SCP-Embraer Train the Trainer Subcontract
Subcontract Order Overview The Embraer-SCP system enables the movement of transactions between Embraer and the Supplier, proactively flags business exceptions, and alerts both buyer and supplier who then collaborate to resolve the exceptions. Source of Information
Process
Type of Information
Subcontract Order
Embraer Supplier
Commercial Invoice
Embraer Supplier
Embraer’s firm material requirements through Subcontract Order creations and Change Orders Supplier’s response to Orders with Promises Supplier’s material Shipment information sent to Embraer Supplier’s financial settlement information sent to Embraer Embraer’s response to Commercial Invoice (commercial invoice update information)
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Subcontract: Available Supplier Actions The Supplier responds to the Subcontract at the Schedule level with one or more Promise Schedules that provide a Confirm Delivery Date. The Supplier has the following options when responding: Acknowledge: • a. If No change to Confirm Delivery Date: the Supplier agrees to meet the needs (requested date) as specified by Embraer. In this scenario, the system moves the Schedule status to Accepted. • b. If Confirm Delivery Date is different from Current Delivery Date, then the Supplier recommends changes. In this scenario, the system moves the Schedule status to Accepted with Changes and alerts the buyer for approval.
Kanban: The Supplier does not have the required materials from Embraer to complete their work. In this scenario, the supplier actions the schedule to the Kanban status which alerts the buyer that more materials are needed. • Note: Embraer can also update the schedule to Kanban.
Return Materials: The supplier has materials that are defective or do not meet their needs in order to complete their work. In this scenario, the supplier actions the schedule to the Return Materials status which alerts the buyer for approval. Ready to Ship: The supplier is ready to ship the item(s) to Embraer. Embraer is alerted and will respond with a Go status when they are ready to receive. Suppliers should not ship the item until they receive the Go confirmation. April 4, 2017
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Subcontract: Available Embraer Actions As the buyer, Embraer also has the ability to action the Subcontract. Embraer actions may result in an order moving status. New: The status assigned to a new order line or request schedule when it's loaded into the SCP System • Note: When the Action field = ‘EMF’, Embraer has issued the Subcontract, but understands that they have not delivered the required materials. Suppliers will not be able to Acknowledge this Subcontract until Embraer has sent the materials and removed ‘EMF’ from the Action field (i.e. Action field will be blank).
Open: The status assigned to a changed order line or request schedule when it's loaded into the SCP system with changes to ‘Current Delivery Date’. • Changes to other fields will NOT result in the schedule moving to the ‘Open’ status. • Suppliers will receive email alerts and will be able to view the following changes via the Exceptions Workflow: • Priority Product Item Alert – the buyer has updated the Priority of the order •
High severity: •
Priority = “999”, “AOG” or “CRI”
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Medium severity:
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Low severity: This alert is triggered when:
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Priority = “EMP” or “NCL” Priority = “SMI” or “VMI”
• Updated Unit Price Alert: Embraer has updated the Unit Price • Blocked Subcontract Alert: Embraer has blocked the order from being actioned by the supplier. Copyright 2017 Exostar LLC | All Rights Reserved | Proprietary and Confidential
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Subcontract: Available Embraer Actions Kanban: Embraer knows that the Supplier does not have the required materials from Embraer to complete their work. • Note: the supplier can also update the schedule to Kanban.
Request Acknowledgement: Embraer would like the supplier to review potential changes to Current Delivery Date, Baseline Delivery Date or Request Quantity Go: Embraer is informing the supplier to ship the item(s). Received: Embraer has successfully received and processed the material Cancelled: Embraer cancelled the request schedule. Closed: Embraer closed the order line or request schedule.
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Subcontract Status • Status’ are applied at the schedule line level (1) and the header level (2). • The Order Status is dependent on the status’ at the Schedule Status level.
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Status Priority When the Subcontract contains multiple lines, the Order Status (header) is determined by the Schedule Status with the highest priority. (‘Priority 1’ is the highest priority) Priority of Statuses Status
Example: Subcontract 1 Priority
Order Status
Schedule Status
Priority
Line 1: Request Acknowledgement
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Line 2: Accepted
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Line 3: Accepted
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Schedule Status
Priority
Line 1: Accepted
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New
1
Open
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Request Acknowledgement
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Kanban
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Return Materials
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Accepted with Changes
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Ready to Ship
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Accepted
8
Go
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Received
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Cancelled
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Line 2: Accepted with Changes
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Closed
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Line 3: Cancelled
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Request Acknowledgement
Example: Subcontract 2 Order Status Accepted with Changes
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Finding Subcontract 1.
2.
My Workspace is best used when you want to identify and access key items to work from a single screen. My workspace displays exceptions across all documents as well as a summary of items in a given status by document.
Exceptions is best used when you want to view and access items that have entered into an exception workflow. Exceptions identifies key items that need the immediate attention of the user.
3.
Summary is best used when you want to access items grouped by Category and status, and further refine the results based on particular parameters.
