No, this post this is not about a new and risqué online dating service!
When Purchasing professionals use the term "three way match," they are referring to the concept that the details (primarily prices and quantities, secondarily payment terms and delivery dates) in the paperwork for an order must match as it flows among three departments in a company: Purchasing, Receiving and Accounting.
Buyers inform and remind their vendors about this concept on a continual basis. The larger the company, the less likely it is that a vendor will get paid in a timely manner (or at all in some cases) if there are discrepancies as the paperwork moves along.
It sounds so simple. If one orders a case of 12 items, then 12 items should be delivered and an invoice should arrive for 12 items as well.
Unfortunately, that is not the reality a good percentage of the time and a Buying Assistant's entire day is often consumed by trying to unravel situations in which the various elements don't match.
In addition to all the mistakes, some companies intentionally send more items than were ordered so they can reduce their inventory. They assume it is too much trouble and expense for the recipient to return the excess goods. Invoicing discrepancies are usually errors or a misunderstanding about when price changes go into effect.
Please share any tips that have helped ensure perfect three way matches in your organization.
Send your questions to PurchaseRealm@ComprehensiveAdvice.com.
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