What is multisourcing in SAP SCM-APO-SNP - Supply Network Planning (SNP)?

SAP Term: multisourcing

• Component: SCM-APO-SNP

• Component Name: Supply Network Planning (SNP)

• Description: Form of sourcing whereby the material required by a location is delivered from multiple sources locations. Quota arrangements are used to determine the percentage that is to be delivered from each individual source .

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• Key Concepts: 
  Multisourcing is a supply chain strategy used by companies to reduce their dependence on a single supplier. It involves sourcing from multiple suppliers, allowing companies to benefit from the advantages of each supplier while mitigating the risks associated with relying on a single source. In SAP Supply Network Planning (SNP), multisourcing is used to optimize the supply chain by balancing the costs and benefits of different suppliers. 
  
  How to use it: 
  In SAP SNP, multisourcing can be used to create a supply network that meets the company’s needs. The user can define the criteria for selecting suppliers, such as cost, quality, and delivery time. The user can also set up rules for how the different suppliers should be used in order to optimize the supply chain. For example, the user can specify that certain products should be sourced from certain suppliers or that certain suppliers should be used for certain orders. 
  
  Tips & Tricks: 
  When setting up multisourcing in SAP SNP, it is important to consider the costs and benefits of each supplier. It is also important to consider how different suppliers will interact with each other in order to optimize the supply chain. Additionally, it is important to monitor the performance of each supplier in order to ensure that they are meeting the company’s needs. 
  
  Related Information: 
  Multisourcing is an important part of supply chain management and is used by many companies in order to optimize their supply chains. For more information on multisourcing and other supply chain strategies, please refer to SAP’s Supply Chain Management (SCM) documentation.