1. The Value of SAP’s Digital Procurement Transforming procurement in the digital economy
Accounting and Financial Close
Treasury and Financial Risk management
Collaborative Finance Operations
Collaborative sourcing and contract management
Guided end-user buying
Operational purchasing
Supplier management
Enhanced supplier control and compliance
Seamless requisitioning process
Faster sourcing cycles
Increased efficiency
Self-service requisitioning with cross- content and catalog search to review and confirm goods and services
Spot buy capability for long-tail and ad hoc spend**
Native integration from SAP S/4HANA® to SAP® Ariba® solutions for spot buy for long-tail and ad hoc spend**
Self-service sourcing form and policy guidance**
Source of supply assignment simulation allows for checking which sources of supply are valid for a certain material, plant, and date
New SAP Fiori apps to manage purchasing info records, contracts, source list , source of supply, request for quotation, and supplier quotation
New purchasing analytics for contract consumption
Integration to SAP Ariba Sourcing for creating sourcing requests**
Self-service requisitioning with ability to confirm goods and return delivery for employees
New purchasing analytics for monitoring of purchase requisition processing
Integration to the Ariba Network for sending purchase orders and receiving confirmation, ship notice, and goods receipt with standard output management**
Purchasing category is added as a new business entity to streamline classification and segmentation
Integration into Dun & Bradstreet to review latest reports about supplier performance
Monitoring supplier evaluation across hard and soft facts via KPI in real time
Matrix-based supplier qualification and segmentation**
Guided end-user buying
Self-service requisitioning using SAP Fiori® apps with cross-content and catalog search; review and confirm goods and services
SAP Fiori-inspired user interface and consumer-standardized search**
Self-service sourcing form and policy guidance**
Three bids and buy” with preferred supplier recommendations**
Read more at:
Collaborative Sourcing and Contract management
New SAP Fiori apps to manage purchasing info records, contracts, source list , source of supply, request for quotation, and supplier quotation
Source of supply assignment simulation allows for checking which sources of supply are valid for a certain material, plant, and date
Native integration to SAP Ariba Sourcing to initiate sourcing events out of SAP S/4HANA and to receive back sourcing award and contract**
New purchasing analytics for contract consumption
Integration to SAP Ariba Sourcing for creating sourcing requests**
Dynamic and flexible search and filtering across business documents
Operational purchasing
Self-service requisitioning with ability to confirm goods and return delivery for employees
New purchasing analytics for monitoring of purchase requisition processing
Integration to the Ariba Network for sending purchase orders and receiving confirmation, ship notice, and goods receipt with standard output management **
Supplier management
Addition of a purchasing category as a new business entity to streamline classification and segmentation activities
Integration into Dun & Bradstreet to review latest reports about supplier performance
Monitoring supplier evaluation across hard and soft facts via KPI in real time
Matrix-based supplier qualification and segmentation**
5–10% improved user compliance savings*
10–15% savings on sourcing events and total cost of ownership (TCO) savings*
15–20% reduction in procurement function costs*
5–10% improved supplier 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 + line-of-business (LoB) and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value proposition for the enterprise.
**Capabilities that extend beyond SAP S/4HANA shipment to SAP’s broader cloud and LoB portfolio

