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PUBLIC
Source-to-Pay: Transitioning Towards an Intelligent Spend Management
Webinar Series 2019
2PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
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.
Disclaimer
3PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Framework
Source-To-Pay
• Overview
• Technology Highlights
Key Take Aways
Q&A
Agenda
4PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Digital
Platform
Intelligent
Suite
Experience
Management
Network & Spend
Management
Manufacturing & Supply
Chain
Digital Core
People
Engagement
XDATA
ODATA
Customer
Product
Employee
Brand
Customer Experience
SAP is evolving its strategy to be “The Experience Company powered by the Intelligent Enterprise”
5PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Architecture StandardsEnd-to-End Processes
DELIVERING the Intelligent Enterprise Strategy and Vision
Technology: Integration & embedded intelligence
Business:End-to-end processes with industry components
Total Workforce Management
Source toPay
Lead toCash
Design toOperate
Vision Strategy
Core Integration
Application Lifecycle Management
Security & Identity Management
Reference Architecture
Experience Analytics
6PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The Intelligent Enterprise is more than ERP
Extend
Cloud &
On-Prem
Apps
Experience
People & Data
Build
Differentiating
Digital Apps
Integrate
Apps, Data &
Processes
SAP3rd
PartyNew
Business
Models
DATA
EFFICIENCY AGILITY
NEXT GENERATION BUSINESS PROCESSESSeamless User Experience| Out-of-the-Box Integration| Intelligence and Analytics| Openness
SPEED OF INNOVATION
SAP C/4HANA
SAP SuccessFactors
C/4
SAP Concur
SAP Fieldglass
SAP Ariba
SAP S/4HANA S/4
Customer
Apps
Partner
Apps
7PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Suite – business outcomes
Redefine the end-
to-end customer
experience
Deliver a step
change in
productivity
Transform
workforce
engagement
8PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Framework
Source-To-Pay
• Overview
• Technology Highlights
Key Take Aways
Q&A
Agenda
9PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Source to pay – process overview
Plan and ForecastSource and Contract
Invoice and Pay
Analytics and IntelligenceTrading Partner and Risk Management Trading Partner Collaboration
Buy and Deliver
Plan and forecast demand for
goods, services and resources
Leverage analytics and
AI/ML to improve source to
pay process execution
Identify and source material
and service needs
Negotiate & manage contracts
with trading partners
Define and create the
category strategy
Initiate a request for
purchasing goods & services
Execute orders for
goods & services
Deliver & receive
goods & services
Pay trading partners
for goods delivered and
services rendered
Create/manage the invoices
and credit memos
Apply early
payment options
Vet and manage trading
partner relationships
Minimize risks associated
with trading partners
Business rules,
application and
network Integration
Source to pay visibility
and collaboration
among trading partners
10PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
The Intelligent EnterpriseIntegrated end-to-end Source to Pay process
Intelligent Enterprise
XDATA
Seamless Customer & Employee Experience
SAP Fieldglass SAP Digital Supply Chain
SAP Ariba SAP S/4HANA
ODATA
Source to Pay
Source to Pay comprises
two critical business areas for
any company:
▪ Sourcing as the strategic
process of ensuring, e.g.
that the right suppliers get
chosen
▪ Intelligent procurement to
streamline procurement
processes, shrink costs,
increase profits
11PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Framework
Source-To-Pay
• Overview
• Technology Highlights
Key Take Aways
Q&A
Agenda
12PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Analytics Cloud
LoB Business Applications
SAP S/4HANASAP Ariba
SCP – Platform Services
Workflow Cloud Platform IntegrationSSO SAP Data Hub Identity Access Governance
SCP – Business Services & Applications
Supplier Service Onboarding Service Time Sheets
Provisioning Customer Setup & Configuration Integration Qualities & Operations
Unified User Experience
Source & Contract Invoice and PayPlan and ForecastIntegration
Source to Pay
Buy and Deliver
SAP Fieldglass SAP IBP
From integration to integrated business processesIllustrative high-level view for Source to Pay
13PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Source to Pay – data flow
SAP S/4HANA
SAP Ariba Sourcing SAP Ariba Contract
ManagementSAP Ariba
SLP & Risk
SAP Ariba Buying &
Invoice Management
SAP Ariba
Commerce
Automation &
Supply Chain
Collaboration
Ariba Network
Master Data
Inventory
SES Response
Remittance Adv.
