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Changing a Purchase Order based on Order Confirmation from Supplier

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Hello.

 

I would like to gather feedback from our On-demand P2P customers about how they would like to change their Purchase Orders if suppliers don't confirm full quantities and on time. For example, if a buyer raises a PO for 100 quantity of an item with an expected delivery date and if supplier confirms only 60 and that too a week after the date specified by the buyer, do you want the buyer to go ahead and change the PO based on that order confimation? If yes, then the PO will be revised to 60 quantity and the expected delivery date will change a week later.

 

The advantage of this change is obvious. You will end up freeing budgets reserved against the PO when you know that supplier is not going to ship the order fully. You will also set the expectations of the requester so that if s/he wants a new PO for the remaining quantity can be raised for an alternate item or for a different supplier.

 

I would appreciate any thoughts that you can share.

 

Thanks,

Deepak Sanghi

dsanghi@ariba.com

Solution Manager, Ariba P2P


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