Business Scenarios for BPA, PPO and CPA [message #224238] |
Tue, 13 March 2007 08:20 |
prashant_pathak
Messages: 263 Registered: February 2006 Location: California,US
|
Senior Member |
|
|
Hi All,
can you please give some business example(scenario) where you are actually using the following ?
1) Business Purchase Agreement - BPA
2) Planned Purchase Order - PPO
3) Contract Purchase Agreement - CPA.
Thanks in advance
Prashant Pathak
|
|
|
Re: Business Scenarios for BPA, PPO and CPA [message #224249 is a reply to message #224238] |
Tue, 13 March 2007 09:11 |
tgs100
Messages: 66 Registered: July 2005 Location: Chennai, India
|
Member |
|
|
Here is one scenario for BPA (Blanket Purchase Agreement).
There is a canteen in a company which is manned by a contractor. The agreement between the company and the contractor is as follows.
1. There are different kinds of meals with fixed price for a year
Ex: Breakfast food1 - 5$
Breakfast food2 - 4$
Lunch1 - 8$
Lunch2 - 9$ , etc
2. The weekly schedule (meal type, number of meals) will be given to the contractor one week before.
For Ex: Day Meal Type Qty
---------------------------------------
Monday Breakfast food2 250
Monday Lunch1 275
Monday Dinner3 150
In the above case, BPA was created on the contractors name with all the meals and price details. Each week, there would be one release for the specified meals and quantity.
I am not a SCM consultant, I have just given what I have seen in one of my implementation
Cheers,
Sara
|
|
|
|
Re: Business Scenarios for BPA, PPO and CPA [message #224413 is a reply to message #224251] |
Wed, 14 March 2007 03:28 |
Junior_TE
Messages: 10 Registered: October 2006 Location: FRANCE
|
Junior Member |
|
|
Scenario for BPA :
we have supplier of raw material
We do not know the volume for each week but we have an expected volume for the year.
So we define price for the year given the expected volume, then make release...
For standard : use for dual sourcing
We have a BPA with supplier A price 1.2.
We have only quotation from supplier B price 2
If supplier A is not able to supply all our needs, we make a standard purchase order with supplier B.
In fact supplier B is only for emergency and we do not want to have a agreement with him
Hope it helps
regards
[Updated on: Wed, 14 March 2007 03:29] Report message to a moderator
|
|
|