1、2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public. Hand SCM Internal Training Hand SCM Internal Training -VMI & Consign -VMI & ConsignAndy.Lin Sep, 20082004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.AgendaAgendaConsign Standard Functionalities3VMI Standard Fu
2、nctionalities2VMI & Consign Concepts1VMI & Consign Case Discussion42004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.What is VMIWhat is VMIVendor Managed Inventory (VMI) is a procurement and planning practice in which a company delegates key inventory management functions to one o
3、r 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 need
4、s 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 Solutions C
5、o., Ltd. Confidential Not For Public.What 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 used u
6、p 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 Public
7、.AgendaAgendaConsign Standard Functionalities3VMI Standard Functionalities2VMI & Consign Concepts1VMI & Consign Case Discussion42004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI Standard ProcessVMI Standard Process2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For P
8、ublic.VMI 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 Requisition UO
9、M 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.VMI Setup PrerequisitesItem MasterVMI Se
10、tup 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 Not Rel
11、ease (Kanban)Default BuyerDefault Planner (must link to a valid employee)2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI Setup PrerequisitesASLVMI Setup PrerequisitesASLCreate ItemCreate SupplierCreate BPACreate ASL: Release method: Automatic Release/Review VMI Enabled Autom
12、atic Allowed Min & Max Qty2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI Setup PrerequisitesASLVMI Setup PrerequisitesASL2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI Setup PrerequisitesSupplier UserVMI Setup PrerequisitesSupplier UserPath: Purcha
13、sing SUSupply BaseRegister Supplier User Register supplier user name and email address 2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI Setup Prerequisites-Data CollectionVMI Setup Prerequisites-Data CollectionDefine Instance for your organizationPath: Advanced Planning Syste
14、m (APS) Administrator: Collections Oracle Systems Standard Collection2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.VMI ProcessRun VMI Replenishment EngineRun VMI Replenishment Engine after Data CollectionSuggest to schedule Data Collection and VMI Replenishment Engine 2004 HAN
15、D Enterprise Solutions Co., Ltd. Confidential Not For Public.Supplier SideView NotificationsLogin with the user name: Andy.linhand- Notifications2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Supplier SideMonitor VMI statusSwitch to the VMI page and View VMI informationVerify t
16、he suggested replenishment quantity2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Supplier SideRequest GoodsRelease requisition to customer 2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SideSchedule Requisition ImportSchedule the request: Requisi
17、tion Import2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer 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. Confidential Not For Public.Suppl
18、ier SideCreate ASN-1Supplier SideCreate ASN-1Path: iSupplier Portal Full AccessShipments: Shipment Notices 2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Supplier SideCreate ASN-2Supplier SideCreate ASN-2Fill in the shipment line information2004 HAND Enterprise Solutions Co., L
19、td. Confidential Not For Public.Supplier SideCreate ASN-3Supplier SideCreate ASN-3Fill in the shipment header information and submit2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer Side-Schedule Receiving ProcessorSchedule Receiving Transaction Processor to import ASN200
20、4 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SideManage ShipmentsUse Purchasing SUReceivingManage Shipments to View ASN2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SideReceive against ASNYou can use ASN# or Container# or Bar code lable t
21、o do receipt2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SideMonitor VMI OnhandUse Purchasing SUReceivingManage Shipments to View ASN2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SideReceipt DistributionThe VMI receipt and delivery dis
22、tribution are the same with normal receipt and delivery.2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer SidePlanning Transfer Planning transfer is not an inventory transaction. it simply changes the planning organization from the supplier site to the internal organizati
23、on in which the goods are held.2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Customer Side-VMI Material ConsumptionVMI materials are consumed on a FIFO basis. Moved goods are transferred into regular stock and are no longer visible as supplier on hand quantities via Collaborat
24、ive Planning.2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.AgendaAgendaConsign Standard Functionalities3VMI Standard Functionalities2VMI & Consign Concepts1VMI & Consign Case Discussion42004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign Setup Prerequi
25、sitesItem 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.Consign Setup PrerequisitesASLConsign Setup PrerequisitesASLCreate BPASetup ASL link with BPA and
26、check the consigned flag2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign ProcessCreate Standard POConsign ProcessCreate Standard POEven though we have created a Blanket Agreement as the source document, consignment requires a PO (and not a Release) to begin the cycle. 200
27、4 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign ProcessReceive the Goods Consign ProcessReceive the Goods Receive the goods in the destination inventory: no distributions created for this receiptNo distribution for this receipt2004 HAND Enterprise Solutions Co., Ltd. Confid
28、ential Not For Public.Consign 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 accounting transactions have been created once the stock was trans
29、ferred to regular stock. 2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign ProcessCreate Consumption AdviceConsign ProcessCreate Consumption AdviceRun request: INV SUReportTransactionCreate Consumption Advice to generate consumption advice.2004 HAND Enterprise Solutions Co
30、., Ltd. Confidential Not For Public.Consign ProcessAuto Create InvoiceConsign ProcessAuto Create InvoiceRun request: Purchasing SURequestPay On Receipt AutoInvoice to Auto create invoice according to consumption advice2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign Proce
31、ssMisc TransactionConsign ProcessMisc TransactionYou may need to use miscellaneous transaction to adjust the Consign Inventory2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Consign ProcessReturn to Vendor(1)Consign ProcessReturn to Vendor(1)As long as there are plenty of consig
32、n 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.Consign ProcessReturn to Vendor(2)Consign ProcessReturn to Vendor(2)You can do return transactio
33、n 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.AgendaAgendaConsign Standard Functionalities3VMI Standard Functionalities2VMI & Consign Concepts1VMI & Consign Case Discussion42004 HAND Enterp
34、rise Solutions Co., Ltd. Confidential Not For Public.Is 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 the VMI stock.If there is a sudden increase of demand, then MRP will sugg
35、est 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 planed by MRP. But you can use MRP as an assistant 2004 HAND Enterprise Sol
36、utions Co., Ltd. Confidential Not For Public.Will 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 planed stock.Set item level Min-Max=total MinMax-total supplier managed MinMax
37、2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.Can VMI be combined with ConsignmentCan VMI be combined with ConsignmentVMI is a planning method, involve suppliers into material planning. It is a kind of Collaborative Planning.Consignment is more a financial policy. The key poin
38、t 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.What is Consign Solution for S
39、uppliersWhat 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 was consumed. Use the shipping feature of trip stop planning. In case of FOB point being customer
40、destination then perform the ship confirm but do not close the trip and defer the inventory interface. This way the inventory is still held in the Inv org. Once the goods are received, update the Trip and allow inventory interface (COGS) and AR invoicing. Map COGS account to Intransit account. Contr
41、ol the Invoicing process by workflow wait activity before fulfillment if its fixed days based. Use an extension to systematically revert and book actual COGS once the line is invoiced. Alternatively use invoice hold in the above case. In R12 we have a new feature called Deferred Revenue Recognition
42、2004 HAND Enterprise Solutions Co., Ltd. Confidential Not For Public.How to Resolve FIFO in Commingled Cases?How to Resolve FIFO in Commingled Cases?Say: 20 consigned goods and 19 regular goods commingled in one warehouse Consigned goods receipt date earlier than regular goods How to use regular goods first?Solution: Trick system. Transfer 20 PCs to regular then transfer back to consign. Now the regular inventory receipt date is earlier than consigned inventory. Do some customizations to achieve that.
