Orchard Supplier Operating Requirements For Purchase Order
Orchard Supplier purchase order (PO) requirements and guidelines are obligatory for all Orchard Supply Company, LLC suppliers. Orchard Supplier general Purchase Order requirements:
- Specific PO information should be retained for use on the invoice, shipment documentation and shipping labels.
- When invoicing Orchard, the supplier invoice is matched to the PO (Purchase Order) and receipt.
- Invoices that do not match may be delayed, reduced, and subject to a charge for handling expenses. Orchard will return any paper invoices submitted for payment.
- The supplier will receive POs electronically as an EDI 850 transaction and should check for orders at least once a day.
- The supplier will ship only the items/SKUs ordered and in the quantity ordered within the compliance window.
- The supplier will acknowledge POs using an EDI 997 transaction.
All POs are set up as ship and cancel (no back orders unless otherwise stated on the 850 PO).
Orchard Supplier conditions that may occur with an existing PO
- Orchard may cancel or change a PO using the EDI 860 transaction, or using a printed confirmation.
- The supplier will adjust the corresponding PO/item upon notification of a cancellation or change.
- Only substitute products when an Orchard merchant has authorized the substitution.
- Orchard may return merchandise as an over-shipment, unauthorized substitution, as part of a cancelled order received outside the shipment window or past the expected delivery date.
- The supplier will bear the cost of transportation for all merchandise returns.
- An Orchard merchant will negotiate product costs in advance of any PO.
- If a supplier believes that an line item cost on the PO is incorrect, resolve the cost discrepancy prior to shipment with the merchant.
- PO discrepancies, such as damaged and mis-shipped materials, will be communicated by Orchard’s DC to the vendor via email or fax.
- A maximum of 30 days will be allowed for vendor responses to PO discrepancies, including substitutions, damages or quantity issues.
- Failure to respond with instructions for disposition of PO discrepancies will result in destruction of the mis-shipped or damaged product and a claim.