The use of scheduling agreements can shorten processing times and reduce paperwork. One delivery schedule can replace many discrete purchase orders or contract release orders.
Delivery of the total quantity of materials specified in a scheduling agreement item is spread over a certain period in a delivery schedule, consisting of lines indicating the individual quantities with their corresponding planned delivery dates.
Your suppliers require shorter lead times. Smaller deliveries are required, which can be spaced out over a longer period. Delivery scheduling enables suppliers to plan and allocate their resources more efficiently.
In consignment processing, the supplier provides materials and delivers these to a consignment store.
The supplier remains the legal owner of the materials until these are withdrawn from the consignment stores.
Once withdrawn, the supplier requires payment.