Third party order

[Former Member]

Hi

In third-party order process, vendor supplies goods to the customer and send invoice to Business( MM INVOICE).

suppose company A is manufacturing ceramic products and getting raw material from vendors .So how a vendor supplying raw materials delivers finished product to customer.

Is the vendor different from vendor supplying raw material .so who can be the vendor that supply same product manufactured by company A.

[former_member182378 · Accepted solution]

Daniel,

In the SAP third party process, the vendor chosen by the company to deliver the goods to its customer; (this vendor) manufactures the same goods as the company does.

E.g.

Cold drink bottles.

The customer (e.g. Coca Cola) orders goods from company A.

This company manufactures Cold drink bottles.

In Summers, the cold drink bottles ordered by Coca cola is so large that company A can not manufacture the entire order.

It (the company) employees a vendor (who creates the same cold drink bottles) to manufacture and deliver these cold drink bottles to Coca cola.

For your extra information:

The vendors who are providing glass, stickers, paint etc. etc. to Company A; are not the vendors in 3rd party process (taking the above business example).

[Former Member · Accepted solution]

T W

I have understood  your explanation, OK well. so my question is , suppose Yamaha company manufactures bikes so if its customer A having high demand  then Is their chance of 3 rd- party (vendor)

supply goods to customer .Because Yamaha manufacturing means it is a big manufacturing.

can Suzuki can be a vendor of Yamaha (or) a vendor is a person who can handle every company(Ferrari,Suzuki,Yamaha)

Is the 3rd-party process depends on the Industry sector.

[former_member182378 · Accepted solution]

Daniel,

Yamaha might have tie-ups with some vendor who create Yamaha bikes.

Yamaha has given them the permission, technology etc. to create Yamaha bikes.

There might most probably be some legal tie-ups too between Yamaha and its vendor companies.

These vendors feature in the 3rd party process.

(Taking this specific example)

[former_member184080 · Accepted solution]

Hi Daniel,

Though we are deviating from SD. Let me explain you with my experience.

Yes, Yamaha can ask X/Y/Z vendor to manufacture the bikes on behalf them,but, Yamaha will keep a quality person at Vendor place to see whether the quality is as per the standards are not.

I have seen this in Cadbury India, Cadbury had a tieup with one vendor who actually manufactures some Cadbury brand chocolates (But formula will be given by Cadbury) the quality person of Cadbury will be at his vendor place to ensure that quality is as per the company standards.

Note: the above company manufactures other brands as well.

Now a days many manufactures are doing this in order to reduce the transport and other overheads costs and meet local demand.

Regards, Sai krishna.

[former_member184065 · Accepted solution]

Dear,

My best suggestion is please have look into Google where you can see N-Number scenarios based on Third Party and also Configuration .

TW,

From my understanding, the OP is not asking the 3rd party configuration steps in SAP. Or the document flow (business steps).

May I know , In you correct answer having 3rd Party Configuration .

I have explained Document Flow from where to where .

Please avoid this type activity first and read once again and give the answer .You are good contributor here ,we have discussed so many times regarding third party scenarios and also configuration . No need to again explanation .Explanation is required when it is new thing .

Note : I am sorry if you hurt on this .

Thanks,

Naren

[former_member182378 · Accepted solution]

Narendra,

As you said

Your Query is not clear .

I gave you some input.

Importantly, the question is what are the "attributes" of a vendor, in order to use it in the SAP 3rd party scenario.

It is not about process flow or SAP configuration (for which there is plenty of material in the internet)

[Former Member · Accepted solution]

Hi

T W is exactly on right track to present his ideas on my question.He got exact point on discussion.He answered exactly what I am expecting.

Thankyou

T W

[Former Member · Accepted solution]

Hi sai

I understand your explanation, but are we deviating from SD .In which case we are deviating

can we map your cadbury example as 3rd party  ,if so why we are deviating.

[former_member184065 · Accepted solution]

Dear,

Yamaha might have tie-ups with some vendor who create Yamaha bikes .

Really , tell me one thing ,Have Yamaha having Vendors for creation of Yamaha Bikes  ?

Note : Please let me know ,In your total Experience , Have you seen whatever you have explained about Yamaha Bikes in real time.( Have you worked for any third party sales in your experiences )

If yes then let me know ( I need real time way not just as explanation ).

Note : Examples whoever can explain in so many ways of third party sales when he knows about third party meaning .

Thanks,

Naren

[jignesh_mehta3]

Hello Daniel,

I think you are referring to Sub-Contracting Process in SAP.

Please search the forum / google with Sub Contracting Process in SAP & you will have ample information.

Thanks,

Jignesh Mehta

[former_member184080]

Hi Daniel,

You are talking about 2 different scenarios.

1. Vendor who supplies raw materials to Company A - Which is pure MM purchase cycle.

2. Vendor who does the supply to customer - Third party sales - which has both MM & SD involves.

Please let me know whats the confusion here.

Regards, Sai Krishna

[former_member182378]

Sai,

We have to compare the goods sold by a vendor with the goods sold by us.

Suppose our company is selling raw material, then the vendor who is selling raw material can be used as a 3rd party vendor. (in your / other words in the SD and MM cycles)

[former_member184080]

Hi TW,

Sorry I didn't get you. Are you asking me a question or is it a further explanation to my post?

Regards, Sai Krishna.

[former_member182378]

Sai,

My point is even a vendor selling raw material can used be a 3rd party vendor.

Classification of vendors can not be done on the basis of material (whether it is raw material or finished goods).

We have to compare the goods sold by a vendor, with the goods sold by our company (to the customer).

[former_member184080]

Hi TW,

Yes, exactly. May be i didn't explain the way you explained. But, yes, we can have any such type material being sold by us to customer or by vendor. But, based the document flow  and other related settings we can derive the outcome.

Regards, Sai krishna.

[former_member184065]

Dear,

Your Query is not clear .Please make it as with some inputs ( for understanding ).

Customer - > Company -> Vendor ->Customer

Note :I hope ,if you search in Google regarding then you can a lot of threads and read at least one time as how SAP support that Scenario .

Thanks,

Naren

[former_member182378]

Narendra,

From my understanding, the OP is not asking the 3rd party configuration steps in SAP. Or the document flow (business steps).

It is more a clarification w.r.t. vendors (and differentiation of vendors depending upon what their role is in the supply chain).