What is sourcing in SAP (MM-PUR-SRC - Product Sourcing)?

SAP Term: sourcing

• Component: MM-PUR-SRC

• Component Name: Product Sourcing

• Description: The process of finding and choosing the best company for the delivery of required goods or the provisioning of required services by asking several companies to submit quotations for those goods and/or services. Awarding can be based on price, but also on other factors such as supplier evaluation score.

Smart SAP Assistant

• Key Concepts: 
  Sourcing is the process of selecting suppliers and negotiating contracts for goods and services. In SAP, the MM-PUR-SRC Product Sourcing component is used to manage the sourcing process. It enables users to create and manage requests for quotations (RFQs), compare offers from different suppliers, and select the best supplier for a given product or service. 
  
  How to use it: 
  The MM-PUR-SRC Product Sourcing component can be used to create RFQs, compare offers from different suppliers, and select the best supplier for a given product or service. It also allows users to track the progress of their sourcing activities, monitor supplier performance, and manage supplier relationships. 
  
  Tips & Tricks: 
  When creating an RFQ, it is important to provide as much detail as possible about the product or service being requested. This will help ensure that suppliers are able to provide accurate quotes and that the best supplier is selected. Additionally, it is important to establish clear criteria for evaluating supplier offers in order to ensure that the best offer is chosen. 
  
  Related Information: 
  For more information on using the MM-PUR-SRC Product Sourcing component, please refer to SAP's official documentation at https://help.sap.com/viewer/product/MM_PUR_SRC/latest/en-US.