02 — Capability · BC-620
Sourcing & Procurement
Find the right sources for the goods and services the business needs, buy them on the best total terms, and make sure what was ordered is what arrives and what gets paid for.
- Purchasing
- Procure-to-Pay
- Strategic Sourcing
- Buying
In scope
- Category strategies and the sourcing events that select suppliers
- Requisition, approval and purchase order creation for direct and indirect spend
- Receipt confirmation and matching of orders, receipts and invoices
- Spend visibility and savings tracking across categories
Out of scope
- Ongoing supplier performance, risk and contract administration (see BC-640)
- Paying the invoice once it is matched (see BC-260)
- Deciding how much to buy and when (see BC-610)
Realized by · 2
- SAP S/4HANA · Sourcing and Procurementcore via BC-620.30
- Oracle Fusion Cloud Applications · Procurementstrong via BC-620.20
Used in · 8
- Shelf-to-Basket · 02 Buy & Fund via BC-620.30
- Procure-to-Pay · 01 Identify Need & Requisition via BC-620.30
- Procure-to-Pay · 02 Source & Select Supplier via BC-620.20
- Procure-to-Pay · 03 Contract & Order via BC-620.30
- Procure-to-Pay · 04 Receive & Verify via BC-620.40
- Procure-to-Pay · 05 Process Invoice via BC-620.40
- Procure-to-Pay · 07 Review Supplier & Spend via BC-620.50
- Plan-to-Produce · 03 Procure & Stage Materials via BC-620.30
Build it · 0
- Nothing in the library points here yet.
Decomposes into · 5
- BC-620.10Category StrategyUnderstand what the business spends, with whom and why, and set a deliberate approach for each category instead of buying the same way everywhere.
- BC-620.20Strategic SourcingRun competitive events that select suppliers on total cost, quality, risk and capability, and award the business in a way that can be defended later.
- BC-620.30Requisition & Purchase OrderLet people request what they need, route it for the right approvals and turn it into a purchase order the supplier can act on, with as little friction as control allows.
- BC-620.40Receiving & Invoice MatchingConfirm that what arrived matches what was ordered, and that what the supplier billed matches both, so payment goes out only for goods and services actually received.
- BC-620.50Procurement Performance & ComplianceProve that procurement delivers savings, follows policy and keeps spend with approved suppliers, and explain where it does not.