BWU Fall Workshop 2003

WarehousingPresented by Debra Beard OneNeck IT Services, Corp.

Warehousing Overview

Sales

Purchasing

Manufacturing

Warehousing Transfers Adjustments Cycle Counts

Warehouse ModulesMaster DataMaster Data definitions like : Warehouses, Zones, Locations, Storage Conditions, Packaging, Warehouse Item Data etc

Inventory Planning

Inventory Handling- Definition of warehouse order types - Inbound Process - Outbound Process - Cycle Counting - Inv. Adjustments - Blockings

Inventory Reporting

Inventory Analysis

Lot Control

- Planned Inventory Transactions - Inventory Commitments

- Inventory Position - Consignment Reporting - Project Inventory - Inventory transaction history - Inventory Valuation - Forecasting - Order Advise (SIC) - Lot Maintenance - Lot Features - Lot Tracking

Master Data Warehouse, Zones, Locations

Master Data Warehouse TypesNormal Service : Warehouse used to store goods. : Service warehouse is a specific warehouse like a service car or service kit, where goods are stored for maintenance purposes at the customers site. Inventory present in this warehouse can not be used for other purposes.

Work-In-Process : Warehouse used to store intermediate inventory used to supply (WIP) production lines or work centers. This type of warehouse can not have locations and should be nettable. Consignment (Not owned) :Warehouse, which can only be used for consigned inventory, which is not owned by you, but by the supplier (ship-from business partner). The warehouse can be used for one business partner only or for multiple business partners. Consignment usage is tracked and used for invoicing. :Virtual warehouse, which is used for the administration of inventory owned by you, but stored at the customers site (ship-to business partner). This inventory is assigned to that specific business partner and can not be used for other purposes.

Consignment (Owned)

Master Data Warehouse InfoNettable Warehouse The MRP and MPS algorithm in Constraint Planning (CP) ignores the inventory in non-nettable warehouses. The supply of such warehouses (non-nettable) is planned with DRP. In addition, direct purchases can be written to non-nettable warehouses or they can be stocked via the SIC principal. The DRP algorithm ignores nettable warehouses. The replenishment of the inventory of these warehouses is planned using MRP, MPS and SIC. An exception is a "nettable" WIP warehouse; it can also be supplied by DRP. Relation: Project or Business Partner In case the warehouse is of type Project you can define that the warehouse can only be used by one specific project, by filling the project code or by several projects by leaving the project code empty (Consignment (Not owned) identical). In case the warehouse is of type Consignment (Owned) you need to fill in a specific ship-to business partner, because the inventory can only belong to one specific customer. Locations A warehouse can have locations or not, even when a warehouse has locations it is still possible to define the item as not location-controlled. Defining a warehouse as location-controlled should be done by in a separate session Activate Location System for Warehouse (whwmd3203m000). Accessible via application menu Warehouses (whwmd2500m000).

Master Data - InfoZones Definition : A zone is a part of warehouse consisting of one or more locations were goods could be stored. Purpose : By grouping locations together it is easier to store and pick goods and you have the possibility to block a whole zone. Defining zones is optional.

Blockings It is possible to block a complete zone for inbound, outbound, transshipment (in), transshipment (out) and assembly movements. Blocked for all transactions is updated from the session whinh6110m000 Blockings by Zone/Warehouse/Location.

Master Data - InfoLocations Definition: Specific areas of a warehouse were goods are stored in order to control the inventory better. Important fields: Location type: - Pick : Pick locations are the locations were goods are picked from during the outbound process depending on the packaging. - Bulk : Bulk locations are locations that store goods in mainly large quantities. The pick locations can be replenished from bulk locations, defined in the Replenishment Location Matrix (whwmd3504m000). Also goods can be picked from bulk locations during the outbound process depending on the packaging. - Receiving: Receiving Locations are locations used to temporary store the received goods before putting them away. - Inspection: Inspection Locations are special locations used for specific operations like quality control. - Staging : A staging location is the last location before a shipment. The goods are picked and put on the staging location before loading a truck. They allow performing extra operations when shipping goods, like packaging, labeling, etc. Zone :The code of the zone where the location belongs to.

