3.4    Optimizing Supplier Relationships: SAP Supplier Relationship Management

The purchasing department of a business is invested in collaborating with good suppliers for a long time. Of course, it’s always best to procure the required goods or services as cost-effectively as possible. However, there may be reasons not to decide on the supplier who offers the lowest prices. This may be the case if, for example, a more expensive supplier offers a better delivery service that can ensure fast and easy delivery despite possible bottlenecks.

The purpose of SAP Supplier Relationship Management (SAP SRM) is to optimize business relationships with existing and potential suppliers. It lets you strategically plan and control relationships with these suppliers by integrating them closely with the purchasing processes. SAP SRM supports contract and supplier management, supplier selection, supplier qualification, creation of purchase orders, source determination, creation of invoices, and credit memos.