IBM Sterling Order Management - Handling Backordered Purchase Orders in Dropship Order Functionality.

Problem

How to fulfill this backordered purchase order (Drop ship Order)?

Scenario:

In a typical Drop ship order setup, one enterprise dispatches inventory sourced from another enterprise instead of acquiring it themselves.

Assumptions:

• Enterprise1: Seller Enterprise
• Enterprise2: Seller & Buyer Enterprise
• Node1: Belongs to Enterprise1
• Node2: Belongs to Enterprise2
• Item1: Present in Enterprise1's inventory

1. Enterprise1 and Enterprise2 are distinct legal entities.
2. Enterprise2 aims to sell and ship Item1 to its customer. Instead of transferring Item1 to Node2 and then shipping it, Enterprise2 directly ships Item1 from Node1. This action generates a chained order between the two organizations (Enterprise1 and Enterprise2).
3. Enterprise2 buys Item1 from Enterprise1 but dispatches it from Node1. This process initiates a purchase order and updates the sales order status to "Chained Order Created."
4. The creation of this chained order typically requires manual intervention using the "createChainedOrder" API. The purchase order is termed a Drop Ship order, with the document type being 0005, Purchase Order.
5. Enable "Allow inventory check during Schedule and Release" in Application platform > Process modeling > Orders tab > right-click on Order fulfillment > inventory tab
6. Considering this setup and scenario, let's assume Node1 has 10 on-hand inventory. If a sales order is placed a for 10 quantities on Node2, Node2 ships Item1 directly from Node1, it generates a purchase order. When scheduling this purchase order, it becomes backordered.