Moving Inventory easily between plants 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 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)

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

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

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

Tailoring Options Create IA transaction = Option to allow a non-reconciled amount to be zeroed out for the truck (the in-transit warehouse) Ship oldest InterSite order first = Should be set up as a “Yes” Ship over/under percentage = Should be set up as 99% Allow instertsite ord change/delete = “Yes” AND GOES WITH: Horizon days to lock InterSite orders Get InterSite Order Co number = “No” This is for accounting if they want tracking for individual company’s if you have them. Default manifest prompt = “1” display , This will be default when the manifest question is asked, you may override it. Print barcode on manifest = n or y symbology is standard DDM records = Tells the system to check for order every 60 seconds.

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

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)

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

Item Defaults are Exceptions to Planner set-up

Questions?

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

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

MPSP

Material Planning

Material Planning

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

Order Release/Review

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

Questions about planning?

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

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

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

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

Manifest Details

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

Sample Manifest

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

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

Receiving Screen

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

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

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

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

Questions?