4 Replies Latest reply: May 30, 2013 2:03 PM by Amit Gupta RSS

Changing a Purchase Order based on Order Confirmation from Supplier

Deepak Sanghi Ariba Contributor
Currently Being Moderated

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

  • Re: Changing a Purchase Order based on Order Confirmation from Supplier
    Brian Levow Master
    Currently Being Moderated

    My company doesn’t manage budgets through Ariba, so it would not be helpful for us.  In addition, short of very large B2B companies, I haven’t seen many suppliers actively utilizing order confirmations, etc.  So I would prefer that Ariba focuses their resources on other enhancements that are more aligned with my company’s objectives.  I would be more than happy to discuss further if given the opportunity.  Thank you.

    • Re: Changing a Purchase Order based on Order Confirmation from Supplier
      Deepak Sanghi Ariba Contributor
      Currently Being Moderated

      Hello Brian,

       

      Thanks for sharing your feedback yesterday. I am glad we were able to connect offline so that we could learn more about your business needs. We certainly like everyone's feedback on what we are planning to accomplish in future releases and will strive hard to deliver the features that are of interest to larger community of users.

       

      Thanks,

      Deepak Sanghi

      • Re: Changing a Purchase Order based on Order Confirmation from Supplier
        researchscholar007 Expert
        Currently Being Moderated

        Hi Deepak,

         

        I am new to Ariba.  Some of my questions  could be just part of Ariba config setup,  however, here are some points regarding your question:

        1. Upon vendor's reply, would there be an automatic workflow to enable the buyer to adapt the change with single click, or buyer has to go thru the actual order?

        2. would reducing the PO qty/value re-trigger the approval -  , however, if a buyer is buying for a project, which needs a fixed qty on fixed date, reducing qty can lead to project delays. Would there be a workflow approval needed for such change.

        3. Can above 1&2  activities be done using mobile device?

         

        Regards

        Rahul

  • Re: Changing a Purchase Order based on Order Confirmation from Supplier
    Amit Gupta Expert
    Currently Being Moderated

    Hi Deepak,

     

    Though I have not heard anybody budgeting in Ariba, probably the best way to do budgeting in Ariba is on receipts instead of orders. In case you have ordered 100 quantity and supplier have only delivered only 60 then you will definitely be receiving only 60 quantities in Ariba and budgeting based on quantities received will make sure that your budget is inline with total quantity received instead of total quantity ordered.

     

    Amit

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