<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000159" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">To select external suppliers</Title>
		<Keyword><Level1>select external suppliers</Level1>
		</Keyword>
		<Keyword><Level1>supply</Level1>
		</Keyword>
	</Header>
	<GeneralSection><Paragraph>Order-based purchase planning in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> handles the generation and planning of purchase orders.</Paragraph>
		<Paragraph>Purchase planning chooses between alternative suppliers and distributes volumes over these suppliers on the basis of constraints and rules.</Paragraph>
		<List><ListIntro>You can specify these constraints and rules in the following sessions:</ListIntro>
			<ListItem><GUIRef href="/baanerp/td/ipu/tdipu0110m000" role="session">Item - Purchase Business Partner (tdipu0110m000)</GUIRef> (in <GUIRef href="/baanerp/tc" role="package">Common Data</GUIRef> ).</ListItem>
			<ListItem><GUIRef href="/baanerp/cp/rpd/cprpd7120m000" role="session">Supply Strategy (cprpd7120m000)</GUIRef> (in Enterprise Planning).</ListItem>
		</List>
		<Paragraph>Purchase planning uses <Link href="/baanerp/cp/glossary/glossary#000105" role="glossary">supply strategies</Link> with supply type <GUIRef href="/baanerp/cp/domains/com.soty#external" role="enum">Purchase</GUIRef>.</Paragraph>
	</GeneralSection>
	<Note><SectionTitle>Note</SectionTitle>
		<List><ListIntro>If a plan item has no valid supply strategy, SSA ERP uses the following values by default:</ListIntro>
			<ListItem><Link href="/baanerp/cp/glossary/glossary#000107" role="glossary">Priority rule</Link>: <GUIRef href="/baanerp/cp/domains/rpd.ispr#priority" role="enum">Priority</GUIRef>.</ListItem>
			<ListItem><Link href="/baanerp/cp/glossary/glossary#000108" role="glossary">Allocation rule</Link>: <GUIRef href="/baanerp/cp/domains/com.diru#percentage" role="enum">Percentage</GUIRef>.</ListItem>
		</List>
	</Note>
	<GeneralSection><SectionTitle>Unit effectivity</SectionTitle>
		<Paragraph>When SSA ERP searches for suppliers, SSA ERP takes into account the <Link href="/baanerp/tc/glossary/glossary#000308" role="glossary" Update="No">exceptions</Link> that you link to buy-from business partners and sourcing strategies. With these exceptions, you can influence the way in which SSA ERP selects supply sources in two ways:</Paragraph>
		<List><ListItem>Link an <Link href="/baanerp/tc/glossary/glossary#000308" role="glossary" Update="No">exception</Link> to a <Link href="/baanerp/tc/glossary/glossary#BuyfroBusine.tc" role="glossary">buy-from business partner</Link> in the <GUIRef href="/baanerp/td/ipu/tdipu0110m000" role="session">Item - Purchase Business Partner (tdipu0110m000)</GUIRef> session.</ListItem>
			<ListItem>Link an exception to a <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link> in the <GUIRef href="/baanerp/cp/rpd/cprpd7110m000" role="session">Sourcing Strategy (cprpd7110m000)</GUIRef> session.</ListItem>
		</List>
		<Paragraph>For more information about unit effectivity, refer to <Link href="/baanerp/cp/onlinemanual/000308" role="manual">Unit effectivity in Enterprise Planning</Link>.</Paragraph>
	</GeneralSection>
	<GeneralSection><SectionTitle>If a supplier cannot deliver</SectionTitle>
		<Paragraph>If SSA ERP cannot find a valid supplier for a requirement at a certain moment, it creates a purchase order for an empty supplier and generates a signal. If you specified a supplier as single source supplier, and this supplier cannot deliver the demand at a certain moment, SSA ERP does not generate a purchase order, but tries to fulfill the demand with the supply source distribution or purchase following the <Link href="/baanerp/cp/glossary/glossary#000104" role="glossary">sourcing strategy</Link> that you defined. If you did not specify a sourcing strategy for the item, SSA ERP does not create orders, but generates a signal.</Paragraph>
		<ProcedureSection><SectionTitle>Procedure</SectionTitle>
			<ProcIntro><ProcedureList><ListIntro>During order-based supply planning, the following steps are carried out for each required plan item:</ListIntro>
					<ListItem>Determine the requirements.</ListItem>
					<ListItem>Determine the source of supply (production, purchase, or distribution).</ListItem>
					<ListItem>Arrange the suppliers in order of preference ( SSA ERP takes into account the value set in the <GUIRef href="/baanerp/td/ipu/tdipu0110m000#tdipu010.prio" role="formfield">Priority</GUIRef> field).</ListItem>
					<ListItem>Determine the volume by supplier by the value set in the <GUIRef href="/baanerp/cp/rpd/cprpd7120m000#cprpd720.diru" role="formfield">Allocation Rule</GUIRef> field in the <GUIRef href="/baanerp/cp/rpd/cprpd7120m000" role="session">Supply Strategy (cprpd7120m000)</GUIRef> session, and determine the lot size restrictions, and capacity restrictions.</ListItem>
					<ListItem>Determine the delivery date and order date by supplier.</ListItem>
				</ProcedureList>
			</ProcIntro>
			<Steps><Step><StepTitle>Determine the requirements</StepTitle>
					<Paragraph>The master planning engine or the order planning engine determines the required volume and the requirements date.</Paragraph>
				</Step>
				<Step><StepTitle>Determine the source of supply</StepTitle>
					<Paragraph>SSA ERP determines how much of a requirement is covered by purchase on the basis of either a valid sourcing strategy or the plan item's default source. See <Link href="/baanerp/cp/onlinemanual/000410" role="manual">Sources of supply: production, purchase, or distribution</Link>.</Paragraph>
				</Step>
				<Step><StepTitle>Put the suppliers in order of preference</StepTitle>
					<Paragraph>SSA ERP orders the suppliers in accordance with the <Link href="/baanerp/cp/glossary/glossary#000107" role="glossary">priority rule</Link> that is effective on the requirement date. You define the priority rule in the <GUIRef href="/baanerp/cp/rpd/cprpd7120m000" role="session">Supply Strategy (cprpd7120m000)</GUIRef> session.</Paragraph>
				</Step>
				<Step><StepTitle>Determine the delivery date and order date by supplier</StepTitle>
					<Paragraph>SSA ERP uses various calendars to determine the finish date (delivery date) and the start date (order date). See <Link href="/baanerp/cp/onlinemanual/000161" role="manual">To compute supply lead-times</Link>.</Paragraph>
				</Step>
				<Step><StepTitle>Determine the volume by supplier</StepTitle>
					<Paragraph>SSA ERP distributes the required volume over the suppliers in the order calculated in step 3.</Paragraph>
					<Paragraph>For more details, see <Link href="/baanerp/cp/onlinemanual/000058" role="manual">To compute purchase order quantities</Link>.</Paragraph>
				</Step>
			</Steps>
			<GeneralSection><Paragraph>This process is carried out in multiple phases. If, after a phase, all the requirements have not been covered, SSA ERP proceeds with the next phase. In each phase, SSA ERP plans the volume based on the <Link href="/baanerp/cp/glossary/glossary#000108" role="glossary">allocation rule</Link>.</Paragraph>
			</GeneralSection>
		</ProcedureSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000305" role="manual">Supply planning</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000058" role="manual">To compute purchase order quantities</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000161" role="manual">To compute supply lead-times</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000046" role="manual">Allocation rule: historic percentage</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000410" role="manual">Sources of supply: production, purchase, or distribution</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000060" role="manual">Lot sizing</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
