Supplier Originating Procurement Transaction

Supplier-originating Procurement Transaction

For an introduction of the aggregated procurement cycle and an explanation of the difference between the Buyer-originating Procurement Transaction and the Supplier-originating Procurement Transaction, please refer to the Procurement Life Cycle Overview page.

In this version of the aggregated procurement cycle - the Supplier-originating Procurement Transaction - the buyer places the order directly with the supplier by telephone, email or fax (in other words, the parties agree to the transaction 'verbally'). The supplier then creates a Sales Order (SO), picks and packs the goods, and notifies the aggregator of its intention to deliver the goods (by raising a Delivery Notification and sending it to the aggregator). The aggregator in turn notifies the buyer - by means of a Delivery Notification - that the ordered goods are on its way. When the goods have been delivered (by the supplier), the buyer acknowledges receipt of the goods with a Goods Received Voucher, which is forwarded to the aggregator. The aggregator in turn acknowledges the delivery by forwarding an acknowledgement to the supplier. The aggregator raises an Invoice (based on the GRV), which is forwarded to the buyer. The supplier also raises an Invoice and sends that to the aggregator.

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Unlike the Buyer-originating Procurement Transaction, it is unlikely that exceptions such as stock outages will disrupt the standard flow described above, as agreement with the supplier for the order is reached 'up front'. The following swimlane diagram provides a comprehensive illustration of all the possible 'paths' the procurement cycle may take.

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The following table provides a summary of the procurement steps, with corresponding 'how-to' references where applicable: