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The Supplier Order Collaboration with SRM ES bundle streamlines the supply order process in SAP SRM by extending the functionality of a web-based order management system, which seamlessly connects a purchaser and small suppliers, no matter what software they use.

This feature lowers the risk of supply order delays and errors, reduces the workload for purchasers and small suppliers, and speeds up the delivery time for payments.

The bundle creates a standard purchaser-to-small supplier interface. The Supplier Order Collaboration with SRM ES bundle creates a flexible means to send and confirm work orders and process invoices. The Supplier Order Collaboration ES bundle works off of two systems - SAP Supplier Relationship Management, or SRM, which allows for the purchaser to request goods and services, and a component of SAP SRM, Supplier Self-Service (SUS), by which the suppliers can log on and report work, submit invoices and confirm receipt of work orders.

While this integration existed in the past using SAP NetWeaver Process Integration (formerly XI) messages, the Supplier Order Collaboration with SRM ES bundle has made them available as enterprise services, allowing users to interact with a flexible standards-based interface, which increases the number of suppliers and systems with which a user can connect and communicate. The old system did not offer connectivity with non-SAP systems.

The Supplier Order Collaboration with SRM ES bundle leverages enterprise SOA by connecting SAP SRM, SUS, and SAP ERP 6.0.

Audience

The Supplier Order Collaboration with SRM ES bundle is useful for any company doing business with small service providers seeking ways to facilitate integration and find an easy and flexible way to work with small vendors. Job titles on the purchaser side most likely to use the bundle include those in purchasing and accounts payable, along with a technical expert to help deploy the services. Vendor employees could include, for example, sales representatives, a service agent who enters time and expenses into SUS, and an accounting department employee.

Supplier Order Collaboration with SRM (click to enlarge)

For details on Service Operations, Business Objects and Process Components, please check the ES Workplace.


How to Use This ES Bundle

Implementing the Solution

The supply chain is fraught with potential problems for any company. From the moment an employee submits a supply requisition to the time when a vendor receives a check for services, things can go wrong. Out-dated paper-based systems, international suppliers speaking a different language, and incompatible systems between a buyer and supplier can bog down the process and create more work. This bundle offers a solution for many of these problems.

This ES bundle bypasses these issues by helping purchasers and small suppliers communicate more effectively. While large companies have processes in place to make orders and process invoices for their major suppliers, completing the same tasks with smaller organizations is not always as easy. Routine cleaning and maintenance services, for example, may be provided by companies who communicate with customers via paper communication, fax, or email and are not SAP-connected. This poses a number of problems for the purchaser: a separate system for issuing purchase orders must be devised, staffed and managed; confirmation of communications is hard to document; and invoices must be processed separately. As a result, working with these small vendors can be expensive and time-consuming.

The existing system used SAP SUS, which required access to an SAP system. The Supplier Order Collaboration with SRM ES bundle now leverages enterprise SOA to achieve this functionality using web services standards.

The Supplier Order Collaboration with SRM ES bundle creates a streamlined way to make and receive purchase orders and ensure efficient receipt and payment of invoices by connecting disparate systems.

This section will explore a series of use cases for the Supplier Order Collaboration with SRM ES bundle. Each use case will show how different outcomes can be achieved by using the enterprise services in different combinations. While these examples illustrate a few of the ways that this ES bundle could be used, the intention is to show the flexibility and reusability of these business objects and enterprise service operations so that you will have a clearer understanding of how to best deploy them in your own environment. Please note that the use cases may refer to people invoking enterprise services directly. This helps illustrate how business processes relate to enterprise services, but in fact, the services are invoked through a user interface or via program-to-program communication. This wiki is also a space for you to share knowledge and collaborate with others who are implementing the Supplier Order Collaboration with SRM ES bundle.

Use Case 1: Facility Management Purchase Order

Sayo-Mayo needs the thousands of square feet of windows covering its headquarters cleaned twice each year. This use case follows the creation of a purchase order in the purchasing department through all the steps to the completion of the job and the payment of the supplier.

