How to apply supply chain in small business? End to end fulfillment-from order to delivery. Easily manage backorders – automatic back ordering.
Priority is by date and time of Sales Order. The first entered Sales Order will reserve the amount by priority.
We will give an example when Item 0001 is required on two Sales Orders.
“Committed quantity” will be distributed by the Sales Order date.
We will only “receive” 1 pcs, Purchase Order will have the status “partially received”.
While the oldest Sales Order will have the status “available quantity”.
The amount will be reserved.
Practice would not be a practice unless it requires exceptions. One of the situations is that regardless of the amount reserved, there is a need to pack another Sales Order, for example, the buyer requires immediate delivery (in our case SO-000013). We call this operation “force quantity”.
When activating the “pack” option, a packing list is created with the reserved amount, since we don’t have the quantity for that Sales Order, the quantity to be submitted is “0”. The “On hand” column displays the quantity available to us in stock (including the reserved amount).
By “retyping” the quantities and posting the packing list we perform “force quantity”.
Sales Order SO-000013 has the status “packed” / “fulfilled” while SO-000012 gets the status “no quantity”.
With this, we practically “stole” the quantity from one Sales Order and assigned it to another.
14. How do I prevent the received item from one of my orders not being sold to another customer?
One of the purposes of the automatic reservation system is to prevent unwanted sales to other customers.
When the Sales Order is entered or there is a change in the amount of inventory, the inventory and open sales orders are automatically checked, and if the conditions are fulfilled, automatic reservation is made.
When you activate the “pack” option in the packing list, only the reserved amount will be suggested.
If there is no reservation, the suggested quantity will be “0”. As we explained in above, “force quantity” is still possible.
15. Packages from suppliers arrive on a random basis, how do I know to which purchase order it belongs to?
Unlike competitive software solutions, our design approach is to adapt the software to the practical needs of the users and not to customize the user’s procedures to the software. In large and complex systems, there is a particular workplace where the computer-seated operator receives supplier deliveries, while in small businesses (for which ERPAG is primarily intended) such a solution is too expensive and impractical. Usually, it happens that the courier service brings the package to the entrance (usually the hallway) and the person caught first receives the package. Since the best solution is to enter data where and when a business change occurs, the answer to that is Mobile App.
ERPAG also has Apple iOS and Android version of the application (for more information, please visit our blog http://erpag51.blogspot.com/2018/06/mobile-app-ios-apple-android.html). By this, we have achieved that a person, whose job is not primarily working with the goods at the warehouse, takes the smart phone out of his pocket, scans the barcode using the camera (or manually enters the quantity) and makes the receipt of goods in stock.
When the ERPAG Mobile Application opens, in the main menu, the Purchase Order Number that can be received is displayed. Activating the receive option opens a new list of all possible items that can be received. If the products have barcodes, they can be scanned through the camera, based on the barcode, ERPAG searches the base and increases the quantity of the received goods.
In one move it is possible to enter multiple receipts of different Purchase Order. With this is achieved, that if the courier leaves more packages to be entered subsequently, the documents get the appropriate status and the amount is entered into the inventory.
16. Can I make a group order to get a better price from the supplier?
Yes. The “Fulfillment” list groups orders from all Sales Order.
In our case, we have “55 pcs” in Sales Order.
In ERPAG, there is a built-in “Tier Quantity” system for calculating the purchase price. In the item settings, it is necessary to set “Back Order” to be “Multiple suppliers” and enter the same supplier twice, but with the other purchase price and “Tier Quantity”.
With this, we have indicated that in our case in the “Fulfillment” list (and the generated Purchase Orders), the price will be $70.00 for quantities over 50 pcs or $80 for below the given quantity.
17. Can the supplier directly send the goods to the customer (drop shipping)?
Internet sales have led to an explosion of drop shipping methods of delivering goods. In short, why should a supplier send goods to us and after we send it to our customer, when it is more profitable for a supplier to send items directly to our customer.
In ERPAG, it is sufficient to set “Back Order” to “Drop Shipping”. In a single Sales Order, it is allowed to have “regular items” and “drop shipping items”.
In the “fulfillment” list, such articles will be specially labeled.
A separate Purchase Order will be created for each delivery address.
In the Purchase Order document, a panel with the delivery address will be displayed.
Since “drop shipping” is specific in a way that the items do not come to our stock, when we “receive” the Purchase Order, ERPAG will consider that the goods are delivered to the customer and will form a “drop shipping” packing list. Just knowing whether the goods are delivered by the supplier to our customer or not, you will have to check with either the supplier or the customer.
