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What Is Third Party Order Process?

Answer»

Let's consider three organizations such as A the service provider, B the service receiver and, C works as a vendor which provides the services to service providers. In this situation when A RECEIVES a purchase order from B it either manufactures it or purchases it. If the option of procurement is chosen, then after receiving the purchase order from B, A CREATES a sales order for it. Instead of preparing the purchase order for C as in case of the trading process A authorizes C to deliver the PRODUCT to B on BEHALF of A. This process is called third party order processing.

Let's consider three organizations such as A the service provider, B the service receiver and, C works as a vendor which provides the services to service providers. In this situation when A receives a purchase order from B it either manufactures it or purchases it. If the option of procurement is chosen, then after receiving the purchase order from B, A creates a sales order for it. Instead of preparing the purchase order for C as in case of the trading process A authorizes C to deliver the product to B on behalf of A. This process is called third party order processing.



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