Both of you are correct in that it should be a business process which is
handled before the order is even entered into the system. ISO calls that
contract review. Negotiate the contract with the customer (or in reverse
with purchasing, the supplier) prior to recoding the sale or purchase.
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Rob Bucek
Sent: Wednesday, August 05, 2009 12:52 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] customer blanket orders
Well said Rob, that's a much more articulate response of what I was
thinking earlier but was reluctant to get into, and that's business
policy. We establish those expectations right from the start. Win/Win
is the key or long term the relationship will sour when one party or the
other gets stuck with obsolete inventory. That's really what its all
about. The effort to minimize liability for both parties. The solution
really shouldn't start at the software level..
Rob Bucek
Manufacturing Engineer
PH: (715) 284-5376 ext 3111
FAX: (715)284-4084
<http://www.dsmfg.com/>
(Click the logo to view our site) <http://www.dsmfg.com/>
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Robert Brown
Sent: Wednesday, August 05, 2009 10:05 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: Re: [Vantage] customer blanket orders
This is no different than what buyers need to do when they set up long
term purchasing agreements with vendors (for things with extremely long
cycle times like forging & casting mill products - where playing the
exchange rate & even the ever cycling materials base cost & metals
surcharge game also drive companies to 'lock in' purchasing commitments
much longer than they otherwise would care to).
You have to set up a 'win-win' contract with flexible terms both
companies can live with.
You don't want to get stuck with pre-purchased materials with the
unfirmed balance of your dirving sales order being endlessly pushed out.
The customer doesn't want to eventually be held accountable to the legal
binding agreement of their PO to you (and your confirmed terms of the
sales order) & forced to (eventually) take some large lump of un-needed
product.
There is always a happy (enough) median to be found to protect both
sides (whether that be scaled pre-negotiated L/Ts based on customer firm
release notification of actual qty's firmly rq'd, or some precommitment
for you to stock "X" qty of raw material for "X" days - and then they
have to take it, or prepay some % of the value, % variance to forecast
that allow both sides to renegotiate aspects of the agreement under
certain conditionsietc., etc,.).
It's not a system thing... It's a business 101 contract terms
negotiation issue that you can THEN get the system to reflect any number
of ways (as some of the excellent suggestions in this thread have
shown).
Rob Brown
________________________________
From: CharlieSmith <CSmith@...
<mailto:CSmith%40vistaconsultant.com>
<mailto:CSmith%40vistaconsultant.com> >
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Sent: Wednesday, August 5, 2009 12:11:42 AM
Subject: RE: [Vantage] customer blanket orders
Actually, that would be the best way to do it. Create the order with the
unfirm amount. Add a new firm release line item for each customer
release, ship from stock and build to stock levels. When adding each
release, you reduce the balance due on the unfirm release.
The other thing would be to ask for a forecast if possible. Once you
have run that part for a while, you will get some kind of track record
for it.
Charlie Smith
Smith Business Services / 2W Technologies LLC
www.vistaconsultant .com <http://www.vistaconsultant.com/> /
www.2WTech.com
From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On
Behalf
Of bking521
Sent: Monday, August 03, 2009 12:27 PM
To: vantage@yahoogroups .com
Subject: [Vantage] customer blanket orders
We have a large customer that will place 12 month blanket orders with us
and their expectation is we ship same upon notification with specific
qtys. since we can't predict with certainty release dates or quantities
this is driving our materials guy crazy.
I'm thinking that entering a sales order for the full quantities,
leaving the 1st release unfirm and enter shipping releases as requested
by the customer is the way to go on the demand side; and on the supply
side just keep a min on hand set to appropriate levels.
Is anyone doing something different that has proven to be effective?
Thanks for your time,
Bill
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
handled before the order is even entered into the system. ISO calls that
contract review. Negotiate the contract with the customer (or in reverse
with purchasing, the supplier) prior to recoding the sale or purchase.
From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com] On Behalf
Of Rob Bucek
Sent: Wednesday, August 05, 2009 12:52 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] customer blanket orders
Well said Rob, that's a much more articulate response of what I was
thinking earlier but was reluctant to get into, and that's business
policy. We establish those expectations right from the start. Win/Win
is the key or long term the relationship will sour when one party or the
other gets stuck with obsolete inventory. That's really what its all
about. The effort to minimize liability for both parties. The solution
really shouldn't start at the software level..
Rob Bucek
Manufacturing Engineer
PH: (715) 284-5376 ext 3111
FAX: (715)284-4084
<http://www.dsmfg.com/>
(Click the logo to view our site) <http://www.dsmfg.com/>
From: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
[mailto:vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com> ] On
Behalf
Of Robert Brown
Sent: Wednesday, August 05, 2009 10:05 AM
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
Subject: Re: [Vantage] customer blanket orders
This is no different than what buyers need to do when they set up long
term purchasing agreements with vendors (for things with extremely long
cycle times like forging & casting mill products - where playing the
exchange rate & even the ever cycling materials base cost & metals
surcharge game also drive companies to 'lock in' purchasing commitments
much longer than they otherwise would care to).
You have to set up a 'win-win' contract with flexible terms both
companies can live with.
You don't want to get stuck with pre-purchased materials with the
unfirmed balance of your dirving sales order being endlessly pushed out.
The customer doesn't want to eventually be held accountable to the legal
binding agreement of their PO to you (and your confirmed terms of the
sales order) & forced to (eventually) take some large lump of un-needed
product.
There is always a happy (enough) median to be found to protect both
sides (whether that be scaled pre-negotiated L/Ts based on customer firm
release notification of actual qty's firmly rq'd, or some precommitment
for you to stock "X" qty of raw material for "X" days - and then they
have to take it, or prepay some % of the value, % variance to forecast
that allow both sides to renegotiate aspects of the agreement under
certain conditionsietc., etc,.).
It's not a system thing... It's a business 101 contract terms
negotiation issue that you can THEN get the system to reflect any number
of ways (as some of the excellent suggestions in this thread have
shown).
Rob Brown
________________________________
From: CharlieSmith <CSmith@...
<mailto:CSmith%40vistaconsultant.com>
<mailto:CSmith%40vistaconsultant.com> >
To: vantage@yahoogroups.com <mailto:vantage%40yahoogroups.com>
<mailto:vantage%40yahoogroups.com>
Sent: Wednesday, August 5, 2009 12:11:42 AM
Subject: RE: [Vantage] customer blanket orders
Actually, that would be the best way to do it. Create the order with the
unfirm amount. Add a new firm release line item for each customer
release, ship from stock and build to stock levels. When adding each
release, you reduce the balance due on the unfirm release.
The other thing would be to ask for a forecast if possible. Once you
have run that part for a while, you will get some kind of track record
for it.
Charlie Smith
Smith Business Services / 2W Technologies LLC
www.vistaconsultant .com <http://www.vistaconsultant.com/> /
www.2WTech.com
From: vantage@yahoogroups .com [mailto:vantage@yahoogroups .com] On
Behalf
Of bking521
Sent: Monday, August 03, 2009 12:27 PM
To: vantage@yahoogroups .com
Subject: [Vantage] customer blanket orders
We have a large customer that will place 12 month blanket orders with us
and their expectation is we ship same upon notification with specific
qtys. since we can't predict with certainty release dates or quantities
this is driving our materials guy crazy.
I'm thinking that entering a sales order for the full quantities,
leaving the 1st release unfirm and enter shipping releases as requested
by the customer is the way to go on the demand side; and on the supply
side just keep a min on hand set to appropriate levels.
Is anyone doing something different that has proven to be effective?
Thanks for your time,
Bill
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]
[Non-text portions of this message have been removed]