What is Determining Source of Supply in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

SAP Term: Determining Source of Supply

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: A process that allows strategic buyers to prioritize the sources of supply available for a product, by defining quota arrangements and fixed sources of supply.

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• Key Concepts: 
  Determining Source of Supply is a feature of SAP SRM-Sourcing and Contracting that allows users to identify the best source of supply for a given product or service. This feature helps users to make informed decisions about which supplier to use for a particular purchase. It also helps to ensure that the best possible price is obtained for the product or service. 
  
  How to use it: 
  To use the Determining Source of Supply feature, users must first define the criteria for selecting a supplier. This includes factors such as price, quality, delivery time, and other relevant criteria. Once the criteria have been defined, users can then search for suppliers that meet these criteria. The system will then generate a list of potential suppliers and their associated prices. Users can then select the supplier that best meets their needs. 
  
  Tips & Tricks: 
  When using the Determining Source of Supply feature, it is important to consider all relevant factors when selecting a supplier. This includes not only price but also quality, delivery time, and other factors that may affect the overall cost of the purchase. Additionally, it is important to compare multiple suppliers in order to ensure that the best possible price is obtained. 
  
  Related Information: 
  The Determining Source of Supply feature is part of SAP SRM-Sourcing and Contracting. Other features of this module include creating and managing contracts, managing supplier relationships, and tracking supplier performance. Additionally, SAP SRM-Sourcing and Contracting integrates with other SAP modules such as Materials Management (MM) and Financials (FI).