Define Multiple-Supplier Ordering

Explanation

Use this activity to split a single requirement among multiple suppliers based on predefined percentages. This feature is also called supplier split.

Multi-supplier ordering is only allowed for MRP (Material Requirements Planning), MS (Master Scheduling), Order Point, NLD (Next Level Demand), and manually entered purchase requisitions. This means that supplier splits are not allowed if you have an acquisition from another order. The multi-supplier ordering function is also used to instruct supplier scheduling to apportion any requirements to suppliers according to the defined percentages. It is only possible to use this function with inventory registered and non-inventory registered purchase parts. When splitting a requirement among internal suppliers you must consider how to enter split percentage numbers for the internal suppliers and/or for the sites.

When a requirement is split, it is rounded up to the supplier's standard multiple quantity before it is actually ordered. The standard multiple quantity is based on the purchase unit of measure. The default value is 1.

It is possible to phase in and phase out suppliers over a period of time. The purchase part can have multiple phase-in and phase-out periods. These periods cannot overlap. There can be multiple suppliers for each period, however the total of the split percentage must be 100. If only one supplier exists, it must be nominated as 100%. The phase-out date is optional. Thus when a supplier is being phased out on a particular date, new suppliers may be phased in immediately.

This activity is performed from the Purchase Part page, Supplier Split tab on the line by creating a new record and specify the phase-in date, and/or the phase-out date and specify the suppliers and split percentages for the line.

Prerequisites

System Effects

The multi-supplier ordering function is activated for the purchase part. All suppliers are entered and the split percentage is defined. One or several time periods are created. When entering purchase requisitions the quantity is divided among the defined suppliers according to the defined percentages. With regards to supplier scheduling, the MRP (Material Requirements Planning) splits the schedule quantities across suppliers according to the percentages.