| # Central Procurement concept multi-site overview Purchase order management In a multicompany structure, you can manage all or part of the purchase orders centrally. You can, for example: Create a central purchase contract with your suppliers, which includes price and discount agreements. Receive all purchased goods centrally and distribute the purchase goods over the organization’s sites. Depending on the part of the purchasing that is centralized, several central purchasing scenarios are possible: Central contracting/local purchasing Central purchasing Central purchasing with direct deliveries You can use the following sessions to see the purchased quantities and other details for each order: Procurement Data by Contract (tdpur3502m000) Purchase Contracts - by Purchase Office (tdpur3505m000) Central contracting/local purchasing The central purchase office maintains the purchase contracts and purchase pricing. Each separate logistic company (site) purchases goods directly from the outside suppliers, handles the receipts, and pays the invoices. The local purchase orders are based on the conditions, pricing, and discounts negotiated for the contract. The quantities that the individual sites purchase are aggregated to the central contract. In the following figure, company L1 maintains the central contract. The companies L2 and L3 use the contract data on their purchase orders. Note The companies must share the contract tables by means of logical table linking or by replication. In the company that maintains the central contract, you cannot use delivery schedules to update the planned inventory transactions, because the inventory is present in other companies. You can only use the delivery schedules to display information. LN records the supplier performance information in the local companies that issue the purchase orders. Central purchasing The central purchase office maintains the purchase contracts and purchase pricing and creates all the purchase orders to external suppliers for the organization. Each site passes requirements to the central purchase office. The local sites’ requirements of an item are aggregated into larger orders. The central purchase office handles the receipts, pays the invoices, and distributes the goods to the sites. The sites are separate logistic companies. Therefore, a purchase/sales relationship and invoicing are required to distribute the goods to the sites: This figure illustrates how you can organize central purchasing. The companies do not need to share the purchase contract data and the supplier data. The central purchase office’s company acts as the supplier to the local companies. Handling each company’s requirements and distributing the goods received causes some extra overhead in the central purchase office’s company. Central purchasing with direct deliveries The central purchase office maintains the purchase contracts and purchase pricing, creates all the purchase orders to external suppliers for the organization, and pays the invoices. Each site passes requirements to the central purchase office. The central purchase office enters the local sites’ warehouses on the orders so that the suppliers ship the goods directly to the sites. This figure illustrates how you can organize central purchasing with direct deliveries. The ship-to warehouse is part of the order header. Therefore, the central purchase office must create a separate purchase order for the items ordered for each site. As a result, you cannot aggregate the local sites’ requirements into a single order. LN records the supplier performance information only in the company of the central purchase office. Purchase requirements collection To create contracts and pricing conditions, the central purchase office must know the organizations purchase requirements for the medium and long term. Depending on the type of item, you can create contracts and pricing conditions in several ways: Use Enterprise Planning to centralize the planned demand or to aggregate the local demand of the various sites. Use Exchange to aggregate the planned demand of various logistic companies to the central purchasing company. Use Exchange to aggregate the purchase budgets of logistic companies that reside on various servers to the central purchasing company. |