Most vendors operate with a "delivery date" being the date where the items are shipped from their site or most often based on Delivery terms. So depending on the Delivery terms (Incoterms) the concept of delivery date changes. EXW often means a long lead time from shipment to delivery as opposed to DDP where shipment = delivery. There is a lot of misunderstanding with these concepts and that often leads to late deliveries...
This means we need a similar feature on shipment and delivery as on the purchase order. Most vendors assume the delivery date is their shipment dates. It is a tough sell to change this, so a feature supporting this is sorely required and something we always do for our customers.
Comments
This is a feature that might be a beter solution then this idea:
https://ideas.dynamics.com/ideas/dynamics-operations/ID0001307
Category: Procurement and Sourcing
@Boštjan Golob
Great input. I also think that this is a major pain point and we have also done similarly by adding interim warehouses for the larger and longer transport legs, like from Shanghai or Amsterdam.
It would be great if we could deepen the functionality on handover handling. So we would on purchase orders need expected Vendor Shipping date, Goods Handover date and On-site Delivery dates (requirement date) on inbound transactions. The transport time for each leg can be based on the same functionality as is used on Shipment/Delivery calculation on Sales orders. That means that the "Port" field needs to be extended to a lookup with an address.
In the case of FOB (and similar) you should also be able to Book and Track the shipment (booked by yourself) from the hand-off point and then maybe these transport costs are allocated directly to the received goods.
Category: Procurement and Sourcing
Agreed!!
Category: Procurement and Sourcing
I usually advise users to create warehouses for any handover point they agree to - so, vendor locations (for EXW deliveries), ports (FOB and similar), customs terminals, bonded warehouses... and then split a PO into a PO to the handover location and a transfer order to their warehouse. This approach solves (at least) two important issues: goods-in-transit overview and correct MRP expectations, but it does introduce its own problems.
It also removes the ambiguity of a "delivery date" - it is when the vendor is supposed to bring the goods to the handover point. The transfer order part will handle the potentially long part of the delivery (think: free on board in Port of Shanghai, delivery in to a distribution center in Europe).
One important issue is that Transfer Orders can't be used for adding misc. charges, which would occur in this case. Also, if you're using WHS, it's not possible to move ASN from PO to TO…
Since we do see this more and more with global supply chains, I would love to see Purchase Orders get good support for handover points which are not customer warehouses. Delivery terms should at least specify whether the goods are handed over at the customer warehouse and if not, additional fields should display for the inbound transport from the handover point to the warehouse - at least an "inbound transport delivery date" on which the inventory expected date should be based. It should also be calculable from the Mode of Delivery using transport days or by using TMS.
Short version: thumbs up, but probably needs more work than just one extra date :)
Category: Procurement and Sourcing
We continually have to do this modification for clients. It really depends on whether you are communicating on a PO to a supplier the expected arrival date or expected shipment date it should leave their factory or warehouse.
I think this is what is meant when you say the concept of "delivery" changes. i.e. delivery can be defined as either the date it leaves the supplier factory or the date it arrives at your warehouse.
We often have to add a new Ex-Factory date onto the PO header and lines to achieve this requirement. It would be great if this became standard.
http://www.apparelsearch.com/terms/e/etd-eta-ship-date-terms.html
Category: Procurement and Sourcing
Agree!
Category: Procurement and Sourcing
I meant to say that we need a similar feature as on the sales order.
Most of the transport/lead/shipping time can be based on the same classes as on Sales order. We just need the fields on the order and lines.
Category: Procurement and Sourcing
Done:-)
Category: Procurement and Sourcing
I totally agree
Category: Procurement and Sourcing
Beatriz Nebot Gracia (administrator) on 2/9/2024 1:36:25 PM
We are pleased to announce that this capability is now available in the product. Please review the documentation here: Calculate requested ship dates for purchase orders - Supply Chain Management | Dynamics 365 | Microsoft Learn