Sourcing by Region

This section provides an overview of regional sourcing.

Page Name

Definition Name

Usage

Region Codes Page

REGION_CD

Define the geographical sourcing region and establish supplier priority and supplier locations.

Region Codes Address Page

REGION_CD_ADDR

Define description and address information for the region code.

Ship To Locations Page

SHIPTO_HDR

Associate the sourcing region to the appropriate ship to location.

Item Supplier by Region Page

ITM_REGION_VNDR

Define supplier priority and supplier location by region.

For large multinational organizations, purchases are often distributed across multiple purchasing locations. These purchasing locations are sometimes geographically dispersed, and may require that different suppliers or supplier locations (such as distribution centers or manufacturing plants) ship goods to different parts of the world. With the Regional Sourcing functionality, you can now define specific sourcing regions, group multiple supplier ship to locations into that region, prioritize suppliers and supplier locations, and source the requests to the preferred supplier within that region.

When searching for a supplier, the system retrieves the SHIPTO_ID field value from the first schedule; then, the system searches the ITM_SHIPTO_VNDR table using this SHIPTO_ID value. If no supplier is found, the system then searches the ITM_REGION_VNDR table using the REGION_CD field value from the SHIPTO_ID. If no supplier is found, the system then searches the ITM_SUPPLIER table.

Understanding the Regional Sourcing Process Flow

To set up PeopleSoft Purchasing to leverage regional suppliers during the sourcing process:

  1. Set up Region Codes (for example North-CAL).

    Use the Region Codes page to establish specific regions that are used to group suppliers and supplier locations.

  2. Use the Ship To Locations page (SHIPTO_HDR) to associate the sourcing region to the appropriate ship to location.

    Navigation —Set Up Financials/Supply Chain Product Related Procurement Options Purchasing Ship To Locations

  3. Use this page to link the ship to location to the appropriate region.

  4. Use the Item Supplier by Region page (ITM_REGION_VNDR) to define supplier priority and supplier location by region.

    Navigation —Items Define Items and Attributes Item Supplier by Region

  5. Use the Procurement Region Supplier Order Location page (REGION_VNDR_LOC) to select an appropriate supplier SetID, supplier ID, and supplier location for a specific region.

    Click the Supplier Order Location link on the Region Codes page.

Use the Region Codes page (REGION_CD) to define the geographical sourcing region and establish supplier priority and supplier locations.

Navigation:

Set Up Financials/Supply Chain > Common Definitions > Location > Region Codes

For more information, see Region Codes Page in the Application Fundamentals documentation.

Use the Ship To Locations page (SHIPTO_HDR) to associate the sourcing region to the appropriate ship to location.

Navigation:

Set Up Financials/Supply Chain > Product Related > Procurement Options > Purchasing > Ship To Locations

See Ship To Locations Page.

Use the Item Supplier by Region page (ITM_REGION_VNDR) to define supplier priority and supplier location by region.

Navigation:

Items > Define Items and Attributes > Item Supplier by Region

This example illustrates the fields and controls on the Item Supplier by Region. You can find definitions for the fields and controls later on this page.

 Item Supplier by Region

Field or Control

Description

Region Code

Select a region code to associate with this regional supplier.

Item Supplier Priority

Enter the priority order for which a supplier will be selected for regional sourcing.

Supplier ID

Select the supplier that you want to associate with this supplier region.

Supplier Location

Select the location for the supplier.

Lead Time

Enter the lead time that you want purchase order sourcing to use in determining the purchase order lead time. Item region is level two in the defaulting hierarchy after the item ship to supplier level. If you don't use this value, purchase order sourcing checks at level three in the defaulting hierarchy (Item/Supplier attributes).

Lead Time Option

Select the option that you want to use along with the lead time value. Select Default to use the next level lead time. Select Use to use the lead time defined at this level.

Include in Planning

Select to enable purchase options to be created in PeopleSoft Supply Planning for the PeopleSoft Inventory business unit related to this item supplier. The purchase option then enables the creation of new purchase orders through PeopleSoft Supply Planning for this PeopleSoft Inventory business unit.

To use the regional hierarchy as part of the background sourcing process, you must select the Override Suggested Supplier check box on the Maintain Requisitions - Requisition page under the Sourcing Controls tab. If this check box is clear, the system uses the supplier provided on the transaction. The regional sourcing hierarchy is used only when you select the basic sourcing method.