Understanding Source of Supply Determination

This guide is designed for end-users interacting with our Order Management System that includes a custom-built module for determining the source of supply for Purchase Requisitions (PR).

Overview of the Source Determination Process

In our Order Management System, the source of supply for each product is determined through a series of steps programmed into the system.

  1. Searching for suitable suppliers:
    Suppliers are searched and filtered by the following aspects:
    • ordered Material
    • Plant, Purchasing Organization, Purchasing Group
    • Marked for Deletions not set
    • Puchasing Info Record Category
    • Price Validity End Date
  2. Choosing the suitable Supplier

How the System Chooses Suppliers

The Order Management System follows a distinct logic to select the best supplier:

  • Single vs. Multiple Supplier Records: If only one supplier record matches the criteria, that supplier is automatically chosen. When multiple records are found, the system employs further logic to pick the best option.
  • Regular Supplier Preference: If a regular supplier is identified among the options and meets the required criteria, they are given preference.
  • Cost Consideration: In cases where no regular supplier is identified , the system searches for the most economical option.