Overview of The Back-To-Back Process

   When customers order products that you neither typically stock nor manufacture, you want to buy item for one order, have the vendor ship to you, and then combine it with other items you already have stocked to create one shipment to the customer. This is a common scenario for Wholesale Distributors who use the Sell-Source-Ship business model. We call this process is "Back-To-Back Order". 

   In Oracle Order Management, Back-To-Back Order process automates the creation of supply order (PO) when a Sales Order (SO) is booked. The Sales Order and the supplying Purchase Order are very closely linked, usually one PO is tied to one SO.

   In an environment where lead times are often only a matter of 24 hours, by closely linking the Sales Order and the Purchase Order together, the  Back-To-Back Order process improves efficiency of the three steps:

1. Customer orders items.
2. Purchase those items from vendor and then receive them into the warehouse.
3. Deliver those items to the customer.

   Back-To-Back Order process is also called the "Supply To Order" Process.

   In next posts, we will describe how to implement this Process in Oracle Business Suite.

OracleValues Team