on 10-21-2015 1:51 PM
Dear All,
Kindly provide your valuable advice for below mentioned scenario to Create automatic purchase order for contracted items via MRP run.
Scenario :
Business Requirements
80 % of A and B class direct materials are procured from contracted Suppliers. Buyers are well known about the contracts and manually convert the purchase requisitions into Purchase orders.
There is a scope to reduce the internal procurement lead time by removing manual touch points in procurement of such contracted Items like
Management want to reduce the purchasing administration cost and want to be competitive in the market
Further want to bring the maverick purchases under control by reducing human mistakes
Current Process flow
Business Challenges /Pain Areas
Business Volume
1.36 Corers INR of annual of A& B class materials are procured by using contracts
2.Today’s internal procurement lead time is range from 3 to 5 days
3.Monthly @ 4000 Purchase orders are created for such materials
4. All these materials are procured from 6 key suppliers
5.Number of contracted items #16000
to make it short: MRP cannot create purchase orders.
The prerequisites for auto PO are well documented, you only need to do those settings and then schedule the job for auto PO creation right after the MRP run
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HI Kuldeep,
Some setting you should consider doing
1. Maintenance of source list. This is a must for Auto PO generation.
2. For Auto PO generation, make sure material master is updated along with the VM for Auto PO check box.
3. Once you have done, you can set a batch job say nightly for converting PR to PO.
4. For email transmission, make sure conditions are set up; medium should be '5 External send'.
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