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How To: Override Source of Supply / Preferred Supplier

Judi Zietsman avatar
Written by Judi Zietsman
Updated over a week ago

For necessary background, please preread Mastering Policy Overrides before proceeding with this article.

Purpose

Every item at each location has a preferred supplier or source of supply:

  • External supplier

  • Internal supplier (e.g., DC)

This is usually set in your ERP, but if that’s not possible or your ERP can’t model complex supply chains, you can use policy overrides to build and manage your supply chain inside the app.

⚠️ Note: Only one source of supply can exist per item/location in Netstock.


Example Scenario: Building a DC Structure

The "Before" State

By default, the supplier for "Item 001" is set as "Supplier XYZ" for all locations. This supplier enforces a Minimum Order Quantity (MOQ) of 1000 units and an Order Multiple (OM) of 500 units, and the lead times to each location are long.

The supply chain can be depicted as follows:

The "After" State (The Goal)

The goal is to create a new DC structure where "Supplier XYZ" only supplies "DC 300" (with the original MOQ/OM constraints). "DC 300" will then supply the other branches (A, B, and C) with no MOQ/OM and much shorter lead times.

The new, desired supply chain can be depicted as follows:


Step 1: Open Policy Overrides

Navigate to Settings > Policy overrides in the left pane.


Step 2: Start a New Rule

Click New rule.


Step 3: Define the Rule Details

Using Location C as an example, in the Rule panel, set:

  • Description: “Set Item 001 at Loc C to be supplied by DC 300.”

  • Sequence Number: Choose priority (higher sequence wins if rules conflict).

  • Start/End Dates (optional): Define the rule’s active period.


Step 4: Enter the Overrides to Apply

In the Overrides to apply panel, set:

  • Source of supply: Distribution centre

  • Distribution centre: DC 300

  • Lead time days: 30 (example shorter LT)

  • Minimum order quantity: Use 1

  • Order multiple: Use 1


Step 5: Define the Filters

In the Filters panel, target the specific scope:

  • Products: Item 001

  • Locations: Location C


Step 6: Save and Apply

  1. Click Create to save the rule.

  2. Repeat for locations A and B.

  3. On the main screen, click Apply overrides.

⚠️ Watchout: If not already in the ERP data feed, you would also create a separate rule for DC 300, defining its supply from Supplier XYZ and its associated constraints and lead time.


Step 7: Reprocess

Reprocess via System > Data Refresh > Reprocess Data or wait for the overnight refresh.


⚠️ Watchouts

  • One Source Only: An item at a specific location can have only one source of supply in the app, even when using overrides.


💡 Tips

  • Build Your DC Structure: Use this override method to design and manage a complex DC supply chain inside the app when ERP extracts do not define the required structure.


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