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Internal Sourcing The requisition for materials could be satisfied by sources within our company. It is possible that a plant within your firm could represent a potential source of supply for the material needed (centralized warehouse) If an internal source is identified the requirement is covered by an internal procurement transaction (stock transport order) Source List A source list is a record that specifies the allowed means for procuring a material for a certain plant within a given time period. If the list contains a sole source the system will assign the vendor to the requisition. If several options exist the system will display a list of vendors for you to choose from. If no source has been established the system will revert to search information records and outline agreements. Outline Agreement Requisitions can be satisfied through existing longer-term purchasing agreement These agreements are subdivided into: Contracts Consists of items defining the individual materials, material groups, or services with prices and in many cases quantities Quantity Value Scheduling Agreements Total quantity of material is spread over a certain period in a delivery schedule, consisting of line items indicating quantities and their planned delivery date Request for Quotation If nothing exist in the system we may need to submit a request for quotation to our vendors. An RFQ is an invitation to a vendor by a Purchasing Organization to submit a bid for the supply of materials or services The accepted quotations will generate Purchasing Information Records Perform Quotation Price Comparisons Finally Select a Quotation Pur Req. generate RFQ Vendor 1 Vendor 2 Vendor 3 Quote Quote Quote P.O. 45…12 Reject Letter Eval. Quotation from Vendor The quotation received by your company is a legally binding offer, should decide to do business with the vendor, containing price’s and conditions for the materials specified in the RFQ for a predefined period of time. In SAP the RFQ a
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