Question

What is meant by source of supply determination? What are the different ways of identifying a source of supply?

Answer 1

Answer: A source of supply basically defines where or how a product is procured. Source of supply determination is triggered when a new item is created or when there is a change in the logic of determination.

Different ways to identify a source of supply:

1. Classic way: In the case of the classic scenario the source of supply can be identified with the help of a purchasing agreement, purchasing info record.

2. Extended classic or local way: In the case of local scenario the potential source of supply would be quota arrangement, interlinkage, SRM contract (Negotiation between supplier and organization).