1. Moving Inventory easily between plants
Inter Site Logistics
Moving Inventory easily between plants
Jim Simunek

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
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.

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

28. 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

29. Sample Manifest

30. 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

31. 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

32. Receiving Screen

33. 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

34. 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

35. 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

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

37. Questions?