eSourcing Vs SRM

[former_member183819]

Hi All

esourcing also seems to be having most of capabilities of SRM

ROS - Vendor Registration

SUS -Supplier e-connection portal

GOA - CLM

Bid Invitation /Auction :-RFXs.

so all the functionalities are same in eSourcing right.

can any one compare both components and expalin us well? or discuss on each topic on esourcing

Thanks in advance.

i could observe only request are not created in e-Sourcing tool like shopping cart and In SRM we do have plan driven capabilities and reporting capabilities with BI/BO technolgy.

In SRM also I can do all well . shall we discuss the same here ...

Muthu

Edited by: Muthuraman Govindasamy on Feb 25, 2010 6:25 AM

[former_member193332 · Accepted solution]

Hi,

The "tactical sourcing' can be handled well by both SRM bidding engine and E-Sourcing. The main differentiator of E-Sourcing solution is that it can handle not only the 'tactical sourcing' but also the 'strategic sourcing'.

In 'tactical sourcing' scenarios, the demand always gets started by the requesters (e.g shopping carts, purchase requisitions, or other types of sourcing requests). The procurement / sourcing team is trying to fulfill these incoming demands as efficiently as possible.

In 'strategic sourcing' scenarios, the demand is not coming from requesters or operations. The strategic team performs the analysis of the spend and sets the goal for sourcing activities. (e.g. reduce IT service spend by 15%, reduce Airline and Hotel spend by 20% in next 3 years.) Then, they set to the plan to achieve this savings goal, supplier development goal, or contract renewal goal.

To support this 'strategic sourcing' scenarios, E-Sourcing has the following net-new features that cannot be found in SRM solution.

- Project Management capabilities

- Robust RFI / RFP capabilities

- Contract Authoring capabilities

- Integration to SPM (Spend Performance Management)

I hope this helps.

Thanks,

Steven

[former_member183819 · Accepted solution]

Very intersting. Thanks

Tactical - Request always comes from Requester

Who defines this TACTICAL or STRTERGIC - SOURCING

Are they belongs to SAP Dictionary?

Muthu

[former_member193332 · Accepted solution]

No. Neither I did invent those words, nor those word exist in SAP dictionary. 😆

I was just using those words to explain two different types of sourcing activities that I have observed the companies using to resolve their business problems.

One type of sourcing is more operational in nature where the demand is coming from your requesters and operations. To describe this type of sourcing activities, I have seen people using the words like "Operational", "Responsive", or "Tactical" sourcing. All companies have this type of sourcing, but this type of sourcing is more critical for manufacturing companies that have a heavy reliance on the "Direct" materials or "MRO" suppliers.

The other type of sourcing is more strategic in nature where the starting point of this process is typically "Spend Analysis" or "Strategic Initiative" from top managmenet team. For this kind of sourcing, I have seen people using the words like "Strategic", "Collaborative", "Savings Focused", or "Proactive" sourcing. The majority of Global 2000 companies have this kind of sourcing process, but this is more critical and widely used in (1) Serivce oriented industries (e.g. Financial Services, Pharma, Telco, Healthcare, Retail, Public Sector, etc.) where there exist a huge savings opportunities in "Indirect" and "Services" spend, (2) Fast changing industries (e.g. Hightech, Life Sciences, A&D, Media) where managing collaboration/partnership with strategic suppliers is becoming more and more critical with fast changing technologies.

I hope this clarifies the difference between two terminology I have used.

Thanks,

Steven

Edited by: Steven Kim on Apr 3, 2010 3:24 AM

Edited by: Steven Kim on Apr 3, 2010 3:25 AM

[former_member183819 · Accepted solution]

Thanks Kim. i understand.Your answers are indeed helped me

CLM Vs GOA - Please share your thoughts Kim.

Muthu