Is Central Procurement possible with just one system?

[dimitri_grutschik]

Dear Colleagues,

We are exploring the possibility to deploy the new S/4HANA Product Sourcing Suite solution for direct material sourcing in the future.

As per SAP Standard scenario, the S/4HANA Product Sourcing Suite needs the S/4HANA Central Procurement functionality to be running the S4 system where it is to be deployed.

This is necessity based on the fact, that the S4 Product Sourcing Suite operates on Central Contracts, being the target follow-on document of the sourcing process.

As per the stands landscape scenario, an S/4 HANA System with an activated Central Procurement is supposed to be connected to other S/4 or ERP systems.

In the case of the Product Sourcing, the standard scenario would mean to have Central Contracts in the Central Procurement S/4 system as the results of the sourcing and to distribute these contracts as local contracts to connected backend systems.

However, our landscape consist just of one S/4HANA system.

Now we are wondering if it is possible to use S/4HANA central procurement as an embedded solution within our one S/4HANA system ?

Or would our landscape mean that we will not be able to technically configure Central Contracts in the system and thus would not be able to fulfil the technical requirements of the S/4 Product Sourcing Suite solution?

Thank you very much!

[sheenadias]

It is possible to have central procurement with just one system. The same system would act as the central hub system as well as the the connected backend system. Also called as the local scenario or hub as backend scenario.

[andreas_eisel]

Hello Dimitri,

the short answer is yes, you can use S/4HANA Central Procurement as add on to your existing S/4HANA and deploy S/4HANA Product Sourcing in the same system.

Best Regards,
Andreas

[mackenziegrantofprocurete]

Hi Dimitri,

Did you opt for using CP with just one system? We are in a similar position and I am trying to better understand the benefits beyond Central Procurement having native integration into other SAP Products (e.g. Product Sourcing). Advanced analytics came up but may still not be better than having an advanced analytics team.

Best,

Mackenzie

[dimitri_grutschik]

Hi Mackenzie,

actually we didn´t opt for CP as such. Since we only have one system we actually don´t require CP in terms of processes or technology or any other aspect.

From the point of view of Product Sourcing the usage of CP is a must, since PS operates on Cetral Contracts.

This is just a design fact for Product Sourcing, since it is intended to be used by large enterprises that usually would have a complex system architecture with a number of ERP systems (so a typical CP-like architecture).

That is the reason why we are looking into the question whther we can make it all technically work - basically the creation of a central contract and the distribution of this contract in order to recieve an operational local contract - in just one system.

So it is a question of the ability to sutisfy a CP-based-solution in actually a non-CP-like architecture.

Best Regards,

Dimitri