
Scheduling Agreement for Consignment Procurement (2NY)
The use of scheduling agreements can shorten processing times and reduce paperwork. One delivery schedule can replace many discrete purchase orders or contract release orders.
Delivery of the total quantity of materials specified in a scheduling agreement item is spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates.
Your suppliers require shorter lead times. Smaller deliveries are required, which can be spaced out over a longer period. Delivery scheduling enables suppliers to plan and allocate their resources more efficiently.
In consignment processing, the supplier provides materials and delivers these to a consignment store.
The supplier remains the legal owner of the materials until these are withdrawn from the consignment stores.
Once withdrawn, the supplier requires payment.
Key Process Steps Covered
- Create purchase requisition - consignment
- Convert purchase requisitions to scheduling agreement - consignment
- Create scheduling agreement - consignment
- Approve scheduling agreement
- Maintain delivery schedule
- Print scheduling agreement
- Post goods receipt transferring posting from vendor-consigned stock to own stock
- Invoice receipt from consignment withdrawal
Benefits
- Reduce effort for discrete purchase order creation
- Reduce the cost for own stock
Where is Scheduling Agreement for Consignment Procurement(2NY) being used?
This Scope item is used in the following way:
- As a core function of Operational Procurement within Sourcing and Procurement Scope Item Group