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1、2004 hand enterprise solutions co., ltd. confidential not for public.1 hand scm internal training hand scm internal training -vmi & consign -vmi & consignandy.lin sep, 20082004 hand enterprise solutions co., ltd. confidential not for public.2agendaagendaconsign standard functionalities3vmi standard

2、functionalities2vmi & consign concepts1vmi & consign case discussion42004 hand enterprise solutions co., ltd. confidential not for public.3what is vmiwhat is vmivendor managed inventory (vmi) is a procurement and planning practice in which a company delegates key inventory management functions to on

3、e or more of its suppliers.under this arrangement the supplier determines the items, quantities, and delivery schedules on behalf of the customer based on information it receives from the customers inventory and procurement systems. using vmi, manufacturers and distributors can anticipate customer n

4、eeds and provide inventory more proactively than is possible using traditional procurement methods.with vmi, companies are realizing increases in available working capital, reduced inventory holding costs, and ultimately increased customer satisfaction and profitability.2004 hand enterprise solution

5、s co., ltd. confidential not for public.4what is consignmentwhat is consignmentitems will be delivered to the buying organization but the supplier will not send an invoice (and thus no payment will be made) until the items have actually been consumed.consumption normally occurs when the items are us

6、ed up in wip or are sold by the buying organization but other scenarios are possible. with consignment, companies reduced inventory holding costs, increase inventory turn and ultimately increased customer satisfaction and profitability.2004 hand enterprise solutions co., ltd. confidential not for pu

7、blic.5agendaagendaconsign standard functionalities3vmi standard functionalities2vmi & consign concepts1vmi & consign case discussion42004 hand enterprise solutions co., ltd. confidential not for public.6vmi standard processvmi standard process2004 hand enterprise solutions co., ltd. confidential not

8、 for public.7vmi setup prerequisites-profilesvmi setup prerequisites-profilesfnd: debug log enabled: should be set to no (or null).po: automatic document sourcing(if set to yes, the latest blanplier/site combination is always used irrrespective of the blanket specified in the asl)po: convert requisi

9、tion uom to source document uom (yes)po: release during reqimpor (yes)msc : configuration (aps & cp) msc: collaborative planning default calendar (need to run build collaborative planning calendar )2004 hand enterprise solutions co., ltd. confidential not for public.8vmi setup prerequisitesitem mast

10、ervmi setup prerequisitesitem masterpurchasable itemdefault list price (0)mrp planed or mrp/drp planned (in order to enable data collections to publish the item to collaborative planning and to allow the planner to review the long term forecast on the planner workbench.)release time fence: set to do

11、 not release (kanban)default buyerdefault planner (must link to a valid employee)2004 hand enterprise solutions co., ltd. confidential not for public.9vmi setup prerequisitesaslvmi setup prerequisitesaslcreate itemcreate suppliercreate bpacreate asl: release method: automatic release/review vmi enab

12、led automatic allowed min & max qty2004 hand enterprise solutions co., ltd. confidential not for public.10vmi setup prerequisitesaslvmi setup prerequisitesasl2004 hand enterprise solutions co., ltd. confidential not for public.11vmi setup prerequisitessupplier uservmi setup prerequisitessupplier use

13、rpath: purchasing susupply baseregister supplier user register supplier user name and email address 2004 hand enterprise solutions co., ltd. confidential not for public.12vmi setup prerequisites-data collectionvmi setup prerequisites-data collectiondefine instance for your organizationpath: advanced

14、 planning system (aps) administrator: collections oracle systems standard collection2004 hand enterprise solutions co., ltd. confidential not for public.13vmi processrun vmi replenishment enginerun vmi replenishment engine after data collectionsuggest to schedule data collection and vmi replenishmen

15、t engine 2004 hand enterprise solutions co., ltd. confidential not for public.14supplier sideview notificationslogin with the user name: andy.linhand- notifications2004 hand enterprise solutions co., ltd. confidential not for public.15supplier sidemonitor vmi statusswitch to the vmi page and view vm

16、i informationverify the suggested replenishment quantity2004 hand enterprise solutions co., ltd. confidential not for public.16supplier siderequest goodsrelease requisition to customer 2004 hand enterprise solutions co., ltd. confidential not for public.17customer sideschedule requisition importsche

17、dule the request: requisition import2004 hand enterprise solutions co., ltd. confidential not for public.18customer sidereview and approve posystem automatically create an incomplete po release (if you set asl release method to automatic release/review)2004 hand enterprise solutions co., ltd. confid

18、ential not for public.19supplier sidecreate asn-1supplier sidecreate asn-1path: isupplier portal full accessshipments: shipment notices 2004 hand enterprise solutions co., ltd. confidential not for public.20supplier sidecreate asn-2supplier sidecreate asn-2fill in the shipment line information2004 h

19、and enterprise solutions co., ltd. confidential not for public.21supplier sidecreate asn-3supplier sidecreate asn-3fill in the shipment header information and submit2004 hand enterprise solutions co., ltd. confidential not for public.22customer side-schedule receiving processorschedule receiving tra

