Inventory and Warehouse Processes

Introduction Inventory and warehouse management are closely related to the fulfillment and production processes Warehouses often supply raw materials to manufacturing Warehouses store and move finished and semi-finished good

Inventory Models

Inventory With OFBiz Facility - warehouse Area Aisle Level High rack Position Picking 01 02

Inventory with OFBiz

Types of Goods Movement Receipt from production or procurement Increases finished goods or trading goods inventory Goods issue to production or fulfillment Or destruction (disposal) Decreases raw material inventory Transfer postings change the status of a good Stock transfers Move goods from plant to plant or storage location

Types of Goods (OFBiz Status) Inventory status varies based on whether it is serialized or not

Goods Status (Discussion) We can sell unrestricted stock Transit/Transf stock is stock in motion Restricted use stock includes reservations Blocked stock is stock received “conditionally” pending acceptance A batch is a subset of stock managed separately from the material itself

Goods Receipt Remember it’s a receipt of goods into inventory from a vendor Goods receipts are triggered by Goods received from vendor from purchase Unplanned receipts Customer returns THERE IS AN ACCOUNTING CONSEQUENCE Logistics / Materials Management / Inventory Management / Goods Movement

Goods Issue To review, goods are leaving inventory typically sold to a customer THERE IS AN ACCOUNTING CONSEQUENCE Goods issue event is triggered by Planned resulting from a sales order Unplanned Scrap / internal consumption / sampling

Internal Warehouse Processes What happens in the warehouse stays in the warehouse THERE IS NO CONSEQUENCE We are just moving goods around. We are not revaluing them, buying them, or selling them We will discuss in 2 parts The organizational units The processes of moving goods

WM Organizational Units

WM Organizational Units Type Configured as Pick/Primary and High rack but we could add others Area Asile Section Level Position Preferred stock levels

WM Organizational Units

WM Organization Doors are locations where goods are received or shipped

Transfer Postings Change the status of a material in stock Unrestricted use QA / QC Blocked In transit Transfer postings do not always result in the physical movement of goods They might just change the logical status of a good

Transfer Postings (Examples) From vendor owned inventory to company owned inventory The vendor stores their materials in our warehouse (consignment stock) Change a material’s characteristics over time OFBiz does not fully support all of these

Stock Transfers Use to physically move materials from one organizational level to another Plant Storage location Etc.

OFBiz Stock Transfer

Fulfillment Steps After outbound delivery and before goods issue Warehouse issues transfer orders Create and confirm Goods physically move from storage bins (locations) to interim storage

Production (steps) The same confirmations are made When raw materials are issued to production When finished goods are transferred back to the warehouse

WH Controlling

Processes Warehouse automation videos Process change http://www.youtube.com/watch?v=Q20nhhT07f0 Picking and return http://vimeo.com/12948899 Automated pharma http://vimeo.com/72337318

Warehouse Automation (Implementation) SSI Schneider is designed to operate with SAP Web Services? Other systems have APIs for picking and goods movement OFBiz custom code?