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 location and product.

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 302 - Supplier Transit Cost and Lead Time.

ParameterDescription
Supplier Rank (Master Data)Based 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 302 - Supplier Transit Cost and Lead Time.
Default Transit Cost302 - Supplier Transit Cost and Lead Time or the Sourcing Option.
Default Landed CostThe sum of the Product Cost and Default Transit Cost values.
Lowest Landed CostThe sum of the Product Cost and Lowest Transit Cost values.
Effective Default Transport ModeDefault transit mode set in 302 - Supplier Transit Cost and Lead Time.
Selected Transport ModeDefault mode of transport set in 302 - Supplier Transit Cost and Lead Time.
Supplier SelectionShows if the supplier is selected or not.
Split (%)Percentage of stock that's procured from a specific supplier.
AlertNotifies if transportation modes are missing. 

In this section, you can compare product, transit, and landed costs. The Supplier-Mode Selection column displays the supplier and transit mode selected in 302 - Supplier Transit Cost and Lead Time in a light-green color.

ParameterDescription
Product CostThe cost of the product set in 302 - Supplier Transit Cost and Lead Time.
Transit CostThe transportation cost based on selection in 302 - Supplier Transit Cost and Lead Time.
Landed CostThe sum of the Product Cost and Transit Cost values.
Rank by the Lowest Landed CostThe product, supplier, and transportation ranked based on the Landed Cost.
Effective Default Transport ModeThe default transit mode set in 302 - Supplier Transit Cost and Lead Time.
Supplier-Mode SelectionThe combination of selected supplier, product, and transit mode.
Split (%)The percentage of stock procured from the product, supplier, and transportation mode combination.
AlertNotifies if transportation modes are missing.

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.

ParameterDescription
Sourcing Option

Specify how procurement is sourced:

  • Preferred Supplier: Set in 302 - Supplier Transit Cost and Lead Time. If selected, 100% of the stock is 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.