A direct delivery is a shipment sent directly from the supplier to the customer’s delivery address. In this process, the customer places an order with a company, and the company forwards the order to the supplier. The supplier then ships the goods directly to the customer, bypassing the company’s warehouse.
Microsoft Dynamics 365 SCM supports the direct delivery process through the “Direct Delivery” feature. This functionality allows users to create a direct delivery purchase order directly from a sales order. What are the benefits for a company?
- Reduced inventory handling
- Faster delivery times
- Lower operation cost
- Improved cash flow
Configuration
1. A direct delivery purchase order cannot be created using a warehouse where the “Use warehouse management processes” parameter is enabled. Dynamics only allows direct delivery from warehouses where this parameter is disabled.
2. A default supplier can be assigned to the product, which enables automatic creation of a direct delivery purchase order when a sales order line is entered.
3. If you set the Direct Delivery parameter to “Yes”, Dynamics will automatically create a direct delivery purchase order when you create a sales order. If you specify a direct delivery warehouse, this warehouse will be added to the sales order line.
Demonstration
1. A sales order
2. Creation of the sales order line. As you can see, the delivery type is automatically set to “Direct delivery”, and the direct delivery warehouse is also assigned.
3. When you click the “Save” button, Dynamics automatically creates the direct delivery purchase order.
4. The direct delivery purchase order can also be created manually using the “Direct delivery” button.
5. You can open the direct delivery purchase order using the “Related orders” or “Purchase order” button.
6. The user can confirm the purchase order to the supplier by clicking the “Confirmation” button.
7. Once the goods have been shipped by the supplier, the product receipt can be posted. When you post the product receipt for a direct delivery purchase order, Dynamics will automatically post the packing slip for the corresponding sales order.
8. The status of the purchase order is updated to “Received” once the product receipt has been posted.
9. The status of the sales order is updated to “Delivered” once the packing slip has been posted.
