For one of our entities located in Europe, we create a purchase order to the United States or to China. The delivery date on the po lines is set based on MRP to the date that we need the inventory available. However, our arrangement with our vendors is that we take ownership of the product at port so we are responsible for shipping (FOB Port). Our supplier updates us as to when the inventory is available to ship and we make arrangements.
The challenge is 1) how do we manage supplier metrics for ontime delivery and 2) if they provide a 'ship date' that makes it so the delivery date will be late we have to figure that out manually and update the po line delivery date.
For example product A is expected to be delivered on August 1st and we know that it's transport time from the US to EU is 30 days so we know we need the product delivered to us from the supplier on July 1st. If the supplier comes back and says I can't provide you with the product until july 15th then the user has to go in and see what the transport time is between US and EU, add that to July 15th and update the delivery date to August 15th.
Our team is requesting an extension field be created to track the ship date and then have the delivery date derived from the ship date based on the a transit lead time. I feel like this is not a good idea. We've suggested that they use an intransit warehouse to receive product from the supplier and then do a stock transfer between the intransit warehouse and their inventory warehouse upon receipt but the push back is that this now doubles the amount of work you have to do.
Are there any suggestions that you might have that we can look into on how to handle this situation?
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