Buyer Managed Transportation in Procurement

Buyer managed transportation functionality provides a structured way to communicate your buying organization's intent to manage the transportation for a purchasing transaction.

When buyer managed transportation is enabled in the Procurement offering, you can:

• Indicate in a negotiation, agreement or purchase order (PO) your buying organization's preference to arrange transportation for a purchasing transaction.

• Identify the shipping method.

• Specify the requested ship date for goods.

• Communicate these details to the supplier.

Negotiations

When authoring a negotiation, you can select or update the buyer managed transportation option as part of the terms. You can also include the requested ship date. The supplier promises shipment against the requested ship date, with a promised ship date, so there is no ambiguity. The supplier can also respond with a different promised ship date if they're unable to meet the requested ship date.

Agreements

You can use a blanket purchase agreement to communicate your buyer managed transportation term. When you create an agreement, the buyer managed transportation value can be populated by default. The default action is based on the existing buyer managed transportation values set up in these tasks, in the following order of precedence:

1. The value for the supplier site. This is set with the Manage Supplier task in the Supplier work area.

2. The value for the business unit. This is set with the Configure Procurement Business Function task, Setup and Maintenance work area, Procurement Foundation functional area.

If an agreement is created from a negotiation award, the corresponding value for the buyer managed transportation setting is copied over to the agreement.

Requisitions

You can't create or view requisitions using buyer managed transportation attributes from the Purchase Requisitions work area. The Buyer Managed Transportation, Requested Ship Date, and Shipping Method fields aren't available for you to create or view a requisition.

Oracle Fusion Cloud Procurement can accept externally managed, planning system requests specifying ship dates and shipping methods. Procurement can create requisitions from these requests, and purchase orders can be generated either automatically or manually. For requisitions requiring manual processing, you can see the following buyer managed transportation information in the Process Requisitions page:

• Shipping method.

• Requested ship or delivery date.

This table lists the terms used to refer to ship and delivery dates, and their descriptions:

Ship or Delivery Date Term	Description
Requested ship date	For buyer managed transportation, the date the supplier is expected to have the goods ready for pickup from their site.
Promised ship date	For buyer managed transportation, the date the supplier promises to have the goods ready for pickup from their site.
Requested delivery date	For supplier managed transportation, the date by which the supplier is expected to have the goods delivered to the buyer's site.
Promised delivery date.	For supplier managed transportation, the date by which the supplier promises to deliver the goods to the buyer's site.

Purchase Orders

When you search for existing PO schedules, you can see the requested and promised ship dates in the results.

When you create a PO, the buyer managed transportation setting can be populated by default. The value is populated based on the existing values for the setting from the following tasks, in this order of precedence:

1. The value from the source blanket purchase agreement specified on the PO, set in the Purchase Agreements work area, Manage Agreements task.

2. The value for the supplier site, set in the Supplier work area, Manage Supplier task.

3. The value for the business unit, as set in the Setup and Maintenance work area, Configure Procurement Business Function task. You can find the task in the Procurement offering, Procurement Foundation functional area.

If a PO is created from a negotiation award, the value for the buyer managed transportation setting is copied over to the PO.

You can see the following buyer managed transportation information in the purchase order Terms tab:

• Buyer Managed Transportation setting

• Shipping Method

You can see the following buyer managed transportation attributes in purchase order schedules:

• Shipping Method

• Requested Ship Date

• Promised Ship Date

• Requested Delivery Date

• Promised Delivery Date

• Rejection Reason

• Anticipated Arrival Date

For documents that specify ship dates, an anticipated arrival date can be calculated and displayed. The anticipated date for the goods to arrive at the buying organization's site is calculated using the following information, if available:

• Requested or promised ship date.

• Specified shipping method.

• Transit time between the two locations.

Supplier Portal

The supplier can see the buyer managed transportation information in negotiations, agreements and orders. They see it in communications such as PDF and business to business messages, and on the supplier portal. The supplier can use the supplier portal to:

• Receive and review an order that indicates whether or not transportation arrangements are buyer managed.

• Review the requested ship or delivery date, depending on the transportation arrangement specified.

• Acknowledge the order and respond.

• Provide a promised ship date if the transportation is buyer managed, or a promised delivery date if not.