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<ManualTopic ID="/baanerp/cp/onlinemanual/000158" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Sourcing strategies</Title>
		<Keyword><Level1>Selecting supply sources</Level1>
		</Keyword>
		<Keyword><Level1>Supply sources</Level1>
			<Level2>selecting</Level2>
		</Keyword>
		<Keyword><Level1>Sourcing strategy</Level1>
		</Keyword>
	</Header>
	<AimSection><Paragraph>This topic contains an overview of the functionality of sourcing strategies.</Paragraph>
	</AimSection>
	<GeneralSection><SectionTitle>Three sources of supply</SectionTitle>
		<List><ListIntro><GUIRef href="" role="manual" Update="No">Enterprise Planning</GUIRef> works with three sources of supply:</ListIntro>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#manufacture" role="enum">Production</GUIRef> – manufacture goods at a production facility</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#purchase" role="enum">Purchase</GUIRef> – acquire goods from a business partner</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/domains/rpd.act.sour#distribution" role="enum">Distribution</GUIRef> – acquire goods from elsewhere in your company or from an <Link href="/baanerp/tc/glossary/glossary#AffiliCompan.tc" role="glossary">affiliated company</Link>
			</ListItem>
		</List>
	</GeneralSection>
	<GeneralSection><SectionTitle>Default supply source</SectionTitle>
		<Paragraph>Per item you can define a default supply source in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session. If you want to use one permanent supply source, this is enough. This default supply source is independent of the value that you specified in the <GUIRef href="/baanerp/tc/ibd/tcibd0101s000#tcibd001.kitm" role="formfield">Item Type</GUIRef> field in the <GUIRef href="/baanerp/tc/ibd/tcibd0501m000" role="session">Items - General (tcibd0501m000)</GUIRef> session.</Paragraph>
		<Note><SectionTitle>Note</SectionTitle>
			<Paragraph>Sourcing strategies have priority over the default supply source. If an applicable sourcing strategy exists, <GUIRef href="" role="manual" Update="No">Enterprise Planning</GUIRef> uses the sourcing strategy, and ignores the default source.</Paragraph>
		</Note>
	</GeneralSection>
	<GeneralSection><SectionTitle>Sourcing strategy</SectionTitle>
		<Paragraph>If you want to use more than one source of supply, or deviate from the default source in one particular scenario, you must define a <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link> for the item involved.</Paragraph>
		<Paragraph>You can define sourcing strategies in the <GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef> session.</Paragraph>
		<GeneralSection><SectionTitle>Scenario and validity period</SectionTitle>
			<Paragraph>A sourcing strategy is valid for a particular <Link href="/baanerp/cp/glossary/glossary#000007" role="glossary">scenario</Link>.</Paragraph>
			<Paragraph>A sourcing strategy is valid for a particular time period. You can enter an effective date and an expiry date for a source strategy to determine for which time period the sourcing strategy is valid.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Sourcing strategies for clusters and item groups</SectionTitle>
			<Paragraph>You can link a sourcing strategy directly to a <Link href="/baanerp/ti/glossary/glossary#PlanItems.ti" role="glossary">plan item</Link> or link the sourcing strategy indirectly, via a <Link href="/baanerp/cp/glossary/glossary#000315" role="glossary">cluster</Link> or <Link href="/baanerp/tc/glossary/glossary#000007" role="glossary">item group</Link>.</Paragraph>
			<Paragraph>For more information, refer to <Link href="/baanerp/cp/onlinemanual/000057" role="manual">To search sourcing strategies</Link>
			</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Unit effectivity</SectionTitle>
			<Paragraph>In addition, you can define a unit effective <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link>, which means that you link an <Link href="/baanerp/tc/glossary/glossary#000308" role="glossary" Update="No">exception</Link> to to the sourcing strategy. In this way, you can model (small) deviations from a standard sourcing strategy for a specific period.</Paragraph>
			<Paragraph>For more information about unit effectivity, see <Link href="/baanerp/cp/onlinemanual/000308" role="manual">Unit effectivity in Enterprise Planning</Link>.</Paragraph>
		</GeneralSection>
		<GeneralSection><SectionTitle>Source allocation rule</SectionTitle>
			<List><ListIntro>When you define a sourcing strategy, you must choose between the following:</ListIntro>
				<ListItem><GUIRef href="/baanerp/cp/domains/com.soal#percentage" role="enum">Percentage</GUIRef>
				</ListItem>
				<ListItem><GUIRef href="/baanerp/cp/domains/com.soal#priority" role="enum">Priority</GUIRef>
				</ListItem>
			</List>
			<GeneralSection><SectionTitle>Source allocation rule: Percentage</SectionTitle>
				<Paragraph>If the source allocation rule is <GUIRef href="/baanerp/cp/domains/com.soal#percentage" role="enum">Percentage</GUIRef>, you define the percentage for each source in the <GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef> session.</Paragraph>
