What is direct procurement in SAP PP-MRP - Material Requirements Planning?

SAP Term: direct procurement

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A function that initiates procurement without stockholding. Components are ordered directly for a planned order and consumed.

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• Key Concepts: 
  Direct procurement is a process in SAP's Material Requirements Planning (MRP) component that allows companies to purchase materials directly from suppliers. This process eliminates the need for a middleman, such as a distributor, and allows companies to purchase materials directly from the source. This can help reduce costs and improve efficiency.
  
  How to use it: 
  In order to use direct procurement in SAP's MRP component, companies must first set up a direct procurement process. This involves creating a list of approved suppliers and setting up contracts with them. Once this is done, companies can then use the direct procurement process to purchase materials directly from the suppliers.
  
  Tips & Tricks: 
  When setting up a direct procurement process, it is important to ensure that all suppliers are reliable and trustworthy. It is also important to ensure that all contracts are properly negotiated and that all terms and conditions are clearly outlined. Additionally, it is important to keep track of all purchases made through the direct procurement process in order to ensure accuracy and efficiency.
  
  Related Information: 
  Direct procurement is just one of many processes available in SAP's Material Requirements Planning (MRP) component. Other processes include indirect procurement, inventory management, and production planning. Additionally, there are many other components of SAP that can be used in conjunction with MRP, such as Sales & Distribution (SD), Financial Accounting (FI), and Human Resources (HR).