This article explains how different Purchase Methods can be used between buyer and vendor to manage goods on consignment / goods on memorandum
Terminology
In Loupe we support two purchase methods for every SKU
- Asset: the retailer is purchasing the goods upon delivery
- Memo: also know as Goods on Consignment or Goods on Memorandum allows retailers to buy goods on a pay-as-you-sell basis
Each purchase method can have a status
- Active
- Inactive
Logic
As retailers like to keep track of distinct inventory for asset versus memo, our system always creates unique rows in the assortment for each. As only one Purchase Method can ever be active at any given time (nobody ever cuts a PO for both at the same time), our system always ensures one method is active, while the other is inactive, which should help you understand why we need the Purchase Method Status.
Some retailers expect to pay the same price for both asset and memo purchase methods, while other retailers will expect to pay a premium for the privilege of receiving goods on memorandum. The Loupe system handles both ways of working. In order to facilitate the scenario where retailers pay the same price regardless of purchase method status, we developed a feature to enable vendors to automatically replicate their asset price when a buyer working at a specifically permitted retailer requests a memo price. This feature is called Automatic Memo Pricing and can be configured uniquely for each customer.
Within the Loupe system, the same product appears twice on the Line Sheet in order to show unique rows for asset and memo price:
How this affects Retailers
When Automatic Memo Pricing is turned ON:
Retailers will get an instant answer from their vendors.
When Automatic Memo Pricing is turned OFF:
Retailers may have to wait until the vendor has had the opportunity to review each request individually.
Request Memo Price
Retailers are able to request memo prices from their vendors from within the Product Detail Page, on the 'More' dropdown, as shown below:
Vendor Documentation
Should you wish to request that your vendors switch Automatic Memo Pricing ON for your company, please find below the links which you can share with your vendors instructing them how to do so: