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

SAP Term: Sourcing and Contracting

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: A work center in which a buyer can identify and manage new and existing sources of supply, and can negotiate, create, and manage contracts with suppliers. Sourcing and Contracting is also a business package and a work center in business configuration.

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• Key Concepts: 
  Sourcing and Contracting is a component of SAP SRM (Supplier Relationship Management) that enables organizations to manage their sourcing and contracting processes. It provides a comprehensive set of tools to streamline the process of sourcing, negotiating, and managing contracts with suppliers. It also provides a platform for collaboration between buyers and suppliers, allowing them to negotiate terms and conditions, track progress, and manage the entire contract lifecycle. 
  
  How to use it: 
  Sourcing and Contracting can be used to create and manage contracts with suppliers. It allows buyers to define their requirements, search for suitable suppliers, negotiate terms and conditions, and track progress. It also provides tools for managing the entire contract lifecycle, from creation to renewal or termination. 
  
  Tips & Tricks: 
  When creating contracts with suppliers, it is important to ensure that all relevant information is included in the contract. This includes payment terms, delivery dates, quality standards, and any other relevant details. Additionally, it is important to keep track of all changes made to the contract throughout its lifecycle. 
  
  Related Information: 
  Sourcing and Contracting is part of SAP SRM (Supplier Relationship Management). Other components of SRM include Supplier Evaluation & Qualification (SEQ), Supplier Collaboration (SC), and Supplier Performance Management (SPM). Additionally, Sourcing and Contracting can be integrated with other SAP modules such as Materials Management (MM) and Financials (FI).