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Future of SAP Sourcing/CLM in SAP Procurement Product Stable

Future of SAP Sourcing/CLM in SAP Procurement Product Stable

 

In current scenario in SAP procurement space we find multiple Products which can cater to same or similar requirements. We have SAP Ariba, SAP SRM, SAP Sourcing and CLM which have similar functionalities. In these Products SAP SRM and SAP sourcing/CLM is for on Premise products whereas SAP Ariba is on demand product. Additionally SAP Sourcing/CLM is an island Product which is mostly implemented as standalone in first place and after a gap of some period is integrated with other procurement products based on requirements. The functionalities which can be covered within these products are :

Functionality

Ariba

SRM

Sourcing/CLM

Requisition/Order

ü   

ü   

NA

RFx/Bidding

ü   

ü   

ü   

Online/Offline Auctions

ü   

ü   

ü   

Contract Management

ü   

ü   

ü   

Catalogues

ü   

ü   

NA

Spend Analysis

ü   

ü   

ü   

 

For the above comparison we can find that Ariba and SRM have mostly same functionalities whereas individual product can have additional specific functionalities.

The future as for these Products seems to be converging procurement products into 1 single product or make the Product as On Premise or Cloud based. In such case the Long term trend as I can see is merging of SAP Sourcing/CLM functionality as add on Functionality in SAP Ariba which can provide Solutions to customer who require cloud based applications or as a Service. Customers who are inclined to have SAP Procurement product as On Premise, shall have to opt for SAP SRM which can provide same functionality. The future as I can predict is:

Functionality

Ariba with

SAP Sourcing/CLM

SRM

Requisition/Order

ü   

ü   

RFx/Bidding

ü   

ü   

Online/Offline Auctions

ü   

ü   

Contract Management

ü   

ü   

Catalogues

ü   

ü   

Spend Analysis

ü   

ü   

 

Key differentiator between SAP SRM and Ariba is:  SAP SRM can easily integrate with SAP ERP system       ( for follow on documents) and SRM MDM(for internal Catalogues) whereas SAP Ariba has advantage of managing multiple Suppliers on Ariba Network. Currently customers who wish to use Best of Functionalities from both the Products; SAP has provided functionality to integrate SAP SRM with Ariba through RDS (Rapid Deployment Solutions). Future decade or may be earlier shall decide which SAP Product behave as the Prime Product in SAP Procurement Offering based on customers inclination, easy to use and future trends.

 

Siddhant  Metkar

Lead Consultant, MFG CSI, Infosys Limited

Comments

Siddhant: SAP CLM also Contract Authoring tool which is best suited to manage Legal Contracts. Further I believe SAP has a roadmap in place for further releases from the existing CLM 10.0

Hi,

I am planning my career in SAP CLM ,can you explain me the road map for this module in the business environment and oppurtunities across the globe and longitivity

Chandra

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