Latest revision as of 07:13, 28 July 2020
Source is the macro process representing the processes associated with ordering and receiving products and services. This includes scheduling, receiving, inspecting and approving payment, and optionally identify and qualify suppliers, for products (materials, semi-finished goods, goods, merchandize) and services.
The Source process includes Purchase Order Management and Inbound Operations.
- Standard purchasing of goods and services using purchase orders
- Supplier Kanban
- In a manufacturing plant: Ordering and receiving materials required for production
- In Retail: Ordering and receiving in the stock room
- In a Warehouse: Receiving goods from a factory or supplier
- For services procurement: Buying services, receiving and approving service invoices
Source processes are execution processes that apply to intercompany and intracompany transactions.
- Intercompany is defined as "conducted between or involving two or more companies". For example: Purchasing goods from external suppliers and receipt and payment of supplier invoices.
- Intracompany is defined as "conducted within or between the branches of a company". For example: Replenishing Distribution Center inventory by receiving product from the company's manufacturing plant.
Arranging transportation for purchased goods is a Deliver process; Buying Ex Works therefore involves two processes for the buying party: Source and Deliver
Consider also: Strategic Sourcing.
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Note: Common inputs and outputs are listed in alphabetical order. Other inputs and outputs may be required to support varying use cases.