The following steps are for the third-party procurement process with respect to two

separate scenarios: third-party procurement for a subcontract vendor and thirdparty

procurement for a customer.
Scenario 1: Third-Party Procurement for a Subcontract Vendor
Lets say you have a subcontractor who requires multiple components to make an
assembly for you, and you buy some of these components from a vendor. In such
a scenario, you may ask your vendor to ship the goods directly to your subcontractor
so that delivery time is fast, and materials transportation and loading and
unloading costs are saved. Lets see how to run the scenario in the system with
the following steps:
1. Create the PO.
Create a PO for the vendor from whom you want to purchase goods via Transaction
ME21N. In the item details, go to the Delivery Address tab, and enter the
subcontracting vendor code. Select the SC vend checkbox, as shown in Figure
4.58.
After you enter your subcontracting vendor, the system will supply the delivery
address from the vendor master record.