Strategic Sourcing Scenario Overview Click process chevrons for details Re-negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario Description Open Legend The Strategic Sourcing business scenario enables you to identify and select suitable new suppliers and to manage relationships with existing suppliers in order to meet the routine purchasing requirements of your company. It involves the definition of requirements for a product, through to the identification and selection of the most suitable suppliers, and finally to the negotiation and creation of a purchasing contract with the chosen supplier. Scenario/Processes Business Value Scenario Flow Further Information + The following business roles are involved in this scenario: Strategic Buyer

Strategic Sourcing Scenario Overview Click process chevrons for details Re-negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario Description Legend Open Legend Close Legend The Strategic Sourcing business scenario enables you to identify and select suitable new suppliers and to manage relationships with existing suppliers in order to meet the routine purchasing requirements of your company. It involves the definition of requirements for a product, through to the identification and selection of the most suitable suppliers, and finally to the negotiation and creation of a purchasing contract with the chosen supplier. Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third-party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Scenario/Processes Business Value Scenario Flow Further Information + The following business roles are involved in this scenario: Strategic Buyer i <Role Name> <Role Name> <Role Name>

Strategic Sourcing Process Details: Renegotiating Purchasing Contracts Click process chevrons for details Renegotiating Purchasing Contracts X Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Start contract renegotiation i Scenario Explorer Process Description Further Information The Renegotiating Purchasing Contracts business process enables your purchasing department to renegotiate expiring contracts. A strategic buyer initiates the negotiation process either directly with the current supplier or with additional suppliers. The system automatically creates a sourcing request. The buyer may then create an RFQ (Request for Quotation) from one or more sourcing requests. Performed by Strategic Buyer Scenario/Processes Business Value In the Work Center Sourcing and Contracting Scenario Flow Further Information + See also Sourcing Negotiate a Purchasing Contract

Strategic Sourcing Process Details: Processing Requests for Quotation Click process chevrons for details Processing Requests for Quotation X Re-negotiating Purchasing Contracts Creating Purchasing Contracts Determining Source of Supply Group sourcing request items Create a request for quotation Enter quotes Compare quotes and create follow-up documents i i i i Scenario Explorer Process Description Further Information The Processing Requests for Quotation business process enables your purchasing department to bundle your company’s purchasing requirements and to find appropriate sources of supply for the materials and services required. This includes finding sources of supply for purchase requests, for example, and for the negotiation of new or expiring purchasing contracts. You can invite new or existing suppliers to participate in requests for quotation and compare the quotes received easily in the system to determine most suitable supplier for your requirements. Once you have determined the winning quote, the bidders are notified about the outcome of the request for quotation process, and follow-up documents, such as purchase orders or contracts, can be created. Performed by Strategic Buyer Scenario/Processes Business Value In the Work Center Sourcing and Contracting Scenario Flow Further Information + See also Request for Quotation Processing Compare Quotes

Strategic Sourcing Process Details: Creating Purchasing Contracts Click process chevrons for details Creating Purchasing Contracts X Re-negotiating Purchasing Contracts Processing Requests for Quotation Determining Source of Supply Approve purchasing contract Create purchasing contract i i Scenario Explorer Process Description Further Information The Creating Purchasing Contracts business process enables your purchasing department to manage the entire lifecycle of a purchasing contract. A contract is defined for a best price or discount on the purchased products. Contracts allow companies to reduce their operational costs and gain a greater control over spending and the supplier performance by managing their contract renewals. Strategic buyers can create, modify and approve a contract, and initiate a contract negotiation with suppliers. Buyers can create a contract from a supplier quote during the contract negotiation process, or manually, without a preceding document. A released purchasing contract can be used as a source of supply for the procurement of products through a purchase order or a supplier invoice. The releases made against the contract by these documents are updated in the contract release history. Performed by Strategic Buyer Scenario/Processes Business Value In the Work Center Sourcing and Contracting Scenario Flow Further Information + See also Purchasing Contract Processing