PO (Copy)
Catalogues, Order Confirmation,
Ship Note, Invoice, SESPO, Service PO,
Receipt, Invoice Status,
Rem. Advice,
Outline
Agreement
Material Master
& BOMPO, PIR &
Outline
Agreement
Create
ContractCreate
Catalogue
from Contract
Bi-directional
Supplier data
Invite supplier
to Sourcing
Event / e-
auction
Award Business
PO to Invoice
Schedules / Call-offs
Consignments
Invite supplier
Supplier
Qualification
and data sync
Sub-ContractingQuality AssuranceSupplier Managed Inventory
Negotiate
Trading Partners Trading Partners
Payments
Bank
Supply Chain Finance
Receipt (Copy)OK-to-Pay
SAP Ariba
Spend Analysis
Spend Data
Initiate
Sourcing
Event
Dynamic Discounting
Invoice & Payment StatusSES
Service Entry SheetsBudget Check
SAP MDG-S SAP IdM
SSO
SAP GRC
User Provisioning
MS Active
Directory
LDAP
etc.
Cloud Integration GatewayExtension API’s
OpenText
VIM
Partner API’s
Digital
Sig.
Tax
Engine
SAP
S/4HANA
Cloud
14PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Integration of SAP S/4HANA Cloud with SAP Ariba Commerce Automation
Update Purchase Order
Create Purchase Order
Supplier Roles: Sales Rep, AR Accountant Buyer Roles: Purchaser, Warehouse Clerk
Post Supplier Invoice
Create Goods Receipt
Release Invoice for Payment
Send Advance Shipment Notice
Receive Purchase Order
Send Invoice
Confirm Purchase Order
Start processProcess step
(mainly automatic)
End processProcess step
(mainly manual)
Legend:
Ariba Network
Update Purchase Order
Receive Invoice Status Update
Receive Goods Receipt Notice
enabled by
SAP Cloud Platform Integration
15PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
SAP Integration Strategy for the Intelligent EnterpriseKey principles
OUT-OF-THE-BOX
INTEGRATION
1OPEN
INTEGRATION
2HOLISTIC
INTEGRATION
3AI-DRIVEN
INTEGRATION
4
Integration
16PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Framework
Source-To-Pay
• Overview
• Technology Highlights
Key Take Aways
Q&A
Agenda
17PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Source-to-Pay: Transitioning Towards an Intelligent Spend ManagementKey take aways
Unified
Integration
Key Building
Blocks
Harmonized
Experience
Embedded
Intelligence
1 2 3 4
18PUBLIC© 2019 SAP SE or an SAP affiliate company. All rights reserved. ǀ
Intelligent Enterprise Framework
Source-To-Pay
• Overview
• Technology Highlights
Demo
Key Take Aways
Q&A
Agenda
© 2019 SAP SE or an SAP affiliate company. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of
SAP SE or an SAP affiliate company.
The information contained herein may be changed without prior notice. Some software products marketed by SAP SE and its
distributors contain proprietary software components of other software vendors. National product specifications may vary.
These materials are provided by SAP SE or an SAP affiliate company for informational purposes only, without representation or
warranty of any kind, and SAP or its affiliated companies shall not be liable for errors or omissions with respect to the materials.
The only warranties for SAP or SAP affiliate company products and services are those that are set forth in the express warranty
statements accompanying such products and services, if any. Nothing herein should be construed as constituting an additional
warranty.
In particular, SAP SE or its affiliated companies have no obligation to pursue any course of business outlined in this document 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 platforms, 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.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered
trademarks of SAP SE (or an SAP affiliate company) in Germany and other countries. All other product and service names
mentioned are the trademarks of their respective companies.
See www.sap.com/copyright for additional trademark information and notices.
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