10 Replies Latest reply on Nov 25, 2008 6:39 PM by 628428

    Autosource to supplier with the lowest price

    671450
      How can I set up in Oracle to enable the Release to select the lowest price of an item among suppliers from BPAs?


      Thank you.

      Kind regards,
      James
        • 1. Re: Autosource to supplier with the lowest price
          657664
          Hi James

          I dont think this is possible.
          Logically why do we need to have BPA with many suppliers for the same item?
          We can have the BPA with the Supplier with low cost right.

          Say for Argument we have 2/3 suppliers for the same item, then we can set the Sourcing rule with Ranking for the Supplier.
          This will make to create Releases based on the Ranking and Allocation % .

          Regds
          Ravisankar
          • 2. Re: Autosource to supplier with the lowest price
            628428
            If you are on R12, you can use Advanced Pricing feature for PO to default the lowest price from the BPAs as well. BPAs is new inclusion apart from Purchasing Contracts available till 11i.

            Thanks
            Nagamohan
            • 3. Re: Autosource to supplier with the lowest price
              671450
              Hi Ravisankar,

              Thank for your reply.

              The main reason is to improve our current procurement process in terms of pricing maintenance. We'd like to automate this process. One of the critical business rules is to source items having lowest unit price.

              Do you think it will work if we create a concurrent program which look for the lowest item price among BPAs and update the ranking in Sourcing Rule automatically?

              I look forward to hearing from you.

              Kind regards,
              James
              • 4. Re: Autosource to supplier with the lowest price
                671450
                Hi Nagamohan

                Thanks for your reply.

                You've provided a good idea to me as we're having the thought of upgrading to R12 which is in the pipeline. (may happen in another a year or two)

                However, I'm wondering if I can make use of purchasing contracts to replace BPA to achieve this same purpose?

                Looking forward to hearing from you.

                Kind regards,
                James
                • 5. Re: Autosource to supplier with the lowest price
                  671450
                  Hi Nagamohan,

                  I've downloaded the Advanced Pricing R12 setup guide from Metalink, however, I didn't come across any information about BPA and Advanced Pricing. Do you have any ideas where I can get the related information?

                  I look forward to hearing from you.

                  Kind regards,
                  James
                  • 6. Re: Autosource to supplier with the lowest price
                    628428
                    James
                    Please refer to the RCD of purchasing available via metalink. In that please refer to section that says :

                    3.4.2.13. Model Complex Pricing for Blanket Line Items. It is page number 45.

                    Thanks
                    Nagamohan
                    • 7. Re: Autosource to supplier with the lowest price
                      657664
                      Hi James

                      You can try with your Option of new concurrent Program.

                      I am just thinking of Modifying "Overall Document Creation / Launch Approval Process" Work flow where the functions like "Get The Source Document Type (Function)" and "Get Release Generation Method From ASL (Function)"

                      This could be also tried.

                      Hope this helps

                      Regds
                      Ravisankar
                      • 8. Re: Autosource to supplier with the lowest price
                        671450
                        Hi Nagamohan,

                        Thanks for your reply.

                        I've downloaded the RCD, however it seems the feature is only briefly mentioned there. I wonder if there is any detailed documentation on setting this feature?

                        ===================================================

                        3.4.2.13. Model Complex Pricing for Blanket Line Items
                        With Release 12.0, Oracle Purchasing extends the integration with Oracle Advanced
                        Pricing to allow procurement professionals to model complex pricing rules for items
                        listed on Global Blanket Agreements. Requisitions and orders sourced to these
                        agreements can now leverage dynamic pricing formulas and/or modifiers defined in
                        Oracle Advanced Pricing, in addition to the agreement line price and price breaks.

                        Thank you.

                        Kind regards,
                        James
                        • 9. Re: Autosource to supplier with the lowest price
                          671450
                          Hi Ravisankar,

                          Thanks for the idea. Just out of curiosity, have you done this for your clients? How much effort is needed you reckon?

                          Kind regards,
                          James
                          • 10. Re: Autosource to supplier with the lowest price
                            628428
                            James
                            No, I have not done this for any client.

                            Thanks
                            Nagamohan