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Meet unique sourcing needs in automotive and industrial manufacturing

Automotive and industrial manufacturing companies have unique sourcing requirements for their highly engineered products. This limits the applicability of traditional sourcing solutions for procurement teams that are managing materials costs for these types of products.

To support these unique requirements, SAP now offers the SAP Product Sourcing software solution. It runs natively on SAP S/4HANA and is part of the product sourcing solutions suite from SAP, which includes SAP S/4HANA for procurement planning.

Now your team can have the tools it needs for sourcing event creation and management, multiple rounds of supplier negotiations, supplier response evaluation and awarding, configurable approval workflows, and sourcing document management. This cloud-based solution can help your organization to:

  • Accelerate time to market and effectively tap supplier innovation

  • Reduce and better estimate the cost of materials and services

  • Improve operational compliance and accuracy

  • Harness economies of scale across multiple ERP systems globally and locally

  • Simplify the supplier-award process to facilitate compliance with contract terms

SAP Product Sourcing Software Features

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Sourcing project management

SAP Product Sourcing software facilitates project and event creation, management, and execution for materials that are part of your available material masters.

screenshot of SAP Product Sourcing quote comparison capability user interface on

Automated project initiation

Demand and sourcing projects are triggered by purchase requisitions acquired from multiple back-end systems.

Supplier management

Preferred supplier lists are managed based on multiple material groups and company codes to make it easier for users to invite the right set of suppliers to bid.

Supplier collaboration

Flexible options are available for obtaining quotations from suppliers in multiple currencies, as well as supplier collaboration options such as integration with your existing supplier portal or a third-party portal.

Single platform

Through a single user interface, supplier responses are evaluated and compared, the business awarded, and transaction information conveyed to a contract repository and other legal documents.

Automated negotiation processes

Supplier negotiations and pricing conditions are automated for greater efficiency, including options for multiple rounds of renegotiation and support for flexible pricing conditions.

Compliance support

Consistent, company-wide application of procurement policies is encouraged through configurable workflows for process controls and approved supplier lists based on multiple material groups and company codes.

Access to material masters

Direct access to material masters helps ensure that documents that are automatically created following sourcing awards – such as contracts and purchase orders – comply with sourcing terms and conditions.

Product Sourcing Resources

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Product Sourcing Solutions from SAP

Read our paper to learn how we can help your organization introduce new products, compete, and win as together we transform your sourcing processes for highly engineered products.

Download now
Abstract tech image promoting article on about 4 Reasons to Digitize Your Direct Spend Procurement Processes

4 Reasons to Digitize Your Direct Spend Procurement Processes

This article by Supply Chain Brain explores four reasons to digitize, including how a holistic view of spending can help ensure that contractual terms are enforced and negotiate savings are realized.

Read the article screenshot of SAP Product Sourcing planning capabilities

Procurement Project Management

SAP S/4HANA for Procurement Planning provides robust project management capabilities for complex, highly engineered products and extensive project teams across your launch program, including milestones, tasks, and scheduling at multiple levels of a project

Read more about procurement planning