Blanket Order Overview - Intergraph Smart Materials - Version 2020 (10.0) - Help - Hexagon PPM

Intergraph Smart Materials Classic Help (2020)

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This section describes how to create a blanket order and how to create a call of order based on a blanket order in Intergraph Smart Materials.

The following are a few basic processes to understand what a blanket order is in Smart Materials:

Requisitions for inquiry only are normally created at the beginning of a project, when no or only basic engineering has been done. To get pricing for budgets or to speed up the later delivery, engineering creates requisitions for inquiry. For engineering, these requisitions have two major characteristics:

  1. Procurement will not be able to purchase the materials requested.

  2. Procurement will be able to use the collected prices and delivery conditions for later requisitions for purchase.

Smart Materials offers the following business process for the inquiry cycle.

  1. Create Inquiry

  2. Issue RFQs

  3. Evaluate Bids (commercially, technically)

  4. Select Suppliers

The result of these steps is pricing and delivery conditions coming from the bidding process. This result can be reported. Since it is not possible to create a Purchase Order (PO) from an inquiry only from a requisition, there are special processes required to reuse the inquiry results.

For Smart Materials to use the inquiry cycle results downstream, two optional business processes are available.

  1. Create purchase requisition
    Procurement is able to create a purchase requisition based on the selection of a suppliers bid. The purchase requisition is checked and approved by engineering. After engineering approves the purchase requisition, procurement is able to create a PO based on the Purchase Requisition and on the selected suppliers bid, which means prices and delivery conditions are transferred automatically into the PO.
    This process can be used either for bulk or for tagged equipment.

  2. Create blanket order
    Procurement is able to create a blanket order based on the selection of a suppliers bid. With a blanket order, no material is actually purchased. The blanket order is an agreement between the supplier and the EPC that in a certain period of time a certain range of materials and material quantities will be purchased for a certain price. After a Blanket Order (BO) is placed, engineering may at any time approve requisitions for purchase containing line items with identical ident compared to the BO line items. Procurement can now produce a PO based on the blanket order. The PO will contain all price information available in the BO.
    This process primarily covers the need for bulk material.

Both processes are not compatible inside one requisition and inside one MTO type!

The blanket order is an agreement between the supplier and the EPC that states that within in a certain period of time a specifc range of materials and material quantities will be purchased for a specific price. After a BO is placed, engineering can at any time approve requisitions for purchase containing line items with identical idents as compared to the BO line items, and Procurement can now produce a PO based on the blanket order. The PO will contain all price information available in the BO. This process primarily covers the requirements for bulk material.

In the following diagram, the basic workflow for the creation of a blanket order and how to create an order based on a blanket order is shown.