Faced with economic uncertainty, increasing process automation in companies, as well as the globalization of supply chains, modern purchasing organizations cannot operate without a central contract management system. It is especially difficult for international purchasing organizations to communicate the correct service agreements, conditions, and prices quickly if supplier, material, and condition masters are not consistent across the group.
SAP and SAP Ariba contract management solutions are the central repository for all legal and operative contracts in purchasing. Integration with the SAP-sourcing process facilitates effective contract negotiations and the intentional release of orders allows companies to control contract usage and comply with key performance indicators, such as prices, validity, release order limits, tolerances, and currencies.
SAP continues to strengthen its position as leader in strategic and operational contract management for purchasing with its current product portfolio. This includes functionality that integrates the contract management system with upstream and downstream processes, such as the tendering procedure, taking the flexibility of purchasing to a whole new level. Other options, which allow legal contract documents to be drafted together with lawyers and the results made available to the partner for further processing through the system, increase process throughput times considerably. Of course, all contracts with suppliers can be made available as a source of supply in the own solutions of SAP like the SAP SRM system or also in many SAP ERP-systems. Furthermore, modern service-oriented architecture allows agreements and their conditions to be made available in the systems of other providers.