Definition

Procurement for sales (procure to order) scenario describes the procurement of finished third party products for their further delivery to a customer.  This scenario is used in combination with O2C Sales from procurement (Procure to order) scenario. After the customer order is placed, the ordered products are procured from the vendor and delivered to the organization's warehouse. After receipt of the goods, their transportation to customer based on customer order must be organized. This scenario is used in situations when direct delivery from vendor to customer is not possible or desired.

Advisory note

Purchasing products directly for a sales order is used in a variety of business models. It can be a one time opportunity, a frequently applied model, or even a type of "outsourced" inventory in a JIT-like set-up. Therefore, the interaction between the sales department, the purchasing department, and the vendor in order to clarify availability and delivery dates might differ. In a opportunity sale, it might even be required to identify a source of supply before any commitment to the customer is given.

Scenario Diagram