What is external procurement planning in SAP (SCM-APO-CA - APO Cross-Application Components)?

SAP Term: external procurement planning

• Component: SCM-APO-CA

• Component Name: APO Cross-Application Components

• Description: The product is not produced in the location, nor are orders created for it. Unlike in-house production or external procurement, the planning does not take place in APO. Instead, stock shortfalls are replenished by the OLTP system.

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• Key Concepts: 
  External procurement planning is a component of SAP's Supply Chain Management (SCM) Advanced Planner and Optimizer (APO) Cross-Application Components. It enables companies to plan and manage their external procurement processes, such as the purchase of goods and services from external suppliers. This includes the ability to plan and monitor the delivery of goods and services, as well as the associated costs. 
  
  How to use it: 
  External procurement planning can be used to plan and manage the purchase of goods and services from external suppliers. This includes the ability to plan and monitor the delivery of goods and services, as well as the associated costs. The component also provides tools for analyzing supplier performance, managing supplier relationships, and optimizing procurement processes. 
  
  Tips & Tricks: 
  When using external procurement planning, it is important to ensure that all relevant data is up-to-date and accurate. This includes supplier information, product specifications, delivery dates, and pricing information. Additionally, it is important to regularly review supplier performance in order to ensure that they are meeting expectations. 
  
  Related Information: 
  External procurement planning is part of SAP's SCM-APO-CA APO Cross-Application Components. Other components in this suite include demand planning, supply network planning, production planning/detailed scheduling, global available-to-promise, and global ATP with batch management.