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Search is best used when you know something particular about the item, such as number, name or description, that can be typed into the search fields
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Subcontract Happy Path
New
Accepted
• Embraer PO
• Supplier Action
Ready to Ship • Supplier Action
Go
Received
Closed
• Embraer PO or Action
• Embraer PO
• Embraer PO
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Accepting a Subcontract: List Page Users can action subcontracts from either the List Page or the Details Page. • The List Page allows suppliers to ‘bulk accept’ multiple orders • The Details Page allows the supplier to work within a single order
Accepting a subcontract means that the user agrees to all aspects of the order as statused on the page. To accept a subcontract from the List Page: 1. Select the schedule line(s) that you wish to accept 2. Click the Acknowledge Button
To view attachments and accept the order from the Details page: 3. Click the Order Number hyperlink of the order you wish to action
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Accepting a Subcontract Details Page To accept an order from the Details Page: 1. Select the Lines that you wish to accept 2. Click the Acknowledge Button
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Respond to a Subcontract with Changes To respond to a subcontract with changes from the Details or List Page: 1. 2. 3. 4. 5. 6.
Select the Lines that you wish to acknowledge Update the Confirm Delivery Date The Confirm Quantity must always equal the Request Quantity. Choose a Supplier Reason Code from the dropdown list – this is the reason for the change request Add a Supplier Note by clicking on the Create hyperlink Click the Acknowledge button
The Subcontract will then enter the Buyer Approval Process
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Kanban Process If you need additional materials for a subcontract, you should: 1. 2. 3. 4.
Select the schedule line(s) that require additional materials Choose a Supplier Reason Code from the dropdown list – this is the reason for the request Add a Supplier Note by clicking on the Create hyperlink Click the Kanban button
Embraer will be notified of the material needs via the Material Issues Alert. When the materials have been shipped, Embraer will send a POC that will typically move the Subcontract schedule line to Open. Embraer also has the ability to move the schedule line to Kanban.
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Returning Materials If you need to return materials for a subcontract, you should: 1. 2. 3. 4.
Select the Lines that you wish to reject Choose a Supplier Reason Code from the dropdown list – this is the reason for the return Add a Supplier Note by clicking on the Create hyperlink Click the Return Materials button
The Subcontract will then enter the Buyer Approval Process
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Return Materials: Key Information Embraer has the ability to send updates concerning the returned materials for the Subcontract. These updates will be found in the Action field. • DEV-PARCIAL: The returned materials have been partially received. • DEV-TOTAL: The returned materials have been fully received. • NOTE: Suppliers cannot move the schedule line to Kanban, Accepted, Accepted with Changes, or Ready to Ship when the Action field is equal to DEV-PARCIAL or DEV-TOTAL and the Schedule Status is New or Open.
Return Materials Alerts • Material Issue Alert: Notifies users that a supplier has placed an item in the Return Materials or Kanban status. • Incorrect Order status Return Material Alert: Notifies users that the supplier has physically returned the materials, but has not updated the schedule line to Return Materials. • Accepted Subcontract with Returned Materials Alert: Notifies users that Embraer has sent a Subcontract Change Order that results in a schedule line moving to the Accepted status, but with an Action of DEVPARCIAL or DEV-TOTAL. The supplier has the full range of actions when the Subcontract is in an Accepted status.
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Buyer Approval Process Buyer Approval is a process that allows Embraer to review and approve or reject the Order Responses from the supplier that are in the Accepted with Changes and Return Materials states Supplier Action Results in:
Buyer Approval Action
Schedule Status Moves to:
Accepted with Changes
Approves the request
Embraer will send a POC that will update the Baseline Delivery Date, Current Delivery Date and/or Request Quantity and move the schedule status to Accepted.
Accepted with Changes
Rejects the request
The buyer could add a Buyer Rejection Reason which is displayed on the individual order schedule line (scroll to the far right of the screen). The schedule status will move to Open and the supplier will receive a Discrete Order Alert.
Return Materials
Approves the request
The schedule will remain in the Return Materials status.
Return Materials
Rejects the request
The buyer could add a Buyer Rejection Reason which is displayed on the individual order schedule line (scroll to the far right of the screen). The schedule status will move to Open and the supplier will receive a Discrete Order Alert. Copyright 2017 Exostar LLC | All Rights Reserved |
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Reconfirm Process The Reconfirm Process will send scheduled messages to the supplier at regular intervals to request confirmation that the supplier is still on track to deliver. 1. Suppliers can determine if a Reconfirmation requires reconfirmation by viewing the Reconfirm Needed field at the schedule line level of the subcontract.
For a subcontract to be reconfirm eligible, the subcontract must be in an Accepted status and must fall within the reconfirm date range. •
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Current Date 15 days > than Current Delivery Date AND Acceptance Date is 7 days >than Current Date OR Current Date 30 days > than Current Delivery Date AND Acceptance Date is 7 days >than Current Date OR Current Date 45 days > than Current Delivery Date AND Acceptance Date is 7 days >than Current Date OR Current Date 60 days > than Current Delivery Date AND Acceptance Date is 7 days >than Current Date.
