Vendors sometimes want to change the trading arrangement with our business and this can mean changing from a consignment arrangement to a wholesale arrangement.
Initial Communication:
If the supplier communicates the change, confirm with the responsible PRM (Partner Relationship Manager). If the PRM is the one sending the comms, this is fine to proceed
Ensure the PRM has requested or prepared the new wholesale vendor card for SKU transfer.
Confirm with the PRM that all ordering should be halted for the vendor.
Reports to be sent to PRM:
Outstanding Orders Report (OOR): List all outstanding orders in consignment locations. Determine their status and future actions
POs to be Invoiced Report: Find in the PCC link here . Any PO with >0 Quantity Received Not Invoiced needs to be paid by us
Active SKUs List: Identify SKUs under the previous vendor code. Confirm if all will be moved to the new vendor card and if pricing is to stay the same
Stock on Hand (SOH) in Consignment: Determine what will happen with this stock. Will the supplier take it back?
Actions Based on Reports that have been sent back:
OOR: Each line should be updated with a status when sent back from the supplier. Cancel items no longer current, back-ordered, or EOL. IMPORTANT if there are no items left to release on the consignment PO, delete the purchase header the shadow cancels off the system too.
POs to be Invoiced: Based on the report above, invoices should be created and sent by the supplier to our AP team for payment
Active SKUs List: PRM confirms which SKUs transfer to the new vendor card, ensuring only the agreed SKUs are moved and pricing updated
SOH in Consignment: If stock will be sent back to the supplier, follow the "Returning Vendor Consignment Stock" guide for returns here. If we want to buy the stock, we need to follow "Returning Vendor Consignment Stock" and then generate purchase orders in our retail locations, email the DCs with Frances , Rebecca and Mason asking them to book the stock in.
Transition SKUs and pricing:
Use the guides "How to move skus across to new vendor card " to transition SKUs to the new vendor card. If there is a new price list use this guide here to update pricing once the skus are moved across.
Typically, there is a specific time frame within which the supplier wants to fully transition to the new trading terms. Therefore, allow yourself enough time for the above steps to be completed.