What is second-stage dealer in SAP MM - Materials Management?

SAP Term: second-stage dealer

• Component: MM

• Component Name: Materials Management

• Description: A dealer, in India, who trades in goods obtained from first-stage dealers. Second-stage dealers do not trade directly with manufacturers.

Smart SAP Assistant

• Key Concepts: 
  Second-stage dealers are vendors in the Materials Management (MM) component of SAP that are used to supply goods to a customer. They are the second stage in the supply chain, after the primary vendor. Second-stage dealers are typically used when the primary vendor is unable to fulfill an order due to lack of stock or other reasons. 
  
  How to use it: 
  In SAP, second-stage dealers can be set up as vendors in the MM component. When creating a purchase order, the user can select a second-stage dealer as the vendor for the order. The user can also set up a default second-stage dealer for each primary vendor, so that if the primary vendor is unable to fulfill an order, the system will automatically select the default second-stage dealer. 
  
  Tips & Tricks: 
  When setting up a second-stage dealer in SAP, it is important to ensure that they have sufficient stock and can deliver on time. It is also important to ensure that they have competitive pricing and good customer service. 
  
  Related Information: 
  Second-stage dealers are similar to drop shippers, which are vendors that ship goods directly to customers on behalf of another vendor. However, drop shippers typically do not have any inventory of their own and rely on other vendors for stock.