Basic material supply

Here you will learn how to activate and create the system objects required for the material supply.

Activate Advanced demand fulfillment

Here you can activate the advanced demand fulfillment for specific order.

This function is enabled by default.

Paths

Path	Master data and settings → Master data and sections → Warehouse and delivery
In-app link EN-code	e1cib/data/DataProcessor.TMAdministrationPanel.Form.WarehouseAndDelivery
In-app link RU-code	e1cib/data/Обработка.ПанельАдминистрированияУТ.Форма.СкладИДоставка

What you can do after activation

Now you can access:

Procurement strategy and Supply scheme catalogs.
Demand calculation tools that take into account planned delivery periods and intervals between deliveries.
Support of communication between the distribution center and remote warehouses.

Select Demand fulfillment method

Here you can determine how the material supply procedure will work in the system.

Demand fulfillment tools are resource management tools. They are used to solve tasks related to replenishing warehouse inventory up to an optimal level and selecting an effective inventory supply method to minimize inventory cost as well as transportation and procurement expenses. Here are some examples of the tasks that you can solve using the fulfillment method:

Replenish inventory up to a certain level.
Provide manufacturing resources smoothly.
Make sure there is no material shortage.
Improve goods turnover indicators.
Remove surplus.

Paths

Path	Master data and settings → Master data and sections → Warehouse and delivery
In-app link EN-code	e1cib/data/DataProcessor.TMAdministrationPanel.Form.WarehouseAndDelivery
In-app link RU-code	e1cib/data/Обработка.ПанельАдминистрированияУТ.Форма.СкладИДоставка

What you can do after activation

Criteria	Simplified option	Advanced option
Available fulfillment methods	• Purchase from a vendor	• Purchase from a vendor • Transfer from another warehouse • In-house manufacturing • External subcontracting • Kitting
Resource demand includes	• Intercompany resource orders • Inventory replenishment by min-max	• Intercompany resource orders • Inventory replenishment by min-max • Inventory replenishment by consumption rate • Inventory replenishment by consumption statistics
Complex inventory logistics	Unavailable	You can set up the link between a distribution center and remote warehouses.
Receiving sales orders according to a fulfillment forecast	Unavailable	You can set a shipment date in a sales order.

Select "The following goods are to be fulfilled for the distribution center"

Here you can determine a distribution center mode.

Paths

Path	Master data and settings → Master data and sections → Warehouse and delivery
In-app link EN-code	e1cib/data/DataProcessor.TMAdministrationPanel.Form.WarehouseAndDelivery
In-app link RU-code	e1cib/data/Обработка.ПанельАдминистрированияУТ.Форма.СкладИДоставка

What you can do after activation

In the Planned shipments from a warehouse to remote warehouses mode, the system allocates all material demands to the distribution center (warehouse) by procurement strategies (purchase, transfer, kitting, manufacturing) if the distribution center has available inventory. The system analyzes the demand only in the distribution center. It includes the following orders:

Sale, kitting, transfer to production, and other write-offs from the distribution center (warehouse).
Transfer from the distribution center to remote warehouses related to this center according to supply schemes.
Transfer from the distribution center to the warehouses that are not related to this center according to supply schemes.

In the Planned shipments from remote warehouses mode, the system allocates all material demands of the distribution center (warehouse) by procurement strategies (purchase, transfer, kitting, manufacturing) if the distribution center has available inventory. The system analyzes the demand in both the distribution center and warehouses with the center as their source of supply. It includes the following orders:

Sale, kitting, transfer to production, and other write-offs from the distribution center (warehouse).
Sale, kitting, transfer to production, and other write-offs from remote warehouses related to the distribution center according to supply schemes.
Transfer from distribution center and its remote warehouses to the warehouses that are not related to this center according to supply schemes.

Procurement strategies catalog

Here you can create a list of procurement strategies (sources) that your company applies.

Procurement strategy is a set of parameters used for the following actions:

Determine a supply source type (purchase, transfer, manufacturing, kitting, and so on).
Determine a supply source.
Calculate a standard date of the order fulfillment.

Supply source type is a parameter that determines how an inventory demand is fulfilled and what orders to generate for the demand fulfillment.

