Efficient sourcing is a cornerstone of procurement success. SAP Supplier Relationship Management (SRM) provides powerful tools to manage sourcing events effectively, enabling organizations to optimize supplier selection and negotiate better contracts. One of the key features in SAP SRM is the Sourcing Cockpit, a centralized interface designed to manage all sourcing activities. This article explains the concept of Sourcing Cockpit scenarios and provides guidance on how to create and manage them.
The Sourcing Cockpit is a collaborative workspace within SAP SRM where buyers can create, manage, and execute sourcing events such as requests for quotation (RFQ), auctions, and bidding rounds. It facilitates communication with suppliers, evaluation of bids, and selection of the best suppliers based on multiple criteria.
¶ Understanding Sourcing Cockpit Scenarios
A Sourcing Cockpit Scenario defines the framework and rules for a particular sourcing event. It determines:
- The type of sourcing event (e.g., RFQ, auction)
- The participants involved (buyers and suppliers)
- The timelines and workflows
- Evaluation criteria and scoring mechanisms
- Document templates and communication protocols
By defining scenarios, organizations can standardize sourcing processes, ensure compliance, and improve efficiency.
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Request for Quotation (RFQ)
Traditional sourcing event where buyers request price quotations from suppliers.
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Online Auctions
Competitive bidding events where suppliers submit bids in real-time.
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Negotiation Events
Multi-round negotiation processes with suppliers.
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Direct Purchase
Simplified scenario for quick procurement from preferred suppliers.
- Navigate to the SAP SRM system.
- Use transaction codes or access through the SAP SRM Web UI.
- Enter the configuration area for sourcing scenarios.
- Assign a unique Scenario ID and descriptive name.
- Select the Scenario Type (e.g., RFQ, auction).
- Specify the business area or organizational units involved.
- Define which buyer roles will initiate and manage the scenario.
- Specify supplier groups or Business Partners eligible to participate.
- Set up supplier invitation and response handling processes.
¶ Step 4: Set Timelines and Workflow
- Define start and end dates for the sourcing event.
- Configure approval and escalation workflows.
- Set deadlines for supplier responses and bid submissions.
- Define the parameters for evaluating supplier bids (price, quality, delivery terms).
- Set weighting and scoring rules for automated evaluation.
- Configure ranking and award decision workflows.
- Attach standard RFQ or auction documents.
- Set up automated notifications and reminders for participants.
- Customize communication templates for invitations and feedback.
¶ Step 7: Test and Activate the Scenario
- Run test sourcing events to verify configuration.
- Train users on scenario features.
- Activate the scenario for live sourcing events.
- Standardize Scenario Templates: Create reusable templates for common sourcing events to save time.
- Involve Stakeholders Early: Collaborate with procurement, legal, and finance teams to define evaluation criteria.
- Ensure Supplier Readiness: Communicate scenario expectations clearly to suppliers.
- Leverage Automation: Use automated workflows to reduce manual intervention.
- Monitor and Optimize: Analyze sourcing event outcomes to refine scenarios continually.
- Streamlined Sourcing Processes: Centralized management reduces administrative overhead.
- Improved Supplier Engagement: Transparent and interactive sourcing events foster better supplier relationships.
- Better Decision-Making: Structured evaluation criteria support objective supplier selection.
- Compliance and Auditability: Standardized scenarios ensure adherence to procurement policies.
Creating and managing Sourcing Cockpit Scenarios in SAP SRM empowers organizations to conduct efficient, transparent, and compliant sourcing events. By defining clear frameworks for each sourcing type, companies can optimize supplier selection, enhance negotiation outcomes, and drive procurement excellence. Mastering the Sourcing Cockpit configuration is a key skill for procurement professionals leveraging SAP SRM.