SAP S/4HANA for Sourcing & Procurement

Value Drivers and Solution EnablersReduce Procurement Function Costs

Reduce purchase order errors by creating integrated procurementdocuments. Streamline order processing by grouping, filtering, anddownloading open demands. Improve employee productivity with intuitiverequisitioning tools and business-to-consumer-like shopping experiences.

Improve Supplier Compliance (Spend Management)

Reduce maverick buying by proposing only suppliers with valid contractsas a supply source

Improve User (Spec & Vendor) Compliance

Decrease the need for manual intervention on purchase orders throughcross-catalog search capabilities that help employees find an appropriatesupply source

Increase Sourcing Savings by Enhanced Supplier Visibility

Increase insight into the supplier portfolio with classified attributes andflexible search functionality. Gain deeper insight into supplier performancethrough evaluation results.

Reduce Accounts Payable Error

Accelerate time to close through real-time integration with the generalledger and automated period-end functionality. Replace paper-basedmanual processes with automatic sending and receipt of invoice data.

SupplierInformation &Master Data

! Classification andsegmentation

! Supplier evaluation

Sourcing &ContractManagement

! Source assignment

! Operational contractmanagement

OperationalProcurement

! Requirementsprocessing

! Purchase orderprocessing

! Service purchasing

! Procurementanalytics

! Self-servicerequisitioning

! PO collaboration

Inventory & BasicWarehouseManagement

! Goods issue

! Goods receipt

! Basic warehousemanagement

! Basic shipping

SAP S/4HANA FOR SOURCING & PROCUREMENT

Alliance Contract Manufacturing (ACM) rides thedigitization wave

" $100m revenue

" Manufacturer anddistributor ofprecisionmanufacturingsolutions

" 800 employees inAsia and Europe

Products

" Photonics,microwave, opticscomponents

" Electromechanicalmodules

" Value addedassemblies

" Kodak supplierawards

The solutionsimplemented so farhave positivelyimpacted allbusiness functionsthroughout thevalue chain forACM.Erik Looi Thong Chin,

CIO

# Module tuning & integration

# Critical precision components

# Precision Optics andElectromechanical assembly

20%Procurement

savings

30%Lower

inventory

50%Lower

uncollectableAR