What is external procurement relationship category in SAP (SCM-APO-PPS - Production Planning and Detailed Scheduling)?

SAP Term: external procurement relationship category

• Component: SCM-APO-PPS

• Component Name: Production Planning and Detailed Scheduling

• Description: Type of external procurement relationship. The type of external procurement relationship specifies whether an external procurement relationship refers to a purchasing info record, a contract, or a scheduling agreement item.

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• Key Concepts: 
  External procurement relationship category is a component of SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) module. It is used to define the relationship between a company and its external suppliers. This relationship can be categorized into different types, such as vendor, customer, or partner. 
  
  How to use it: 
  The external procurement relationship category is used to define the relationship between a company and its external suppliers. This information is used to determine the type of procurement that should be used for each supplier. For example, if a company has a vendor relationship with a supplier, then the company would use a purchase order to procure goods from that supplier. 
  
  Tips & Tricks: 
  When defining an external procurement relationship category, it is important to consider the type of goods or services that are being procured from the supplier. This will help ensure that the correct type of procurement is used for each supplier. Additionally, it is important to keep track of any changes in the relationship between a company and its suppliers, as this could affect the type of procurement that should be used. 
  
  Related Information: 
  The external procurement relationship category is closely related to other components of SAP's Production Planning and Detailed Scheduling (SCM-APO-PPS) module, such as procurement types and procurement strategies. Additionally, it is important to consider other factors when determining the type of procurement that should be used for each supplier, such as cost, quality, and delivery time.