There are the following methods of creating procurement strategies:

Create summary procurement strategies with a single strategy per each supply source type. For example, Purchase, Manufacturing, Transfer, and so on. Specify particular supply sources when you create orders.
Use procurement strategies with specific supply sources and conditions. Create them for valid order fulfilment conditions. Here are some examples of procurement strategies with specific supply sources and conditions:
- Purchase — Vendor A — Delivery period: 10 days
- Transfer — From warehouse A — Transfer period: 2 days
- Manufacturing — Plant A — Manufacturing period: 30 days.

Question 1: Do I need to choose a summary procurement strategy or a procurement strategy with specific supply sources?

Answer: If you need to fill the source in the order you generate, you can create one procurement strategy without a specific source. In this case, the source is filled according to the statistics of previously created orders for this item in the order generation data processor.

Question 2: If two items are supplied by different sources, shall these items have different procurement strategies?

Answer: We recommend that you create and apply a summary procurement strategy with an empty source. Two separate procurement strategies are required if goods have different supply periods or order due dates.

Supply period is used to calculate the minimum and maximum inventory levels if the inventory procurement strategy is Average daily consumption method or Calculation by statistics.

Question 3: How many procurement strategies do I need to create?

A procurement strategy defines the order generation rule for one or several items. If your company has several simultaneously applied rules, create a procurement strategy for each rule.

Paths

Path	Warehouse and delivery → Settings and catalogs → Demand fulfillment → Procurement strategies
In-app link EN-code	e1cib/list/Catalog.ProcurementStrategies
In-app link RU-code	e1cib/list/Справочник.СпособыОбеспеченияПотребностей

How to create a procurement strategy record: Purchase

1. Open the catalog and click Create.

2. Select Supply source type – Purchase and specify the brief Description for the settings.

3.1. Select the Multiple vendors option if the order can be placed for any vendor.

3.2. Alternatively, select the Single vendor option and choose a specific Vendor.

4. Click the Planning parameters tab and specify the standard Lead time.

Note

Lead time is the time to fulfill a purchase order created using this method. It identifies the period between the order generation date and the date of receipt of goods (packaging or work) to the warehouse. If you record the order due date, you can plan the supply in advance to fulfill the demand on time.The due date is an expert valuation. You can specify it both during order generation and in generated orders.The order due date is calculated based on the enterprise calendar workdays. For example, if today is Monday and the due date of the order under the procurement strategy is 7 days, and Saturday and Sunday are days off according to the enterprise calendar, then the order will be scheduled for next Wednesday, in 7 workdays. The due date identifies the date of the nearest possible receipt of goods (packaging or work).

5.1 Select the Reorder point (in days) lead time settings and specify Covered period and Guaranteed supply period.

Note

These settings help identify the delivery date (order date) as the current stock level reaches the reorder point. Calendar delivery dates are not known in advance. The date until which you need to generate an order is determined to fulfill demands in time and avoid shortage. When you fulfill the demands, the system offers you to order items whose calculated supply period start date matches the current date. The reorder point depends on the current stock, minimum inventory, and safety stock. The system will offer you to order items you need to generate orders for today. This is required to fulfill current orders in time or cover the expected consumption and current stock balances. The quantity to order is calculated as a need for the covered period. To limit the period with the demands to include in an order, use the Covered period field. The period is calculated in days (according to the warehouse work schedule) from the earliest day of possible supply against the order. For goods, the covered period is calculated by warehouse workdays. For items of the Work type, the covered period is calculated by enterprise workdays. For example, goods can be delivered under the procurement strategy on Monday, 07/01/20XX. If the covered period is set to 10 days, and Saturday and Sunday are days off, the sales order with shipment date 07/11/20XX will fall into the covered period.To ensure you have enough time to fulfill the order before the due date, use the Guaranteed supply period field. This is a period of guaranteed goods supply for the warehouse if required. The period is submitted as a planned delivery date for demands whose supply is not planned yet. As a rule, the guaranteed supply period is earlier than the order due date. The guaranteed period is used as the planned receipt date to display non-supplied shipment orders in the order supply forecast data processor, as well as to get the receipt date of materials by stages upon production schedule calculation.