2. The Value of SAP’s Digital Procurement Transforming procurement in the digital economy
Accounting and Financial Close
Treasury and Financial Risk management
Collaborative Finance Operations
External workforce management
Invoice and payables management
Procurement analytics
Exceeding goals and objectives for temporary labor
Real-time insight to key performance indicators
Touchless invoice processing
Simplified service entry and reconciliation process
Real-time rate guidance, side-by-side candidate comparison**
Template-based job posting in two clicks**
Complete automation for managing entry paperwork, supply needs, orientation, and personnel introductions for new workers**
SAP Fieldglass solution invoice integration with SAP S/4HANA
Users can create supplier invoices directly or correct inaccurate supplier invoices using available information in the draft invoice from the Ariba Network
Invoice collaboration enhancements to send messages to and from Ariba Network including carbon copy invoice, payment advice, payment proposal, and update**
Demand aggregation, Evaluated Receipt Settlement and recurring payments, real-time budget check**
Live calculation of key performance indicators to analyze managed and non- managed spend, contracts, and suppliers
Instant insight-to-action capabilities by navigating to other SAP Fiori® apps and object pages
Trend comparison for multiple suppliers and purchasing categories
Procurement overview page with filter cards and ability to monitor business-critical situations using analytical cards or work lists
External workforce management
Simplified service entry and consolidation services and materials master
Real-time rate guidance, side-by-side candidate comparison, and ability to evaluate attached bios and credentials**
Template-based job posting in two clicks with complete job requirements, including qualifications, certification management, and complex rate structures**
Complete automation for managing entry paperwork, supply needs, orientation, and personnel introductions for new workers**
SAP Fieldglass solution invoice integration with SAP S/4HANA
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Invoice and payables management
The business user can view draft invoices coming from Ariba Network and create the supplier invoice directly using the available data; can also directly correct inaccurate supplier invoices
Invoice collaboration enhancements to send messages to and from Ariba Network including carbon copy invoice, payment advice, payment proposal, and update**
Invoice processing enhancements such as invoice reduction, and output management adoption
Standard integration to the SAP Fieldglass application for receiving invoices and sending invoice status update back to the supplier**
Demand aggregation, Evaluated Receipt Settlement and recurring payments, real-time budget check **
Procurement Analytics
Live calculation of key performance indicators to analyze managed and non-managed spend, contracts, and suppliers
Instant insight-to-action capabilities by navigating to other SAP Fiori apps and object pages
Trend comparison for multiple suppliers and purchasing categories
Procurement overview page with filter cards and ability to monitor business-critical situations using analytical cards or work lists
Dynamic supplier evaluation scoring based on procurement documents in real time
30–40% reduction in worker acquisition time*
5–6% reduction in accounts payable errors*
10–15% savings on sourcing events and TCO 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 + line-of-business (LoB) and cloud capabilities. As each enterprise is at a different level of maturity, our recommendation is to work with you to determine the value proposition for the enterprise.
**Capabilities that extend beyond SAP S/4HANA shipment to SAP’s broader cloud and LoB portfolio

3. SCENARIO: PROCUREMENT EXAMPLE
A significant burden falls on procurement leaders who have to deal with an ever-increasing number of materials, suppliers, and contracts. Real-time insights into supplier spend, evaluations, scores, and contracts can have an immediate impact on a company’s bottom line and competitive position. In sourcing and procurement, SAP S/4HANA can help procurement leaders be more productive by enhancing their ability to manage and optimize operational procurement.
SAP S/4HANA Sourcing and Procurement
Traditional ERP
Isolated displays of documents with no ability to search across all documents
Analytics requires a data warehouse that is limited by lack of real-time supplier insights
A separate add-on is used to integrate into the Ariba Network adding complexity to IT systems
No easy way to measure and track spend across different suppliers
Material Search
Supplier Evaluation
Supplier Collaboration
Spend Management
SAP S/4HANA
Search for a material and drill down to uncover suppliers that are delivering the same material and can provide alternatives
Access to real-time supplier metrics, such as procurement spend and delivery dates, to determine supplier readiness
Native integration with
the Ariba Network for real-time supplier collaboration
Advanced dashboards allow easy tracking and benchmarking of spend
More than smarter and faster – Reimagining work

4. Customers Articulate the Value of SAP’s Procurement Solutions
Avery Dennison
Vectus Industries
Reducing operational cost by 15% with SAP S/4HANA
Redefining Procurement for the digital age with SAP Ariba Solutions
A global leader in labeling and packaging materials, Avery Dennison manufactures everything from wine labels to road sign materials.
Avery wanted to centralize, standardize, and automate the procurement processes using a single platform based on SAP Ariba solutions.
Today, procurement teams in corporate offices and pressure-sensitive businesses use standard workflows, greatly increasing visibility and eliminating the risk of human error. Plus, automation and paperless processes are saving considerable time, money, and effort
Vectus Industries Limited is India’s leading and fastest growing pipe and water storage solution.
Vectus deployed the SAP S/4HANA Enterprise Management solution and started experiencing total ease in managing business operations.
It has decreased its days sales outstanding and can deliver accurate, instantaneous customer invoices. Vectus achieved a 15% reduction in operation costs, real-time year-end financial close (down from a few months), 50% faster access to and visibility of real-time data, and a 60% increase in operational efficiency.
Read the customer success story >
Read the business transformation study >