What is procurement via broker in SAP MM-PUR - Purchasing?

SAP Term: procurement via broker

• Component: MM-PUR

• Component Name: Purchasing

• Description: A form of procurement in which agrees conditions directly with the manufacturer but the material is supplied by other vendors called "brokers."

Smart SAP Assistant

• Key Concepts: 
  Procurement via broker is a process in SAP MM-PUR Purchasing that allows companies to purchase goods and services from a third-party broker. The broker acts as an intermediary between the company and the supplier, negotiating prices and terms on behalf of the company. The broker also handles the payment process, ensuring that the company receives the goods or services it has purchased. 
  
  How to use it: 
  To use procurement via broker in SAP MM-PUR Purchasing, companies must first identify a suitable broker. Once a broker has been selected, the company must enter into an agreement with the broker outlining the terms of the procurement process. The company must then provide the broker with all necessary information about the goods or services it wishes to purchase. The broker will then negotiate with suppliers on behalf of the company and handle all payment processes. 
  
  Tips & Tricks: 
  When selecting a broker for procurement via broker in SAP MM-PUR Purchasing, it is important to choose one with experience in the industry and a good reputation. It is also important to ensure that the terms of the agreement are clearly outlined and agreed upon by both parties before any payments are made. 
  
  Related Information: 
  Procurement via broker is just one of many purchasing processes available in SAP MM-PUR Purchasing. Other processes include direct purchasing, consignment purchasing, and subcontracting. Each process has its own advantages and disadvantages, so it is important to research each option before making a decision.