Which of the following is NOT a benefit of using central purchasing in SAP S/4HANA?

Prepare for the SAP S/4HANA Cloud Private Edition, Sourcing and Procurement Test with interactive flashcards and multiple choice questions, each complete with explanations. Ace your certification exam!

Central purchasing in SAP S/4HANA emphasizes efficiency and effectiveness in procurement tasks. One of the primary benefits is the reduction in purchasing time. By centralizing purchasing processes, organizations can streamline approvals, consolidate orders, and utilize standardized workflows, which collectively cut down the time spent on procurement activities.

Improved supplier relationships are also a significant advantage of central purchasing. By consolidating purchasing decisions and orders, organizations can create long-term partnerships with suppliers, which fosters trust and collaboration, leading to better service and product quality.

Another crucial benefit is the potential for better pricing agreements. Central purchasing allows organizations to leverage their combined buying power across different departments or business units. This aggregation increases negotiation strength and leads to more favorable terms and pricing from suppliers.

In contrast, increased manual processing contradicts the objectives of central purchasing. One of the main goals of central purchasing is to minimize manual tasks through automation and optimization of processes. Therefore, this option is clearly not a benefit of central purchasing in SAP S/4HANA.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy