1. SAP Glossary
  2. SRM-Sourcing and Contracting
  3. sourcing strategy



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



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SAP Term: sourcing strategy

  • Component: SRD-SRM-SC

  • Component Name: SRM-Sourcing and Contracting

  • Description: A method of determining how many suppliers are available to provide items for a product category and how many of these suppliers to use to optimize buying power and negotiations.


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  • Key Concepts: 
    A sourcing strategy is a plan of action that outlines how an organization will acquire goods and services from external suppliers. It is a key component of SAP SRM-Sourcing and Contracting, which is a module that helps organizations manage their procurement processes. The sourcing strategy defines the criteria for selecting suppliers, the negotiation process, and the terms and conditions of the contract. 
    
    How to use it: 
    The sourcing strategy should be developed in collaboration with stakeholders from across the organization. It should include a clear definition of the goods or services needed, the criteria for selecting suppliers, and the negotiation process. Once the strategy is finalized, it can be used to guide the procurement process. 
    
    Tips & Tricks: 
    When developing a sourcing strategy, it is important to consider both short-term and long-term objectives. Additionally, it is important to consider the impact of any changes on existing suppliers and contracts. 
    
    Related Information: 
    SAP SRM-Sourcing and Contracting also includes features such as supplier management, contract management, and e-sourcing. These features can help organizations streamline their procurement processes and ensure that they are getting the best value for their money.
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