When setting up sourcing priorities for an item, what type of item should you create?

When setting up sourcing priorities for an item in a procurement process, creating a Supplier Item is essential. Supplier Items are specifically tied to individual suppliers, providing detailed information about the item as it pertains to that supplier. This includes unique pricing, availability, and terms that the supplier offers, which are critical when establishing sourcing priorities.

By creating a Supplier Item, you can efficiently manage the relationship and negotiations with specific vendors, enabling you to prioritize sourcing based on factors such as cost, quality, and delivery performance associated with that supplier. This setup ensures that decisions around sourcing are informed and tailored to the capabilities and offerings of particular suppliers, which is vital for optimizing procurement strategies.

While Catalog Items, Purchased Items, and Service Items have their purposes, they do not specifically capture the relationship and context necessary for establishing sourcing priorities in relation to individual suppliers. Catalog Items generally refer to a broader product offering without direct supplier linkage, and Purchased Items may focus more on the procurement aspect rather than supplier-specific information. Service Items, on the other hand, pertain to services rather than physical goods, and therefore fall outside the context of sourcing for tangible items.