The rest of the items are received and packed regularly.
18. Suppliers change prices from time to time. What’s the best way to update them?
Almost all suppliers have the option of delivering the price list in the “spreadsheet” format (MS Excel, etc.). The best way to update the price list is to open the vendor and use the “import data” option.
Where we simply import the data with a simple “copy / paste” option.
19. I have not been able to deliver one part of the quantity and my customer agrees to be delivered only what is available. How do I cancel part of Sales Order?
That’s why the “split document” option is used.
An example where it is possible to partially pack/deliver items.
After activating the “pack” option where we only pack the available/reserved goods, and if the status is “partially packed”, the “split document” option will appear.
After splitting the document, the existing document is being corrected and a new one is opened. The new document will have the same number as the old one.
Existing document (which can be delivered and invoiced):
The new document (which we can remove):
If we want to remove it from the list and potential “fulfillment” list, we can simply delete it or change the status to “rejected” depending on whether we want to have a “track” of the operation in the database.
20. How do I determine the minimum quantity I need for inventory for some of the items?
When creating each item, it is possible to determine the minimum quantity we need in the stock.
Automatically, in the “fulfillment” list, the missing quantities appear.
It is possible to combine purchases for the minimum quantity and purchases according to the Sales Orders.
We will create a new Sales Order where we will also enter the BOM product and a “standard” one.
A “standard” item will appear in an existing “fulfillment” list, while the item to be produced appears in the “fulfillment” list in the manufacturing section.
The “Fulfillment” list from manufacturing has full functionality, only that instead of generating Purchase Orders generates Work Orders.
Generated Work Orders:
After generating the Work Orders, the components will appear in the “fulfillment” list for ordering.
“Committed” and “Awaiting” behave the same as with “standard” items. “Committed” is the amount required in “Input Items” in Work Orders, while “Awaiting” is the amount we expect from “Output Items”.
If one item is requested both on a Sales Order and Work Order, the Sales order will reserve it by priority.
22. We have multi-level BOM ie. sub-component, how does fulfillment in manufacturing work?
Working with Multi-Level Bill of Materials (BOM) is a bit more complex operation. Here we will explain only the basic functionality related to “fulfillment”.
In our example, we will do the Bill of Materials modeling, where the item “0009” has components and one sub-component (“0007”).
And, we will create a Sales Order with that item.
The “Fulfillment” list will only have that item listed. There will be no “propagation” to all components. But when Work Orders are generated, two will be created.
With this, we achieved to “propagate” the BOM to the components (i.e. raw materials). And the “fulfillment” list will show the necessary components for ordering.
23. We sell some of the items in a group, ie. we are forming a “kit”, is it supported in ERPAG?
“Kitting” is supported in ERPAG. Since such a product has special behavior, it is specifically defined in the application.
We will take a simple example, a Kit that contains two items.
And we will put it in the Sales Order.
Note: When the Sales Order is not in the edit mode (entering or altering the data), the display of the document is changed so that it shows the components within the kit.
The “Fulfillment” list will contain only the components of the kit, since, in fact, they should be ordered.
After generating the Purchase Order, in Sales Order, only the components of the kit will get their ‘awaiting quantity’ column.
Note: When we ‘pack’ the Sales Order, only the components are available for packing, i.e. “pulled” from stock.
About 25 years of experience in developing inventory and manufacturing software (from MS DOS, through MS Windows to Cloud-Based and Mobile Apps), by listening to the practical requirements of our users, has enabled us to enrich the market with this simple and efficient solution. In conjunction with other options, ERPAG raises productivity in every area where it is implemented. With an affordable price, ERPAG allows small businesses to now have an “enterprise-grade” software solution that they could just imagine. Small business prices are not crucial, but they are important.
Programming algorithms that we revolutionarily implemented, have enabled us to get the result in one single “fulfillment” list, in which the operator starts and ends everything. All the need for procurement of goods or production requirements is accumulated in that list, regardless of the basis on which the request was made. And all of this works simply, fluidly, precisely and as a single entity.
25. The future of the “Fulfillment”
Cloud Computing and API connection for the first time now, allow us to easily and quickly exchange data.
There is one question that we did not support in this version of ERPAG, but we expect that we will have a solution in the near future.
• The buyer has ordered items from me, I don’t have them in my stock, and my suppliers do not have them either, where can I get them?
2018. ERPAG Inc