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

SAP Term: target value

• 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.

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• 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 documentation. Additionally, there are many online resources available that provide tips and best practices for setting up and managing sourcing events in SAP SRM-Sourcing and Contracting.