5.2 Alternatively, select Reorder schedule and specify the earliest and next delivery dates.

Note

This rule allows you to calculate the purchase volume for the earliest delivery date to cover the demands of the covered period prior to the next delivery date. Calendar delivery dates are fixed. Goods are supplied on predefined dates. Orders are generated regularly on fixed dates based on the delivery schedule and warehouse work schedule. The order includes all demands of the period prior to the date of the next delivery. The quantity to order is calculated so that there will be enough goods until the next delivery date or up to the maximum inventory level. When you create such procurement strategy, specify the earliest delivery date. You can update delivery dates later in the Demand-driven orders workplace. Based on the specified order due date and the enterprise calendar, the system calculates the date when you need to generate an order for the earliest delivery. After order generation, the next delivery date is considered the earliest delivery date. You can update the next delivery date when generating the nearest order. When you order goods on schedule before the next delivery date, the quantity of goods to order is calculated according to the warehouse working days.

6. Click the Order registration tab, fill the Company, Business unit, Terms of purchase, and Price type.

Note

This information will be prefilled in generated orders.Specify the Business unit responsible for the goods delivery under this procurement strategy. If you select a single vendor, specify the Terms of purchase as well.The Company, the Price type used to keep records of vendor prices, and the Lead time are automatically populated from the Terms of purchase. Planning parameters of this procurement strategy are applied to orders to a single vendor.

How to create a procurement strategy record: Transfer

1. Open the catalog and click Create.

2. Select the Supply source type — Transfer and fill the Description field.

Note

Use it when an item is transferred from another warehouse. With this procurement strategy, you can generate the Transfer order and Order materials to shop floor stockroom documents.

3.1. Select the Multiple warehouses

3.2. or Distribution center option.

Note

When you use multiple warehouses, goods are transferred from different warehouses.When you use the distribution center mode, goods are transferred from the selected distribution center.

4. On the Planning parameters tab, fill the Transfer period, Covered period, and Guaranteed supply period fields.

Note

Transfer period is a period required to transfer goods from the origin warehouse to the destination warehouse. The company establishes and regularly updates standard due dates of kitting, shipment, transportation, and receipt of goods between corresponding warehouses. The nearest possible date of goods receipt to the destination warehouse is calculated as a transfer order placement date + standard transfer period.

5.1 Select the Reorder point (in days) lead time settings and specify Covered period and Guaranteed supply period.

Note

These settings help identify the delivery date (order date) as the current stock level reaches the reorder point. Calendar delivery dates are not known in advance. The date until which you need to generate an order is determined to fulfill demands in time and avoid shortage. When you fulfill the demands, the system offers you to order items whose calculated supply period start date matches the current date. The reorder point depends on the current stock, minimum inventory, and safety stock. The system will offer you to order items you need to generate orders for today. This is required to fulfill current orders in time or cover the expected consumption and current stock balances. The quantity to order is calculated as a need for the covered period. To limit the period with the demands to include in an order, use the Covered period field. The period is calculated in days (according to the warehouse work schedule) from the earliest day of possible supply against the order. For goods, the covered period is calculated by warehouse workdays. For items of the Work type, the covered period is calculated by enterprise workdays. For example, goods can be delivered under the procurement strategy on Monday, 07/01/20XX. If the covered period is set to 10 days, and Saturday and Sunday are days off, the sales order with shipment date 07/11/20XX will fall into the covered period.To ensure you have enough time to fulfill the order before the due date, use the Guaranteed supply period field. This is a period of guaranteed goods supply for the warehouse if required. The period is submitted as a planned delivery date for demands whose supply is not planned yet. As a rule, the guaranteed supply period is earlier than the order due date. The guaranteed period is used as the planned receipt date to display non-supplied shipment orders in the order supply forecast data processor, as well as to get the receipt date of materials by stages upon production schedule calculation.

5.2 Alternatively, select Reorder schedule and specify the earliest and next delivery dates.

Note

This rule allows you to calculate the purchase volume for the earliest delivery date to cover the demands of the covered period prior to the next delivery date. Calendar delivery dates are fixed. Goods are supplied on predefined dates. Orders are generated regularly on fixed dates based on the delivery schedule and warehouse work schedule. The order includes all demands of the period prior to the date of the next delivery. The quantity to order is calculated so that there will be enough goods until the next delivery date or up to the maximum inventory level. When you create such procurement strategy, specify the earliest delivery date. You can update delivery dates later in the Demand-driven orders workplace. Based on the specified order due date and the enterprise calendar, the system calculates the date when you need to generate an order for the earliest delivery. After order generation, the next delivery date is considered the earliest delivery date. You can update the next delivery date when generating the nearest order. When you order goods on schedule before the next delivery date, the quantity of goods to order is calculated according to the warehouse working days.

