Fast-Track Supplier Registration and Onboarding with SAP Supplier Lifecycle Management

  • by Oluwatoyin Eseyin, Certified SAP Logistics Consultant (Procurement)
  • January 30, 2015
Learn how to configure and use SAP Supplier Lifecycle Management for an efficient supplier registration process.
Learning Objectives
By reading this article, you will learn how to:
  • Maintain customer parameter settings appropriately for the supplier registration process
  • Create supplier self-registration requests and subsequent  approvals
  • Create potential supplier registrations? manually
Key Concept

SAP Supplier Lifecycle Management supports the processes of registration, qualification, and evaluation aimed at fostering a positive supplier relationship management while ensuring appropriate supplier data maintenance. Supplier registration is the act of registering a vendor as the first step in establishing a business relationship with a purchasing organization. This functionality offers the capability to complete an online form which, if approved, gives the potential supplier the capability to maintain associated company and employee master data.

Streamlining the process of establishing business relationships between purchasers and buyers is becoming an increasing important strategy to gain a competitive advantage. This process becomes even more complicated when coupled with the globalization challenges created by cross-border businesses.  Therefore, organizations are looking for solutions that foster the relationship between potential suppliers and purchasing organizations right from the beginning of the supplier relationship, and on to the evaluation and continuous monitoring phases.

SAP Supplier Lifecycle Management offers a number of capabilities to achieve this requirement, especially in the areas of supplier self-registration, qualification, evaluation, and master data maintenance. The SRMSMC software component (the component name for Supplier Lifecycle Management), is typically installed as an add-on for the SAP NetWeaver application server for ABAP system.

The work method for supplier registration (in SAP Supplier Lifecycle Management) is based on purchasers declaring their intent by completing an online supplier registration form that goes to the purchasing organization for approval. After approval of the registration form, the supplier is created in the system as a potential supplier and can subsequently create administrator and other employee accounts. Once in the system, the supplier can then be promoted to a full-fledged supplier with or without qualification. This capability is designed to make the registration process relatively stress free and can be done from the comfort of your office without having to be present in the buyer’s office, thereby saving time and resources.

Architecturally, the SAP Supplier Lifecycle Management system consists of the buy side and the sell side. The buy side normally resides behind the firewall. The sell side normally resides outside of the firewall. It offers the seller an environment to access the supplier lifecycle management system for registration purposes and data maintenance if the registration request is approved.

I discuss the concept of the online supplier registration process using SAP Supplier Lifecycle Management. I also discuss how a potential supplier can be created manually (without completing an offline form).

Oluwatoyin Eseyin

Oluwatoyin Eseyin is a certified SAP logistics consultant (procurement). She has more than 10 years’ implementation experience covering SAP inbound and outbound logistics processes in local and global corporations.

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