PO Change Management
Streamlined communication of MRP suggestions
How can I reduce the cycle time
between my MRP run and feedback from the supplier base on meeting suggested
material shipments?
Disconnected Processes
In most manufacturers today, the processes for Material Requirements Planning (MRP) and materials procurement are disconnected, particularly in how orders and changes are communicated to a diverse supplier base. Often, the output from MRP runs is keyed in manually to the purchasing system, where it is then communicated to suppliers. But if suppliers cannot meet the new dates or adjusted quantities from MRP, a tedious and error-prone manual process is required to develop a mutually agreeable shipping schedule.
This results in frequent and costly intervention by buyers and suppliers to manage and communicate PO changes and MRP suggestions. It also causes expensive supply chain disruptions, such as:
- Frequent ordering mistakes
- Duplicate shipments based on time delays
- Expediting based on poor visibility
- Disputes based on conflicting information
Connect MRP with Procurement Execution
PO Change Management is part of ClearOrbit's Xtended Process Control (X.PC) suite.
It extends the functionality of PO Collaborator (sold separately) by automating the communication of order changes suggested by your MRP system, allowing buyers and suppliers to simultaneously change, manage, and collaborate on purchase orders and MRP suggestions. Through ClearOrbit's unique "prevent control" system, PO Change Management also automates data reconciliation, and reduces errors by barring shipments with mismatched data records.
PO Change Management reduces the time buyers and suppliers spend communicating by providing shared, real-time visibility and control over the entire Purchase Event History. All the purchase order data can now be displayed in front of the right people, when they need it, without requiring that they manually look up data in disparate systems. Suppliers can access the system via a standard web browser, by uploading/downloading spreadsheets into the system, or via a Web Services XML interface.
Key Features
Consolidated PO / MRP View
Supplier views original PO and MRP suggestion simultaneously, eliminating guesswork and errors.
Automatic MRP Updates
MRP suggestions are automatically updated in the ERP system, avoiding the need for buyer intervention.
Rules-Based Acceptance
Buyer can review supplier responses or accept them automatically based on configurable rules.
Shipment Controls
Supplier cannot ship orders with pending changes, avoiding costly mistakes.
Shared Visibility
Both buyer and supplier have full visibility to entire event history, eliminating invoice disputes.
Automatic PO Updates
Suggestions and changes approved by the buyer are automatically updated to the PO in the ERP system, improving efficiency.
Benefits of Purchase Order Change Management
Implementing PO Change Management leads to rapid payback from several sources:
- Reduced administrative time for manufacturing buyers and planners
- Elimination of manual PO updates based on MRP suggestions
- Reduced expediting due to miscommunications
- Elimination of duplicate shipments of the same part
- Reduced lead-time and variability
- Significant reduction of inaccurate shipments and invoice disputes
Typical Savings:
