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Former Member

MM Scenario need solution

Hi Expert MM,

I have a scenario and need some solution. Company A sells a material to Customer A. This material A is bought from Vendor A and sent for packaging to vendor B. And the packed material will be sent back to Vendor A and vendor A will ship to customer A. PLease give me the best practice for this. Please give step by step solution ass below example

1. Company A will create Sales Order to sell material A to customer A.

2. From the Sales Order auto PR and PR>PO to vendor A ( to buy material from vendor A)

3. Please suggest me the next steps for the solution

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2 Answers

  • author's profile photo Former Member
    Former Member
    Posted on May 02, 2012 at 12:58 PM

    Hi

    the term is called off-loading or out-sourcing activity.

    In this you will get order from customer A, on that basis you craete PO for vendor A. Now tell vendor A to raise PO to vendor B for packaging so that that activity will be managed by vendor A (Control will be from your side. ie.company A ).

    Now raise tell the Vendor A to raise the invoice as Ship to Customer A and sold to company A.

    i.e. Ship-to & sold -to (ship to customer A and sold to company A) ....

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    • Former Member Former Member

      Hi

      1) SO created correct ..now

      2) System will generate PO on the basis of SO for vendor A.

      3) Dont bother about the SAP is at vendor end A, ...vendor A will manage the packaging, ( if from your side any constraints are for packaging that only you can discuss with vendor A ), so no need to think of vendor B.

      4)Control means: If packaging requirement and quality of packaging is important then only you can keep ckeck on that by vendor audits (no need to do any thing in SAP for that.)

      What to do:

      Raise PO to vendor A on the basis of SO.

      Include all the requirements in that PO (Like material & packaging specifications , shipping address, billing address)..

      Still any questions ? Reply...

  • author's profile photo Former Member
    Former Member
    Posted on May 03, 2012 at 04:43 AM

    Hi,

    I think you are complicating it but including vendor B.

    If you raise a thrid party sales order for customer A which will create PR and PO for Vendor A with delivery address as Customer A, than you problem is solved, right?

    Why is it necessary to think about how vendor will manage packaging from Vendor B? is it that we direct vendor in each case to do different packaging each time with different vendor B?

    Is it not clear that material A means its a packed material only?

    Regards,

    Dakshesh

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    • Former Member Former Member

      That is correct, but my question is when you ask for material A, is it not clear enough that material A means packed material only? how vendor A gets it packed, whether inhouse, or by vendor B or C or anyother why should that be my problem? is my question. Why are you bothered about how vendor A will deal with sending material to vendor B and get it packed and than receive it back and than shipping it to customer.

      As long as you have ordered A to provide material A (which is packed appropriately) to customer A on required date, how does it matter to your company how vendor A does it?

      Do you order material when unpacked (lets say 'a') and than specify seperately that it has to be packed and all so that it becomes material A? do you track both a and A or you are bothered only for A?

      Regards,

      Dakshesh

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