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Business Scenarios for BPA, PPO and CPA [message #224238] Tue, 13 March 2007 08:20 Go to next message
prashant_pathak
Messages: 263
Registered: February 2006
Location: California,US
Senior Member
Hi All,

can you please give some business example(scenario) where you are actually using the following ?
1) Business Purchase Agreement - BPA
2) Planned Purchase Order - PPO
3) Contract Purchase Agreement - CPA.


Thanks in advance
Prashant Pathak
Re: Business Scenarios for BPA, PPO and CPA [message #224249 is a reply to message #224238] Tue, 13 March 2007 09:11 Go to previous messageGo to next message
tgs100
Messages: 66
Registered: July 2005
Location: Chennai, India
Member
Here is one scenario for BPA (Blanket Purchase Agreement).

There is a canteen in a company which is manned by a contractor. The agreement between the company and the contractor is as follows.

1. There are different kinds of meals with fixed price for a year
Ex: Breakfast food1 - 5$
Breakfast food2 - 4$
Lunch1 - 8$
Lunch2 - 9$ , etc

2. The weekly schedule (meal type, number of meals) will be given to the contractor one week before.
For Ex: Day Meal Type Qty
---------------------------------------
Monday Breakfast food2 250
Monday Lunch1 275
Monday Dinner3 150

In the above case, BPA was created on the contractors name with all the meals and price details. Each week, there would be one release for the specified meals and quantity.

I am not a SCM consultant, I have just given what I have seen in one of my implementation

Cheers,
Sara

Re: Business Scenarios for BPA, PPO and CPA [message #224251 is a reply to message #224249] Tue, 13 March 2007 09:27 Go to previous messageGo to next message
prashant_pathak
Messages: 263
Registered: February 2006
Location: California,US
Senior Member
Thanks for reply..

i am trying to find actual benifits of CPA or PPO against BPA in real business scenario...
Re: Business Scenarios for BPA, PPO and CPA [message #224413 is a reply to message #224251] Wed, 14 March 2007 03:28 Go to previous message
Junior_TE
Messages: 10
Registered: October 2006
Location: FRANCE
Junior Member
Scenario for BPA :
we have supplier of raw material
We do not know the volume for each week but we have an expected volume for the year.
So we define price for the year given the expected volume, then make release...

For standard : use for dual sourcing
We have a BPA with supplier A price 1.2.
We have only quotation from supplier B price 2

If supplier A is not able to supply all our needs, we make a standard purchase order with supplier B.

In fact supplier B is only for emergency and we do not want to have a agreement with him

Hope it helps

regards

[Updated on: Wed, 14 March 2007 03:29]

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