What is sourcing in SAP (CRM - Customer Relationship Management)?

SAP Term: sourcing

• Component: CRM

• Component Name: Customer Relationship Management

• Description: The automatic determination of the source from which products are delivered to a customer. This determination takes place at item level during order entry. Sources assigned can be a plant within the enterprise, a connected enterprise sales organization of a different company code, or an external supplier.

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• Key Concepts: 
  Sourcing is a process within Customer Relationship Management (CRM) that helps organizations identify and select the best suppliers for their needs. It involves researching potential suppliers, evaluating their capabilities, and negotiating contracts. The goal of sourcing is to ensure that the organization is getting the best value for its money.
  
  How to use it: 
  The sourcing process begins with researching potential suppliers. This involves gathering information about the supplier’s capabilities, such as their product quality, delivery times, and pricing. Once potential suppliers have been identified, they must be evaluated to determine which one is the best fit for the organization’s needs. This evaluation should include factors such as cost, quality, and delivery times. Once a supplier has been selected, negotiations can begin to finalize the contract. 
  
  Tips & Tricks: 
  When researching potential suppliers, it is important to consider factors such as their reputation and customer service. Additionally, it is important to consider the supplier’s ability to meet the organization’s needs in terms of quality, delivery times, and pricing. Finally, it is important to negotiate a contract that is beneficial for both parties. 
  
  Related Information: 
  Sourcing is an important part of any organization’s supply chain management strategy. It is important to ensure that the organization is getting the best value for its money when selecting suppliers. Additionally, it is important to consider factors such as customer service and reputation when selecting a supplier.