Strategic Sourcing Process Details: Determining Source of Supply Click process chevrons for details Determining Source of Supply X Re-negotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Create a fixed source of supply Create a quota arrangement i i Scenario Explorer Process Description Further Information The Determining Source of Supply business process allows strategic buyers to prioritize the sources of supply available for a product, by defining quota arrangements and fixed sources of supply. When multiple contracts exist for a single product, buyers can define quota arrangements to define the distribution of purchase orders among several suppliers. If buyers want to prioritize a contract or a list price rather than using a quota arrangement, they can create a fixed source of supply. If both fixed source of supply and quota arrangement exist for a product, the fixed source of supply prevails over quota arrangement. Performed by Strategic Buyer Scenario/Processes Business Value In the Work Center Sourcing and Contracting Scenario Flow Further Information + See also Source Determination

Strategic Sourcing Business Value Request Quote Award Contract Invite Bidders Publish Request for Quotation Receive Quotes Evaluate Quotes Award Quotes Communicate Decision Create and Approve Contract Monitor Contract Scenario Explorer Overview Key Benefits Bundling of multiple sourcing requests into single request for quotation of different types such as basic requests for information, complex requests for quotations, and contract negotiations leads to higher volume and less transactions. Integration into entire supply base as well as to external supplier directories combined with automatic bidder proposal allows easy identification of most suitable bidders Collaboration support through bidder communication using integrated SAP Interactive Forms software (by Adobe®) increases transparency and traceability Seamless integration of request for quotation and contract management enables direct contract creation out of awarded supplier quote. The single access point for contract information including built-in alert for expiring contracts makes it easier for buyers to prepare, analyze, and monitor contracts throughout the entire life cycle. Built in analytics and reports gives immediate access to strategic reporting information such as contract usage and maverick spend. For midsize companies that want to increase sourcing efficiency through active management of the contract life cycle a transparent sourcing process is essential. You can benefit from new sources of supply, gain higher discounts from greater volume and a reduced number of suppliers. SAP Business ByDesign helps efficiently manage the strategic sourcing process from bidder invitation and request for quotation through quote evaluation to contract creation. Scenario/Processes Business Value Scenario Flow Further Information +

Strategic Sourcing Scenario Flow Variant: Start from Purchasing Contract Sourcing and Contracting Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario/Processes Business Value Scenario Flow Further Information Legend & Variants + Variants of the Scenario: Process mainly driven by the user Dotted line = optional Work center in which process is performed Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Work Center Business document flow

Strategic Sourcing Scenario Flow Variant: Start from RFQ Sourcing and Contracting Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario/Processes Business Value Scenario Flow Further Information Legend & Variants + Variants of the Scenario: Process mainly driven by the user Dotted line = optional Work center in which process is performed Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Work Center Business document flow

Strategic Sourcing Scenario Flow Variant: Start from Purchasing Contract Renegotiation Sourcing and Contracting Renegotiating Purchasing Contracts Processing Requests for Quotation Creating Purchasing Contracts Determining Source of Supply Scenario Explorer Scenario/Processes Business Value Scenario Flow Further Information Legend & Variants + Variants of the Scenario: Process mainly driven by the user Dotted line = optional Work center in which process is performed Start from Purchasing Contract Start from RFQ Start from Purchasing Contract Renegotiation Work Center Business document flow

Strategic Sourcing Further Information Scenario Explorer Do you want to try it out? Do you need more information? Do you want to discuss with others? Self-Enablement Systems If you want to try out the business scenario, click here.* More Details SAP provides a complete product documentation, covering all aspects of the business scenario. For more details, click here. Forum Get in touch with experts to discuss your specific requirements. To enter the community, click here.* Scenario/Processes Business Value Scenario Flow V WIKI In addition to the product documentation, SAP provides Wikis that describe additional aspects of SAP Business ByDesign. To access the WIKI, click here.* Further Information + * Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please check http://support.microsoft.com/kb/890474.