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

SAP Term: target price

• Component: LOD-SBO

• Component Name: Supply Base Optimization

• Description: The final price of a part at which a buyer aims to close the negotiation with suppliers

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• Key Concepts: 
  Target price is a feature of the SAP LOD-SBO Supply Base Optimization component. It is a price that is set by the supplier and agreed upon by the buyer. This price is used as a benchmark for negotiations between the two parties. The target price is based on the cost of goods, market conditions, and other factors. 
  
  How to use it: 
  The target price can be used to negotiate better terms with suppliers. It can also be used to ensure that the buyer is getting the best possible deal. The target price should be set based on the cost of goods, market conditions, and other factors. The buyer and supplier can then use this price as a starting point for negotiations. 
  
  Tips & Tricks: 
  When setting a target price, it is important to consider all factors that could affect the cost of goods. This includes market conditions, supplier costs, and other factors. It is also important to consider how much flexibility the buyer has in terms of negotiating with suppliers. 
  
  Related Information: 
  The target price feature of SAP LOD-SBO Supply Base Optimization can be used in conjunction with other features such as supplier evaluation and supplier selection. This allows buyers to make informed decisions about which suppliers to work with and how much they should pay for goods or services.