Direct Material Sourcing (4RD)

Direct Material Sourcing (4RD)

Direct material sourcing process allows the central purchaser to get an overview of all the direct material requirements across various plants and carry out the sourcing of the material requirements appropriately.

In this process, the central purchaser can create a sourcing event (sourcing project) to conduct sourcing with the competitive suppliers. The central purchaser can evaluate them to finally award the business to one or more capable suppliers, and create relevant documents such as purchase orders or central contracts to enable operational procurement of direct materials.

Key Process Steps Covered

  • Create sourcing project
  • Add competitive suppliers to provide competitive bids
  • Add right set of supporting documents
  • Negotiate with select suppliers in multiple rounds as needed
  • Create and manage awarding scenarios
  • Create purchase order or central contract

Benefits

  • Get cost savings
  • Improve efficiency by shortened sourcing cycle time
  • Gain process transparency
  • Integrate source to contract business process fully

Where is Direct Material Sourcing(4RD) being used?

This Scope item is used in the following way:

  • As a management function of Sourcing and Contract Management within Sourcing and Procurement Scope Item Group
  • As a core function of Central Procurement within Sourcing and Procurement Scope Item Group

Process flow of Direct Material Sourcing (4RD)

Find below the process flow of the scope item Direct Material Sourcing as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Direct Material Sourcing (4RD) - S/4HANA OP
Ref: Sourcing and Procurement of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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