Supplier Hierarchies - Why we need it ?
Hello All ,
I know that is very basic question , but by the help.sap.com documentation am not able to understand from business point of view ,
Why we need "Supplier Hierarchies" ? How it adds value to customer in SRM / SLC ? .
Thanks in advance .
Channa.
Hi Channappa
Please find below some information ..
We generally have these 3 types of hierarchies listed below .. and the reason for the vendor hierarchy in layman's term is to basically do grouping of the Vendors for whom you want the same rules to apply or they have multiple contact point but have to be a apart of the same vendor ..
Product category hierarchies
Supplier hierarchies
Central contract hierarchies
The structure of a vendor's organization is likely to change over time. For this reason, the vendor hierarchies you create to represent your vendors must be flexible. For example, you can move or change nodes within a hierarchy. When you reassign a node to a new location in the hierarchy, the system automatically reassigns any vendors, and other nodes, which are attached to the node you are moving. This reduces the amount of vendor master data you have to maintain.
In addition, when you assign a new vendor to an existing hierarchy, you ensure that the vendor automatically inherits, for example, all pricing agreements that apply to this hierarchy node.
Apart from this they are mainly employed for reporting purposes. They also guarantee, for example, that releases against contracts are made within a particular vendor hierarchy.
Refer all links below for more information
http://help.sap.com/saphelp_47x200/helpdata/en/12/0845cd470311d1894a0000e8323352/content.htm?frameset=/en/12/084683470311d1894a0000e8323352/frameset.htm¤t_toc=/en/50/94f500470e11d1894a0000e8323352/plain.htm&node_id=166&show_children=false
http://help.sap.com/saphelp_45b/helpdata/EN/12/084669470311d1894a0000e8323352/frameset.htm
http://help.sap.com/saphelp_srm70/helpdata/en/45/f1f12c68063112e10000000a1553f7/frameset.htm
http://help.sap.com/saphelp_srm50/helpdata/en/43/2022b83fbc2be8e10000000a11466f/content.htm
http://help.sap.com/saphelp_srm50/helpdata/en/fd/dc804258544b76e10000000a155106/frameset.htm
http://help.sap.com/saphelp_srm703/helpdata/en/45/f1f12c68063112e10000000a1553f7/content.htm?frameset=/en/74/344c430fab4d0bbc30996d56cc293a/frameset.htm
http://help.sap.com/static/saphelp_rc10/en/43/4d1f3fde9657bfe10000000a155369/Chap%2002%20CA%20Cross-Application%20Components.pdf
Hope it helped .
Regards
Vinita
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