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Pre-Order Model 7 - Blanket Ship-from-Stock and Debit Authorization, Version 1.0 
Status:  Balloted and ratified by membership via Distributor Scenario 2 ratification, August 2002

Process Activities

Special Notes:                   


Activity Diagram (See also Narrative):



Narrative (see also Graphic):


Step Description
A. At start state A, the buyer and seller have a pre-established relationship.  The distributor's margin (profit on a resale) for a product drops below an desirable level, due to the fact that the distributor is holding stock for a component supplier, purchased from that component supplier at a price that no longer reflects actual market price.

The Distributor requests a post-sales (component supplier selling to distributor) reduction in cost from component supplier in order that the resale of the product will meet competitors' pricing; the Distributor may send a request for a Discrete Debit Authorization (Pre-Order Model 6) , a Blanket Request for Debit Authorization (this model), or may include it in a Request for Quote (Pre-Order Model 4) sent to get a reduction in pricing for backlog (Distributor's open orders to the component supplier) and future orders sent from the Distributor to the component supplier.

2. The component supplier processes the Debit Authorization Request.  The component supplier typically does some decision support work to verify the market price and sales potential for the product, in order to assess the impact of the price reduction.
3. The component supplier responds to the Debit Authorization Request.  The component supplier will either approve the request, deny the request, providing a reason for the denial, or mark it as pending.

If the component supplier approves the authorization request, it may be approved only for a certain time period and specify effective and expiration dates.

4. The distributor processes the Response to the Authorization Request.
B. At end state B, the supplier has sent a response that indicates that the authorization is either accepted (approved) or rejected (denied).  The distributor may continue on to the next step in the business scenario.  Typically, the distributor posts both approvals and denials to a data base; the data base will contain other details such as effective and expiration dates.  The denials are posted so the distributor will know that the request had been made; the distributor may send another request for a previously denied authorization at another time, if warranted.
C. At end state C, the supplier has sent a response that indicates that the authorization is "pending".  The distributor should not continue on to the next step in the business scenario.  The distributor should expect to see a follow-up response within an agreed, configurable amount of time.  The amount of time may be specified the Trading Partner Agreement.  The distributor may launch an exception notice if the supplier's follow-on response is not received within the agreed, configurable period of time.
D. Start state D indicates that a follow-on Debit Authorization Response should be generated if the the previous Debit Authorization Response indicated that authorization was 'pending', or the Debit Authorization Response may be invoked  from time-to-time as result of changes made by the component supplier to the authorization details.


Last updated 06 January 2003