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September 17, 2013

Time to re-visit procurement function in fast changing world

There has been a decisive change in procurement function in last few months. Procurement has become a strategic function in the mind of Top management. Most of the companies are now moving the key procurement people from normal function to become part of central core team across business lines and functions. Clients are focusing on sustained value driven procurement, top-line growth and product innovation instead of focusing on just cost and control. The normal cost saving of 2-4% from contracts may not be application as we now don't see much variation on the price of goods and services.

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February 27, 2013

BW on HANA TCO - Part 2

By Adam Zeckel

Principal - Business Consulting; Energy, Communications and Services Unit, Infosys

In Part 1, I explored the cost components relative for potential IT cost savings by moving to Business Warehouse (BW) on HANA. In this part I will expand on the three major cost categories: labor, software, and hardware.

Labor

The first significant piece of savings comes from labor. With BW on HANA, there are fewer developed objects due to streamlined architecture and faster load times during development, testing, and deployment.

Estimates from SAP and several existing customers show that this adds up to a 20% reduction in effort required to develop and maintain the data warehouse on an annual basis. Because many of these efforts include contracted workers, that savings is easily converted to the bottom line.

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April 23, 2012

SAP Supplier Lifecycle Management: Filling a long pending gap in SAP SRM business suite - Part2

In part-1 of this blog post, I had given an overview of functionalities in SAP Supplier Lifecycle Management.
In Part-2 of this blog, I am going to write briefly about architecture and various deployment options, that comes with SAP SLM version 1.0.
At a high level architecture, SAP SLM is based on SAP NW 702 platform. It is basically composed of two components - Buy Side and Sell side. Buy Side is the component, which is accessed within buying company by purchasers, category managers and other internal stakeholders. Buy side is located within the firewall of company and is available on intranet.
Sell side is accessed by suppliers for various external processes and is located outside the firewall of the company. Sell side is available on open internet for registered and potential suppliers.

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April 16, 2012

SAP Supplier Lifecycle Management: Filling a long pending gap in SAP SRM business suite - Part 1

With the launch of SAP Supplier life cycle management, SAP has addressed a long pending business need for a full-fledged supplier management application. This has been on the wish list of most of the procurement executives working with SAP solutions, however SAP did not have very solid offer in this area earlier.  Customers using SAP SRM, had the option of using Supplier Registration functionality which is delivered as part of Supplier collaboration solution in SAP SRM. However, Supplier Registration functionality till SAP SRM 7.0 (EHP1) was offered at a very basic level with limited functionality. It lacked critical features such as approval workflow for potential suppliers, seamless integration with backend systems, upload of attachments etc.. Due to such obvious gaps, this functionality was not much used by customers or needed extensive customization and development to get the desired functionality.

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February 23, 2012

Managing supplier information dynamically using SAP solutions to reduce risk and increase value

By Sanjeev Kumar Pandey

After remaining as passive data records in archives for long, management of supplier information/data is slowly catching the attention of procurement executives and gathering prominence for its vital role in establishing successful supplier relationships. New acronyms like SIM (Supplier Information Management), SLM (Supplier lifecycle management), SBM (Supply base Management) are becoming latest buzzwords in procurement solutions. These terms are used interchangeably and would often refer to the same processes. I would be using supplier management as generic term to refer to all such processes.

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July 29, 2011

SAP Extended Warehouse Management

by Madhup Mukund Paturkar & Yudhishthir Shrikant Joshi

Integration between Supply Chain partners with efficient data sharing is the need of the hour. The multifold business growth and expansions naturally accentuated the importance of Logistics and storage and its integration with overall supply chain. As the business extracted synergy out of upward integration as well as inorganic growth, they also expected the Enterprise solutions to complement this synergy.

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July 5, 2011

Deciding on SAP Supplier Collaboration solution dilemma - SAP SNC or SUS?

by Sanjeev Pandey

SAP SCM Practice

Deciding on supplier collaboration solution from SAP can be elaborate exercise as SAP provides multiple products in this area.
One is SAP SNC (Supply Network Collaboration) which is part of SAP SCM suite. The other product is SUS (Supplier Self Services) from SAP SRM suite. Though there is some noise about merging of these two similar products by SAP, still concrete information is yet to come on this front. So how do we decide which product to choose for supplier collaboration?

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March 23, 2010

Centralized Procurement through SAP SRM - the next great wave of savings - Part 1

Continually changing turbulent economic environment is forcing organizations to adopt innovative business strategies to stay competitive, efficient in order to achieve highest level of benefits to the stakeholders. Procurement function is playing an ever increasing role in this transformation journey and its importance is becoming increasingly visible.

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September 30, 2009

Optimizing the Design of a Warehouse- Part 1 of 3

In a world of longer and complex supply chains, automobile industry is faced with a challenge of framing competitive strategies which deal with customers demanding lower costs, greater product availability, increased product selection, value added services, and reduced delivery times.

 

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August 25, 2009

Green ( Purchasing? ) SRM….

Recently, a thought struck me on while most of the SRM projects are judged on the basis of ROI, process efficiencies achieved, transactional savings etc., can they also be judged on the basis of environmental impact pre and post implementation?

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March 9, 2009

Challenges CIOs face in architecting right procurement transformation strategy

CIOs today are facing a challenging situation especially when it comes to the technology support for procurement domain. The challenge is not in realizing whether technology assistance in procurement domain will help already troubled organizations or not. CIOs are pretty clear that any benefit in this area is right away transforming into bottom line savings and hence is a definite candidate for technology aided alignment.

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