Maintaining Sourcing Strategies

Objective

After completing this lesson, you will be able to analyze the key principles and functionalities of SAP Order Management sourcing and availability sourcing strategies

Sourcing Strategies

Icons representing goal selection, configuration, additional settings, and site assignment for a digital platform.

Overview of Application

A Sourcing Strategy defines the parameters a company wants to use for sourcing orders.

SAP Order Management for sourcing and availability Sourcing UI allows a user to view, maintain and create Sourcing Strategies.

Table displaying sourcing strategies with metrics including weight, goal names, trailing averages, goal values, and statuses.

A Sourcing Strategy consist of one or more goals. The following 5 goals can be used in Sourcing Strategies:

  • Utilized Capacity: The extent to which the available number or percentage of orders that a site can handle as a queue is used.
  • Delivery Time: The preferred time it should take in days to transport the ordered products to a consumer.
  • Cost to Ship: The internal costs that a specific sourcing causes.
  • Shipment per orders: The number of shipments needed to deliver a specific order to the consumer
  • Cost to Pick and Pack: The costs for picking and packing in your sourcing strategy.

For each goal used in the Sourcing Strategy the user need to define the following parameters:

  • Weight: Relative importance of each goal by assigning it a weight out of 100 - they must add up to 100.
  • Goal Value: Directly affects the score that sites achieve, because the score is calculated in relation to the goal value.
  • Constrain: Threshold value up to which a site is eligible for sourcing at all. It is optional.

Through the Sourcing Strategy Function a user can:

  • View existing Sourcing Strategy
  • Modify an existing Sourcing Strategy
  • Create Sourcing Strategies
  • At the moment Sourcing Strategies cannot be directly deleted from the SAP Order Management for sourcing and availability sourcing UI. (A support ticket need to be created)

List of Sourcing Strategies

SAP Order Management for sourcing and availability Sourcing Strategy initial screen provides a list of all created Sourcing Strategies with a summary of goals and values for each Strategy.

From this screen the user can click on one of the Sourcing Strategies to see the Sourcing Strategy details.

From this screen a user can also initiate the creation of a new Site Group.

A screenshot of SAP's Sourcing Strategy interface displaying two strategies with metrics like weight, goal names, averages, and status.

View/Edit Sourcing Strategy

From SAP Order Management for sourcing and availability Sourcing Strategy initial screen a user can click on one of the Sourcing Strategies to see or Edit the Sourcing Strategy details.

  • A user can view existing goals and parameters for each goal.
  • A user can switch on an off goals.
  • A user can see or modify Weights, Goal value and Constrains.
  • A user can see or modify the Partial Order Parameters for that particular Strategy.
  • A user can view or modify the assignment of Site group to the Strategy and can also add or remove individual sites from the Sourcing Strategy.
Table displaying goal configurations and site selection settings for a sourcing configuration test.

Create Sourcing Strategy

From the Sourcing Strategy initial screen, a user can create a new Sourcing Strategy by clicking the Create Strategy button.

A pop-up appears to define the name the Strategy.

The user need to configure the Goals which want to include in the Strategy by adding Weight, Value and Constrain.

For the goals which are not applicable to this strategy the user need to switch them off.

Screenshot of a sourcing strategy configuration interface, displaying goal settings and adjustments for Strategy Winter Partner A.

In the final step of the creation of the Sourcing Strategy, the user need to assign the relevant Sites to the Strategy.

The user can either assign an already existing Site group or can assign Sites directly.

After assigning the Sites, the Strategy can be finished by clicking the Finish Strategy Button.

Table for Strategy Winter Partner A showing site groups and distribution center details, including locations and maximum capacities.

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