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Vendor management is a term that describes the processes organizations use to manage their suppliers, who are also known as vendors. Vendor management includes activities such as selecting vendors, negotiating contracts, controlling costs, reducing vendor-related risks, and ensuring service delivery.
[TRANSCRIPT]
Let's look at the bid to contract process for procurement in SAP Business ByDesign. Richard Stone wants to get five different bids on one of the product lines and they want to award the contract to one bitter, so let's go over to our sourcing and contracting module within design and let's go look at Rfq and quotes. Looking at this one that's been published out, we can click edit and take a look at the different areas of the submission. This went out to five different bitters and I could have the system automatically propose bitters for me if they've been with us in the past. Also we can see that there's the ability to check if the bitters can add items, if they can change submitted items or if other bids can be added after the close window has taken place. Also under the items, I can see the items that have been listed and I could put a requested target value or just leave that blank and see what comes back from the bitters.
Looking at the quotes that have come in, none. No quotes have come back specifically for this customer, so let's close out here and let's go in and look at one that has already been done going into the edit, I can go under the quotes and I can see the two quotes that came back in. One of these was awarded and both of them were submitted out by doing a compare quotes. Once quotes are received, I can compare side to side to be able to look at exactly each line and do a comparison of which bidder we feel is going to be best here. We can approve or we can reject from directly from this screen. Emails will be sent out to the bidders letting them know if they have been awarded or declined if they have not been awarded the account. I can also look at the document flow and I can see when all of the quotations have gone out and then from those quotations I can see that our purchase orders was created off of the awarded bid.