I'm
the SME for purchase orders, and quite intimately familiar with blanket vs.
discrete, the supply chain function, and releases.
I can
assure you three times, we have TPs who send original, never-before-seen POs in
on their 830s. :-{) Yes, we also use 830s with Firm dates and
our scheduling system will generate a pick-release for these parts (as opposed
to Planned numbers that aren't ever released.) We also have
customers who send 830s in for forecasting and do pick releases with the 862
(which we convert to release orders against the blanket.) But
the most fun is the customer who initiates the PO with the 830. As
you surmise, I can confirm that we don't have many, but as the supplier we are
loath to tell them that they're doing it wrong. :-{)
I think I am just stumbling on the terminology of
forecasts(or planning schedules) and orders(sales, purchase, original
purchase, blanket purchase and release). I believe what you refer to as
a PO is what I am calling a release order. I was trying to say an
830(Planning Schedule with Release Capability) is never used as an
original PO but I omitted the word "original". You may have
customers that prove this statement incorrect in any case.
In my experience, customers send requirements
using an 830 and, sometimes, an 862, Shipping Schedule, and it
is a standard practice to convert these to sales orders in the
receiving system. Those who send both documents normally use the 830
only as a forecast while those who send only an 830 expect sales orders to be
created from the forecasts which are coded as Firm or Order Release
Authorization or whatever the partners have agreed upon. Functionally I
call this a release order. The receiving system treats it as a
sales order while the customer may treat it as a purchase order. This
is a possible use of the 830 & the purpose of the 862.
As you point out, any document can be used for any
purpose the customer chooses. In my experience most who send 830s
have an existing blanket purchase order/contract which was previously agreed
upon. Thus, I wouldn't expect an 830 to specify aa item not previously
specified in a purchase order. However, the 830 may include an
original purchase order number which is used by the customer to track the
order in their system. Ideally, the 830 would include the
original blanket PO number and a new release number but this capability is not
used/supported by all industries/systems.
Jim Divoky
----- Original Message -----
Sent: Friday, August 31, 2001 8:30
AM
Subject: Re: Application-level trading
partner integration
And the point I'M trying to make is that I have at least two trading
partners who send forecasts in AND ADDITIONALLY expect a new purchase order
to be opened with the transmission of this 830/DELFOR. So in
your experience an 830 is never used as a PO but that turns out not to be
the case in my experience.
True, any vanilla processing system would kick it out. We, of
course, have made extensive modifications to our translator environment so
that this functionality can happen. And if your customer
explains that they want to send a PO in with an 830, I trust that you as a
supplier will be more than willing to accomodate them.
The point I was trying to make is that an 830 is never
used as a Purchase Order. It IS used as a release order. There
is a significant difference. I seriously doubt that anyone has ever
sent an 830 or a DELFOR as a purchase order. Any system would kick
it out for manual processing as there would be no match on the PO
number. Apparently, I didn't make myself clear. Jim
Divoky
----- Original Message -----
Sent: Thursday, August 30, 2001
9:42 AM
Subject: Re: Application-level
trading partner integration
This is
not correct. Forecasts
are sent to feed the supplier's MRP system. Fixed forecasts
could be used to generate a shipment against a blanket PO but a
release order is perhaps more correctly used to initiate a
shipment.
LOL I'll be the first to agree that it's
not correct. You go ahead and tell your customers that what
they're doing with their 830s and DELFORs isn't correct business
practice.
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