What is 'Sourcing' in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

Sourcing - Overview

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: A business area that allows a company to plan and determine its long-term purchasing activities. Sourcing uses RFQ and contract management processes to achieve long-term cost savings and improved service levels among chosen suppliers.

Sourcing - Details

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  Key Concepts: 
  Sourcing is the process of selecting suppliers and negotiating contracts for goods and services. It is a key component of SAP SRM-Sourcing and Contracting (SRD-SRM-SC). It involves identifying potential suppliers, evaluating their capabilities, negotiating terms and conditions, and selecting the most suitable supplier. 
  
  How to use it: 
  SAP SRM-Sourcing and Contracting (SRD-SRM-SC) provides a comprehensive set of tools to manage the sourcing process. It enables users to create and manage requests for quotations (RFQs), evaluate supplier responses, negotiate terms and conditions, and select the most suitable supplier. It also provides tools to manage contracts, monitor supplier performance, and analyze sourcing data. 
  
  Tips & Tricks: 
  When sourcing goods or services, it is important to consider the total cost of ownership (TCO). This includes not only the purchase price but also other costs such as delivery, installation, maintenance, and disposal. It is also important to consider the quality of the goods or services being sourced. 
  
  Related Information: 
  For more information on SAP SRM-Sourcing and Contracting (SRD-SRM-SC), please visit the SAP website at https://www.sap.com/products/srm-sourcing-contracting.html.