I used a CTE to cast the data... and it works, thanks for your help.... I was chasing the wrong rabbit.
;with Del_Ind as
(
SELECT Row_Number() Over(Partition by Purchasing_Doc_Num, Purchasing_Req_Item_Num order by Purchasing_Doc_Num, Purchasing_Req_Item_Num) as Row
,Purchasing_Doc_Num, Purchasing_Req_Item_Num, CAST(Delivery_Ind as CHAR(1)) as Delivery_Ind
From [p04].[data].[dbo].[vw_purcordstohist_raw]
)
SELECT Purchasing_Doc_Num, Purchasing_Req_Item_Num, Min(Delivery_Ind) as 'Delivery_ind'
From Del_Ind
group by Purchasing_Doc_Num, Purchasing_Req_Item_Num