Sourcing in APO SNP

[Former Member]

I am using APO V5.1.

I have a situation where a product at a DC can be sourced from multiple vendors.

There are no quotas, and the procurement priorities on the transport lanes are the same (set to default value of zero).

In this situation, how does the system select a vendor source?

Any feedback appreciated here...

[sourabh_jain66]

Hi BOB,

Yes, i would agree with Ravi here, ranking order for the valid, alternative sources of supply is as below;

· Quota arrangements

· Procurement priority

· Procurement costs

· Procurement type

In your case procurement type is also going to be same as external procurement, which is dealt by CTM as per external procurement type, which is very clearly mentioned in SAP help, link already shared by Ravi.

http://help.sap.com/saphelp_apo700_ehp03_on_erp/helpdata/en/da/8df3128121304a8dc1eef961a6d3a8/conten...

Rgds

Sourabh

[ravi_malpani]

Hi Bob,

I worked on a similar issue recently. If no quota arrangements are defined and priorities are same then the most cost efficient source is selected (The costs might consist of transportation and procurement costs).

You will find the exact ranking on below links:

http://help.sap.com/saphelp_apo700_ehp03_on_erp/helpdata/en/da/8df3128121304a8dc1eef961a6d3a8/conten...

http://help.sap.com/saphelp_apo700_ehp03_on_erp/helpdata/en/47/37934e7ff19d4cb3b7084291a8259a/conten...

At the end, if all parameters are same for multiple sources then the source selection is random.

Hope this helps.

Regards,

Ravi

[kenneth_snyder]

sort of true.  but as you know it is a computer program and there is no such thing as random.  CTM will select the same source of supply everytime.  It has its own default logic if everything else is equal.