Global Purchase Agreement

How to create a Global Purchase Agreement that can then be accessed by other Organisations/ Operating Units also?

From Procurement Family Pack 'I', while creating a Blanket Agreement, Global checkbox at the header level can be checked to make the agreement global. This checkbox cannot be deselected once you have saved the document.The BPA can be enabled only for those organisations for which the supplier and the supplier site are defined to be the same as that of the global agreement. Note that you cannot enter an outside processing item in a global agreement, regardless of the item’s defining organization.

Navigation Steps :
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The Checkbox for making the Agreement Global comes at the header level for all the Blanket agreements. This has to be checked before we proceed onto the line level details, as one is not allowed to come back and update this checkbox at a later point in time once the line level details have been provided.

To enable the agreement for other organisations:
1. Create the Global agreement
2. Save the agreement
3. Go to Tools ----> Enable Organisations
4. Check the checkbox for all the organisations for which you want this Global Agreement Enabled. The Purchasing responsibility you are in will come as a default organisation and cannot be deselected, but the other organisations for which the supplier and supplier site are defined will be allowed to be selected and deselected optionally, by the buyer.
5. Save again
6. Follow the Approval Process for getting this Global agreement approved.

Once this done and the BPA is approved, you can issue a standard purchase order against this global purchase agreement to place the actual order.

unique constraint (MSC.MSC_ITEM_SOURCING_U1) violated

Run the following SQL against this table to find the bad rows:

select
mis.inventory_item_id item_id
, mis.organization_id org_id
, mis.source_organization_id src_org
, mis.assignment_id asg_id
, mis.sourcing_rule_id src_rul_id
, mis.assignment_type asg_typ
from
msc_item_sourcing_bad mis,
(select
ORGANIZATION_ID,
SR_INSTANCE_ID,
INVENTORY_ITEM_ID,
SOURCE_ORGANIZATION_ID,
SR_INSTANCE_ID2,
SUPPLIER_ID,
SUPPLIER_SITE_ID,
EFFECTIVE_DATE,
SHIP_METHOD,
CUSTOMER_ID,
CUSTOMER_SITE_ID,
ZONE_ID,
ASSIGNMENT_SET_TYPE,
RANK,
CIRCULAR_SRC,
ITEM_TYPE_VALUE,
count(*)
from msc_item_sourcing_bad
group by
ORGANIZATION_ID,
SR_INSTANCE_ID,
INVENTORY_ITEM_ID,
SOURCE_ORGANIZATION_ID,
SR_INSTANCE_ID2,
SUPPLIER_ID,
SUPPLIER_SITE_ID,
EFFECTIVE_DATE,
SHIP_METHOD,
CUSTOMER_ID,
CUSTOMER_SITE_ID,
ZONE_ID,
ASSIGNMENT_SET_TYPE,
RANK,
CIRCULAR_SRC,
ITEM_TYPE_VALUE
having count(*) > 1
order by
INVENTORY_ITEM_ID
, ORGANIZATION_ID
,SOURCE_ORGANIZATION_ID ) dup_src
where
and mis.inventory_item_id = dup_src.inventory_item_id
and mis.organization_id = dup_src.organization_id
and mis.source_organization_id = dup_src.source_organization_id;

Now using the SQL output, you can correct the bad records and resolve the issue

Assemble to Order (ATO) Vs Pick to Order (PTO)

Assemble to Order (ATO) and Pick to Order (PTO) are stocking strategies that are used by manufacturers, when they can produce a variety of finished products from a relatively small number of subassemblies and components. This stocking strategy is widely known as the “hourglass” strategy, where you maintain your inventory at the narrowest level in your bill structure. This maintains inventory in a more flexible state and helps minimize your inventory investment. An ATO environment is where you wait until you have an actual sales order before you begin manufacturing the finished product. PTO implies that you will pick multiple items based on one line item on a sales order.

Engineer-to-order (ETO)

In ETO environments, customer specifications require unique engineering design, significant customization, or new purchased materials. Each customer order results in a unique set of part numbers, bills of material, and routings. ETO environments theoretically are the slowest to fulfill: Time is required not only to build the product, but to custom design it to meet the customer's unique requirements.

Make-to-order (MTO)

In MTO environments, products are made entirely after the receipt of a customer order. The final product usually is a combination of standardized and custom items to meet the customer's specific needs. MTO environments are more prevalent when customers are prepared to wait in order to get a product with unique features—usually customized or highly engineered products. This is analogous to the difference between a fast-food restaurant and a full-service chain restaurant. MTO environments are slower to fulfill demand than MTS and ATO environments, because time is required to make the products from scratch. There also is less risk involved with building a product when a firm customer order is in hand.

Assemble-to-order (ATO)

In ATO environments, products are assembled from components after the receipt of a customer order. The key components in the assembly or finishing process are planned and stocked in anticipation of a customer order. Receipt of an order initiates assembly of the customized product. This strategy is useful when a large number of end products based on the selection of options and accessories can be assembled from common components.
When products are too complex or customer demand is unpredictable, manufacturers may choose to hold subassemblies or products in a semifinished state. The final assembly operation is then held until a firm customer order is received. In this environment, manufacturers theoretically cannot deliver products to customers as quickly as MTS environments, since some additional time is required to complete the final assembly.

Make-to-stock (MTS)

In MTS environments, products are created before receipt of a customer order. Customer orders are then filled from existing stock, and then those stocks are replenished through production orders. MTS environments have the advantage of decoupling manufacturing processes from customer orders. Theoretically, this enables customer orders to be filled immediately from readily available stock. It also allows the manufacturer to organize production in ways that minimize costly changeovers and other disruptions.
However, there are risks associated with placing finished goods into inventory without having a firm customer order or an established need. These risks tend to limit MTS environments to simple, low-variety, or commodity products whose demand can be forecasted readily.