RDM: Purchase Order Management
RDM | Procurement | Purchase Order Management Various types of purchase orders are supported in the system, and they can be manually or automatically created. Once the purchase order has been created a number of checks and validations make sure that the right contract, discount, price, etc is referenced correctly. Purchase Order Processing also deals with the communication of the purchase order to the supplier.
|Purchase Order Processing||Purchase Order Types You can procure materials for direct consumption or for stock. You can also procure services. Furthermore, the special procurement types “subcontracting”, “third-party” (involving triangular business deals and direct-to-customer shipments) and “consignment” are possible. You can use purchase orders to cover your requirements using external sources (i.e. a vendor supplies a material or performs a service). You can also use a purchase order to procure a material that is needed in one of your plants from an internal source, i.e. from another plant. Such transactions involve longer-distance stock transfers. The activities following on from purchase orders (such as the receipt of goods and invoices) are logged, enabling you to monitor the procurement process.|
|Delivery Schedule Processing||Working with scheduling agreements can shorten processing times and reduce the amount of paperwork you are faced with. One delivery schedule can replace a large number of discrete purchase orders or contract release orders. Inventories can be reduced to a minimum. You can carry out your manufacturing operations on the Just-in-Time (JIT) principle. Your vendors require shorter lead times. Smaller deliveries are required, which can be spaced out over a longer period. Delivery scheduling enables vendors to plan and allocate their resources more efficiently.|
|Commodity Management||Commodity Management comprises the activities of purchasing, selling, trading, logistic and financial planning and execution of Commodities. Companies, who need a commodity management solution are all companies that have to handle commodities in procurement, are selling commodities or that are trading commodities as such. The main difference between handling (exchange traded) commodities and other products, is the pricing: The pricing in commodity management is usually based on exchange noted prices. Physical buying or selling contracts can be either fixed (price is decided and fixed) or unfixed (price is not decided and based on a formula that again is based on exchange indices). Market risk exists in both cases: In the fixed contract case, because of the variance against the market, in the unfixed contract case, because of the price itself. If the contract is unfixed, an agreement towards a calculation rule is in place. The calculation rule is usually based on either the market price of the commodity, an average over a specified period of the market prices of the commodity or an index.|