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Inventory PlanningSessions that display planned inventory.Planned transactions by Item. Planned transactions by Order.

Inventory commitments.Generate / Maintain inventory commitments (Baan IV - Hard allocations). Possible to commit inventory to a buffer. Consumption against sales/warehouse orders at a later time.

Inventory PlanningPlanned Inventory transactions are used forCalculating the economic stock Statistical inventory control Time phased order point Generating IRP order Generating PRP orders Generating DRP orders (transfer)

Planned Inventory Transactions can be generated byWarehouse Orders PRP Warehouse Orders Purchase Orders / Contracts / Schedules Sales Orders / Contracts / Schedules Sales Quotations Request for Quotations Production Orders Service Orders

Planned Inventory Transaction Update Planned inventory transactions created by other packages and modules cause warehouse orders to be generated. Manually created warehouse orders cause planned inventory transactions to be generated. When a warehouse order has been completed or cancelled, the planned inventory transaction is removed. As the open or incomplete quantity on a warehouse order changes as the order is processed, the quantity on the planned inventory transaction will be updated with the change. If the date of the warehouse order changes, the date of the planned inventory transaction will be changed.

Inventory HandlingTypes of warehousing proceduresReceipt Procedure Inspection Procedure Outbound Procedure Shipment Procedure

Definition of activities by procedureActivities for Receipt procedure (Example) whinh3412m000 Print Goods Receive Note (o) whinh3520m000 Receipts (m) whinh3201m000 Generate Inbound Advice (m) whinh3415m000 Print Storage List (o) whinh2515m100 Confirm Storage List (o) whinh3203m000 Put Away Inbound Activities for Outbound procedure (Example) whinh4201m000 Generate Outbound Advise(m) whinh4202m000 Release Outbound Advice (m) whinh4415m000 Print Picking List (o) whinh2525m100 Confirm Picking List (o) whinh3522m000 Approvals (o)

Definition of warehouse order types

Inventory HandlingWarehouse Order TypesNow we know more about the procedures and activities. We distinguish 4 types of orders: Receipt, Issue, Transfer and Item transfer. For a Receipt you have to fill a receipt procedure and an inbound procedure. For an Issue you have to fill an outbound procedure and a shipment procedure. For a Transfer and Item Transfer you have to fill all 4 procedures. An order type will always be linked to a warehousing order, and then the warehousing order will follow all the activities which are linked to the procedures.

Sales orders and Purchase orders are linked to warehouse orders. While defining sales/purchase orders, associated warehouse order can be linked OR default warehouse order type can be used.

Inventory Handling Order Type LinkagePurchase Order Types1. Print purchase order 2. Release to warehousing

Sales Orders Types1. Print acknowledgement 2. Release to warehousing

Warehouse Orders Types3. Print goods received note 4. Generate/Maintain inbound 5. Put-away inbound 3. Maintain outbound 4. Release outbound 5. Generate/Confirm Picking List 6. Confirm Shipment 6. Process Delivered PO 7. Release to Invoicing

Central Invoicing8. Compose / Print / Post Invoice

9. Process Delivered SO

Consignment Inventory HandlingNot OwnedVendors inventory at our site

OwnedInventory at customer sites

Consignment warehouses Consignment Order types Purchase Consignment Replenishment Consignment Payment Sales Consignment Replenishment Consignment Invoicing

Consignment OwnedOwnedInventory at customer sites

Consignment Owned ProcedureStep 1 1. 2. 3. Create SO of type consignment replenishment System creates a warehouse order of type sales transfer Generate outbound (followed by rest of the steps for warehouse transfer)

Step 2 : Customer notifies consumption Create SO of type CNI Follow thru with the delivery of the sales order through warehousing.

Consignment Not OwnedNot OwnedVendors inventory at our site

Consignment NOT Owned ProcedureStep 1 1. 2. 3. Create PO of type consignment replenishment Print PO , Release to warehousing. Follow-thru the receiving steps and put-away.

