Importance of SRM

[Former Member]

Hi,

I am very new to SRM.I am working on the full process through which procurement is done through SRM.

The cycle which we run in SRM is some what similiar to the procurement cycle of SAP(MM). Then what is the need to implement SRM.Please can anybody tell the additional advantages of implementing SRM.It should be very much convincing for the client.

Your reply will be highly appreciated

[Former Member]

Hi Kavita,

• with SRM you get full web access and your buyers can perform their duites travelling or from other offices also. Same is true for manager's approval.

• You can connect SRM server to NON SAP systems via XI, thus giving flexibility.

• With customizing you can set feature of automatic PO , which relives your purchaser from routine procurement and they can spend time for more value added work.

• Users need to remember the diff transactions like R/3 and work with user friendly screens.

• Suppliers can be collabarated for PO responce , ASN etc. In transit matl can be accounted for .

BR

Dinesh

[Former Member]

Hi Kavita,

Following are the Benefits of the SRM.

Reduce cost and increase speed of procurement

Integrated purchasing processes

Process and spend control

Connecting with suppliers

Increase speed and visibility for services procurement

Spend control

Supplier selection efficiency and compliance

Centralized purchasing and integration to external planning systems.

BR,

Vijay Mittal

[Former Member]

HI

following are the benefits we are acheving by implementing SRM

- Better vendor relationship

- Reduce cost and compress Cycle times

- Vendor can manage the inventory by accessing the Systems

- There is tracking of PO and GR's can be made against ASN

- Qulity inforamtion can be given to vendors

- Aid Vendor Evaluation in many aspects

- User friendly screens and no cost for training Employees

SRM is indeed good to implement for sustainable saving is buying.

regards,

Nimish sheth

pls reward point for helpful answers

[Former Member]

Kavita

Apart from the benefits provided by community members, you can find below some of the benefits of SRM over R/3 MM.

1. User need not be a R/3 user. This can save the R/3 user license fees.

2. Better accountability for Non-production procurement where you need not maintain Master data in R/3. You can do the procurement by using catalog functionality. Using catalog you can control user access to particular types of materials during procurement.

3. Better customized and standard approval workflows which can bypass your release strategy of PR and PO in MM R/3.

4. You can control the creation of follow-on documents like for certain Material groups directly PO should be created and for certain only PR should be create.

5. User can check the status of the request through Web.

6. Better strategic sourcing activities which include online bidding and Auction facilities that can drastically reduce the cycle time to finalise the supplier.

Thanks and Regards

Jagadish

[Former Member]

Hi,

Thanks a lot Dinesh,Vijay,Nimish and Jagadish.

My problem is solved .

kavita.

Message was edited by: kavita agrawal

Message was edited by: kavita agrawal

[Former Member]

HI Jagadish

Is is possible to explain, how the R/3 license cost could be saved by implementing SRM.

In our scenario, we have implemented MM and planning to buy some more Prof Lic for PR/GRN creations.

So, thought of checking if the cost could saved by having SRM instead buying more Prof user Licenses.

Please suggest.