If the supplier does not respond within 2 days of the reconfirmation trigger, then the buyer and supplier will be alerted to lack of response and a Missing Subcontract Reconfirm message will be sent. Copyright 2017 Exostar LLC | All Rights Reserved |
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Finding Subcontract that Require Reconfirmation The easiest way to identify orders that need reconfirmation is via the Exceptions workflow 1. 2. 3. 4.
Click Exceptions Click Order Management Click Subcontract Order Click on the number on the Reconfirm Subcontract Alert Row
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Reconfirm Process Response The supplier can then respond as they would to any other subcontract. • If the Confirm Delivery Date is valid, simply select the line(s) and click the Acknowledge button. • If the Confirm Delivery Date is no longer achievable. 1. 2. 3. 4. 5. 6.
Select the Lines that you wish to change Update the Confirm Delivery Date The Confirm Quantity must always equal the Request Quantity. Choose a Supplier Reason Code from the dropdown list – this is the reason for the change request Add a Supplier Note by clicking on the Create hyperlink Click the Acknowledge button
• The Subcontract will then enter the Buyer Approval Process
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Request Acknowledgement The Embraer-SCP system will allow buyers to Request Acknowledgement or introduce a suggested new Current Delivery Date, Baseline Delivery Date and/or Request Quantity Suppliers will then be able to take the Acknowledge action on the schedule as appropriate for the given situation. • If the supplier action results in the Schedule Status moving to Accepted with Changes, then the schedule will move into the Buyer Approval process.
The easiest way to identify orders that need to be actioned because of Reconfirmation Acknowledgement changes is via the Exceptions workflow 1. 2. 3. 4.
Click Order Management Click Subcontract Click Summary Click on the number on the Request Acknowledgement Row
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Request Acknowledgement Process Response The supplier can then respond as they would to any other subcontract. • If the Confirm Delivery Date is valid, simply select the line(s) and click the Acknowledge button. • If the Confirm Delivery Date is no longer achievable. 1. 2. 3. 4. 5. 6.
Select the Lines that you wish to change Update the Confirm Delivery Date The Confirm Quantity must always equal the Request Quantity. Choose a Supplier Reason Code from the dropdown list – this is the reason for the change request Add a Supplier Note by clicking on the Create hyperlink Click the Acknowledge button
• The Subcontract will then enter the Buyer Approval Process
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Subcontracts and Commercial Invoices Suppliers can view information on associated Commercial Invoices from the Subcontract Details page. 1. Invoice Status indicates the most recent status of an invoice associated with that schedule line. 2. The Invoice Status corresponds to the Supplier Invoice/Nota Fiscal directly to its right. 3. Clicking on the Commercial Invoice Info Tab will allow the supplier to see additional information on all invoices associated with the Subcontract. 4. Suppliers can click on the Exostar Invoice Number and the Embraer-SCP system will present a pop-up that takes the user to the Commercial Invoice Details page.
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Additional Subcontract Exceptions Exception Name Received Quantity and Invoice Quantity Mismatch Alert Request Quantity and Invoiced Quantity Mismatch Alert Current Delivery Date and Confirm Delivery Date Mismatch Alert Request Quantity and Confirm Quantity Mismatch Alert Request Quantity and Received Quantity Mismatch Alert
Request Quantity and Shipped Quantity Mismatch Alert
Description Both Total Received Qty (Line) and Total Invoice Qty (Line) are greater than 0, but the Total Received Qty (Line) does not match the Total Invoice Qty (Line). Both Request Quantity and Total Invoice Qty (Line) are greater than 0, but the Request Quantity does not match the Total Invoice Qty (Line). Current Delivery Date does not match the Confirm Delivery Date Both Request Quantity and Confirm Quantity are greater than 0, but the Request Quantity does not match the Confirm Quantity Both Request Quantity and Total Received Qty (Line) are greater than 0, but the Request Quantity does not match the Total Received Qty (Line) Both Request Quantity and Total Shipped Qty (Line) are greater than 0, but the Request Quantity does not match the Total Shipped Qty (Line)
The easiest way to identify subcontracts that need to be actioned because of mismatches is via the Exceptions workflow 1. 2. 3. 4.
Click Exceptions Click Order Management Click Subcontract Order Click on the number on the row that corresponds to the mismatch that you want to investigate.
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Special Subcontract Fields Delta Lead Time • If ‘Order Type’ is “ZNBA”, “ZNBC”, “ZNNA”, “ZNNC”, “ZNNN” then ‘Confirm Delivery Date’ – (‘Order Created Date’ + ‘Lead Time’) • If ‘Order Type’ is any other value then ‘Confirm Delivery Date’ - (‘Last NF Invoice Date’ + ‘Lead Time’)
Delta Shipment •
‘MRP Date’ – ‘Confirm Delivery Date’
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collaboration identity supply chain risk management
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