Description of general solution capabilities
The supply chain supports the following major business scenarios:
Order-to-Cash, Make-to-Stock and Procure-to-Pay.
And in many functional processes, including: Physical Inventory Management, identified stocks, batch management, Demand Planning, Production Planning, Returns, Repairs and more.
The system enables enterprise processes, including Stock Transfer between different sites of the same company, Intercompany processes between different companies defined by the same ByDesign system, and third-party processes such as Third-party order processing (TPOP) and Third-party logistics (3PL).
Main highlights of the solution:
- Demand and supply transparency across all locations
- Multi-level supply chain from supplier to customer
- Out-of-the-box intercompany processes
- Cost transparency (planned and actuals)
- Up-to-date inventory valuation
- Tight process integration to Financials
- Automated work distribution and uniform task execution
- Process automation via mass data runs
- Exception-based planning and execution Monitoring
- Out-of-the-box integration with other supply chain parties (e.g. shipping service providers, 3PL)
- Multiple interfaces to other solutions (e.g. E-Shop, CAD)
- Built-in and side-by-side solution adaptation capabilities
Master Data Infrastructure
Proper operation of the processes is based on an accurate definition of the data infrastructure in the system. Definition of the Material master data that includes the various logistics relevant information, the organizational structure Modeling the Company, which includes the list of organizations in the organization, their sites, the functionality of each unit and the like. Factory location layout definition and storage location definition that includes production areas, inventory areas and more.
The system makes it possible to plan the future consumption of the products based on a statistical model.
Several different demand planning programs can be defined. The program defines the list of relevant products for planning, defines the design method, for example, average, moving average, etc.
The system displays the actual data, if any, and can also update this data to neutralize peaks.
Planning runs and then gets a result. The system can be set to round the data in the result. You can also manually update the data in the result.
When planning is released, it becomes a real requirement in the supply planning work center.
You can also download to Excel historical data, plan in Excel and then reload to the system.
It is an MRP run designed to balance the requirements, which come from different sources (forecast, sales orders, projects, etc.) and existing inventory and orders on the way.
The supply proposals created according to the item’s production / purchase policy. Suppose the item is purchased at a fixed amount of 25 (or multiples of it), so the planning will be accordingly.
A supply proposal can be firm, so it will not update in the next run.
You can release and create a purchase requisition or production order or stock transfer (depending on the Material master and organizational structure settings).
The system includes process of finding a provider. Creating an RFQ, contacting multiple suppliers, comparing, choosing and then creating a purchase order or agreement.
If the contestant submits his proposal in interactive forms or XML can then be automatically entered into the system for comparison purposes. If proposal arrive by email, then it receives manually.
Procurement requirements can come from the supply planning, project planning, user-initiated direct creation, and so on.
Rules can be set to automatically create orders. A confirmation level can be set to confirm the purchase order before sending it to the supplier.
Once the order is shipped to a vendor, he can return Receive Acknowledgment. The vendor can update order changes, such as changes in delivery dates, quantities, and so on. You can reject these changes, cancel the order, and create another order to another supplier.
Of course, the changes can be adopted. If, for example, the supplier splits the delivery dates, into two different dates with the quantity split, then if the change is adopted, then it will be displayed on the supply planning screen.
If the vendor sends acknowledgment in interactive forms or XML it can automatically absorbed into the system. If acknowledgment arrive by email, then it receives manually.
Goods Receipt Process
There are simple and complex models for the process of obtaining good receipt. In a straightforward process, the inventory enters the warehouse while in the complex model, the inventory consists of arriving in the reception area and only after inspection is transferred to the warehouse including tasks to be performed in the warehouse.
In the complex process, you can create the following steps:
- Advanced Shipping Notification (ASN)
- Inbound Delivery Notification (IDN)
- Unload with Warehouse Tasks
- Put Away with Warehouse Task
There is also a quality control process for items. There can be a planned process, can also be unplanned. At the end of the process, after confirming the quantity arrived, a Delivery Document is created
The supplier invoicing work center will display the Delivery documents created in the previous step of entering the inventory. You can select a document and make an invoice.
If the amount received in the invoice differs from the order sum, the system will create an exception and will need to be checked.
Evaluated receipts settlement (ERS) – An automatic invoice creation process based on the quantity received and the purchase order.
After posting an invoice, a financial document is made.
Sell from Stock
The system enables a sales process from the inventory stock according to a customer sales order, created directly or on a basis of a quote. Sales order define whether it is Complete delivery, that is, all items will be shipped at once or Delivery rules, which defines how the order can be split into several different deliveries.
The process of good issuing to the customer from the warehouse can be short and simple or complex including warehouse tasks.
Once the good is issued, you can proceed to the invoice phase. The system can create an invoice automatically by invoice run, you can create a manual invoice and several invoices can be consolidated into one invoice (according to the invoice consolidation limits).
To drive production processes, an infrastructure that includes the following components is required:
- Production Bill of Material – BOM
- Production Bill of Operations – BOO
- Production Model
Need to define the product BOM including its variants. To define the BOO tree to be taken in favor of the production operation and the quality control and to define the production model which is a product tree combination with an operations tree in the Planning area.
When MRP is run, the system makes recommendations. If the item is intended for production, there will be a Production proposal and if the item intended for purchase will be a Purchase proposal and the like.
Since the system refers to the product tree then, for example, at the level of the whole item there will be a recommendation for production, but the system also creates planning for the dependent components and there may be recommendations for procurement.
The duration is calculated according to the continuation of FIX (for example set-up time) plus the time varying twice the number of items you want to produce. The system also considers the daily working hours and splits the resulting amount accordingly.
