What is 'target value' in SAP SRD-SRM-SC - SRM-Sourcing and Contracting?

target value - Overview

• Component: SRD-SRM-SC

• Component Name: SRM-Sourcing and Contracting

• Description: The total value that a buyer agrees to spend on a contract or a contract item during the validity period of the contract.

target value - Details

• 
  Key Concepts: 
  Target value is a term used in SAP SRM-Sourcing and Contracting to refer to the desired outcome of a sourcing event. It is the value that the buyer wishes to achieve through the sourcing process, such as a certain price or quality level. The target value is set by the buyer and is used to evaluate the bids received from suppliers. 
  
  How to use it: 
  When setting up a sourcing event in SAP SRM-Sourcing and Contracting, the buyer will need to define a target value. This target value should be based on the buyer’s desired outcome for the sourcing event, such as a certain price or quality level. The target value will then be used to evaluate the bids received from suppliers. 
  
  Tips & Tricks: 
  When setting a target value, it is important to consider both short-term and long-term goals. For example, if the goal is to get the lowest price possible, it may be beneficial to set a lower target value in order to attract more competitive bids. However, if quality is more important than price, then it may be better to set a higher target value in order to ensure that suppliers are providing high-quality products or services. 
  
  Related Information: 
  For more information on setting up and managing sourcing events in SAP SRM-Sourcing and Contracting, please refer to the official SAP