Intelligent Procurement in S/4HANA Webcast Summary

This was a recent ASUG webcast
Source: SAP
From manual to automate..
Want to automate, streamline
Digital procurement is “nothing special any more”; no paperwork required
Move towards automated procurement

Intelligent procurement – proactive insight to action
Machine learning not new; now have the CPU and power to run it
Brings things to your attention

Automated Procurement – pattern, automate it
– trigger based on ML algorithm
– RPA bot for automation
– IoT – monitor PO delivery

Autonomous Procurement
– sophisticated, strategic sourcing decisions
– when create a sourcing event – RFQ, which suppliers to invite
“on the horizon”

Strategic – good relations with suppliers

Day to day – still need to process
– automate effort, bring “smartness” to save topic

Source: SAP – what is Intelligent Procurement today
IoT – sensor data – smart watches, smart homes
– monitor PO deliveries
– tag with sensor, purchaser is notified

Automation – RPA is one example
– repetitive tasks to automate
– use RPA to create purchase requisition with Excel
– import incoming invoices
– automate entire procure to pay process (being investigated)

– improve buying experience for employees for self service procurement – requestor can order via catalog
– system asks ‘did you find what you were looking for’

Machine Learning
– blue lines -already delivered by SAP
– need license – “Procurement Intelligence”

More sophisticated use cases use SAP Cloud Platform

Blockchain – one use case, avoid fraud in RFQ

Conversational AI
– Alexa, Siri
– Smart buying – requisition by chat bot – by chat or voice

Operational Bot: Source: SAP
“show me all overdue purchase orders” – a short cut

Situational Handling- Source: SAP
– core functionalities – proactively inform end users on things that require attention
– no additional license, need to activate them – SAP delivers template, and you adjust with your needs

Three things – trigger, related information, proposed action

related information – historic information

Proposed action – alternative suppliers

Source: SAP

UX In Procurement
– overview
– most important items at a glance

Source: SAP

What delivered, where delivered, which use case available

Links provided by SAP

SAP S/4HANA Intelligent Technologies
Requisitioners: Xci0M

Operational Purchasers:
Strategic Purchasers:

Reduce Free Text items with SAP S/4HANA Procurement:

Reduce Off Contract Spend with SAP S/4HANA Procurement

(Prototype with Hololens : )

Avoid Delivery Deficits with SAP S/4HANA Procurement

Optimize Corporate Purchasing with Machine Learning

More information about SAP Procurement Intelligence:

Information about iRPA
SAP S/4HANA 1909 Release Highlights

Introduction to Fiori 3

Secure Bidding with Blockchain


Q: How are recommendations from ML different from MRP runs?
A: What is here is not directly related from MRP; this covered that the requisition is in place

Q: For those not on S/4, can chat bots be implemented in ECC?
A: Propose material group use case – embedded in S/4HANA – algorithm on SCP, could connect via ECC but it would be a custom implementation

Source: SAP

Source: SAP

Source: SAP

Legal disclaimer; things in the future are subject to change during the webcast


I think this helped me understand where I need additional licenses and where I would need SAP Cloud Platform (also additional licenses)

Original Article:

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