6. Click the Order registration tab and fill the Company and Business units fields.

7. Specify the standard Transfer duration if the distribution center option is selected.

Note

Transfer duration is a part of the transfer period. It is the period from goods shipment from the origin warehouse to the goods receipt to the destination warehouse. If there are always enough goods in stock in the origin warehouse, a transfer period must be equal to the transfer duration. If there is not enough goods in stock in the origin warehouse, then a transfer period must include the purchase of goods at the origin warehouse.

How to create a procurement strategy record: Kitting

1. Open the catalog and click Create.

2. Select the Supply source type — Kitting and fill the Description field.

Note

Select this check box if the item is supplied by assembling new kits from components. This procurement strategy allows you to generate a Kitting order.

3. On the Planning parameters tab, specify the standard Kitting period.

Note

Kitting period is a standard due date to fulfill a kitting order. It defines the period between the order placement date and the kitting date. When you set the kitting order fulfillment period, you can plan in advance the goods supply for another customer order. Based on this period, the closest possible date for assembling kits is calculated.

4. Click the Order registration tab and fill the Business unit and Company fields.

5. Specify the standard kitting duration.

Note

Kitting duration is a part of the kitting period, the time spent from the kitting start date to the end date. If there are available components in the kitting warehouse, set the kitting period equal to the kitting duration. If there are no components in the kitting warehouse, include the component supply (purchase) period to the kitting period.

How to create a procurement strategy record: In-house production

1. Open the catalog and click Create.

2. Select the Supply source type — Production and fill the Description field.

3.1. Select the Multiple dispatching units check box.

3.2. Or, you can select the Single dispatching unit check box and choose a production dispatcher.

Note

If you select the Single dispatching unit check box, the selected dispatcher will be automatically filled in the production orders you create.

4. On the Planning parameters tab, specify the standard Production period.

Note

Production period is a production order fulfillment period. It defines the period between the order registration date and the product (work) release date. Based on this period, the closest possible date for releasing products (works) is calculated.

5.1 Select the Reorder point (in days) lead time settings and specify Covered period and Guaranteed supply period.

Note

These settings help identify the delivery date (order date) as the current stock level reaches the reorder point. Calendar delivery dates are not known in advance. The date until which you need to generate an order is determined to fulfill demands in time and avoid shortage. When you fulfill the demands, the system offers you to order items whose calculated supply period start date matches the current date. The reorder point depends on the current stock, minimum inventory, and safety stock. The system will offer you to order items you need to generate orders for today. This is required to fulfill current orders in time or cover the expected consumption and current stock balances. The quantity to order is calculated as a need for the covered period. To limit the period with the demands to include in an order, use the Covered period field. The period is calculated in days (according to the warehouse work schedule) from the earliest day of possible supply against the order. For goods, the covered period is calculated by warehouse workdays. For items of the Work type, the covered period is calculated by enterprise workdays. For example, goods can be delivered under the procurement strategy on Monday, 07/01/20XX. If the covered period is set to 10 days, and Saturday and Sunday are days off, the sales order with shipment date 07/11/20XX will fall into the covered period.To ensure you have enough time to fulfill the order before the due date, use the Guaranteed supply period field. This is a period of guaranteed goods supply for the warehouse if required. The period is submitted as a planned delivery date for demands whose supply is not planned yet. As a rule, the guaranteed supply period is earlier than the order due date. The guaranteed period is used as the planned receipt date to display non-supplied shipment orders in the order supply forecast data processor, as well as to get the receipt date of materials by stages upon production schedule calculation.

5.2 Alternatively, select Reorder schedule and specify the earliest and next delivery dates.

Note

This rule allows you to calculate the purchase volume for the earliest delivery date to cover the demands of the covered period prior to the next delivery date. Calendar delivery dates are fixed. Goods are supplied on predefined dates. Orders are generated regularly on fixed dates based on the delivery schedule and warehouse work schedule. The order includes all demands of the period prior to the date of the next delivery. The quantity to order is calculated so that there will be enough goods until the next delivery date or up to the maximum inventory level. When you create such procurement strategy, specify the earliest delivery date. You can update delivery dates later in the Demand-driven orders workplace. Based on the specified order due date and the enterprise calendar, the system calculates the date when you need to generate an order for the earliest delivery. After order generation, the next delivery date is considered the earliest delivery date. You can update the next delivery date when generating the nearest order. When you order goods on schedule before the next delivery date, the quantity of goods to order is calculated according to the warehouse working days.

