Question

Purchase Order Line Date - Promised and Wanted Delivery Date

  • 13 September 2021
  • 3 replies
  • 1127 views

Userlevel 3
Badge +4

Hi,

 

I’m hoping the IFS community can help us with a question regarding best practices when changing PO line dates as a result of feedback from a supplier. Below is the scenario:

 

Today is 9/14/2021. We need parts from the supplier by 10/31/2021 based on MRP. This is before the supplier’s lead time of 90 days.

Supplier confirms they can deliver parts  to us by 11/15/2021.

We confirm the PO line with the Promise Date of 11/15/2021.

 

The PO Line Wanted Delivery Date is still 10/31/2021 based on MRP but this is also the date that prints on the PO to the supplier.  The supplier can only deliver parts by 11/15/2021 as they promised. Should we also change the PO line Wanted Delivery Date to 11/15/2021 to match the supplier’s Promised Delivery Date?

 

Thank you.


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3 replies

Userlevel 7
Badge +17

Wanted delivery date  is the date on which the supplier has agreed to deliver the parts to the specified delivery address (i.e., to the delivery address of the line). This date will be printed on documents and will be sent to the supplier. You can change the wanted delivery date to 11/15 that will show in the printed document. 

Userlevel 7
Badge +28

Wanted delivery date  is the date on which the supplier has agreed to deliver the parts to the specified delivery address (i.e., to the delivery address of the line). This date will be printed on documents and will be sent to the supplier. You can change the wanted delivery date to 11/15 that will show in the printed document. 

I disagree with this statement.  Wanted Delivery Date is the date you wanted it originally, not the date it was promised to you.  Promised Date is just that, when the supplier has confirmed.  If you want to measure the supplier on both their delivery against Wanted AND delivery against promised, you need both dates to be different.

I agree the standard out of the box reports use the Wanted Date only on the report - which we believe is short sighted because it doesn’t clearly indicate what is really going on.  If you change the Wanted to Promised, the print out is ok, but the statistics are no longer valid.

 

Solution: Update the report layout to include both Wanted and Promised and clearly identify both as such on the PO report, that way your supplier gets to see what was promised, they also know what you Wanted and if they want to improve, they know your need AND your statistics remain valid.

Userlevel 6
Badge +14

Wanted Delivery Date is the date we ask the supplier to deliver to the agreed location (which is the delivery address of the line).

Usually it is derived from the Planned Arrival Date when the purchase order is created first. The formula for calculating the wanted delivery date is the following:  Wanted Delivery Date = (Planned Arrival Date - Transport Lead Time).

And Planned arrival date is calculated as below when the PO is created.

Planned Arrival Date = Planned Receipt Date  - Inspection Lead Time - Internal Transport Lead Time

When we set the Planned Receipt date when we create the PO, the Planned arrival date and the Wanted delivery date is calculated backward as above.

As wanted delivery date is the date we tell the supplier we require the delivery on this specific date when we send out the purchase order,  we do not want to change it to match with promised delivery date. When we keep the wanted delivery date as it is we will be able to keep track of it against promised delivery date.

When the supplier confirms or confirm with differences, planned arrival date and planned receipt date will be updated based on the promised delivery date and the lead times.

Planned Arrival Date = Promised Delivery Date + Transport Lead Time

Planned Receipt Date = Planned Arrival Date + Internal Transport Lead Time + Internal Inspection Lead Time

You can change wanted delivery date manually e.g. when you want to coordinate several deliveries from the same supplier.  e.g., to reduce transportation costs or else when there is a change in the demand. Here it is supposed that the buyer wants to re-send the PO to the supplier.