What is 'external procurement' in SAP SRD-SRM - SRM-Supplier Relationship Management?

external procurement - Overview

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: The purchasing of products from a source of supply outside an enterprise, such as a supplier.

external procurement - Details

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  Key Concepts: 
  External procurement is a process in SAP Supplier Relationship Management (SRM) that enables organizations to purchase goods and services from external suppliers. It involves the selection of suppliers, negotiation of contracts, and management of the procurement process. The goal of external procurement is to ensure that the organization obtains the best value for its money while maintaining a good relationship with its suppliers.
  
  How to use it: 
  External procurement in SAP SRM is managed through a series of steps. First, the organization must identify potential suppliers and evaluate them based on criteria such as price, quality, and delivery time. Once a supplier has been selected, the organization must negotiate a contract with them. This includes setting payment terms, delivery schedules, and other details. Finally, the organization must manage the procurement process by tracking orders, monitoring deliveries, and resolving any issues that arise.
  
  Tips & Tricks: 
  When selecting suppliers for external procurement, it is important to consider factors such as their reputation, experience, and ability to meet deadlines. Additionally, it is important to ensure that all contracts are clearly written and include all necessary details. Finally, it is important to monitor the procurement process closely to ensure that orders are being fulfilled on time and that any issues are addressed quickly.
  
  Related Information: 
  For more information about external procurement in SAP SRM, please refer to the official