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SAP modules hub · LessonBy , SAP Solution Architect · Published · SAP S/4HANA 2023 · all levels

SRM

SAP SRM (Supplier Relationship Management) manages procurement and supplier collaboration, strategic sourcing, self-service procurement and supplier management. Its capabilities are now largely delivered by SAP Ariba (cloud) and S/4HANA sourcing/procurement.

Quick answer

Learn SRM through its core processes, its master data and configuration, and its integration with the rest of the SAP landscape.

Key takeaways
  • SRM covers supplier-facing procurement beyond basic purchasing: self-service requisitioning, strategic sourcing and bidding…
  • SRM integrated with MM (purchase orders, goods receipts) and FI.
  • Self-Service Procurement: employee requisitioning.
  • Watch out: Learning features, not the end-to-end process.

What SRM does

SRM covers supplier-facing procurement beyond basic purchasing: self-service requisitioning, strategic sourcing and bidding, contract management and supplier collaboration. It aimed to streamline and control indirect and strategic procurement across the organisation.

Key capabilities

  • Self-Service Procurement: employee requisitioning.
  • Strategic Sourcing: RFx, bidding, auctions.
  • Contract Management.
  • Supplier collaboration.

How it fits

SRM integrated with MM (purchase orders, goods receipts) and FI. In modern landscapes, its role is filled by SAP Ariba (cloud sourcing, procurement and the Ariba Network) and by S/4HANA’s own sourcing and procurement, integrated together, so learning gravitates toward Ariba and S/4HANA procurement.

Learning it

Learn SRM through its core processes, its master data and configuration, and its integration with the rest of the SAP landscape. Hands-on practice cements it.

Common pitfalls

  • Learning features, not the end-to-end process.
  • Ignoring integration with finance and neighbouring areas.
  • Skipping master data/configuration the process depends on.

Practice challenge

+0 XPStreak ×0
Question 1 of 3
Which statement is true of SRM?

Frequently asked questions

What does SRM stand for in SAP?
SAP SRM (Supplier Relationship Management) manages procurement and supplier collaboration, strategic sourcing, self-service procurement and supplier management. Its capabilities are now largely delivered by SAP Ariba (cloud) and S/4HANA sourcing/procurement.
What else is worth knowing about SRM?
Learn SRM through its core processes, its master data and configuration, and its integration with the rest of the SAP landscape.
What is the practical takeaway on SRM?
SRM covers supplier-facing procurement beyond basic purchasing: self-service requisitioning, strategic sourcing and bidding, contract management and supplier collaboration.
What tends to go wrong with SRM?
Learning features, not the end-to-end process. Ignoring integration with finance and neighbouring areas. Skipping master data/configuration the process depends on.
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