What is strategic purchasing in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

SAP Term: strategic purchasing

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: The process of planning and determining the long-term purchasing activities within a company. It uses RFQ and contract management processes to achieve long-term cost savings and improved service levels among chosen suppliers.

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• Key Concepts: 
  Strategic purchasing is a process used by organizations to purchase goods and services in a way that maximizes value and minimizes costs. It involves analyzing the organization’s needs, researching potential suppliers, negotiating contracts, and managing the relationship with suppliers. Strategic purchasing is an important part of supply chain management and is used to ensure that the organization is getting the best value for its money. 
  
  How to use it: 
  In SAP SRM-Sourcing and Contracting, strategic purchasing is used to manage the entire procurement process from start to finish. It includes features such as supplier selection, contract negotiation, and supplier performance management. The system also provides tools for analyzing supplier data and creating reports to help organizations make informed decisions about their purchasing strategies. 
  
  Tips & Tricks: 
  When using SAP SRM-Sourcing and Contracting for strategic purchasing, it is important to keep track of all supplier data and contracts. This will help ensure that the organization is getting the best value for its money. Additionally, it is important to regularly review supplier performance and adjust contracts as needed. 
  
  Related Information: 
  For more information on strategic purchasing in SAP SRM-Sourcing and Contracting, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tips and tricks for using the system effectively.