Author: Mike Rübsamen, 2Bits

"Digitization is not ready for series production in many companies," is the result of a DSAG survey of member companies. Purchasing is also affected by this.

Those who switch to S/4 have to deal with a new interface technology: SAP Fiori. With special frameworks, Abap experts still don't need to leave their familiar development environment.

The new SAP licensing policy around indirect use is also causing trouble in purchasing. Those who do not want to switch to S/4, but replace the classic SAP SRM with an external solution, are confronted with rising, often uncontrollable costs.

SAP’s new product and licensing model is a challenge for purchasing. Fewer functionalities versus more costs, migrating to S/4 Hana versus using external procurement systems—is that how it has to be?

In procurement, service purchasing is often seen as the most demanding discipline. However, the SAP standard is not sufficient for seamless digitization of cooperation with suppliers. Whether utilities, industrial parks or financial institutions. In most industries, significantly more services are purchased than materials.

There seems to be no way around Ariba or S/4 Hana in SAP-based purchasing. However, there are attractive alternatives for responding to the requirements of digitization in the short term.