In addition, the system calculates loads for machines / resources that are assigned to perform production.
The load can be tested at daily / weekly / monthly resolution.
You can also view an incremental load and see that the planning horizon has no load problem. Loads can also be balanced.
The process includes several steps that can also be performed automatically according to system settings.
After MRP runs, Proposals are created which can be approved and turned into Request.
Once the Request is approved, a Production order is created and only after release, Tasks created in the execution system. The Tasks is created according to the settings of the Production model, for example, whether the Task is created by activity or by Operations.
After Tasks confirmation is made, the finished product inventory is created (at the same time the inventory of the components that make up the product is reduced).
- Production Proposal <<< Production Request
- Production Request <>> Production Order
- Production Order: Supply & Demand View
- Production Order <>> Production Task
- Production Task Confirmation
BOM - Bill of Material
Multi level BOM
BOO - Bill of Operations
Includes the following key processes:
- Inventory count includes inventory adjustments, between inventory recorded in the system and physical inventory in the warehouse. You can set a periodic inventory count, for example every 10 days, for a specific item. This is set at the item level. Recommendation only (not automatic process).
- Inventory transfers – between different locations, cost center issue, project issue, stock renewal line
Inventory movements are done at the site / location of a company
- Inventory transfers can be made between different locations in the warehouse. logistics area (bin)
- Inventory can be transferred from unlimited, limited inventory, quality control
- Inventory can be transferred between different batches
- Can be issued / returned to cost center
- Can be issued / returned to the project.
- Renewal of replenishment inventory (for production process) – Renewal of production line. Includes task approval. You can set up an automatic process.
- Removal of inventory (for manufacturing process) Transfer of finished goods to warehouse. Includes task approval. You can set up an automatic process.
Intracompany Stock Transfer
- Transfer inventory between different sites of the same company.
- An example of such a process: site 1 is used for sale and second site for production. When a sales order is created for a customer on site 1, the system creates a demand on site 1 and after MRP runs a recommendation for stock transfer order from site 2 to site 1
- In the Procurement type definition of the item, define Internal procurement for site transfer. This means that you can transfer inventory between different sites. When MRP is run, the system will automatically recommend a stock transfer order.
- The process is required lane (path) is set to be transported between the 2 sites.
- Inventory transfers between 2 different companies defined in the same ByD system. In addition, companies should be defined as Partner companies.
- Company 1 creates a purchase order for an item, with the supplier being Company 2.
- The system automatically creates a sales order for a customer in Company 2.
A process in which a customer returns items he has received as a result that the items did not fit his needs or did not meet the required quality.
The system supports the return of items including the Return Documents flow that is updated in the sales order. At the end of the process, there is a financial record of return with credit memo or without credit memo.
The logistics process can also include inspection stage at the inventory to check the quality of the items received. The logistics process can also include warehouse tasks.
- Create customer return notification
- Initiate inbound processing
- Post goods receipt with or without tasks
- Release proposal for payment
- Manage payment based on credit memo
The return process supports the following business processes:
- Order-to-Cash (Sell-from-Stock)
- Order-to-Cash (with Specified Products)
- Order-to-Cash (Third-Party Order Processing – Material)
- Over-the-Counter Sales
- Service and Repair
The customer’s return process can be triggered without reference to a sales order.
Returns to Suppliers
Process of returning items to suppliers. The reasons are for example: overstock, customer returns, or a product quality problem.
- Create return to supplier request
- Initiate outbound processing
- Execute warehouse tasks (optional) / post goods issue
- Create outbound delivery
- Post two ledgers
Support the following business process:
- Procure-to-Pay (Stock)
You can also list the reason for the return (for a list of reasons).
Third-party order processing (TPOP)
Process main steps: The customer orders from the company, the company creates a purchase order to external supplier, the external supplier directly delivers the items to the customer.
The item’s definition states that it is purchased externally or that it also allows for external purchase in addition to internal production. The item can also be defined the source of supply, and if only one supplier is defined, then, when the sales order is created, the system automatically determines that the item will be supplied by the external supplier defined.
When creating and releasing the sales order the system automatically creates a Purchase order to the supplier.
For the sake of transparency in the system, both Inbound delivery and Outbound delivery documents are created (although in practice the item does not enter the company’s inventory and Is not consumed from company inventory).
At the end of the process, there is a financial record, a customer invoice to the customer, and a vendor invoice to the supplier who provided the items.
Third-party logistics (3PL)
In this process, the warehouse is managed by a third party rather than a ByD system.
Define an interface with the third-party system to send the customer orders and receive an indication of the shipment made.
In sales order, define fulfillment = Internal and select the warehouse managed by TPL.
In addition, the number of inbound and outbound should come from an external source of the system that manages the TPL.
When a return notification is received from TPL about the shipment, the item’s inventory is updated.
The process includes repair created from a service request. The repair can be done at the customer’s site, at the company’s service center or at a company vendors service center.
On-site repair: When the repair is done on the customer’s site, the technician can take the spare parts with him or the spare parts can be sent separately.
In the company’s service center: After creating the service order, the return document also creates, indicating that the return is done for repair.
Inbound delivery created, then confirmation for service order and then move on to outbound delivery for the return of the item to the customer.
The item is in the responsibility of the customer. He brings, and he returns.
In the Company vendor Service Center: In this case the item does not arrive at the company at all and therefore no inbound or outbound documents. The system also creates a purchase order for the supplier, then a good issue for the supplier’s work and then service confirmation.
Additional sales process
The system also supports the following processes:
- Point of sale scenario
- Over-the-counter sales scenario
- E-Shop integration