Direct Material Sourcing (4RD)

S/4HANA Cloud Sourcing & Procurement Scope Items

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

Additional Information

This scope item requires an additional SAP S/4HANA Cloud license

This scope item is excluded from the default activation

This scope item is bound with scope items 2ME, 2XT and 4RI and requires a separate license. Customers using this scope item must follow the set-up instructions in SAP Best Practices Explorer to configure the entire process.

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 s4hc-2111.

Download Process Flow of Best Practice scenario Direct Material Sourcing (4RD) - S/4HANA Cloud

Ref: Sourcing and Procurement of SAP S4HC-2111

Best Practices related to S/4HANA

Best Practices of SAP S/4HANA On Premise *1
Best Practices of SAP S/4HANA Cloud *2
Best Practices of SAP Analytics Cloud *2
Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

*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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