Monday, November 9, 2009

Design Factors Shaping System Usage in Distribution Environments

Major factors shaping system usage include item definition, symmetry of sales and purchasing functionality, sales variations, symmetry of warehouse functionality, and the capabilities to model variations in multi-site operations.

Item Definition. Item master information consists of company-wide and location-specific information. Company-wide information, for example, includes the item number, lot/serial tracking policies, and a costing method (such as standard cost or an actual costing method). Location-specific information includes the item's costs and replenishment method for each location. Non-stock items can be defined in the item master, as well as item variant codes to handle color/size variations of the same item.

Primary Engine for Coordinating Supply Chain Activities. Planning calculations synchronize supplies to meet demands and generate suggested action messages on worksheets. Replenishment logic within the planning calculations includes time-phased order point, DRP, and MRP logic.

Symmetry of Sales and Purchasing Functionality. Sales and purchasing both handle documents for quotes, blanket orders, orders, invoices, returns and credit memos, with parallel approaches for handling cross-reference identifiers, prices and discounts, special charges, and order-related text. Symmetry is also apparent in the definition of customer and vendor information, and the handling of special orders and drop shipments.

Variations in Sales. Sales order line items can identify material items (including special orders, drop shipments, and kits of components) as well as resource time, special charges, and text. Pricing and discounting schemes can reflect product and customer groups, quantity breakpoints and date effectivity, and discounts based on total order value. Sales can be forecasted to drive purchasing requirements.

Symmetry of Warehouse Functionality for Inbound and Outbound Shipments. The same functionality for handling outbound shipments applies to sales orders, transfer orders, and returns to vendor. Similar functionality for handling inbound shipments applies to purchase orders, transfer orders, and customer returns.

Variations in Warehousing. Shipping activities can focus on individual orders or a pick document, while receiving activities can focus on individual orders or a receipt document and an optional put-away document. Put-away suggestions can optionally account for bin location considerations, such as location preferences and capacity constraints. Movement within a warehouse can reflect bin replenishment policies, such as replenishing bins from a bulk storage area.

No comments:

Post a Comment