6. Click the Order registration tab and fill the Company field.

How to create a procurement strategy record: Subcontracting

1. Open the catalog and click Create.

2. Select the Supply source type — Subcontracting and fill the Description field.

Note

Select this check box if the products are manufactured by subcontractors. The demands are fulfilled by release of finished products (semi-finished products) by a subcontractor. This procurement strategy allows you to generate a Subcontracting purchase order.

3.1. Select the Multiple subcontractors check box.

3.2. Or, you can select the Single subcontractor check box and specify a partner subcontractor.

Note

If you select the Single subcontractor check box, the selected subcontractor will be automatically filled in the subcontracting orders you create.

4. On the Planning parameters tab, specify the standard Subcontracting period.

Note

Subcontracting period is a standard period of subcontracting purchase order fulfillment. It defines the period between the order registration date and the date of manufactured goods receipt. Based on this period, the closest possible date for receiving manufactured products from the subcontractor is calculated.

5. Click the Order registration tab and fill the Business unit and Company fields.

Supply schemes catalog: for wholesale warehouses

Supply scheme is a standard process template that shows the movement of materials and works across warehouses and business units. The scheme outlines all process stages from goods receipt to their shipment. You can use the scheme for enterprises with a complex structure (having several warehouses or several production shop floors). It helps you specify goods supply parameters by warehouses by grouping goods with the same supply process type into schemes.

Here you can create a list of supply schemes and set them up for wholesale warehouses.

Supply scheme example:

For raw materials: Purchase to warehouse A – Transfer from warehouse A to shop floor B – Transfer from shop floor B to production.
For finished products: Production to storeroom C – Transfer from storeroom C to warehouse D – Shipment to the customer from warehouse D.

You can use supply schemes to:

Apply the same procurement strategies for a specific warehouse or business unit.
Apply the same procurement strategy for items within one, several, or all company warehouses.

Paths

Path	Warehouse and delivery → Settings and catalogs → Demand fulfillment → Supply schemes
In-app link EN-code	e1cib/list/Catalog.SupplySchemes
In-app link RU-code	e1cib/list/Справочник.СхемыОбеспечения

How to create a supply scheme record

1. Open the catalog and click Create.

2. Fill the Description field.

How to set up procurement strategies for warehouses and business units

1. Go to the catalog and open a supply scheme.

2. Click the Warehouses tab and then click By hierarchy.

Note

There are several modes for setting up supply schemes for warehouses on the Warehouses tab:
By formats. Allows you to set the supply scheme for retail (warehouse) formats. If the supply scheme is set for the retail format, it applies to all warehouses of this format. You can also set a supply scheme for a warehouse that differs from the supply scheme of this warehouse format.
By hierarchy. Allows you to set the supply scheme by retail (warehouse) formats both for a warehouse group and for each warehouse separately. To set the supply scheme for a warehouse group, select warehouses belonging to the same group.

3. Select a Warehouse or Warehouse group and click Fill in procurement strategy.

4. In the choice form, clear the Only used in warehouses check box and select the Procurement strategy to apply.

Item kinds catalog: the default supply scheme

Here you can set the default supply scheme for an item kind.

Items and packaging are supplied in accordance with warehouse supply schemes. Specify the scheme according to which items or packaging will be supplied in the item card. You can set only one supply scheme for an item or packaging.

Demand for works is fulfilled in accordance with the procurement strategy. Procurement strategy for an item with the Work type is also specified in the item card.

Paths

Path	Master data and settings → Master data → Item related catalogs → Items → Item kinds
In-app link EN-code	e1cib/data/Catalog.ItemKinds
In-app link RU-code	e1cib/list/Справочник.ВидыНоменклатуры

How to fill the default supply scheme for an item kind

1. Open the catalog and open an item kind.

2. Click Default values and specify the Supply scheme.

<< Prev Next >>