Sourcing - Basics

[Former Member]

Hi,

I need a basic clarification on the sourcing scenario.

I read that sourcing is not carried out during self-service procurement. (atleast the logic diagram does not show sourcing as part of self-service procurement)

However when we use plan driven procuremnt the step sourcing is mentioned.

What does this mean?

If there is a product category where i say "Sourcing is never carried out" in SPRO -> sourcing>Define Sourcing for Product Categories it follows self service procurement?

If i am using a self service procurement if a user fails to enter a vendor or price, then what should happen to that SC ? It should not go to the sourcing cockpit of the purchaser?? is that not called sourcing ?

i am confused.

Please help me understand.

[Former Member]

Thank you

[Former Member]

Hi

Sourcing is the process of determinig source of supply/vendor. Sourcing is of two types, operational and strategic. Operational Sourcing, you will just attach the vendor to the shopping cart where as in strategic you will find and finalise the vendor could be through Bidding/Live auction/contract/catalog.

The purpose of plan driven procurement is to get the external requirements from various systems to utilise the advanced sourcing functionalities like Bidding/auction etc. Pls note plan driven procurement does not fall under Self service procurement.

Hope this clarifies you.

Thanks

Kiran