The facility management department sees that spring cleaning is just around the corner, and sends a memo to Sayo-Mayo's purchasing department to get on the window-cleaning stick.

Either way, Genovese in purchasing logs onto SRM, and invokes the Request Purchase Order Creation (SRM) enterprise service operation to create a Purchase Order (SRM), and sends it out to the window cleaning company, Sparkle Guys. The purchase order contains information about the type of product or service, its delivery date or service period and the quantity of goods or services. The system recognizes Sparkle Guys as a small business that uses SUS, so it routes the purchase order to the SUS system using SAP NetWeaver Process Integration (formerly XI).

The SUS system receives the Purchase Order (SRM) and immediately invokes the Create Sales Order (SRM) service operation to create a corresponding Sales Order (SRM)---a mirror of the information, but formatted for the supplier to receive.

At Sparkle, sales rep Tristan receives the Sales Order (SRM), looks it over, and quickly realizes his company cannot meet Sayo-Mayo's tight deadline. So Tristan changes the service period, then uses Confirm Sales Order (SRM) to create a sales order confirmation. At this time SUS invokes Create Purchase Order Confirmation to create a mirror Purchase Order Confirmation, letting Genovese know that the order has been received, and that a Sparkle Guy will be cleaning the windows later in the month.

Later that month Sparkle Guys sends their crew out to clean Sayo-Mayo's windows for the agreed-upon three-week job. On the Friday of those three weeks, Sparkle Guy's accounting department enters the SUS system, locates the Sayo-Mayo job via a sales order number, and uses Create Goods and Service Acknowledgement to generate a Goods and Service Acknowledgement that outlines the work done that week for Sayo-Mayo. Jake from Sayo-Mayo's facility management then checks to see if the top-third of the building has in fact been cleaned. When Jake reviews Sparkle Guys' work and approves it, he logs onto SRM and invokes Confirm Goods and Service Acknowledgement to generate and send a Goods and Service Confirmation to Sparkle Guys.

At the end of three weeks, Sparkle Guys accounting department logs onto SUS, and invokes Create Invoice (SRM) to generate and send Sayo-Mayo a Supplier Invoice (SRM) for the headquarters job. At the moment of creation, SUS invokes Notify Customer of Invoice, which creates a Supplier Invoice (SRM) that indicates that Sparkle Guys is seeking payment for services rendered.

The system automatically checks the Supplier Invoice against the Purchase Order and the Goods and Service Acknowledgment. A clerk in Sayo-Mayo's accounts payable office then logs onto SRM and then approves the Supplier Invoice (SRM). SRM then triggers Confirm Invoice (SRM) and sends the Supplier Invoice (SRM) to SUS.

Sayo-Mayo cuts Sparkle Guys a check, and the circle of business is closed, at least until the next season.

Step

Enterprise Service Invoked

Step 1: The user creates a Purchase Order (SRM) to send it out to the window cleaning company

Request Purchase Order Creation (SRM)

Step 2: The window cleaning company creates a Sales Order (SRM)

Create Sales Order (SRM)

Step 3: The sales representative creates a confirmation

Confirm Sales Order (SRM)

Step 4: The system also creates a confirmation to send it back to the purchasing department

Create Purchase Order Confirmation

Step 5: The accounting department outlines the work done that week

Create Goods and Service Acknowledgement

Step 6: To review and approve the work of the window cleaning company

Confirm Goods and Service Acknowledgement

Step 7: The accounting department of the window cleaning company creates an Invoice

Create Invoice (SRM)

Step 8: The system automatically creates a notification of the Supplier Invoice

Notify Customer of Invoice

Step 9: The system automatically checks the Supplier Invoice against the Purchase Order and the Goods and Service Acknowledgment

None

Step 10: To approve the Invoice of the window cleaning company

Confirm Invoice (SRM)

Future Directions

Future directions for this ES bundle will be included when they are announced.

Connectivity

This bundle achieves connectivity between third-party systems and SAP SRM using SAP NetWeaver Process Integration (formerly XI). This bundle also leverages all kinds of CRM systems.

System Requirements

Related ES Bundles

End-to-end Processes Where This ES Bundle Is Used