What is 'baseline price' in SAP LOD-SBO - Supply Base Optimization?

baseline price - Overview

• Component: LOD-SBO

• Component Name: Supply Base Optimization

• Description: A reference price based on which the spend and the savings on a part are derived. The baseline price of a part can either be the standard price or the previous price.

baseline price - Details

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  Key Concepts: 
  Baseline price is a feature of the SAP LOD-SBO Supply Base Optimization component. It is a price that is used as a reference point for comparison when evaluating the cost of goods and services. The baseline price is determined by taking into account factors such as market conditions, supplier performance, and other relevant factors. 
  
  How to use it: 
  The baseline price can be used to compare the cost of goods and services from different suppliers. This allows buyers to make informed decisions about which supplier to use for their purchases. The baseline price can also be used to set pricing targets for negotiations with suppliers. 
  
  Tips & Tricks: 
  When setting a baseline price, it is important to consider all relevant factors such as market conditions, supplier performance, and other relevant factors. This will ensure that the baseline price is accurate and reflects the current market conditions. Additionally, it is important to regularly review and update the baseline price in order to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  The SAP LOD-SBO Supply Base Optimization component also includes features such as supplier segmentation, supplier scorecards, and supplier performance management. These features can be used in conjunction with the baseline price feature to further optimize the purchasing process.