				<Paragraph>In <Link href="/baanerp/cp/glossary/glossary#000059" role="glossary">master-based planning</Link>, SSA ERP distributes the <Link href="/baanerp/cp/glossary/glossary#000073" role="glossary">supply plan</Link> according to these percentages for each plan period.</Paragraph>
				<Paragraph>In <Link href="/baanerp/cp/glossary/glossary#000060" role="glossary">order-based planning</Link>, the percentages can be used in two ways:</Paragraph>
				<List><ListItem>If you select the <GUIRef href="/baanerp/cp/rrp/cprrp1210m000#f.multi.sources" role="field">Allow Multiple Sources per Req.</GUIRef> check box in the <GUIRef href="/baanerp/cp/rrp/cprrp1210m000" role="session">Generate Order Planning (cprrp1210m000)</GUIRef> session or the <GUIRef href="/baanerp/cp/rrp/cprrp1220m000" role="session">Generate Order Planning (Item) (cprrp1220m000)</GUIRef> session, SSA ERP uses the percentages to divide a single requirement over the various sources.</ListItem>
					<ListItem>If you clear the <GUIRef href="/baanerp/cp/rrp/cprrp1210m000#f.multi.sources" role="field">Allow Multiple Sources per Req.</GUIRef> check box, SSA ERP tries to approximate the percentages as closely as possible, but assigns each requirement to one source. In other words, SSA ERP does not split planned orders.</ListItem>
				</List>
				<Paragraph>For more information about source allocation in order planning, refer to <Link href="/baanerp/cp/onlinemanual/000347" role="manual">Example: source allocation in order planning</Link>.</Paragraph>
			</GeneralSection>
			<GeneralSection ID="A"><SectionTitle>Source allocation rule: Priority</SectionTitle>
				<Paragraph>If the source allocation rule is <GUIRef href="/baanerp/cp/domains/com.soal#priority" role="enum">Priority</GUIRef>, you define the priority for each source. The priority source-allocation rule only applies to order planning. In master planning, a priority source-allocation rule is interpreted as a <GUIRef href="/baanerp/cp/domains/com.soal#percentage" role="enum">Percentage</GUIRef> source-allocation rule.</Paragraph>
				<Paragraph>For more information about sourcing allocation rule <GUIRef href="/baanerp/cp/domains/com.soal#priority" role="enum">Priority</GUIRef>, refer to online manual topic <Link href="/baanerp/cp/onlinemanual/000347" role="manual">Example: source allocation in order planning</Link>.</Paragraph>
				<Note><SectionTitle>Note</SectionTitle>
					<Paragraph>If SSA ERP has first attempted to cover a requirement by selecting the source <GUIRef href="/baanerp/cp/domains/rpd.act.sour#purchase" role="enum">Purchase</GUIRef>, and this source cannot fulfill the requirement, the next step depends on the question whether the plan item's supplier is a <Emphasis>single-source</Emphasis> supplier.</Paragraph>
					<List><ListIntro>The behavior depends on the <GUIRef href="/baanerp/td/ipu/tdipu0110m000#tdipu010.pref" role="formfield">Preferred</GUIRef> field in the <GUIRef href="/baanerp/td/ipu/tdipu0110m000" role="session">Item - Purchase Business Partner (tdipu0110m000)</GUIRef> session:</ListIntro>
						<ListItemHead><GUIRef href="/baanerp/td/ipu/tdipu0110m000#tdipu010.pref" role="formfield">Preferred</GUIRef> is set to <GUIRef href="/baanerp/td/domains/ipu.pref#fixed" role="enum">Single Source</GUIRef>
						</ListItemHead>
						<ListItem>If the supplier cannot fulfill the required demand, SSA ERP uses the lower-priority supply sources ( <GUIRef href="/baanerp/cp/domains/rpd.act.sour#manufacture" role="enum">Production</GUIRef> or <GUIRef href="/baanerp/cp/domains/rpd.act.sour#distribution" role="enum">Distribution</GUIRef> ) from the sourcing strategy.</ListItem>
						<ListItemHead><GUIRef href="/baanerp/td/ipu/tdipu0110m000#tdipu010.pref" role="formfield">Preferred</GUIRef> is set to <GUIRef href="/baanerp/td/domains/ipu.pref#preferred" role="enum">Preferred</GUIRef>
						</ListItemHead>
						<ListItem>If the supplier cannot fulfill the required demand, SSA ERP generates a <Link href="/baanerp/cp/glossary/glossary#000047" role="glossary">planned production order</Link> with an empty supplier field.</ListItem>
					</List>
				</Note>
			</GeneralSection>
		</GeneralSection>
		<GeneralSection><SectionTitle>Minimum and maximum volume</SectionTitle>
			<Paragraph>Per supply source you can define minimum and maximum volumes, and define the time period ( <GUIRef href="/baanerp/cp/domains/rpd.sope#day" role="enum">Day</GUIRef>, <GUIRef href="/baanerp/cp/domains/rpd.sope#week" role="enum">Week</GUIRef>, <GUIRef href="/baanerp/cp/domains/rpd.sope#oint" role="enum">Order Interval</GUIRef> ) for which these limits apply.</Paragraph>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000046" role="manual">Allocation rule: historic percentage</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000347" role="manual">Example: source allocation in order planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000057" role="manual">To search sourcing strategies</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000159" role="manual">To select external suppliers</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000160" role="manual">To select internal suppliers</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000040" role="manual">To generate planned orders (RRP run)</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