Step 2 : Consumption of inventory Inventory transfer to consumption warehouse from consignment warehouse , system generates a PO of type consignment payment. Follow thru with the processing of system created PO for payments to be made to vendor.

Inventory ReportingAll inventory related reporting sessions are in this moduleWarehouse Inventory by Item Item Inventory by Warehouse Warehouse Inventory by Item, Company and Warehouse Inventory by Warehouse, Item and Lot Inventory by Warehouse/Location/Item Inventory by Item/Warehouse/Location/Lot Inventory by Warehouse/Item/Lot/Location Inventory by Item and Inventory Date Inventory Structure Lots by Warehouse Project Inventory Project Inventory by Item

History transaction display/reports

Inventory AnalysisValuation.Valuation methods:FTP: Fixed Transfer Price FIFO: First-In, First-Out FIFO: Last-In, First-Out MAUC: Moving Average Unit Cost LOT: Lot Specific valuation

Valuation methods can be defined by financial-company/item-group. For each combination of financial-company/item-group 2 valuation methods can be defined: 1. The valuation method for items that are lot-controlled and for which lot-prices are registered. In this case the user can choose between FTP, FIFO, LIFO, MAUC and LOT. 2. The valuation method for items for which lot-prices are not registered. In this case the user can choose between FTP, FIFO, LIFO and MAUC.

Inventory AnalysisForecast.Following types: Moving Average.

For this type the number of periods for Moving Average has to be defined.Exponential Smoothing.

F(n+1) = F(n) +a*(I(n) - F(n)), For which n - period number factor).Previous Year Calculation.

(F forecast, I issue, a - smoothing

Number of Periods backward and forward in Previous Year have to be defined.Last Period Demand.

Minimal number of periods of History Demand will be defined for all types of Forecast Methods.

Inventory Analysis Order AdvicePlanned Production / Purchase orders for SIC controlled items can be generated using Order Advice sessions.System will advise production or purchase order depending on item being manufactured or purchased These planned orders can then be reviewed and transferred to appropriate Baan module for execution

ABC AnalysisThe purpose for Performing ABC Analysis is classifying the items based on the issues by warehouse. The classification is based on the turnover, which can be determined based on: Cost price Sales price Quantity The program calculates the sum of the actual issues for a specified number of periods. For each item and for all selected items in total the turnover will be calculated. Based on the ABC boundaries specified in the INA parameters, the items will be classified as A, B or C items. Example: BoundariesA: 70, B: 20, C: 10 Items X1 Turnover 10

X2 20

X3 30

X4 40

X5 50 will get the following X1 10 150 100.00

When we sort on turnover descending and cumulate the turnover we Figures: X5 X4 X3 X2 Turnover 50 40 30 20 Cumulated 50 90 120 140 Cum. % 33.33 60.00 80.00 93.33

So based on these figures the following classifications will be assigned: X5 A X4 A X3 B X2 C X1 C

Receipt Procedure

Inspection Procedure

Outbound Procedure

Shipment Procedure

ShipmentPrint Sales Order Acknowledgement Release to WarehousingMaintain/Generate Outbound Release Outbound Generate Picking List Picking List (confirm) Confirm Shipment

Release to Invoicing Processed Delivered Sales Orders

Receipts (No Inspection)Print Purchase Order Release to WarehousingPrint Goods Received Note Receipts Generate Inbound Put-Away Inbound

Print Return Notes (In case of QC Rejections) Print Claims (if receipt qty ? supplier packing slip qty) Processed Delivered Purchase Orders

Receipts (Inspection)Print Purchase Order Release to WarehousingPrint Goods Received Note Receipts Generate Inbound Put-away Inbound (receipt loc to inspection loc) Approval (QC) Generate Inbound Put-away Inbound (inspection loc to normal loc)

Print Return Notes (in case of QC rejections) Print Claims (if receipt qty ? PS qty) Processed Delivered Purchase Orders

Questions?Shoot Now !!!