Reimagining Procurement – Transitioning from SAP SRM to SAP Procurement Solutions in the Cloud

Organizations are prioritizing the modernization of their procurement environments, enhancing user experience, and ensuring scalability. SAP offers a comprehensive suite of procurement solutions designed to support the business processes traditionally managed by SAP Supplier Relationship Management (SRM) in the on-premise world. However, on-premise procurement applications experience a lifecycle of growth, stabilization, and eventual decline if they are not optimized, and can lead to value stagnation and rising costs as the system becomes outdated and less capable of addressing contemporary business demands.

Cloud platforms offer advanced procurement solutions and continuous innovations, including AI capabilities. Transitioning to a cloud-based procurement solution with SAP is a proactive measure to unlock new levels of efficiency, agility, and innovation, ensuring that procurement remains a vital and forward-thinking component of the organization.

Top reasons for transitioning to the cloud with SAP procurement solutions

End of mainstream maintenance is near for SAP SRM. As the end of mainstream maintenance for SAP Supplier Relationship Management (SRM) approaches, it becomes increasingly urgent for organizations to transition to a more future-proof procurement solution. With SAP SRM’s support offering changing significantly—Extended Maintenance starting in 2025 and Customer-Specific Maintenance in 2027, both with higher costs and restrictive support options—moving to a cloud-based solution is not just an option, but a strategic necessity.

Benefit from moving to the Cloud. Moving to the cloud offers a range of significant benefits, including reduced costs for software licenses and hardware as well as leading practice processes. The pay-as-you-use model provides flexibility during demand peaks. Cloud deployment simplifies application management, requiring fewer technical and helpdesk resources, and includes future upgrades as part of the service. Additionally, it enhances security with robust data protection, backup, and disaster recovery capabilities. The cloud also facilitates seamless integration and interoperability, while enabling the deployment of innovative services efficiently.

It costs more if you do nothing. Although the initial costs of transitioning to cloud-based systems may seem substantial, postponing these upgrades can result in significant operational setbacks, such as reduced efficiency, fragmented systems, and diminished agility, along with unexpected expenses. Over time, the cumulative costs of maintaining outdated infrastructure outweigh the upfront investment needed for modern ERP systems, making the transition not just a smart move, but a necessary one for sustained growth and competitiveness.

Efficient procurement with SAP next generation procurement

SAP Ariba and SAP Fieldglass are part of the next generation of procurement solutions in the cloud, offering a cloud-based platform that seamlessly integrates with SAP S/4HANA and other SAP solutions. The transition to these cloud solutions provides significant advantages like increased procurement efficiency, enhanced supplier collaboration, and access to cutting-edge technologies like Artificial Intelligence and advanced analytics. Unlike SAP SRM, which has no planned innovations, the SAP cloud procurement solutions are continuously updated with new features and functionalities aligned with industry best practices, ensuring that organizations remain at the forefront of procurement technology.

This shift is crucial for future-proofing operations. With the end of mainstream maintenance for SAP SRM approaching, organizations that delay the transition will face rising costs and limited support options. Moving to the cloud not only mitigates these risks but also empowers organizations to fully leverage the cloud’s potential, enabling more agile and scalable operations.

Transitioning from SAP SRM to future cloud solutions like SAP Ariba is not a simple ‘lift-and-shift’ process but is approached as a greenfield implementation, based on business process requirements rather than a technical copy of existing features and functions. This transition process begins with a detailed discovery and analysis phase, followed by tailored recommendations for future solutions. It is essential to consider the broader procurement landscape and the ERP backend during this transition, including the timing of the move in relation to an ERP migration and the impact on the entire source-to-pay process. These are key factors in determining the optimal roadmap.