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Management of supply

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Previously, sourcing is one of the corporate practices that has been carried out by different organizations. However, due to developments in organizations, the majority of administrators favor a structured structure that reduces cases of pilgrimage (McCue & Roman, 2012). However, in such a situation, an organization is expected to face difficulties in managing such operations with the same number of employees. As such, SAP offers a myriad of options that can be crucial to helping an enterprise navigate a centralized procurement structure.
Sourcing is one of the options SAP provides to corporate recruitment divisions. Considerably, outsourcing is one of the new ways of managing companies; most organizations prefer using vendors for services or materials that do not lie within the core activities of an organization. Therefore, considering that outsourcing is a new and popular practice for organizations then the Sourcing package that is provided by SAP appears ideal for the current business environment. For the Sourcing service that is provided by SAP, an organization is in a position to compare and contrast sourcing practices and end up choosing what appears suitable (SAP, 2011). It is important to note that sourcing is recurrent. As such, there might be the need to change vendors. In this case, one will be required to recruit different partners, and therefore with such statistics within a system, it becomes easy for managers to get the desired supplier.
Another essential aspect of the sourcing service provided by SAP is that it presents an opportunity for a company to initiate a competition among suppliers through an online system (SAP, 2011). The online system creates a platform where the providers give descriptions about their nature of services or products. Consequently, this gives a company the ability to get the best products at a fair price.
McCue, C., & Roman, A. V. (2012). E-procurement: Myth or reality? Journal of Public Procurement, 12(2), 221.
SAP. (2011). Procurement Solutions from SAP Enabling Excellence for Procurement Organizations. Retrieved from

August 09, 2021


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