Set up Sourcing

Redwood Platform

You can now view and configure these Sourcing setup pages using a new user experience.

  • Cost Factors
  • Cost Factor Lists
  • Sourcing Notifications
  • Procurement Category Hierarchy used in Sourcing Approvals

Manage cost factors 

Cost factors are individual cost components, such as freight, packaging, or insurance, used to evaluate the total cost of supplier responses. Administrators can define each factor and configure its type and pricing basis for use in negotiations.

Set up cost factors

Set up cost factors

Manage cost factor lists

Create reusable lists of cost factors and apply them consistently across negotiations to streamline total-cost analysis.

Set up reusable cost factor lists

SSet up reusable cost factor lists

Manage Sourcing notifications

Configure notification subscriptions for internal and external recipients. Notification subscriptions determine which sourcing event updates users receive. Administrators can configure the notification types and recipients to keep team members and suppliers informed of relevant negotiation activities.

Set up Sourcing notification subscriptions

Set up Sourcing notification subscriptions

Manage procurement category hierarchy

The procurement category hierarchy organizes purchasing categories for approval routing in Sourcing. Administrators can select and maintain the hierarchy used to apply line category-based approval rules in negotiation and award approvals.

Set up procurement categories for configuring negotiation approval rules

Set up procurement categories for configuring negotiation approval rules

Follow these steps to access the Sourcing setup pages:

  1. In the Setup and Maintenance work area, search for and select any of the following tasks: 
    • Manage Cost Factors
    • Manage Cost Factor Lists
    • Manage Sourcing Notifications
    • Manage Procurement Category Hierarchy
  2. On the setup page, make your changes.
  3. Select Save or Save and Close. 

In addition, these Sourcing configurations are also available on the Configure Procurement Business Function page.

  • Sourcing BU level defaults
  • Negotiation terms and conditions
  • Abstract listing configuration
  • Sourcing document types

Steps to enable and configure

Use the Opt In UI to enable this feature. For instructions, refer to the Optional Uptake of New Features section of this document.

Offering: Procurement

To manage these Sourcing configurations for the Procurement BU, refer to the steps to enable for the feature 'Configure procurement business function' in the Procurement Common section of this document.

  • Sourcing BU level defaults
  • Negotiation terms and conditions
  • Abstract listing configuration
  • Sourcing document types

Tips and considerations

The following setup pages are not yet available in a Redwood experience. These will be available in a future update.

  • Negotiation Styles
  • Line Attribute Lists
  • Supplier Negotiation Approval Rules
  • Supplier Negotiation Award Approval Rules

Access requirements

If you're using custom job roles, then you need to add privileges identified as new in this update as well as validate that you have the existing privileges listed.

Privilege status Privilege name and code Privilege purpose
Existing Manage Supplier Negotiation Cost Factor (PON_MANAGE_SUPPLIER_NEGOTIATION_COST_FACTOR_PRIV) Allows users to manage negotiation line cost factors. 
Existing Manage Supplier Negotiation Cost Factor List PON_MANAGE_SUPPLIER_NEGOTIATION_COST_FACTOR_LIST_PRIV Allows users to manage negotiation line cost factor lists. 
Existing Manage Supplier Negotiation Notifications (PON_MANAGE_NOTIFICATIONS_PRIV) Allows users to manage supplier negotiation notifications.
Existing Manage Procurement Category Hierarchy (POR_MANAGE_PROCUREMENT_CATEGORY_HIERARCHY_PRIV) Allows users to manage procurement category hierarchies for catalog, agent assignments, and supplier products and services.