By Satish Vallabhaneni and Raunak Bhatia

Introduction:

 In today’s fast-paced procurement landscape, every delayed vendor onboarding costs your business time and money. While traditional automation handles structured data well, managing unstructured supplier emails, diverse document formats, and initial risk checks still requires heavy manual effort. Enter the Prompt Editor within the SAP AI Core Generative AI Hub. By leveraging this powerful tool, you can build, test, and deploy tailored AI prompts that automatically extract vendor details, draft introductory emails, and trigger onboarding workflows in seconds. In this blog post, we will walk through how to utilize the Prompt Editor to orchestrate a seamless, low-effort vendor onboarding process that integrates directly with your existing SAP landscape.

Procurement teams spend enormous time manually reviewing vendor documents — financial statements, compliance certificates, insurance documents, reference letters — before onboarding a new supplier or doing annual risk reviews. In large enterprises this can take 3–7 days per vendor, and with hundreds of vendors onboarded annually, the cumulative cost is massive.

With the Prompt Editor's multi-modal capability (text + document upload), you can demo a live scenario where a raw vendor document goes in and a structured risk assessment narrative comes out in seconds — something that would normally take a sourcing analyst half a day.

Quantifiable business impact to present:

• Vendor onboarding cycle time reduced from days to hours
• Risk assessment cost per vendor reduced by 60–75%
• Consistent, auditable risk scoring (removes human subjectivity)
• Compliance team bandwidth freed for exception handling only

Execution:

Step-by-Step: How to Demo This in SAP AI Launchpad Prompt Editor

Step 1 — Open Prompt Editor
Navigate to SAP AI Launchpad → Generative AI Hub → Prompt Editor

Step 2 — Select a Multi-modal Model
From the Model Library, select a model that supports document/image input such as Gemini 2.5 Create a deployment if not already active. This is critical because you'll be uploading vendor documents directly.

Step 3 — Prepare a Sample Vendor Document
Use a dummy or anonymized vendor document — ideally a 1–2 page PDF containing:

• Company registration details
• Annual turnover figures
• Compliance certifications (ISO, SOC2 etc.)
• Bank/financial reference

Sample document in PDF format

Step 4 — Set the System Prompt
In the System prompt section of the editor, define the AI's role clearly:

“You are a Procurement Risk Analyst at a large enterprise. When given a vendor document, you will extract key risk indicators and produce a structured vendor risk summary with: (1) Vendor Profile, (2) Financial Risk Rating (Low/Medium/High), (3) Compliance Status, (4) Key Red Flags if any, (5) Recommended Next Action. Keep the output concise and suitable for a Procurement Manager review.”

Step 5 — Upload the Vendor Document
Use the Upload Image/Document button in the Prompt Editor interface, attach your sample vendor PDF, and add a simple user message:

“Please analyse this vendor document and generate the risk narrative.”

Step 6 — Tune Parameters

• Set Temperature to 0.1–0.2 for consistent, factual output
• Set Max Tokens to 500–800 to keep the narrative concise but complete

Step 7 — Run and Review Output
Hit Run and show stakeholders the structured risk narrative generated in seconds. Compare it side-by-side with how long a manual review would take.

Step 8 — Test with Contrast Scenarios
Run the same prompt against two vendor documents — one clean, one with a red flag (e.g., missing certification, low turnover). Show how the AI correctly differentiates risk levels. This is the moment that impresses the room.

Step 9 — Save to Prompt Registry
Save the validated prompt as a versioned template in Prompt Management, so Procurement, Legal, and Compliance teams all use the same standardised assessment logic — removing inconsistency across analysts.

Step 10 — Present the ROI
Build a simple metric: if the company onboards 300 vendors/year, and each manual review takes 4 hours at an analyst cost of ₹800/hour, that's ₹9.6 lakhs per year in manual effort — most of which gets eliminated. Add speed-to-onboard improvement and you have a compelling CFO-ready number.

Closing:

Streamlining your vendor onboarding process does not require a complete overhaul of your procurement systems; it simply requires adding a layer of intelligent automation. By mastering the Prompt Editor in the SAP AI Core Generative AI Hub, you transform a traditionally slow, manual chore into an instant, automated workflow. This not only cuts down on administrative errors but also allows your procurement teams to focus on strategic supplier relationships rather than data entry. As you take your next steps into generative AI, try building a basic extraction prompt using your own vendor templates—you will be amazed at how quickly you can turn raw supplier data into a ready-to-use business asset.