1.8 Supplier Commit Control & Expediting

A Purchase Order represents demand; the Supplier Acknowledgement (ACK) represents reality. The gap between "Requested Date" and "Committed Date" is where supply chains fail. If the ERP system assumes materials will arrive on time simply because a PO exists, the Clear-to-Build (CTB) signal is a hallucination. You must enforce a rigid discipline of date management: the ERP must reflect the vendor's actual promise, not your hope.

Commit Date Locking Rules

The "Current Promise Date" field in the ERP is the heartbeat of the manufacturing schedule. It determines if the production line runs or stops.

Rule 1: The ACK Lock

• Requirement: Upon receipt of the Supplier ACK (within 48 hours of PO), the ERP "Promise Date" must be updated to match the vendor's confirmed date.
• Constraint: If the Vendor Commit is > 3 days past the Need Date, the system must trigger a Shortage Flag.

Rule 2: The "T-Minus" Verification

• Logic: Trust degrades over time. A promise made 12 weeks ago is statistically likely to slip.
• Action:
  • T–14 Days: Automated re-confirmation request sent to vendor.
  • T–5 Days: Mandatory tracking number or Waybill request.

Rule 3: Unilateral Slips

• No-Go: Vendors are Forbidden from silently updating dates on their portals. Any date change requires a formal Change Order or written Buyer acceptance.
• Control: If a vendor ships late without notice, the On-Time Delivery (OTD) score is penalized 2x.

Impact on CTB & ATP

Procurement data drives the rest of the business. You are the source of truth.

1. CTB (Clear-to-Build): Internal Metric. If the Commit Date slips past the Production Start Date, the Work Order turns RED. The line cannot be kitted.
2. ATP (Available-to-Promise): External Metric. Sales cannot promise finished goods to customers if the raw material arrival date is unconfirmed.
   • Logic: If Commit Date is missing/blank → ATP = 0.

Split & Partial Shipment Logic

Vendors often offer partial shipments to mitigate delays. Acceptance depends on the "Setup Cost" vs. "Stockout Cost" physics.

If Partial Qty ≥ 1 Full Production Run:

• Then Accept shipment.
• Reason: Allows the SMT line to run efficiently without changeovers.

If Partial Qty < Minimum Run Size:

• Then Reject (unless Line Down is imminent).
• Reason: Loading a reel for 50 boards wastes machine time and increases receiving/inspection overhead.

Substitution Approval Gate

When a vendor cannot meet the date, they will offer a "functional equivalent." This is a high-risk vector.

The Protocol:

1. Gatekeeper: Buyer receives offer.
2. Filter: Is the package/pinout identical? If No → Reject.
3. Review: Engineering validates electrical parameters (Voltage, ESR, Tolerance).
4. Action:
   • If Approved: PO must be canceled and re-issued with the new MPN.
   • Constraint: Never receive Part B against a PO for Part A. This corrupts inventory traceability.

Escalation Ladder & Decision Table

When a critical part is late, emotion is useless. Use this decision matrix to determine the financial remedy.

Scenario	Impact	Action	Authority
Slip < Buffer	None	Update ERP Date only.	Buyer
Slip > Buffer	Risk to Safety Stock	Demand Expedite (Air Freight) at Supplier Expense.	Sr. Buyer
Line Stop (Soft)	Reschedule needed	Evaluate Cost of Expedite vs. Cost of Delay.	Commodity Mgr
Line Stop (Hard)	Revenue Miss	Executive Escalation (CEO to CEO). Broker buy authorized.	VP Supply Chain

Standard Escalation Script (Email/Call)

Do not beg. State the impact clearly.

Subject: URGENT: LINE DOWN ALERT - PO # [Number] - [Part Number]

Message:

"Current commit date of [Date] is not acceptable. This shortage is now causing a Line Down situation impacting [Revenue/Customer Name].

Required Actions:

Provide proof of WIP (Work in Process) or photo of parts immediately.

Escalate to your Plant Manager.

Provide cost to expedite via Premium Air Freight (Next Flight Out).

If this date cannot be improved, confirm if stock is available at other global branches. We need a recovery plan by [Time] today."

The Commit Tracker

Maintain a "Critical Shortage List" (Red List) separate from the standard ERP report for high-focus tracking.

Criticality	PO #	MPN	Need	Commit	Status	Action Owner
Line Down	45001	STM32...	10/24	11/02	Escalated to GSM	J. Doe
At Risk	45009	10k Res	10/25	10/26	Tracking Pending	S. Smith
Buffer Low	45112	Conn-04	10/30	TBD	No ACK	J. Doe

Final Checklist

Control Point	Requirement	Critical Threshold
ACK Discipline	All POs ACKed with Date	48 Hours
ERP Integrity	Promise Date = Vendor Commit	100% Match
T-5 Check	Tracking numbers obtained	5 Days pre-delivery
Expedite Cost	Premium Freight Authorization	If Risk > Freight Cost
Substitution	Engineering Sign-off	Mandatory
Communication	Shortage Report to Planning	Daily @ 08:30