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UPPLIER

ELATIONSHIP

ANAGEMENT

Project Charter

Purpose

The Project Charter provides a consistent presentation of the information necessary to determine if theproject will continue into the Planning Phase. It aligns stakeholders around the project and formally gainstheir commitment.

ROJECT

DENTIFICATION

Project NameProject Number Project Type

(Business Consulting, Implementation,Upgrade, Internal, other)

Supplier Relationship ManagementImplementation

Project SponsorProgram ManagerProject Manager (Business Owner)

Materials Department (MT)Contracts Department (CN)

ROJECT

VERVIEW

Background and Business Needs

“As-is” situation

This Document presents a conceptual analysis of a fully integrated procurement solution for automatingcore procurement processes of QP, including service procurement, based on the latest SAP SRMsolution. This analysis attempts to explore the techno-economic feasibility of automating and optimizingthe procurement processes and to highlight areas where process improvements can be implemented thatwould have a positive impact on the Company’s operational and financial performance. Focus is not onlyon automating the procurement processes, but also facilitating a system that encompasses collaborativeas well as competitive scenarios of a buyer-supplier relationship.It may be mentioned here that QP has already mapped most of the “procurement” part in R/3, for materialsas well as external services through the SAP MM and ES modules respectively.The SAP SRM application is envisaged to close the above gaps and obtain an end-to-end seamlesslyintegrated corporate procurement system.Information Technology Department1 |Page

UPPLIER

ELATIONSHIP

ANAGEMENT

Project Charter

ROJECT

VERVIEW

Background and Business Needs

“As-is” situation

Proposed Solution

Describe the”To Be” situation – What the project will deliver; the solution to the functional/operating need.

To ensure the integration with the back end SAP ERP system to make it possible to transfer data smoothlyfrom one application to another. The transfer should result an uninterrupted flow of information andaccurate and timely access to data. SAP SRM 7.0 supports enterprise services to enable the followingdata transfers:•Transfer of an SAP ERP purchase request to SAP SRM•Creation of an SAP SRM sourcing request from an SAP ERP purchase request•Distribution of a central contract between SAP ERP and SAP SRM•Transfers relating to services procurement activities between SAP ERP and SAP SRM functions.

TECHNICAL FEATURES & BENEFITS OF SAP SRM 7.0

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SAP SRM 7.0 is exclusively portal-based and utilizes the standard SAP technology Web Dynpro for ABAP. This enables users to carry out procurement processes through a uniform interface and tailor them to their company's specific needs without significant programming effort. For example, onecan edit field names and locations, and can hide entire areas of a screen. Even certain fields can bemade as read-only for specific users. By modifying the user interface, one can customize the user experience and improve usability.

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SAP SRM 7.0 contains new Business Rule Framework workflow technology. This provides you withthe flexibility to create workflow processes specific to the business needs.

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SAP SRM 7.0 offers a harmonized user interface across multiple SAP applications, including SAPERP. The application includes a universal work list that users can configure and use to retrieve datawithin SAP SRM and other SAP applications. For example, a buyer can query purchasing data acrossthe SAP SRM and SAP ERP applications from a single launch point.

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Additionally, users gain access to purchasing-related activities within SAP SRM through a personalobject work list. This is made possible through a homogenous user interface for object work listsacross application roles. Key benefits of this harmonized user interface include:• Improved usability and process efficiency enabled by a common procurement user interface andcross-application search functionality• Faster access to – and a comprehensive overview of – the work environment and all relatedbusiness objects• Easy access to up-to-date information

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From a technical perspective, the latest release of SAP SRM offers substantial benefits over previousreleases, including:• Easier and less costly upgrades• A new user interface that’s consistent with all other SAP Business Suite applications• Support for flexible workflow processes• An architecture based on Web Dynpro development environment for ABAP• Support for enterprise services to support key interfaces with other SAP applicationsInformation Technology Department2 |Page

UPPLIER

ELATIONSHIP

ANAGEMENT

Project Charter

ROJECT

VERVIEW

Background and Business Needs

“As-is” situation

USINESS

ENEFITS

Executive Summary of Business Benefits

Business BenefitsExplanation

End-to-end integrated procurementProcessThe process of bidding, vendor qualification and invoicing(by vendor) remains outside SAP, and is largely a manual,paper-based process at present. Implementation of SRMwill be a significant step towards the Corporation’s e-procurement goal.On-line bidding processFaster and more competitive bidding. Facilities like reverseauctioning can result in substantial cost savings and canreduce the commercial evaluation time considerably.Collaborative environment for interactionwith Vendor/Contractor Closer on-line interaction, faster documentation andapprovals, smoother invoicing procedure.Analytics for procurement cycleBetter analysis of business data such as procurementcycle time analysis, spend analysis, suppliers’ performanceanalysis, trend analysis etc would lead to better optimization of procurement process.Time and Cost savingsShorter procurement cycle times, economies of scale dueto consolidation of purchases, possibly reduction ininventory due to faster procurement cycles, morecompetitive prices, and reduction in internal cost of procurement due to fully electronic process.Empowerment of the End-UserOnline shopping basket concept, visibility of the requisitionand order processing status, faster and easier work-flowsand approvals, budget & spend analysis capability etc.

ROJECT

TAKEHOLDERS

Individuals and organizations who have an interest in the project