What is a common practice when managing supplier relationships in SAP S/4HANA?

Prepare for the SAP S/4HANA Cloud Private Edition, Sourcing and Procurement exam with flashcards and multiple-choice questions. Understand every question with hints and explanations. Ensure your success on the exam!

Managing supplier relationships effectively in SAP S/4HANA involves a comprehensive approach, and conducting valid performance reviews is a fundamental practice. This process entails systematically evaluating suppliers based on various criteria such as quality, delivery performance, and service. The reviews provide insights into supplier capabilities and help organizations identify areas for improvement, fostering a collaborative relationship aimed at mutual benefit.

By prioritizing performance reviews, companies can not only ensure they are working with reliable suppliers but can also drive continuous improvement in their supply chain processes. This practice ultimately contributes to better product quality, timely deliveries, and enhanced overall procurement efficiency.

The other choices do not align with effective supplier relationship management. Focusing only on pricing neglects other critical factors that contribute to a successful partnership. Emphasizing one-time procurement does not encourage the development of long-term relationships that can yield strategic advantages. Reducing all communication to emails limits the ability to engage in meaningful dialogue, which is essential for building trust and resolving issues that may arise.

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