Actions

S

Source

Source is the macro process representing the processes associated with ordering and receiving products and services. This includes scheduling, receiving, inspecting and approving payment, and optionally identify and qualify suppliers, for products (materials, semi-finished goods, goods, merchandize) and services.

The Source process includes Purchase Order Management and Inbound Operations.

Use Cases

  • Standard purchasing of goods and services using purchase orders
  • Auto-replenishment
  • Supplier Kanban
  • In a manufacturing plant: Ordering and receiving materials required for production
  • In Retail: Ordering and receiving in the stock room
  • In a Warehouse: Receiving goods from a factory or supplier
  • For services procurement: Buying services, receiving and approving service invoices

Notes

Source processes are execution processes that apply to intercompany and intracompany transactions.

  • Intercompany is defined as "conducted between or involving two or more companies". For example: Purchasing goods from external suppliers and receipt and payment of supplier invoices.
  • Intracompany is defined as "conducted within or between the branches of a company". For example: Replenishing Distribution Center inventory by receiving product from the company's manufacturing plant.

Arranging transportation for purchased goods is a Deliver process; Buying Ex Works therefore involves two processes for the buying party: Source and Deliver


Consider also: Strategic Sourcing. Perfect Order Ratio Order Cycle Time Supply Chain Costs Distribution Costs Cash Conversion Cycle t:Purchasing Source-to-Pay Plan-to-Product

Hierarchy

IDNameLevelx
SCOSupply Chain Operations0SCO
SSource1S
S0Strategic Sourcing2S0
S1Source-to-Replenish2S1
S2Source-to-Order2S2
S3Source-to-Engineering-Order2S3
S4Source Returns2S4

Metric(s)

IDNameLevelx
DP1Perfect Order Ratio1DP1
RS1Order Cycle Time1RS1
CO1Supply Chain Costs1CO1
CO12Distribution Costs2CO12
AE1Cash Conversion Cycle1AE1

Term(s)

IDNameClearx
P2PPlan-to-ProductP2P
S2PSource-to-PayS2P

Workflow

FromInput(s)
Process
Output(s)To
wf_processwf_arrow
SellerService Delivery
SellerProduct Delivery
PSourcing Plan
S
wf_arrowwf_process
Execution DataP
MerchandiseD
Purchase OrderSeller
MaterialM
Source Supply Chain Operations 200000 1 Buy, Materials, Sourcing, Purchasing, Procurement, Supplier, Import, Inbound, Logistics, Supply chain Ordering and receiving products and services. This includes scheduling, receiving, inspecting and approving payment, and optionally identify and qualify suppliers, for products (materials, semi-finished goods, goods, merchandize) and services