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.
Legend
- a process group the process belongs to - a typical business process - a typical E2E business process scenario - a typical E2E business process cluster
Scenario Diagram
Business processes list
- O2C Sales of goods through our warehouse (Purchase to order)
- Create purchase order based on sales order
- Generate purchase order based on demand
- Specify terms for purchase orders and submit for approval
- Confirm purchase order and send to vendor
- Follow-up purchase order progress
- P2M Inbound logistics
- O2C Sales of goods through our warehouse (Purchase to order)
- Process vendor invoice by purchase order
- R2R Vendor invoice offset (Based on purchase order)