On this page, you can select a preferred sourcing strategy for a location, product, transport, and supplier combination based on the cost.

Use the right-hand context selector dropdown to select a plant.

Sourcing Option

In this section, you can select the preferred option based on which sourcing strategy and procurement cost estimation can be performed. 

Source Selection

In this section, you can verify and make comparisons based on the system-generated cost estimations. The calculations are performed based on the Sourcing Option selection and location, product, supplier, and transit mode set in D3702 - Supplier Master Data. 

Transport Mode Selection

In this section, you can compare product, transit, and landed costs. The Supplier-Mode Selection column displays the supplier and transit mode selected in D3702 - Supplier Master Data in a light-green color.

Manual Override

In this section, you can apply a procurement override to the default selected product and transit mode combination. 

For example, Florida DC procures 33% of 128 GB Smartphones from Inventory Source via Rail mode. You can manually override the procurement percentages for Florida DC to 17% via Road mode, and 16% via Rail mode.

Note: When you select Perpetuate Sourcing Overrides checkbox, the changes are reflected across the time horizon.

Parameters

Edit Parameters

ParameterDescription
Sourcing Option
  • Preferred Supplier: set in D3702 - Supplier Master Data. When the Preferred Supplier option is selected, 100% of the stock will be fulfilled using the preferred supplier.
  • Lowest Cost: the supplier with the lowest procurement cost is selected.
  • Highest Sustainability Score: the supplier with the highest sustainability score is selected for procurement.
  • Even Split: procurement is split evenly across all suppliers.
Perpetuate Sourcing OverridesThe supplier's overrides are applied across the time horizon.

Source Selection

ParameterDescription
Supplier RankBased on the Sourcing Option selected.
Sustainability ScoreCalculated based on the Sourcing Option selected.
Product CostCost of the product based on the transit mode set in D3702 - Supplier Master Data.
Default Transit CostDefault transportation mode as set in the D3702 - Supplier Master Data or the Sourcing Option.
Default Landed CostProduct Cost + Default Transit Cost.
Lowest Landed CostProduct Cost + Lowest Transit Cost.
Effective Default Transport ModeDefault transit mode set in D3702 - Supplier Master Data.
Selected Transport ModeDefault mode of transport set in D3702 - Supplier Master Data.
Supplier SelectionShows if the supplier is selected or not.
Split (%)Percentage of stock that's procured from a specific supplier.

Transport Mode Selection

ParameterDescription
Product CostCost of the product set in D3702 - Supplier Master Data.
Transit CostTransportation cost based on selection in D3702 - Supplier Master Data.
Landed CostProduct Cost + Transit Cost.
Rank by the lowest Landed CostProduct, supplier, and transportation ranked based on the Landed Cost.
Effective Default Transit ModeCurrent effective transportation mode set in D3702 - Supplier Master Data.
Supplier Mode SelectionThe combination of selected supplier, product, and transit mode.
Split (%)Percentage of stock procured from the product, supplier, and transportation mode combination.
AlertDisplay notifications if transportation modes are missing.

Additional information

  • Search : look for an item.
  • Filter : filter grid data based on the condition selected from the dropdown that appears in the right-hand panel.
  • Sort : sort grid data based on alerts, rows, or columns.
  • Show/Hide : show or hide alerts, rows, or columns.
  • Comment on card : to comment on the card.
  • Exports: export the current view.