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Inter Site Logistics

Inter Site Logistics. Moving Inventory easily between plants Jim Simunek Jim.simunek@cistech.net. Overview. Inter-Site Logistics is designed to: Plan transfer (purchase) orders for an item in the demand warehouse

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Inter Site Logistics

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  1. Inter Site Logistics Moving Inventory easily between plants Jim Simunek Jim.simunek@cistech.net

  2. Overview • Inter-Site Logistics is designed to: • Plan transfer (purchase) orders for an item in the demand warehouse • Use Customer Orders to create planned manufacturing orders in the supplying warehouse (MRP/AVP) • Convert the planned orders into ‘transfer’ orders • Pick and ship parts from the supplying warehouse; optionally, create manifest • Track the goods while in transit • Receive goods into the demand warehouse (by item or manifest)

  3. Overview • ISL orders ship using COM CO and Transfer Order without impacting AR and AP • ISL works for: • Plant #2 builds a part that is used in Plant #1 production • Central manufacturing plant with multiple distribution centers for CO shipping • Multiple CO processing centers with a single shipping location

  4. Production Feeds • B is made in warehouse #2 • A is made in warehouse #1 • B is transferred to warehouse #1 • Warehouse #1 uses item B to build Item A • Item Master Set up for B flags it as a Make item (Item Type = 1 or 2) • Lead Time code in Warehouse #1 = P (purchase) • Lead Time Code in Warehouse #2 = M (make) • Planned order in Warehouse #1 MRP will create Transfer Order A C B D E

  5. File Set-up • Demand Warehouse (Plant 1) is set up as a customer in COM for supplying warehouse • Supplying warehouse (Plant 2) is set up as a vendor in demand warehouse • Items can be ‘flagged’ as ISL items by vendor or by planner • Tailoring files determines ISL options to be used

  6. Tailoring Options

  7. File Set up • Control file determines if parts are automatically adjusted (with IA transactions) if there is ‘remaining’ inventory in the transfer warehouse. For example: • Warehouse 2 ships 100 pieces • Warehouse 1 receives 98 pieces • ISL will create an IA transaction for -2 if control file specifies automatic clear of inventory on receipt into demand warehouse

  8. Transfer Warehouse • Need to create a Transfer Warehouse to hold inventory while it’s being moved from warehouse 2 to warehouse 1 • All ISL items will require an Item Balance/Warehouse record for the transfer warehouse (XA will build the record if it doesn’t exist) • Transfer warehouse needs to be controlled warehouse with transfer locations (i.e. truck, boat, plane, etc)

  9. Planner Defaults Planner defaults are recommended to be used over item defaults to facilitate planning.

  10. Item Defaults are Exceptions to Planner set-up

  11. Questions?

  12. Material Planning • ISL works with: • MRP • MRP with MPSP • Advanced Planner (AVP) • Run planning in the demand warehouse first to get P-Plan orders for the transfer item • Run planning in supply warehouse to see requirement from demand warehouse

  13. ISL Item Set-up • In Item Balance/Warehouse file, ISL items need to: • Have a ‘Master Level Item Code’ (MLI) = M (multiple sources of requirements) • Have a ‘Plan Customer Order Code’ = 5 (all customer orders on or after the MRP start date) • Lead Time in the demand warehouse is transit time from supply warehouse • Lead Time in supply warehouse is production lead time

  14. MPSP

  15. Material Planning

  16. Material Planning

  17. Transfer Orders • Transfer Orders have 2 parts: • Demand warehouse has transfer order that begins with letter ‘X’ • Supplying warehouse has customer order in COM • Transfer orders can be created in MRP Order Release/Review or manually

  18. Order Release/Review

  19. XO/CO Relationship • ‘X’ (transfer) order is linked to Customer Order • Transfer Order serves as ‘on order’ in demand warehouse • CO serves as ‘requirement’ in supplying warehouse • CO is not removed from COM until shipped item is received in demand warehouse

  20. Questions about planning?

  21. Shipping • When item is transferred, ISL ‘ships’ the transfer CO and moves the inventory from warehouse #2 to the In-transit warehouse • Bills of Lading, Manifests, etc. can be created when goods ship • Inventory is on hand in the transit warehouse

  22. Shipping • Pick List can be created to pick the ISL/COM orders • Have option to create manifest • Benefit of manifest is that goods can be received in the Demand warehouse by manifest number rather than item-by-item • Goods will be transferred (TW transaction) from the Supply warehouse to the In Transit warehouse

  23. Ship InterSite Orders • Use this option to ship an • InterSite order • The display allows you to • Create a new manifest • Select the order to be • shipped • Select the inventory • location that the order • is to be shipped from

  24. Shipping ISL Order • Option to create a shipping manifest • Displays a list of transfer orders (begins with ‘X’) • Select the orders to be shipped • Enter the ship quantity of each order

  25. Manifest Details

  26. Ship Transfer Order Screen • Batch/lot • FIFO date • Available quantity • Ship quantity • ISL transfer warehouse location • If the order is complete • Weight • Number of containers • Type of container • The body of the display shows • Shipping warehouse • Manifest number • Order number • C.O. number • Item number • Transfer warehouse • Quantity ordered • Quantity shipped • Quantity remaining to be shipped • Location

  27. Sample Manifest

  28. In Transit Warehouse • Must be Location Controlled warehouse • Minimum number of Locations: • Truck • Plane • Boat • Should be non-planning warehouse linked to supply warehouse for MRP • Since CO remains as demand until final receipt, on hand inventory in transit is necessary to create a valid MRP plan

  29. Receive ISL Order • If a Manifest was created, can receive by Manifest number • If a Manifest was not created, receive by item number • Item will be transferred from in-transit warehouse into demand warehouse • X order and CO will be deleted/copied to history • Depending on tailoring, if quantity remains in In-transit warehouse the system will create an IA (Inventory Adjustment) to zero out the balance

  30. Receiving Screen

  31. Receiving • When goods are received, in transit warehouse is cleared of inventory • Transfer Order is completed • Quantity on hand in warehouse #1 is increased • Can receive multiple items by manifest

  32. History • ISL tailoring determines if transfer order history is kept • Manifests, if not entirely transferred, can be purged/deleted via menu option • Also have IM Transaction History and COM history

  33. Summary • ISL with MRP will create transfer orders for goods that are used in one plant and manufactured in a different plant • ISL tracks goods in transit with the In Transit warehouse • No impact to AR or AP when goods shipped/received

  34. Summary • ISL is a very easy, user friendly application to set up and use • Does an outstanding job of moving requirements and tracking inventory

  35. Questions?

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