What does the system use to determine a source of supply?

The system uses purchase requisitions as a primary source of supply determination in SAP Materials Management. A purchase requisition is an internal document that specifies the need for materials or services, providing details such as quantity and delivery date. When a purchase requisition is created, it serves as a trigger for the procurement process. The system then analyzes this requisition to identify potential sources of supply based on various criteria and configurations, such as existing purchasing info records, contracts, and requests for quotations.

The requisition effectively indicates what is needed, and the system can leverage available data to find the most appropriate supplier or contract that can fulfill that need. This allows for a systematic approach to sourcing, ensuring that procurement is conducted efficiently and in alignment with company purchasing policies.