<?xml version="1.0" encoding="utf-8"?>
<ManualTopic ID="/baanerp/cp/onlinemanual/000159" xml:lang="en">
   <Header>
      <Title>To select external suppliers</Title>
      <Keyword type="header" order="d1e207584">
         <Level1>select external suppliers</Level1>
      </Keyword>
      <Keyword type="header" order="d1e207587">
         <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">Items - Purchase Business Partner (tdipu0110m000)</GUIRef> (in <GUIRef href="/baanerp/tc" role="package">Common</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="option">Purchase</GUIRef>.</Paragraph>
   </GeneralSection>
   <Note>
      <SectionTitle>Note</SectionTitle>
      <List>
         <ListIntro>If a plan item has no valid supply strategy, ERP Enterprise 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="option">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="option">Percentage</GUIRef>.</ListItem>
      </List>
   </Note>
   <GeneralSection>
      <SectionTitle>Unit effectivity</SectionTitle>
      <Paragraph>When ERP Enterprise searches for suppliers, ERP Enterprise 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 ERP Enterprise 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">Items - 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 ERP Enterprise 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, ERP Enterprise 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, ERP Enterprise 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 ( ERP Enterprise takes into account the value set in the <GUIRef href="/baanerp/td/ipu/tdipu0110m000#tdipu010.prio" role="manual">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="manual">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>ERP Enterprise 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>ERP Enterprise 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>ERP Enterprise 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>ERP Enterprise 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, ERP Enterprise proceeds with the next
			 phase. In each phase, ERP Enterprise 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>