Streamline Procurement Processes with the Raw Material Procurement Cockpit

  • by Kaushik Choudhury, Senior SAP Supply Chain Consultant
  • October 1, 2015
Discover how the Raw Material Procurement Cockpit can facilitate working with a large number of purchase requisitions and suppliers simultaneously. Learn the prerequisites and step-by-step configuration for the Raw Material Procurement Cockpit.
Learning Objectives

By reading this article, you will learn:

●       Some of the key functionalities of the Raw Material Procurement Cockpit

●       The requisite configuration steps to implement the Raw Material Procurement Cockpit

●     How to leverage the Raw Material Procurement Cockpit to meet business requirements

Key Concept
The Raw Material Procurement Cockpit is available as a Web Dynpro application that small to medium-sized enterprises (SME) can adopt as a standard way to manage procurement processes. Large organizations with more complex business process requirements can use the Raw Material Procurement Cockpit as a starting point and do custom development on top of it. In this way, rather than starting from scratch, large organizations can leverage the standard out-of-box functionality offered by SAP and focus only on their special business process requirements.

Often procurement planners working with multiple suppliers for the same material, or responsible for several materials, struggle to get a quick snapshot view of requirements, procurement proposals for the same or different materials spread across suppliers, and price per unit information in different time horizons. With the Raw Material Procurement Cockpit, SAP attempts to address this pain point and also bundles a few other commonly used day-to-day functionalities such as purchase requisition to purchase order conversion and price change.

The Raw Material Procurement Cockpit offers the following features:

  • It enables you to allocate procurement quantities among suppliers.
  • You can use the Raw Material Procurement Cockpit to maintain the purchase price for each supplier-product combination based on negotiations with suppliers.
  • It enables you to convert a purchase requisition to a purchase order.
  • Its procurement proposal snapshot provides a user-defined time horizon in a single simplified screen layout.

In general, the Raw Material Procurement Cockpit can meet most of the requirements of small and medium-sized businesses, but large organizations with complex business process requirements may not be fully covered with an out-of-box version of the Raw Material Procurement Cockpit. Instead, custom developments may be needed in addition to the Raw Material Procurement Cockpit’s existing functionality to meet their requirements.

The procurement planner can use the Raw Material Procurement Cockpit to get a quick snapshot of procurement proposals across vendors and materials for a set time horizon. A standard out-of-box functionality in SAP ERP Central Component (ECC) 6.0 from enhancement pack 6 can be leveraged by activating the business function LOG_PP_CFB and completing the relevant configuration.

Before I delve into the configuration details related to Raw Material Procurement Cockpit, I first cover the prerequisites:

  1. Maintain the purchasing view in the material master for material subjected to external procurement
  2. Activate business function LOG_PP_CFB
  3. Maintain complete supplier information in the vendor master
  4. Maintain information about suppliers of the material and various procurement conditions in contracts or purchasing information records in a source list

Kaushik Choudhury

Kaushik Choudhury is a senior consultant in the supply chain management field with more than a decade of experience in supply chain consulting in principal positions for leading brands across the globe. His focus is on business transformation, business reengineering, proof of concept and solution design, and end-to-end implementation. He has a proven track record of delivering in alignment with business expectations and possesses a unique combination of profound business process understanding, consulting skills, hands-on SAP system experience, and effective management capabilities. Kaushik has operated seamlessly in highly agile and iterative environments in which solutions are implemented incrementally with ongoing design changes. He has extensive experience in Agile and Waterfall delivery methodologies in large SAP supply chain implementation programs.

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