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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / F&O Blanket PO Best Pr...
Supply chain | Supply Chain Management, Commerce
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F&O Blanket PO Best Practices

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Posted on by MarcRohde 330 User Group Leader
We have agreements with some suppliers where we establish an estimated annual volume that we commit to.  Then each week we use MRP to inform us of how many we want delivered based on actual demand.  Currently, we issue a PO for the annual volume that is due 12/31 of the current year and simply receive against that line as we have the product arrive.
 
We use a lot of custom parts so suppliers are looking to ensure we have an obligation to buy the inventory they stock on our behalf but are OK with having time-phased deliveries usually a week out based on our needs.
 
This causes planning issues because get Advance notices to pull in the large value and can't effectively use MRP to plan our releases.
 
Can somebody explain if they follow a similar process using agreements or blanket orders and how they see recommendations come across in MRP?
 
 
  • Suggested answer
    Kevin Xia Profile Picture
    Kevin Xia Microsoft Employee on at
    F&O Blanket PO Best Practices
    Hi,
    Based on the problem you described, it seems that you have a problem with MRP, and here are a few ways you can better complete the best practices:
    • Use blanket orders or agreements: Consider using blanket orders or agreements to manage long-term relationships with suppliers. This way, you can define the estimated annual volume and rules for time-phased deliveries and share this information with your suppliers.
    • Use MRP to plan time-phased deliveries: Input your requirements into MRP and leverage its calculation and analysis capabilities to plan and recommend time-phased deliveries. Share the demand plan generated by MRP with your suppliers so they can plan their inventory, production, and deliveries accordingly.
    • Regularly evaluate and adjust: Regularly assess the actual demand and share the latest demand plan with your suppliers. Adjust the agreements or blanket orders based on the actual situations to better meet the real demand and supply chain needs.
    Best regards,
    Kevin
  • Suggested answer
    Mariano Melo Profile Picture
    Mariano Melo 332 Moderator on at
    F&O Blanket PO Best Practices
    Hi MarcRohde!
    Instead of using a PO to address that scenario, I would use trade agreements combined with MRP.
     
    With this option the MRP will search for better Price/Lead time among your trade agreements for a given product,
    Once a trade agreement is found, it will create the PO related to that trade agreement and you will have full traceability.
     
    I recomend you explore this functionality.
    Here you have some links to start reviewing.
    MS Learn:
    Example on youtube video.
     
     

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