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In the ever-evolving world of supply chain and procurement, companies running SAP face a constant challenge of optimizing their processes.
In a recent video, Shaun, an expert in this field, delved into the top 9 common mistakes that are made over and over again. In this blog post, we'll provide a detailed breakdown of these issues and suggest strategies for overcoming them, helping organizations ascend their never-ending climb towards more efficient supply chain and procurement.
1. Neglecting Release Strategy and Workflow
Shaun's first point highlights the importance of using a release strategy and workflow for approving purchase orders and purchase requisitions. Not only does this streamline the approval process, but it can be executed on mobile devices using Fiori approvals. Don't waste time navigating through SAP; embrace this modern approach to enhance efficiency.
2. Ignoring Stock Transfer Orders
Creating sales and purchase orders for stock transfers between different areas within your organization can be inefficient. Shaun advocates for using stock transfer orders, a more straightforward and efficient method. Setting up these orders can significantly improve your internal logistics.
3. Untidy Material and Vendor Masters
Managing vendor masters can become a mess when you duplicate entries or have inconsistent payment terms. Shaun recommends keeping things organized by maintaining a single, tidy vendor master. This practice will lead to more streamlined operations and better relationships with suppliers.
4. Relying on Checks
In the age of electronic payments, relying on checks is archaic and inefficient. Shaun advises against this practice and suggests using debit and credit memos for reconciling accounts. This modern approach simplifies the payment process and reduces the chances of errors.
5. Multiple Document Types
Complicated document type systems can lead to confusion and errors. Shaun advises simplifying your approach by using a handful of document types. This helps in keeping your procurement process straightforward and avoids the complexity associated with multiple document types.
6. Overreliance on Email
Email is not an effective tool for managing invoices and purchase orders. Shaun suggests using B2B collaboration tools and digital platforms to streamline communication with suppliers. This transition can prevent documents from getting lost in crowded inboxes.
7. Contracts Over Purchase Info Records
For strategic vendor relationships and price lists, Shaun advocates for using contracts in SAP. This approach provides clear start and end dates for pricing agreements and simplifies tracking and renewing contracts. Ditch the old-fashioned purchase info records and embrace this more efficient solution.
8. Prudent Investment in Procurement Add-Ons
Companies often invest in expensive procurement add-ons without considering the resources needed for adoption. Shaun advises that organizations carefully evaluate their needs and consider adopting smaller, easier-to-implement solutions. This approach will avoid overwhelming your team with complex changes.
9. Avoid Over Customization
Finally, Shaun highlights the importance of avoiding over-customization and building custom solutions when pre-built ones are available. Before spending excessive amounts on customization, explore pre-existing solutions from SAP and other providers. Chances are, your unique needs have already been addressed.
Conclusion
Shaun's insightful video provides a wealth of information for companies looking to optimize their supply chain and procurement processes. By avoiding these common pitfalls and embracing modern solutions, organizations can enhance efficiency, reduce errors, and improve supplier relationships. The never-ending climb for stronger supply chain and procurement in SAP becomes much more manageable when these issues are addressed.