SAP rapid-deployment solution for integrated contract management in procurement

Solution Summary, 22.08.2012

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Solutions for specific business needs

Business challengesMissing a fully integrated end-to-end contract management solution from contract authoring to contract executionMissing a central contract repository with pre-aligned contract templates and clauses as well as approver and reviewer groups Different and inconsistent processes for strategic contracts and related operational contractsLack of transparency and reporting on contracts example: expiring contracts with aggregated spend per supplierImproving strategic executionImpediment to fulfill compliance of sourcing strategy

© 2012 SAP AG. All rights reserved. 3

Business benefits Reduce costs and cycle times and improve

transparency and savings from procurement contracts

Automate the pass-through of contract terms and conditions from SAP CLM to SAP SRM to increase contract utilization and enforce contract compliance

Avoid issues with customized integration between SAP CLM and SAP SRM that are hard to support and implement with a prebuilt SAP solution

Optimize contract negotiations by initiating timely renewals and leveraging the full contract history

Integrate contract management and ensure compliance

SAP rapid-deployment solution for integrated contract management in procurement

Integrated contract management solution enables:Contract lifecycle from contract creation to utilizationIncreased contract usage during the procure-to-pay processReduced off-contract maverick spending and savings leakageImproved visibility of contracts to employees and purchasing team

© 2012 SAP AG. All rights reserved. 4

What’s included – Solution scope

What’s included – solution scope

SAP rapid-deployment solution for integrated contract management in procurement enables customers to capture and realize savings from their sourcing process. This rapid-deployment solution helps ensure that the specific terms and conditions from the legal contract document in the SAP Contract Lifecycle Management (SAP CLM) application are passed into the SAP Supplier Relationship Management (SAP SRM) application and activated for use for purchases going through SAP SRM and the SAP ERP application. Having an accurate and complete contract in SAP SRM is critical to preventing savings leakage. Contract terms and conditions set up in SAP SRM can be distributed to one or more integrated back-end SAP software systems to help ensure that all purchase orders and invoices are tagged against the contract to maximize contract usage and savings.

Integrated Contract Management with SRMIntegrate contract management from collaborative contract creation in the SAP Sourcing application and central contract handling in SAP SRM to operational procurement in one or more SAP ERP systems by the rapid deployment of this preconfigured process.

Integrated Contract Management with ERP)An advanced contract management solution, enabling integration of existing procurement processes with central, cross-system contract management functionality that enhances the procure-to-pay process.

Central Contract ManagementA contract management solution, enabling integration of existing procurement processes with central contract management functionality that enhances the procure-to-pay process by operational contract creation functionality.

© 2012 SAP AG. All rights reserved. 5

What’s included – Service scope

Go live in as few as 10 weeks

Enablement of an integrated contract management process Implementation on different deployment options:

– Business process managed with possibility of distributing contract conditions from strategic, document based contracts into multiple back-end systems via SAP SRM as hub or directly into one SAP ERP back-end system

– Business process managed based on operational contracts in SAP SRM only and distribution into single or multiple back-end systems

Automated basis customization and operational contract management functionality

Predefined configuration scripts for strategic contract management (SAP CLM)

Descriptive SAP NetWeaver Process Integration (SAP NetWeaver PI) offering for the integration of SAP CLM with SAP SRM or SAP ERP Central Component (SAP ECC)

Standard document text schemas, security and user authorizations, and portal business content

Master data migration from SAP ECC to SAP SRM or SAP CLM

A special step-by-step guide describes each activity during the deployment

© 2012 SAP AG. All rights reserved. 6

Deployment Integrated Contract Management with SAP

SRM

Central Contract Management

Integrated Contract Management with SAP

ERP

System / Landscape SAP CLM – SAP SRM Hub – SAP ERP

SAP SRM – SAP ERP SAP CLM – SAP ERP

SAP SRM 7.0 / 7.01 X

SAP SRM 7.02 X X

SAP ECC 6.05 X X

SAP ECC 6.06 X X X

IC 1.0 for SAP SRM X

SAP CLM 7.0 X

SAP CLM 9.0 X X

SAP PI 7.0 / 7.1 X X

SAP NW Version SAP CLM 9.0: SAP NW 7.3 (Java)

SAP CLM 7.0: SAP NW CE 7.1SAP CLM 9.0: SAP NW 7.3

(Java)

System landscape options

© 2012 SAP AG. All rights reserved. 7

DEV / QA EnvironmentDEV / QA Environment Production EnvironmentProduction Environment

System landscape: Integrated Contract Management with SAP SRMDelivery option: One or multiple back-ends, classic or extended classic scenario

SAP ERPSAP ERP

SAP SRMwith IC for SAP SRM

SAP SRMwith IC for SAP SRM

SAP BWSAP BW

SAP ERPSAP ERP

SAP SRMwith IC for SAP SRM

SAP SRMwith IC for SAP SRM

Suppliers via InternetSuppliers via Internet

Optional / Not in scope

SAP PISAP PI SAP NWBC or Portal

SAP NWBC or Portal

SAP Contract Lifecycle Management

SAP Contract Lifecycle Management

SAP PISAP PI SAP NWBC or Portal

SAP NWBC or Portal

SAP Contract Lifecycle Management

SAP Contract Lifecycle Management

FIR

EW

AL

L

© 2012 SAP AG. All rights reserved. 8

DEV / QA EnvironmentDEV / QA Environment Production EnvironmentProduction Environment

System landscape: Integrated Contract Management with SAP ERPDelivery option: One back-end, classic scenario

SAP ERPSAP ERP

SAP Contract Lifecycle Management

SAP Contract Lifecycle Management

SAP BWSAP BW

SAP ERPSAP ERP

SAP Contract Lifecycle Management

SAP Contract Lifecycle Management

Optional / Not in scope

SAP PISAP PI SAP PISAP PI

SAP PortalSAP Portal

Suppliers via InternetSuppliers via Internet

FIR

EW

AL

L

© 2012 SAP AG. All rights reserved. 9

DEV / QA EnvironmentDEV / QA Environment Production EnvironmentProduction Environment

System landscape: Central Contract ManagementDelivery option: One or multiple back-ends, classic or extended classic scenario

SAP ERPSAP ERP

SAP SRMSAP SRM

SAP BWSAP BW

SAP ERPSAP ERP

SAP SRMSAP SRM

Optional / Not in scope

FIR

EW

AL

L

SAP PISAP PI SAP NWBC or Portal

SAP NWBC or Portal SAP PISAP PI SAP NWBC

or Portal

SAP NWBC or Portal

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