
Catalog Requesting, Sourcing for request for action in already created and material groups to performance indicators to
Reviewing, Receiving and quotations, awarding and Supplier Invoices purchasing categories analyze managed and non-
Returning follow-on document managed spend, contracts,
 Flexible and dynamic  Utilize purchasing categories
creation and suppliers
 Automatic proposal of search capabilities in in purchasing analytics for
available sources of supply  Comprehensive list of all Supplier Invoice List aggregated reporting  Instant insight to action
available sources of supply capabilities by navigating to
 Built-In Integration to Ariba  Complete draft invoices  Define internal activities and
in one single app including other Fiori Apps and Object
Network for purchase order coming from Ariba Network tasks to track supplier
simulation and relevance Pages
collaboration  Built-In Integration to Ariba performance
 Quick actions for renewal of  Monitor business critical
 Prefilling of header and Network for invoice  Combined real-time Supplier
contracts out of manage situations using analytical
item data by providing collaboration Evaluation across hard and
contract app cards or worklists
supplier and material type soft facts

15% - 20% 10% - 15% 5% - 6% 5% - 10% 10%-15%

Improved employee sourcing savings* Accounts Payable Error Improved supplier Increased Sourcing
productivity* Reduction* compliance* Savings

*Benefits are based on early adopters of SAP S/4HANA or conservative outside-in benefits due to moving from a traditional ERP to enhanced SAP S/4HANA + LoB/cloud capabilities. As each enterprise is at a different level of maturity, our
recommendation is to work with them to determine the value proposition for the enterprise.
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*
SAP S/4HANA Sourcing and Procurement
Operational Purchasing

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SAP S/4HANA Sourcing and Procurement
Collaborative Sourcing and Contract Management

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SAP S/4HANA Sourcing and Procurement
Supplier Management

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SAP S/4HANA Sourcing and Procurement
Purchasing Analytics

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SAP S/4HANA Sourcing and Procurement
CoPilot

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SAP S/4HANA Sourcing and Procurement
Business Workflow for Purchase Requisitions

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Release Highlights SAP S/4HANA 1709
SAP S/4HANA Sourcing and Procurement 1709 On Premise
Release Highlights
Operational Purchasing Supplier Management
• Business workflow for purchase requisitions, purchase order and invoices • Reminder for evaluation responses and activity management
• SAP Fiori 2.0 UX – notifications for purchase requisition approvals • Define Supplier evaluation weighting and scoring in general and based on purchasing
categories
• Enhanced Document Flow for Requisitions
• Adjust Supplier Evaluation Scoring
• Type-Ahead for Free-Texts in Self-Service Requisition
• New Fiori Apps for Monitoring and Mass Change of purchasing documents
• Central Requisitioning in S/4HANA allows for Purchase Order Creation in satellite ERP Invoice and Payables Management
system***
• Invoice integration to SAP Fieldglass
• Procurement of Unplanned Services
• Invoice posting with reference to asset
• Integration with Transportation Management
• Upload Supplier Invoices
Sourcing and Contract Management • Incoming VAT Invoice
• Request for Quotation and Quote Comparison in SAP S/4HANA
Purchasing Analytics
• Integration of S/4HANA and Ariba Network and Ariba Sourcing to conduct sourcing
events and create or update follow-on documents in SAP S/4HANA ▪ Predict purchase-order spend based on open purchase requisitions and delivery
schedules
• Approval for Supplier Quotation Awarding
▪ Supplier performance monitoring for hard and soft facts in the Procurement Overview
• Fiori Apps for Scheduling Agreement
Page
• Legal Content Management ***
▪ Predictive analytics for contract consumption
▪ Multi-dimensional report for purchasing spend
▪ Analytical monitoring of request for quotation items and contract items

**** Not part of SAP S/4HANA shipment; requires additional products.

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Roadmap
S/4HANA Sourcing and Procurement
SAP S/4HANA
LoB: Sourcing and Procurement

1709– Recent innovations* 2018 – Planned innovations** 2019 – Product direction** 2020 – Product vision**

