All procurement organizations maintain lists that associate the items and services they buy with the companies who supply them, either formally or informally. Data stored in a controlled, global repository containing relevant details about each ship–from/ship–to/item relationship, is known as an Approved Supplier List (ASL). This repository includes information about all suppliers with business statuses including Approved, Debarred, or New.
Use the Approved Supplier List and Supplier–Item Attributes windows to specify blanket purchase agreements, contract purchase agreements, or quotations as source documents for a particular item and supplier or particular item category (commodity) and supplier. Purchasing automatically defaults this source document information, such as the Buyer, supplier Contact, and Supplier Item Number, for the item or commodity onto the requisition line. Standard purchase orders get source document information from global agreements and quotations. Requisitions get source document information from blanket purchase agreements, contract purchase agreements, or quotations.
Note: Purchasing can also search for the most current source documents for you, without your setting up the Approved Supplier List, if you set the profile option PO: Automatic Document Sourcing to Yes.
ASL Business Needs
Using Oracle Purchasing Approved Supplier List, you can:
- Set approval/certification status at the appropriate level for your business. For example, approve a supplier for a given commodity (e.g. ’Office Supplies’) for expense purchases while approving a specific supplier/site for each production item.
- Approve suppliers (they perform their own manufacturing), distributors (they represent manufacturers), and manufacturers (they manufacture items marketed and sold by distributors).
- Define global or local ASL entries. All organizations should be able to specify their own attributes (information about the supplier/item relationship) even if the supplier/item status is defined as a global record. This enables individual ship–to–organizations to determine, for example, whether they are ready to perform supplier scheduling, their purchasing unit of measure, their default item price, etc.
- Link the primary supplier item number with your internal item number. This designated item will default to Purchase Order and Requisition lines.
- Specify a Review By date indicating a proactive, planned review of the business with a longstanding supplier partner.
- Review ASL information in a flexible inquiry format.
- Define your own approval statuses and associate them with specific business rules.
- Control procurement activity by preventing purchase order approval or supplier schedule confirmation for certain supplier/item combinations.
- Control whether Sourcing Rules must be comprised of approved suppliers.
- Define reference information, including planning constraints such as lead time, for the supplier/item combination.