The Process of Assigning a Purchase Order

Posted by Daniel Chen on Tuesday 28 Mar 17

With the 2017 Update to the Kickfurther platform, we now only work with brands with a verified purchase order from an approved vendor. Alongside our refocus is a new process in which the brands assign the purchase order from the vendor to Kickfurther. By assigning the purchase order to Kickfurther, the brand acknowledges that Kickfurther will be paid for the delivery of the inventory listed in the purchase order. Let's take a look at the different steps involved the assignment of a purchase order. 

Purchase Order Assignment

1. Purchase Order Issued

In order for the purchase order assignment process to begin, there must be a purchase order in existance. The first step is that a vendor issues a purchase order to the brand for a set amount of inventory which will be paid for after the inventory is delivered to the vendor. Typically, payments are delayed by standard intervals of time such as Net15, Net 30, etc. 

2. Conditional Purchase Order Assignment

Once a brand has begun working with Kickfurther, the brand then assigns the purchase order they received from the vendor to Kickfurther on the condition of successfully funding on the platform. If the brand fails to fund on Kickfurther, the purchase order is not assigned and Kickfurther holds no rights to the payment for delivery of the inventory. 

3. Offer Successfully Funds

The brand launches their offer on Kickfurther to fund the purchase order. Once the raise amount is filled by users, the offer has successfully funded. 

4. Vendor Notified of Assignment

With the offer successfully funded, the purchase order is formally assigned to Kickfurther. This involves notifying the vendor who issued the purchase order with an Assignment Acknowledgement. Once the assignment acknowledgement has been signed by the vendor, Kickfurther will be paid for the purchase directly by the vendor. 

5. Funds Sent to Supplier

Depending on the attributes of the brand, Kickfurther will send the appropriate funds to the brand's supplier directly to begin the production of the inventory listed in the purchase order. To read more about whether or not funds need to be sent to the supplier, click here. 

6. Inventory Produced and Delivered

With the supplier paid, the production of the inventory begins. At this point, the offer is still in lead time meaning no payments are expected. Once the production has completed, it is then shipped to the vendor. A corresponding notification will be sent to users who helped fund the inventory with the confirmation of delivery. 

7. Kickfurther Collects on the Purchase Order

With the inventory delivered to the vendor, the purchase order is fulfilled. The vendor then follows the purchase order assignment and sends the payment to Kickfurther. 

8. Brand Receives Overages

After Kickfurther receives the payment for fulfilling the purchase order, the payment is distributed to the users who helped fund the inventory. Once all users payments are completed, Kickfurther sends the remainding overages to the brand.

 

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Posted by Daniel Chen on Tuesday 28 Mar 17
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