What is 'prioritize source of supply' in SAP SRD-SRM - SRM-Supplier Relationship Management?

prioritize source of supply - Overview

• Component: SRD-SRM

• Component Name: SRM-Supplier Relationship Management

• Description: To determine the sequence in which sources of supply are assigned to a specific product.

prioritize source of supply - Details

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  Key Concepts: 
  Prioritize source of supply is a feature of SAP Supplier Relationship Management (SRM) that allows users to assign a priority to each source of supply for a particular material. This helps ensure that the most cost-effective and reliable supplier is chosen for each material. 
  
  How to use it: 
  To prioritize source of supply in SAP SRM, users must first create a source list for the material in question. This source list should include all potential suppliers for the material, along with their respective prices and delivery times. Once the source list is created, users can assign a priority to each supplier by selecting the “Prioritize Source of Supply” option in the SRM menu. 
  
  Tips & Tricks: 
  When prioritizing sources of supply, it is important to consider not only price and delivery time, but also quality and reliability. It is also important to regularly review and update the source list to ensure that it reflects the most up-to-date information about suppliers. 
  
  Related Information: 
  For more information about prioritizing sources of supply in SAP SRM, please refer to the SAP Help Portal or contact your local SAP representative.