• Type ahead for free text items and enhanced  Enablement of SAP S/4HANA as central  Semantic, multiple, back-end process  Transform manual procurement processes in
document flow for purchase requisitions contract management hub with contract capabilities: procurement shared services requisitioning, ordering and sourcing to
• Enablement of SAP S/4HANA as central self- hierarchies, distribution, and annual contract center with SAP S/4HANA system operated automatic processes based
service hub with central purchase requisitions negotiation capabilities  Holistic supplier and category monitoring on machine learning and data prediction
• New Fiori Apps for Monitoring and Mass Change  Situation Handling for contract consumption  Inclusion of social media platforms and  Highly integrated internal and external
of purchasing documents and purchase requisition processing sentiment analysis in procurement analytics collaboration accelerates and improves
• New simplified service process in SAP S/4HANA  Increased invoice automation with machine  Established partner ecosystem-building procurement business decisions
• Business workflow for purchase requisitions, learning and efficient invoice monitoring for procurement extensions in SAP S/4HANA  Innovation and business value drive and
purchase order and invoices exception handling Cloud Platform*** determine supplier selection and relationship
• Contract Templates and Navigation to Legal  Integration of SAP Ariba Buying*** with SAP  Conversational voice interfaces and machine  Transparent, real-time insight into supply-
Transaction*** from Purchasing Contract S/4HANA learning chain processes
• New solution capability for legal content  Simplified service procurement integrated with  Auditing of procurement collaboration with
management supported by SAP Fiori apps preceding and subsequent business block chain
• Simple request for quotation process with processes in SAP S/4HANA and SAP  Enhanced semantic analysis of legal
integration option to quote automation in Ariba Fieldglass*** solutions documents to clean up Legacy Content
Network***  End-to-end smart contracting scenario archives
• Fiori apps for Category and Activity Management, integrating with Legal Content Assembly on
Supplier Evaluation and Supplier Scorecard SAP Cloud Platform*** to generate, process
processing in SAP S/4HANA and archive legal content based on pre-
• Upload Supplier Invoices and Invoice posting with approved Clauses and Templates
reference to an asset  Analytics for Scheduling Agreements
• Purchase order and Invoice processing with  Material Price Variance Analytics
integration to Transportation Management
• Embedded and predictive analytics for contract
consumption
• Procurement application programming interfaces
(APIs) for side-by-side extensibility

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This presentation and SAP‘s strategy and possible future developments are subject to change and may be changed by SAP at any time for any reason without notice. This document is provided without a warranty of any kind, either express or implied, including but not limited to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement
SAP S/4HANA Cloud
LoB: Sourcing and Procurement (1/2)

1708 ‒ Recent innovations* 1711 ‒ Planned Q4/2017** 1802 ‒ Planned Q1/2018** 1805 ‒ Planned Q2/2018**

Operational procurement Operational procurement Operational procurement Operational procurement

• Flexible workflow for purchase orders • Price check functionality in • "Shop on behalf" functionality in • Subcontracting in purchase orders
• Perform simple services, make mass requisitioning purchase requisitions
item changes and item-level workflow in • Multi-accounting in purchasing • Usage of material in limit items
requisitioning documents • Down-payment monitor
• Centralized purchase requisitions
through hub deployment of SAP
S/4HANA software Sourcing and contract management Sourcing and contract management
• Redistribution of workload to different • Manage Legal Documents SAP Fiori • Centralized contracts through hub
purchasing group app deployment of SAP S/4HANA
• Quota arrangements in SAP S/4HANA • SAP Fiori app to manage reminders for
Sourcing and contract management Cloud legal transactions
• Mass changes to purchasing contracts • New flexible workflow for contracts • Additional cards for Manage Tasks for
• Compare supplier quotations • Legal Content Management Overview Legal Content overview page
• Centrally manage and archive legal Page
content in SAP S/4HANA
• Create and manage templates for legal
transactions
• Ease in requesting legal content for
employees

**This is the current state of planning and may be changed by SAP at any time
without notice.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Feature highlights for SAP S/4HANA Cloud 1708. See Feature Scope 21
Description of SAP S/4HANA Cloud 1708 for full scope.
SAP S/4HANA Cloud
LoB: Sourcing and Procurement (2/2)

1708 ‒ Recent innovations* 1711 ‒ Planned Q4/2017** 1802 ‒ Planned Q1/2018** 1805 ‒ Planned Q2/2018**

Invoice and payables management Invoice and payables management Invoice and payables management Purchasing analytics
• Simplified vendor management through • Approval for Supplier Invoices not based • Material limit check in supplier invoice • Material price variance analytics
integration with OpenText on Purchase Orders
• Flexible workflow for supplier invoices • Multi-accounting in purchasing
documents

Purchasing analytics
• Embedded analytics in SAP Fiori apps Purchasing analytics Purchasing analytics
• Multidimensional purchasing spend • Predictive analytics in the Procurement • Analytics for scheduling agreements
report Overview Page
• Analytics for service spend
• Embedded analytics in object pages
• ABC classification of spend
Integration
 OData-based APIs for category
management and supplier evaluation (II) Integration
 OData-based APIs for service
procurement

**This is the current state of planning and may be changed by SAP at any time
without notice.
© 2017 SAP SE or an SAP affiliate company. All rights reserved. ǀ PUBLIC * Feature highlights for SAP S/4HANA Cloud 1708. See Feature Scope 22
Description of SAP S/4HANA Cloud 1708 for full scope.
Thank you.

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In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this docume nt or any related presentation, or to develop or release
any functionality mentioned therein. This document, or any related presentation, and SAP SE’s or its affiliated companies’ strategy and possible future developments, products,
and/or platform directions and functionality are all subject to change and may be changed by SAP SE or its affiliated companies at any time for any reason without notice. The
information in this document is not a commitment, promise, or legal obligation to deliver any material, code, or functionality. All forward-looking statements are subject to various
risks and uncertainties that could cause actual results to differ materially from expectations. Readers are cautioned not to place undue reliance on these forward-looking statements,
and they should not be relied upon in making purchasing decisions.

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