Case Study

Enhanced Contract and Sourcing Management with SAP SRM

Sourcing management

Our client is a leader in the Oil & Gas sector. In order to improve its purchasing and sourcing operations across its global footprint, our client required an integrated platform for purchasing and sourcing of all international subsidiaries, in compliance with their internal customer procedures. 

The objective was to establish a purchasing system as the reference platform for all foreign subsidiaries of the global group.

EXECUTIVE SUMMARY

KEY OBJECTIVES

  • Guarantee end-to-end compliance with all internal purchasing procedures

  • Establish SRM as the web front-end for all Purchasing System users

  • Integrate with SAP Document Builder for advanced management of contract language/text (included MS-Office integration)

  • Seamless integration of SRM to ECC: purchase requisition, contract and purchase order management

  • Extend SRM functionalities to manage different phases of the procurement process from contractual strategy, bid invitation, memorandum of award, contract management SRM to ECC

RESOLUTION & BENEFITS

To execute the vision, Techedge implemented a global Sourcing system involving hundreds of users across multiple countries leveraging SAP SRM.

The SAP SRM Sourcing Management Solution covered the entire sourcing cycle - from strategic and operational sourcing to supplier enablement and procurement execution - providing a number of automated functionalities to facilitate the client in establishing and/or improving:

  • A central sourcing cockpit (web front-end for purchasing users)

  • Efficient online bidding and RFx

  • Integrated supplier negotiation and award processes

  • Centralized system for negotiation and advanced management of contracts

  • MS Office integration for textual contract creation

By extending the functionalities of SAP’s SRM solution, the company improved its management of the different phases of the procurement process, ranging from Contractual Strategy, Bid Invitation, Memorandum of Award and Contract Management SRM to ECC.

The initial implementation covered Pakistan, Angola, United States, Iraq, and Nigeria with future plans to rollout the solution to another 15 international subsidiaries.

The solution undergoes new enhancements to periodically improve the system’s functionalities and ensure continued compliance with the customer’s requirements.