What is source of supply in SAP (SCM-IBP-PLA - Planning Framework)?

SAP Term: source of supply

• Component: SCM-IBP-PLA

• Component Name: Planning Framework

• Description: A procurement option within the supply chain for a product at a location. Typical procurement options are: External procurement: The product is ordered from and delivered by a supplier. In-house production: The product is produced by the company at the location. Stock transfer: The product is transferred from another location factory, distribution center within the company. Sources of supply can be selected using different algorithms based on criteria such as capacity, priority, or quotas.

Smart SAP Assistant

• Key Concepts: 
  Source of supply is a term used in the SAP SCM-IBP-PLA Planning Framework to refer to the source of goods or services that a company uses to fulfill customer orders. It can be a supplier, a manufacturer, or any other entity that provides goods or services. The source of supply is important for planning and managing inventory levels, as it helps to ensure that the right amount of goods or services are available when needed.
  
  How to use it: 
  In the SAP SCM-IBP-PLA Planning Framework, the source of supply is used to determine the availability of goods or services for customer orders. The source of supply can be set up in the system by entering the supplier information, such as contact details and delivery times. This information is then used to plan and manage inventory levels, ensuring that the right amount of goods or services are available when needed.
  
  Tips & Tricks: 
  When setting up a source of supply in the SAP SCM-IBP-PLA Planning Framework, it is important to ensure that all relevant information is entered accurately. This includes contact details, delivery times, and any other relevant information that may affect the availability of goods or services. Additionally, it is important to regularly review and update the source of supply information to ensure that it remains accurate and up-to-date.
  
  Related Information: 
  The source of supply is an important concept in inventory management and planning. For more information on this topic, please refer to SAP's Inventory Management Guide and Supply Chain Management Guide. Additionally, there are many online resources available that provide further information on inventory management and planning with SAP SCM-IBP-PLA Planning Framework.