Let's take a look at the two types of procurements in the SAP MM module :
1. Basic procurement : The procedure of buying suitable materials and services in the right quantities at the right time at the lowest prices is basic procurement. The various steps in basic procurement include:
* Gathering information : The procurement process starts with collecting details about a product and quantity. Depending on the number of required products, the module contacts the appropriate suppliers.
* Contacting Suppliers : Depending on the demand, the selected suppliers fulfil the orders.
* Rating products and services : The materials management team rates products and services based on their performance. Depending on the product's rating, the team contacts the same suppliers for repeat orders or contacts new suppliers.
2. Special procurement : Products that do not belong to the company are special procurement. Some of the common types of special procurement and unique stocks include:
* Consignment stocks : These are materials that are available at the store premises. But to use them, the seller has to pay the vendor.
* Third-party processing : The seller passes the orders to the vendor who delivers the product directly to the customer.
* Pipeline handling : The vendor stocks the material at their premises, even after the seller places the order. Whenever a customer places an order, the seller gets the material from the vendor and delivers it to the customer.
