Discrete Purchase Orders Training Presentation for Supply Chain Platform: BAE Systems July 2012

Course Objectives After completing this course, you should be able to: Understand the order management process in SCP Explain the various discrete order states Access and print a discrete order View the details and attachments for a discrete order Respond to a discrete order Review changes to a discrete order Note: For information on creating ASN’s or Invoices – see separate training materials for these topics. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Order Management through SCP SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Business Process Discrete Order: Buyers publish firm orders to their suppliers. Order Responses: Based on published orders, suppliers must provide responses – which are confirmations (promise dates & quantities) against the requests. Suppliers may accept orders, recommend changes, or reject the orders. Order Changes: Buyers may publish changes or cancellations to previously published orders. Suppliers are typically expected to respond. Order Changes or Cancellations 3 Discrete Order 1 Buyer Supplier Order/Order Change Response 2 SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Roles of Buyers and Suppliers Both buyers and suppliers can search, view and print orders. Only suppliers can take action on an order in SCP. Buyers create orders and change orders through their backend systems. Buyer Supplier SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Actions for Discrete Orders A new order is loaded into SCP in a New state, with all of its line items in a New state. The supplier can change a New order to these states: Accepted – Supplier agrees to the complete request from the buyer Acknowledged with Exceptions – Supplier responds with a counter proposal (i.e. a different promise date or quantity) SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Buyer/System Actions for Discrete Orders The buyer can change an order to these states by sending in a change order to SCP: Cancelled – Buyer wants to cancel a schedule line or entire discrete order Closed – Buyer wants to close a schedule line or entire discrete order Updated – buyer has made a change other than cancel or close Schedule lines move to an Archived state when they have been in a ‘Cancelled’ or ‘Closed’ state for more than 60 days. A supplier cannot create advance ship notices (ASNs) or invoices against schedule lines in these states: Cancelled Closed Archived SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View a Discrete Purchase Order SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Structure Each line item represents a different item. Each request (or ‘schedule line’) represents a date and quantity. Each promise represents a confirmation from the Supplier. Order Line Item Header Request Promise If a Supplier cannot meet the entire request quantity and date, he can create multiple promises against that request. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order - Example The Purchase Order Details page has a header section at the top and line item information at the bottom. Some of the header and line item fields can be edited by a supplier. Header Line Items Visible only to a Supplier SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

My Workspace My Workspace 2 The numbers in the Total column refer to purchase order lines, not the number of purchase orders themselves. So if you see 10 in the total column, that could be 1 purchase order with 10 lines on it, or 10 purchase orders with 1 line each, or somewhere in between. By working at the line level, you get a true picture of the amount of work you are expected to do. In SCP there are 3 things that you can do with a buyer’s purchase order. You can accept it as it is. You can reject it completely, or you can Acknowledge with Exceptions whereby you wish to provide the request but are unable to do so as the buyer has set out in the purchase order, and need to propose an alternative. We will look at these 3 options one by one. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Access New Order Lines My Workspace 3 To work on the Purchase orders in New state, we click on the number 4 in the Total column corresponding to the New order state. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Accessing New Order Lines Accessing Purchase Order Lines You can see the 4 purchase order lines here. Note that they have separate order numbers, so we can see that in this example there are 4 purchase orders. This is for simplicity and clarity in terms of training. If a purchase order has more than one line, you will see the order number repeated. You would also notice the Line ID number would increase to reflect multiple PO lines. Before we look at accepting an order, I wanted to point out the scroll bar that is highlighted where you can scroll across and see all the fields associated with a purchase order line. There are a lot of them and it may be beneficial to you to configure what appears in this view. To do this, we can use the configurator button, which is the button that looks like a pencil on a piece of paper in the top right hand side of the screen. Wherever you see this button in SCP you can change what appears in the screen. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Select First New Order Accessing Purchase Order Lines 2 We will now look at accepting a purchase order. To do this we will go into the purchase order, review it and then accept it. You will see that there is a series of yellow buttons on this screen and one of them says accept. You can accept the order from this screen, but we recommend you do go into the detail first and that is what we will show you. So we will click on the first order number to drill down into the detail. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Review Order Details Purchase Order The Purchase Order is split into 2 sections. The header section, which is highlighted, shows at the top of the screen. Note the scroll bar and another configurator button, where you can choose what shows in the header section. We recommend you take some time to review the header fields and you can remove those which are not relevant to you. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

