Businesses often don’t find out if an order can be fulfilled until part of that order arrives, or it never turns up. This is where adding a purchase order response (POR) to your EDI messages can help. A purchase order response is sent by the supplier to let the buyer know if their order can be fulfilled.
A POR will often include:
- the related purchase order number
- an accept or reject indication
- the number of products the supplier can fulfill
- the price per unit
- scheduled despatch date
- backorder dates, if applicable.
Benefits of purchase order acknowledgement
Capture nonfulfillment earlier in the piece
The POR makes it clear what can be fulfilled. You won’t have to wait to see what turns up – the supplier should let you know much earlier on. It’s also a good way to keep your own customers in the loop about when their order will be ready.
Say goodbye to pricing surprises
No one likes surprises when it comes to getting an invoice. PORs help keep everyone on the same page because the supplier can let you know how much they’ll be supplying the goods for and if they’ll charge you any shipping costs. By getting this information before the shipment is sent and the invoice is issued, you can settle disputes earlier and avoid delays.
Streamline two- or three-way matching
Matching invoices against an order can be challenging if your suppliers don’t fulfill the orders in full. Adding PORs to your EDI messages makes sure everything up-to-date in your systems, so matching is a breeze, saving your team time and effort.
So to conclude…
Adding a purchase order response to your EDI messages can really improve visibility of your supply chain – it gives you clarity on what suppliers can fulfill. But why is this important?
- You know what you’re going to receive earlier on in the piece
- You have more transparency on what they’ll ask you to pay before getting the final invoice
- You’ll reduce the amount of manual data entry, saving time and reducing errors.
If you’re interested in PORs and capturing non-fulfillment earlier, get in touch with our team.