Actions

S2

Source-to-Order

The collection of processes associated with ordering materials (raw materials, semi-finished products, finished products, goods, merchandize) and/or services for specific orders.

The intention of Source-to-Order is to order materials for explicit -identifiable- downstream demand: Demand is not aggregated. A specific reference or customer order detail is exchanged with the supplying party, attached to or marked on the product, recorded in the warehousing or Enterprise Resource Planning System in order to track individual deliveries.

Source-to-Order is a MTO process.

Use Cases

  • Purchasing to order
  • JIT/JIS
  • In a factory: Configurable parts ordering
  • In a Retail store: Special Orders

Examples of alternative or related names for Source-to-Order are: Source-Make-to-Order, Purchase-to-Order. Perfect Order Ratio Orders Defect Free Ratio Orders On-time Ratio Order Cycle Time Sourcing Cycle Time Supply Chain Costs Cost Of Goods Sold Distribution Costs Cash Conversion Cycle Days Of Inventory Days Payables Outstanding Purchasing Source-to-Pay

Hierarchy

IDNameLevelx
SSource1S
S2Source-to-Order2S2
S201Create Order3S201
S202Create Schedule3S202
S203Receive3S203
S204Unload3S204
S205Inspect3S205
S206Put Away3S206
S207Transfer3S207
S208Approve Payment3S208

Metric(s)

IDNameLevelx
DP1Perfect Order Ratio1DP1
DP12Orders Defect Free Ratio2DP12
DP13Orders On-time Ratio2DP13
RS1Order Cycle Time1RS1
RS14Sourcing Cycle Time2RS14
CO1Supply Chain Costs1CO1
CO11Cost of Goods Sold2CO11
CO12Distribution Costs2CO12
AE1Cash Conversion Cycle1AE1
AE12Days of Inventory2AE12
AE13Days Payables Outstanding2AE13

Term(s)

IDNameClearx
JISJust-In-SequenceJIS
JITJust-In-TimeJIT
MTOMake-to-OrderMTO
S2PSource-to-PayS2P
SOSSpecial Order ServiceSOS
TLCTotal Landed CostTLC
Source-to-Order Source 220000 2 Just-in-Time, Purchase, Sourcing, Acquisition, Make-to-Order, Order-driven, Supply Chain The ordering of materials (raw materials, semi-finished products, finished products, goods, merchandize) and/or services in support of the fulfillment of specific (sales) orders