(Optional) Print Order SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Print Multiple Discrete Orders SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View Order Attachments POs in SCP can have documents attached by a Buyer (not a Supplier). A paperclip icon shows there is an attachment to a PO. The number of attachments is shown in parenthesis next to the icon. Attachments: Can exist at header or line item level Can access from list page or details page Are not exported/downloaded with an order Are not printed with the order SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Respond to a Discrete Purchase Order SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Accept an Order Schedule Line Purchase Order 4 In order to accept a Purchase order, click the relevant box or boxes, and click the Accept button. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Order Not Sent Until All Lines Are Actioned Purchase Order 4 In order to accept a Purchase order, click the relevant box or boxes, and click the Accept button. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Accepted Discrete Order Accepted Purchase Orders Note that now we have accepted all the lines in a purchase order, the state has changed at the line level and the header level. If you do not accept all lines on a purchase order, the Order state will take the lower value. We will now go back to My Workspace to look at rejecting a Purchase Order. To do this we would click My Workspace on the Navigation Tree. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Status Update on My Workspace Rejecting A Purchase Order Now we are back on My Workspace, note that the Order lines in New state has decreased by 1, and the lines in Accepted state has increased by 1. This reflects what we just did. We will click on the New Total again and proceed to reject the next order. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Select Next New Order Acknowledge with Exceptions 2 The first option is to simply change the proposed delivery date, keeping the order quantity intact. This is effectively saying you can meet the quantity required by the buyer, but you cannot meet their desired date. As we did before, click onto the order number link to open the details page for the order. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Acknowledge with Exceptions Supplier Message To add a supplier message, scroll down to the bottom of the header section and click Create where you see Supplier Message. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Required: Create a Supplier Message To add a supplier message, scroll down to the bottom of the header section and click Create where you see Supplier Message. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Supplier Message The ‘Supplier Message’ field (at the header) is required for any schedule line that is not accepted. There is also an optional ‘Supplier Notes’ field at the line level. The maximum character limit is 256 for both fields. Supplier Message 2 Enter some text and press OK. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Select ‘Acknowledge With Exceptions’ As with Order rejection, we have to make sure we remember to add a Supplier Message. I’ve already done that so it is showing as “Change”. In order to make this easier to see, I have removed the Navigation Tree from the display by clicking the arrow shown in the top left corner of the screen. In the line detail I have scrolled along to find the Request Deliver Date from the buyer and you will see that the Promise Deliver date has defaulted to the same date as the buyer requested. To change it, simply change the date by typing in your new proposed date, or by clicking the calendar icon next to the date box and choosing the new date from the calendar. I’m going to change this to March 20th. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Acknowledge With Exceptions – Split Quantity (Add Promise) I have accessed the final order for this training. As before I have hidden the Navigation Tree. This time I have scrolled along to highlight the Requested and Promised quantity, as well as the Promised Deliver Date. The requested deliver date is the same as for the last order. Don’t forget that you will need a Supplier Message. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

‘Add Promise’ to Split the Quantity Select the number of promises (rows) to be added Enter the ‘Promise Dates’ and ‘Promise Qtys’ Enter the required ‘Supplier Message’ (header) Click ‘Save’ Split Quantity 3 On the next screen, you will need to indicate how many rows that you want to add (each row is for one date-quantity pair). Check the first box and then scroll to the right. The combined promise quantities should equal the request quantity. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

‘Acknowledged With Exceptions’ with Two Promises Split Quantity 5 We can now see that there are two lines, which reflect your two proposed deliveries. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Order Response Buttons Are Missing… For discrete orders, ‘Accept’ and ‘Acknowledge with Exceptions’ are end states. This means that once ALL of the lines in an order have moved to ‘Accepted’ or ‘Acknowledged with Exceptions’, then the action buttons for these two states are no longer available. Note: If a change order comes through for any schedule line in the order, then the ‘Accept’ and ‘Acknowledge with Exceptions’ buttons will reappear for all schedule lines. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

‘Response Sent’ Flag on Orders An order only gets sent to BAE Systems when all of the schedule lines have been moved from the New and Updated states (See the Order’s header state). The ‘Response Sent’ indicator will show you if an order is completed (all lines processed) Once an order has all of the lines processed, SCP will send it to BAE Systems. SCP checks every fifteen minutes for order responses that are ready to send. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Locating Orders Not Sent to Buyer Search for order schedule lines where Response Sent = No, and Schedule Status is ‘Accepted’ or ‘Acknowledged with Exceptions’ SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes If you responded to a PO with ‘Acknowledge with Exceptions’, the buyer will receive your response automatically and be able to review it If your exceptions are agreeable to the buyer, a PO Change (POC) should be issued by the buyer A POC may also be issued when there is a business change for the buyer, or to correct an error on an order You can respond to a POC with ‘Accept’ or ‘Acknowledge with Exceptions’ IMPORTANT: You will always see the latest version of an order – including all change orders that have been sent to SCP. The documents post as they are received and no longer wait in a POC queue! SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Cancelled Orders If the buyer cancels an entire order or some schedule lines, you will receive an email notification. You can find the cancelled schedule lines by clicking on the Cancelled link from the My Workspace page. No action is required for cancelled orders or schedule lines. If there are other lines on an order that you want to action, you can simply select those lines and click ‘Accept’ or ‘Acknowledge with Exceptions’. If you select a cancelled line, SCP will give you an error message. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes On the My Workspace screen and in the Order Summary box, you can find any order changes in the ‘Updated’ status row. By clicking on the 4, we will see the 4 order schedule lines that have been moved to an Updated state. Depending on how the buyer sends their PO changes, you could see only some rows from an order that have been changed (or put into the Updated state). SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes In this example, you will see that there are 2 lines but only one checkbox. This is because there are two delivery schedules associated with the one line. This POC has been created based on the previous example where we split one line into two promises. We can drill down into the detail as before by clicking on the Order number. SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Purchase Order Changes - Highlighting Note that the changed requested quantity is now highlighted yellow to indicate what has changed. The promise quantity has now been defaulted to match the change so we can just Accept this POC if the new dates are still relevant. Highlighting applies for ‘Request Qty’, ‘Request Del Date’ and ‘Unit Price’ SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

View History of Changes SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Sample – View History SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential

Section Summary We have learned… How to access new orders How to accept orders How to acknowledge with exceptions – changing quantities and promise date How to review Purchase Order Changes SCP-BAES: Copyright 2012 Exostar LLC. All Rights Reserved. Proprietary and Confidential