Sourcing and Contract Management enables you to create and

monitor new sources of supply through the RFQ process, and manage
procurement contracts. The sourcing process can also be further
extended by integrating with Ariba capabilities to collaborate with
suppliers.

Sourcing and contract management includes:

 Source Assignment
o A source assignment is the supplier that will deliver the
agreed-upon materials or services negotiated in the
purchase contract.
 Purchase Contract Management
o A purchase contract is a legally binding agreement with
suppliers to supply materials or services under negotiated
conditions and within a certain period.

Central Procurement enables the integration of the SAP S/4HANA

procurement hub system with multiple SAP ERP and S/4HANA back-
end systems. This allows centralization of procurement operations and
execution as in a shared service model. It also provides central view of
procurement across different business units or geographies spread
across multiple operational systems.