What is contract leakage in SAP SRM-CM - SRM Category Management?

SAP Term: contract leakage

• Component: SRM-CM

• Component Name: SRM Category Management

• Description: An indicator used for monitoring purposes. It designates spending value that doesn't reference a contract.

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• Key Concepts: 
  Contract leakage is a term used in SAP SRM-CM Category Management to describe the situation when a contract is not used for a purchase. This can happen when a contract is not visible to the buyer, or when the buyer chooses to purchase from an alternative source. 
  
  How to use it: 
  Contract leakage can be avoided by ensuring that contracts are visible to buyers and that they are aware of the benefits of using them. This can be done by providing buyers with access to the contracts, as well as providing them with training on how to use them. Additionally, buyers should be encouraged to use contracts whenever possible. 
  
  Tips & Tricks: 
  It is important to monitor contract leakage in order to identify any areas where contracts are not being used. This can help identify any issues that may be preventing buyers from using contracts, such as lack of visibility or lack of training. Additionally, it can help identify any areas where contracts may need to be improved in order to make them more attractive to buyers. 
  
  Related Information: 
  Contract leakage is closely related to contract compliance, which is the process of ensuring that buyers are using contracts whenever possible. Contract compliance can be monitored through reports and analytics, which can help identify any areas where contracts are not being used and provide insights into how they can be improved. Additionally, contract compliance can be improved through training and education for buyers on how to use contracts effectively.