What is recommended split in SAP LOD-SBO - Supply Base Optimization?

SAP Term: recommended split

• Component: LOD-SBO

• Component Name: Supply Base Optimization

• Description: The percentage split of demand that is derived based on preconfigured business rules and supplier constraints.

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• Key Concepts: 
  LOD-SBO Supply Base Optimization (LOD-SBO) is a tool that helps companies optimize their supply base by recommending the best split of their supply base. The recommended split feature of LOD-SBO allows companies to identify the optimal number of suppliers to use for each product or service, and then divide the total demand among those suppliers. This helps companies reduce costs, improve quality, and increase efficiency. 
  
  How to use it: 
  To use the recommended split feature of LOD-SBO, companies must first define their supply base and determine the total demand for each product or service. Then, they can use the LOD-SBO tool to analyze the data and recommend the optimal number of suppliers for each product or service. Finally, they can divide the total demand among those suppliers to achieve the best possible split. 
  
  Tips & Tricks: 
  When using the recommended split feature of LOD-SBO, it is important to consider factors such as supplier reliability, cost, and quality when making decisions about which suppliers to use. Additionally, it is important to monitor supplier performance over time to ensure that the optimal split is maintained. 
  
  Related Information: 
  For more information about LOD-SBO Supply Base Optimization and its recommended split feature, please visit SAP’s website at https://www.sap.com/products/supply-base-optimization.html.