OpenDevelopment

The collection of processes associated with ordering non-standard materials (raw materials, semi-finished products, finished products) and/or services based on specifications defined by or derived from customer order information. This may include supplier identification, qualification and selection, contract negotiation and new supplier onboarding.

The intention of Source-to-Engineering-Order is to order materials specified by explicit downstream demand (Customer Orders). These materials generally have not been qualified for the application specified or derived from the customer order. Engineering data may be exchanged with the supplying party, new material numbers may need to be created, and 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 ERP system in order to track individual deliveries.

Source-to-Engineering-Order is an ETO process.

Use Cases

• Ordering custom components
• Ordering materials for an industrial project
• Ordering specialized services applicable to a single customer project

Source-to-Engineering-Order processes are generally the most resource intensive version of the S processes, typically requiring extended lead times.

Notes

(Expectation of) repeat Sales Orders may lead a company to convert these Sourced materials to a standard offering, thus changing the sourcing process from Engineer-to-Order to Make-To-order or Make-to-Stock. This generally is a conscious decision requiring the material to be included in (future) product revision processes. Perfect Order Ratio Orders Defect Free 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 Engineer-to-Order Discuss Contract Custom Solution Source-to-Pay

Hierarchy

ID	Name	Level	x
S	Source	1	S
S3	Source-to-Engineering-Order	2	S3
S301	Identify Supply Sources	3	S301
S302	Negotiate & Award	3	S302
S303	Create Order	3	S303
S304	Receive	3	S304
S305	Unload	3	S305
S306	Inspect	3	S306
S307	Put Away	3	S307
S308	Transfer	3	S308
S309	Approve Payment	3	S309

Metric(s)

ID	Name	Level	x
DP1	Perfect Order Ratio	1	DP1
DP12	Orders Defect Free Ratio	2	DP12
RS1	Order Cycle Time	1	RS1
RS14	Sourcing Cycle Time	2	RS14
CO1	Supply Chain Costs	1	CO1
CO11	Cost of Goods Sold	2	CO11
CO12	Distribution Costs	2	CO12
AE1	Cash Conversion Cycle	1	AE1
AE12	Days of Inventory	2	AE12
AE13	Days Payables Outstanding	2	AE13
SD1	Environmental Sustainability Ratio	1	SD1
SD11	Intake Sustainability Ratio	2	SD11

Term(s)

ID	Name	Clear	x
ETO	Engineer-to-Order		ETO
S2P	Source-to-Pay		S2P
TLC	Total Landed Cost		TLC

Workflow

From Input(s)	Process	Output(s) To
wf_process wf_arrow D* Acknowledgment D* Advance Shipment Notice D* Invoice D* Order Confirmation D* Shipment	S3	wf_arrow wf_process Proof Of Delivery D* Sales Order Stock D3 Sales Order Stock M3

Note: Common inputs and outputs are listed in alphabetical order. Other inputs and outputs may be required to support varying use cases.Source-to-Engineering-Order Source 230000 2 {{{keywords}}} {{{description}}}