20、nsaction processor to import asn2004 hand enterprise solutions co., ltd. confidential not for public.23customer sidemanage shipmentsuse purchasing sureceivingmanage shipments to view asn2004 hand enterprise solutions co., ltd. confidential not for public.24customer sidereceive against asnyou can use

21、 asn# or container# or bar code lable to do receipt2004 hand enterprise solutions co., ltd. confidential not for public.25customer sidemonitor vmi onhanduse purchasing sureceivingmanage shipments to view asn2004 hand enterprise solutions co., ltd. confidential not for public.26customer sidereceipt d

22、istributionthe vmi receipt and delivery distribution are the same with normal receipt and delivery.2004 hand enterprise solutions co., ltd. confidential not for public.27customer sideplanning transfer planning transfer is not an inventory transaction. it simply changes the planning organization from

23、 the supplier site to the internal organization in which the goods are held.2004 hand enterprise solutions co., ltd. confidential not for public.28customer side-vmi material consumptionvmi materials are consumed on a fifo basis. moved goods are transferred into regular stock and are no longer visibl

24、e as supplier on hand quantities via collaborative planning.2004 hand enterprise solutions co., ltd. confidential not for public.29agendaagendaconsign standard functionalities3vmi standard functionalities2vmi & consign concepts1vmi & consign case discussion42004 hand enterprise solutions co., ltd. c

25、onfidential not for public.30consign setup prerequisitesitem setupconsign setup prerequisitesitem setupnothing special here, just make sure that the item is stockable and purchasable. 2004 hand enterprise solutions co., ltd. confidential not for public.31consign setup prerequisitesaslconsign setup p

26、rerequisitesaslcreate bpasetup asl link with bpa and check the consigned flag2004 hand enterprise solutions co., ltd. confidential not for public.32consign processcreate standard poconsign processcreate standard poeven though we have created a blanket agreement as the source document, consignment re

27、quires a po (and not a release) to begin the cycle. 2004 hand enterprise solutions co., ltd. confidential not for public.33consign processreceive the goods consign processreceive the goods receive the goods in the destination inventory: no distributions created for this receiptno distribution for th

28、is receipt2004 hand enterprise solutions co., ltd. confidential not for public.34consign processtransfer to regularconsign processtransfer to regularconsigned stock is automatically converted to regular stock when certain inventory transactions take place (e.g. shipping).the normal receiving account

29、ing transactions have been created once the stock was transferred to regular stock. 2004 hand enterprise solutions co., ltd. confidential not for public.35consign processcreate consumption adviceconsign processcreate consumption advicerun request: inv sureporttransactioncreate consumption advice to

30、generate consumption advice.2004 hand enterprise solutions co., ltd. confidential not for public.36consign processauto create invoiceconsign processauto create invoicerun request: purchasing surequestpay on receipt autoinvoice to auto create invoice according to consumption advice2004 hand enterpris

31、e solutions co., ltd. confidential not for public.37consign processmisc transactionconsign processmisc transactionyou may need to use miscellaneous transaction to adjust the consign inventory2004 hand enterprise solutions co., ltd. confidential not for public.38consign processreturn to vendor(1)cons

32、ign processreturn to vendor(1)as long as there are plenty of consign inventory, you can return goods to vendor.if there is no enough consign inventory, you need to transfer regular inventory to consign.2004 hand enterprise solutions co., ltd. confidential not for public.39consign processreturn to ve

33、ndor(2)consign processreturn to vendor(2)you can do return transaction only if the vendor owned onhand quantity is equal to or more than the return quantity 2004 hand enterprise solutions co., ltd. confidential not for public.40agendaagendaconsign standard functionalities3vmi standard functionalitie

34、s2vmi & consign concepts1vmi & consign case discussion42004 hand enterprise solutions co., ltd. confidential not for public.41is mrp suitable for vmi items? is mrp suitable for vmi items? mrp will balance the total demand against the total supply, including both the internally replenished stock and

35、the vmi stock.if there is a sudden increase of demand, then mrp will suggest to release a non-vmi order to meet the increased demand.my point of view: if you want to publish mrp result to suppliers, please use supplier schedule and isp; vmi is based on min-max planning logic. vmi items should not pl

36、aned by mrp. but you can use mrp as an assistant 2004 hand enterprise solutions co., ltd. confidential not for public.42will min-max planning conflict with vmi?will min-max planning conflict with vmi?traditional min-max only consider the internal planed stock while vmi only consider the supplier pla

37、ned stock.set item level min-max=total minmax-total supplier managed minmax2004 hand enterprise solutions co., ltd. confidential not for public.43can vmi be combined with consignmentcan vmi be combined with consignmentvmi is a planning method, involve suppliers into material planning. it is a kind o

38、f collaborative planning.consignment is more a financial policy. the key point of consignment is pay on use. it can reduce the inventory holding cost and increase inventory turn.my point of view: most of consignment business are suitable to use vmi (or collaborative planning). 2004 hand enterprise solutions co., ltd. confidential not for public.44what is consign solution for supplierswhat is consign solution for suppliersa supplier using the oracle applications internally will need to ship inventory but not bill the customer until confirmation is received that the inventory

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