Function: Sourcing

This function handles the sourcing of goods from a warehouse point of view. If goods are not required, sourcing determines for what purpose the goods are required. Based on the purpose, the most appropriate sourcing way is chosen. When the sourcing method is push based, order advice for purchase and production are created, so a planner can check and adjust the suggestions of LN before creating orders. With pull-based sourcing, you create orders directly.

The objective of this process is to coordinate the sourcing of stock.

Sourcing of stock can be initiated based on foreseen shortages in the warehouse, for example, through inventory monitoring, or production needs.

If replenishment of stock is required, you must first determine where exactly the items are required. You can then create the most effective replenishment order.

Available options for sourcing, besides DRP planning in LN Planning, are SIC (Push, Inventory Control); TPOP (Pull, Demand Control); and KANBAN (Pull, Inventory Control).