Home »SRM (Supplier Relationship Management)
SAP SRM (Supplier Relationship Management)
Definition or Meaning - What is SAP SRM?
Full form or SAP SRM stands for (Supplier Relationship Management), used along with SAP Product Lifecycle Management (PLM), Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) to enable effective integration and implementation of cross-application business modules; is highly efficient and has the capability of lowering costs and ensuring higher quality.
SAP SRM offers one of the best means of planning and managing the various aspects and interactions of an organization with the key suppliers of raw materials, goods and services. This SAP module helps in better coordination of diverse Business Processes with vendors and other external parties, thus establishing stronger tie ups and creating the right grounds for maintaining long term relationships with the primary suppliers of the enterprise. Having its roots in B2B solutions, SAP SRM appropriately defines the various SAP components, explains the ways of building strategic supplier relationships and streamlines the relevant procure-to-pay processes.
The Benefits and Features of SAP SRM include:
- It enables an organization to negotiate on contracts, interact with suppliers, streamline the tasks of Purchasing, manage inventory/delivery and facilitate product designs.
- The SRM software is also helpful in automating and systematizing the tasks of acquiring goods and designs, reducing the errors in purchases and thereby increasing the overall efficiency of the functionalities of the inventory and supply chain systems.
- SAP SRM offers innovative and creative methods that go a long way in helping better coordination of all business processes linked with the supplies of services and goods. SRM tools are being increasingly used for automating the tasks on hand and smoothening out the processes of acquisition of product designs, goods and other materials - thus paving the path for long term beneficial relationships with all suppliers.
The Steps of a SAP SRM Integrated System:
- General planning in SAP APO (Advanced Planner and Optimizer)/ MRP in ERP systems help in planning out the materials and their required quantity with ease. These requirements are then transferred to the EBP system. Requisitions from the Project System and SAP Plant Maintenance are some of the other possible requirements.
- If the requisitions passed to EBP (Enterprise Buyer professional) have data that is unique and complete, purchase orders are created in an automatic manner. However, if any data is missing, the organization purchasing the materials completes the missing information through Process Purchase Orders or Sourcing. The purchaser then completes the orders; designates the source of supply; and add or deletes items in his selected list.
- After the order is completed, it is automatically issued to the SAP R/3 Environment. XML serves as an upcoming medium as the data is automatically integrated in multiple supplier systems. In certain cases, the orders may be sent by e-mail, fax or in the form of hard copies.
- The goods receipts are either done in the EBP by suppliers via XML confirmations; by the employees who had requested the items; via general goods recipients; or with the help of a well conceived backend system. Thereafter, Inventory is updated at the backend.
- The invoice is then processed manually in EBP by an accountant or the supplier via an XML invoice. In most cases, this task takes place from the SAP SRM SUS or the backend system.
SAP SRM, one of the most important modules of SRM products, has been giving good performance over time. Some of the primary tasks performed by SAP SRM are:
- Forecasting and analysis of purchasing behavior.
- Working hand-in-hand with partners and that too in real time.
- Cutting down of acquisition time and overall expenses.
- Increasing employee efficiency and producing high quality products.
Scope and Opportunity of a Career in SAP SRM (Supplier Relationship Management)
Specifically designed for qualified project participants, an advanced course in SAP SRM requires a thorough understanding of the SAP ERP Systems. A minimum experience of at least one year in handling the SAP environment is a must and candidates desirous of enrolling themselves should have a profile equivalent to SAP consultants.
An effective module for employees and project members handling the SRM solutions of a company, SRM team members, members of material management, MM Consultants, inventory managers, operational purchasers, project managers, buyers, end users and procurement managers; SAP SRM is a much favored choice by organizations across the world.
Become a Certified SAP SRM Consultant
With a SAP SRM certification in hands, professionals can look forward to highly paid jobs in reputed companies worldwide. This certification enhances the portfolio of existing SAP professionals, project members and/ or consultants - in many more ways than one. The job profiles available to SAP SRM aspirants range from those of consultants to super users, trainers, SAP managers and beyond.
These job profiles vary on the basis of the skills and levels of experience of job applicants and boast of lucrative salary packages. Here, the pay packages may go as high as INR 900 K and are dependent on the nature of the job on hand and the implemented processes.
Explore the many opportunities and advantages of SAP SRM - join today!
- How to Replace an Approver in Process Controlled Workflow SRM 7.0?
It is not possible to remove or replace a system determined approver while creating an SRM document e.g. shopping cart. The 'Remove Approver' button is not enabled for the workflow steps through p ...
- SAP SRM (Supplier Relationship Management) Certification Cost and Course Duration in India
SAP SRM (Supplier Relationship Management) CoursesSAP SRM courses offer inc - depth knowledge and the skills required for the proper handling of SRM automation.The topics included in the course: Intro ...
- Limitations on limit and service PO's in case of ECS
In case of extended classic scenario, when creating shopping carts with more than one limit items irrespective of the data ( that is, vendor, document type, purchasing group, company, location, perfor ...
- Account assignment error when document transfer to back end
In alert monitor /RZ20, the system displays logistical documents for example, shopping carts or purchase orders with account assignment errors and cannot transfer these documents to the back end succe ...
- Can an adhoc approver be removed in SRM 7.0
It is not possible to delete or to change or to replace an added approvers once the document is saved and in status "in approval". Adhoc approvers can be maintained as long as they are not ...
- Job Profile & Salary Package for SRM Consultant
SAP SRM certification provides opportunities for highly paid jobs worldwide. This certification opens a gateway for enhancing the portfolio of existing personnels or project members or consultants. ...
- You cannot maintain service specs due to incomplete transfer structure
When you create a service item, you cannot exit the detail screen and create service specifications even though all required data were entered correctly. In the Customizing, you must set the field ...
- Qualifications and Skills requires to become a SRM Consultant
Who can attend SAP SRM course? The SAP SRM course is designed for qualified project participants. This is an advanced course and thus needs a thorough understanding of ERP systems and SAP software. ...
- Article Pricing Procedure
If you want to determine the pricing procedure for any kind of transaction you would have to use document pricing procedure and customer pricing procedure. First of all you have to go to SPRO than Cus ...
- SAP interactive forms by Adobe
The modifying is essential to change to the new SAP interactive forms by Adobe are labeled obtainable as part of the customization certification in contradiction of the IMG entries for Output: Th ...
- Dataload into ODS '0BBP_QUO' and '0BBP_BID' not possible
Dataloading into ODS '0BBP_QUO' (Bids - Single Documents) and '0BBP_BID'(Bid Invitation - Single Documents) Due to System changes the entries in table RSDODSO (Directory of all ODS Objects) for t ...
- SWE_EVENT_CREATE does not Return Event ID
The function module SWE_EVENT_CREATE, used to elevate workflow events, does not return the event ID.This is the code error in SWE_EVENT_CREATE, to resolve this error please do as following: First, go ...
- How to Use the Novation Scenario for Contracts in SAP SRM?
You can transfer some or all contracts from one supplier to another in the case of a merger or buyout. This is known as novation.Novation should be used for mergers and buyouts only.Read the following ...
- Default Entries to Maintain Details for Encryption Fields
What are the default entries to be maintained apart from the fields required for encryption in 'Maintain Details for Encryption Fields'?SOLUTIONHere are the default entries which should be mai ...