Sourcing process in SAP Business ByDesign

Overview of how the sourcing process works in SAP Business ByDesign.

SAP Business ByDesign sourcing process
SAP Business ByDesign sourcing process

Sourcing process in SAP Business ByDesign starts with purchase proposals coming from the system. They can be triggered by sales orders, projects, production needs etc.

Purchase proposal can be bundled into Purchase requests. Purchase request is something that is controlled by human and is 100% verified for purchasing.

When there is no contract or price list available in the system, the system allows you to create a sourcing requests to ask vendors for price offers. You can then receive and enter these quotes into the SAP BYD system and select the best offer.

After selecting the vendor quote purchase order will be created automatically and will be sent to the supplier if configured so.

Lets take a look at the steps involved.

<!–more–>

    1. Releasing Purchase proposals

      Select and release the purchase proposals you need to source. This can be done in the WC: Supply control: Process Purchase Proposals

Purchase proposals release
Purchase proposals release

In this WC you will find all the proposals that the system has created. They can come from different sources. Sales orders, projects, requirements from the production, self service purchase requests from employees etc.

    1. Select purchase requests for sourcing

Select one or more purchase requests to include them in the RFQ(Request for Quotation).

This can be done in the WC: Purchase requests and orders: Purchase requests

Purchase request
Purchase request
Purchase request2
Purchase request2

Select the request and then select Quick Sourcing Request.

    1. Select suppliers and send out RFQ’s

Next step allows us to choose our favorite suppliers or have the system suggest us suppliers based on the previous transactions with this material.

This will be done in the WC: Sourcing and contracting: Sourcing requests.

We will see our Sourcing Request created in the previous step here.

Sourcing request
Sourcing request
Overview of the sourcing request
Overview of the sourcing request

Now we can enter our suppliers or let the system suggest:

Sourcing request supplier selection
Sourcing request supplier selection

Send out the RFQ to the suppliers.

Send out the RFQ
Send out the RFQ
    1. Receive and enter quotes

In this step we have received the quotes from the suppliers.

First lets enter quote we got from the first supplier.

Quote from first supplier
Quote from first supplier
Quote from first supplier
Quote from first supplier

Now we have the quote from the supplier in the system. We can use this in the next step to evaluate the offers and choose the best one.

    1. Compare and select quote

Now we have two quotes and lets see which one is better.

Quote compare
Quote compare

We will choose the cheaper one and mark this as accepted. It would be possible also the ask for a new quote from the supplier that was not successful this time.

  1. Purchase order is created and sent

Once we have selected the winning quote the purchase order is created and sent out to the supplier using the information from the quote.

Purchase order is created
Purchase order is created

This completes the quick sourcing process in SAP Business ByDesign. I personally find this very convenient and effective to use.

Check out also Make-To-Order production process in SAP BYD or read what SAP Business ByDesign is all about.