What is target improvement price in SAP LOD-SBO - Supply Base Optimization?

SAP Term: target improvement price

• Component: LOD-SBO

• Component Name: Supply Base Optimization

• Description: The target price derived for a part based on the overall improvement target for a negotiation project

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• Key Concepts: 
  Target improvement price is a feature of the SAP LOD-SBO Supply Base Optimization component. It is a tool that helps companies optimize their supply base by setting target prices for their suppliers. The target improvement price is the price that the company wants to achieve with its suppliers, and it is used to measure the performance of the supplier in terms of cost savings. 
  
  How to use it: 
  The target improvement price can be set by the company in the SAP LOD-SBO Supply Base Optimization component. The company can set a target price for each supplier, and then monitor the performance of the supplier in terms of cost savings. The company can also use the target improvement price to compare different suppliers and determine which one is providing the best value for money. 
  
  Tips & Tricks: 
  When setting a target improvement price, it is important to consider both the current market prices and the expected future market prices. This will help ensure that the target improvement price is realistic and achievable. It is also important to consider any additional costs associated with achieving the target improvement price, such as shipping costs or taxes. 
  
  Related Information: 
  The SAP LOD-SBO Supply Base Optimization component also includes features such as supplier evaluation, supplier selection, and supplier performance management. These features can be used in conjunction with the target improvement price to further optimize the company's supply base.