SAP Financial Supply Chain Management

Financial Supply Chain Management Capabilities in SAP ERP

Financial Supply Chain Management represents a major area of process innovation and improvement for enterprises in a broad range of industries. Over the last several decades, there has been little improvement in the areas of billing, accounts receivable, collections, dispute resolution, credit scoring and cash management. Today, many businesses see these functions as a prime area for process improvement and source of greater cost-savings.

Analysts estimate that over 50% of businesses will transform their financial supply chain processes by 2006, with a vast majority of these companies seeking solutions from their ERP partner to support their strategies.

SAP is the best positioned ERP software solution provider in the industry to address the needs of financial supply chain management. Our comprehensive set of solutions are designed to work as a seamless extension of both SAP and non-SAP systems in finance, customer relationship management, supplier relationship management and operations.

Today, SAP FSCM contains the following components:

• SAP Biller Direct
  Electronic Bill Presentment and Payment. This allows billers to send and customers to receive invoices electronically, making invoicing more efficient. In addition suppliers can access account information via the internet.
• SAP Collections Management
  This component supports the evaluation, identification, stratification and priorization of accounts from a risk management and a customer relationship management perspective.
• SAP Credit Management
  This helps billers to monitor their customers' credit limits. It supports the set-up of a company-wide consistent credit policy including customer scoring and automatic calculation and assignment of customer-specific credit limits.
• SAP Dispute Management
  This component streamlines your dispute processes, bringing them online, rather than the cumbersome and paper based process used today.

Customers that have implemented SAP FSCM solutions typically cite the following business drivers behind their decision:

• Improved DSO

• Faster collection rates

• Greater ability to score customer credit ratings

• Improved integration between treasury and accounting

• Lower TCO

If you are already running an SAP ERP solution, take advantage of our online Solution Browser to compare functionality between your current system and newer releases, including SAP ERP 2005.