What is purchase order price optimization in SAP EPM-SA - SAP Spend Performance Management?

SAP Term: purchase order price optimization

• Component: EPM-SA

• Component Name: SAP Spend Performance Management

• Description: Analysis of instances where multiple sites are buying the same item from the same supplier at different PO prices within a given time period default: last 12 months, and the potential cost savings that could be achieved if the POs were aligned at the lowest price additional savings could potentially be achieved if all spend was leveraged to negotiate an even lower price.

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• Key Concepts: 
  Purchase order price optimization is a feature of the EPM-SA SAP Spend Performance Management component. It enables organizations to optimize their purchase order prices by analyzing historical data and market trends. This helps organizations to identify the best prices for their purchases and reduce costs.
  
  How to use it: 
  Purchase order price optimization can be used by setting up a purchase order price optimization model in the EPM-SA SAP Spend Performance Management component. This model can be configured to analyze historical data and market trends to identify the best prices for purchases. The model can also be used to set up alerts when prices exceed certain thresholds.
  
  Tips & Tricks: 
  When setting up a purchase order price optimization model, it is important to ensure that the data used is accurate and up-to-date. It is also important to consider the impact of external factors such as market trends and economic conditions on purchase prices.
  
  Related Information: 
  The EPM-SA SAP Spend Performance Management component also includes features such as supplier performance management, spend analysis, and contract management. These features can be used in conjunction with purchase order price optimization to further optimize purchasing processes and reduce costs.