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SAP Advance Purchase Function - Quota Arrangement
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2022-05-26
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Solution – Quota Arrangement We also need to diversify our source of supplies to mitigate the impact of disruption to our supply chain when exception happens. How to streamline internal purchase activities to increase efficiency and effectiveness?? How to split a block of purchase quantity and distribute them among multiple suppliers??
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CONFIDENTIAL
Advance Purchase Function
CONFIDENTIAL 2
• We also need to diversify our source of supplies to mitigate the
impact of disruption to our supply chain when exception happens.
– How to streamline internal purchase activities to increase efficiency and
effectiveness??
– How to split a block of purchase quantity and distribute them among multiple
suppliers??
The challenges we are facing
CONFIDENTIAL 3
• Quota Arrangement
– Procedure 1: assign a percentage to a supplier for a certain material when
requirement arise for it.
– Procedure 2: Use quota rating to determine the complete lot of material that is to
be assigned to particular source.
– A threshold quantity can be use to inference system before the quantity split by
quota.
– It can also be used to split the requirement among internal production facilities.
New tools will be used…
CONFIDENTIAL 4
Solution – Quota Arrangement
• If a material can be obtained from various sources of supply, each individual
source of supply can be allocated a quota arrangement.
• A quota arrangement is specified for a certain period. A quota arrangement
item is created for each source within the period.
• Pre-requisite: Material Number or Plant, Vendor Number, Validity Period and
Quota to be assigned to each of the source of supply
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