What is supplier classification in SAP SLC-CLS - Supplier Classification?

SAP Term: supplier classification

• Component: SLC-CLS

• Component Name: Supplier Classification

• Description: A process used by category managers to assess suppliers based on customer-specific validity criteria, such as purchasing category or plant, and to categorize them by their strategic importance.

Smart SAP Assistant

• Key Concepts: 
  Supplier Classification is a component of SAP S/4HANA Cloud that allows companies to classify their suppliers according to their business needs. This classification helps companies to better manage their supplier relationships and to ensure that they are working with the right suppliers for their business. The classification is based on criteria such as supplier size, industry, and geographic location. 
  
  How to use it: 
  To use Supplier Classification, companies must first define the criteria they want to use for classifying their suppliers. This can be done in the SLC-CLS configuration screen. Once the criteria have been defined, companies can then assign suppliers to the appropriate classifications. This can be done manually or automatically using the SLC-CLS classification engine. 
  
  Tips & Tricks: 
  When setting up Supplier Classification, it is important to ensure that the criteria used are relevant to the company’s business needs. It is also important to ensure that the criteria are updated regularly in order to keep up with changes in the supplier landscape. 
  
  Related Information: 
  For more information on Supplier Classification, please refer to the SAP Help Portal or contact your SAP representative.