What is product group procurement in SAP SCM-APO-SPP - Service Parts Planning?

SAP Term: product group procurement

• Component: SCM-APO-SPP

• Component Name: Service Parts Planning

• Description: Mode of ordering in distribution requirements planning DRP where all products in a product group are considered. The aim of product group procurement is to optimize the total costs of purchasing and storing goods.

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• Key Concepts: 
  Product group procurement is a feature of SAP SCM-APO-SPP Service Parts Planning that allows users to group similar products together for easier procurement. This feature helps to reduce the complexity of managing multiple product lines and streamlines the procurement process. It also helps to ensure that the right products are purchased at the right time and in the right quantities. 
  
  How to use it: 
  Product group procurement can be used by creating product groups in SAP SCM-APO-SPP Service Parts Planning. These product groups can be based on product characteristics such as size, color, or material. Once the product groups have been created, users can then assign products to each group and set up rules for how they should be procured. This allows users to easily manage multiple product lines and streamline the procurement process. 
  
  Tips & Tricks: 
  When creating product groups, it is important to consider how they will be used in the procurement process. For example, if a product group is used for purchasing raw materials, it may be beneficial to create a separate product group for finished goods. This will help ensure that the right products are purchased at the right time and in the right quantities. Additionally, it is important to review and update product groups regularly to ensure that they are up-to-date with current market conditions. 
  
  Related Information: 
  For more information on product group procurement in SAP SCM-APO-SPP Service Parts Planning, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SCM_APO_SPP/7.5/en-US