What is flexible purchase commitment in SAP LO-RFM - S/4HANA Retail & Fashion Management?

SAP Term: flexible purchase commitment

• Component: LO-RFM

• Component Name: S/4HANA Retail & Fashion Management

• Description: A feature to determine ship-to destinations from the supplier into the supply network, based on the latest demand situation. This way, material commitments are provided early to suppliers to enable them to start production, even if the finished goods supplier is still unknown.

Smart SAP Assistant

• Key Concepts: 
  Flexible purchase commitment is a feature of SAP S/4HANA Retail & Fashion Management (LO-RFM) that allows retailers to make purchase commitments with suppliers that are more flexible than traditional purchase orders. This feature allows retailers to adjust their purchase commitments based on changing market conditions, customer demand, and other factors. 
  
  How to use it: 
  To use the flexible purchase commitment feature, retailers must first create a purchase commitment document in the LO-RFM system. This document will include details such as the supplier, the item(s) being purchased, the quantity, and the price. Once the document is created, retailers can adjust their purchase commitments as needed. 
  
  Tips & Tricks: 
  When using the flexible purchase commitment feature, it is important to keep track of all changes made to the document. This will help ensure that all changes are properly accounted for and that suppliers are aware of any adjustments made to the original agreement. 
  
  Related Information: 
  The flexible purchase commitment feature is part of SAP S/4HANA Retail & Fashion Management (LO-RFM). For more information about this product, please visit SAP's website at https://www.sap.com/products/s4hana-retail-fashion-management.html.