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Inventory planning options?

  • 1.  Inventory planning options?

    Posted 03-23-2021 10:31

    The general process (for a long-term client of ours):

    • From placing a PO, to having finished goods ready to ship, takes about 60 days.
    • Uncolored raw material PO's (of a couple varieties) are shipped direct to a 3rd party service provider (ITT) who takes raw material and adds color (upon demand). 
      • Some storage (separate Sage warehouse code) for ordering some raw material in advance.
      • PO receipt done when received at ITT
      • Straight weights as UoM, no scrap %.
    • Colored raw material then shipped our client, for further processing.
      • BoM done at receipt to convert uncolored raw to colored raw, and move to correct warehouse
      • Shipping and lead times are generally consistent for all products.
    • Then colored raw material is processed by our client, blended with other raw materials (based on BoM recipe proportions) to produce the final finished good, which is immediately shipped to the end customer when ready.

    SO are scheduled into the future, using line Promise Date, with the main question being around ordering raw material in a timely manner (considering future SO, SO being processed, existing PO, inventory on hand in the various stages, and processing) to ship on time.  Quantities are not exact, with allowed small percentage over (or under) shipments.

    No WO.  No PM.  No JobOps.  We tried to see if IRP might help but couldn't get it to work properly (raw materials proportions through the BoM Recipe?). 

    They currently use Excel spreadsheets to keep track of all quantities / steps manually, but they seek a way to make it easier (which is why we looked at IRP).  Will IRP help manage this kind of process (and we just need help setting it up properly)?  Any other thoughts / suggestions?  They are Premium but I don't want to re-invent the wheel with a custom reporting solution unless that ends up being the best option.



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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 2.  RE: Inventory planning options?

    Posted 03-23-2021 10:57
    I suspect you've already looked at SIA but just in case I wonder if this would help.

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 3.  RE: Inventory planning options?

    Posted 03-23-2021 11:11
    I'm told we looked at SIA and it won't help with this case (multi-step light manufacturing).

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 4.  RE: Inventory planning options?

    Posted 03-23-2021 11:24
    Kevin,  Reach out to SWK, specifically programmer Ted, for a report utility called SOHOT. It started as a customized report about 20 years ago for a customer that has a very similar process.  I'm sure they'll sell it to you; it's worth buying, just to not have to re-create!

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    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
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  • 5.  RE: Inventory planning options?

    Posted 03-23-2021 12:09
    Thanks Michelle, will do!

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 6.  RE: Inventory planning options?

    Posted 03-23-2021 12:41
    I think his contact info is: 

    ted.levi@swktech.com
    973-758-6101

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    Wayne Schulz - Schulz Consulting - 860-516-8990
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  • 7.  RE: Inventory planning options?

    Posted 03-23-2021 12:49
    Excellent!  Thanks Wayne

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    Michelle Taylor
    ERP Consulting Manager, CS3 Technology
    918-388-9772
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  • 8.  RE: Inventory planning options?

    Posted 03-23-2021 16:54
    Kevin,

    The original SOHOT was written for one of our clients if you or Ted need help in reviewing it.
    Thank you,
    Michael

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    Michael Davis
    Warren Averett Technology Group
    Birmingham, AL
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  • 9.  RE: Inventory planning options?

    Posted 03-24-2021 09:41
    Thanks Wayne and Michael!

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 10.  RE: Inventory planning options?

    Posted 03-24-2021 08:46
    So you are missing the piece that places the demand on the raw material components required.  Wouldn't a work ticket accomplish this since it would be tied to the bill?  Then SIA would be able to pick up on the demand for the work tickets.  SIA does pick up demand for components needed on line items on Sales order that are tied to a bill.

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    alan niergarth
    Velosio LLC
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  • 11.  RE: Inventory planning options?

    Posted 03-24-2021 09:39
    Thanks Alan,
    I bet a work ticket would do the job, but they don't have PM and buying / implementing it is a long way to go just for raw material management.

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
    ------------------------------



  • 12.  RE: Inventory planning options?

    Posted 03-24-2021 10:04
    @Kevin Moyes an argument could be made that more effective inventory control could possibly lead to less investment in inventory from which savings could pay for the software!  If it improves processes along the way.  The downside is adding work tickets creates extra overhead and processes.  Worth investigating.  I have a client in a similar situation right now.  They use BOM with production entries but those don't place the demand on the components.  Looking at SIA tied to SO to see if that will meet the needs.  PM would be the next step.  ​

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    alan niergarth
    Velosio LLC
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  • 13.  RE: Inventory planning options?

    Posted 03-24-2021 10:25
    Alan,
    This is for a subset of the client's products, and managing scheduled big orders to a special customer.  The number of orders is small (2-3 month), but visibility is critical because of the long shipping / processing times.  If volumes were larger we'd certainly pitch PM, but Excel works... it's just a lot of steps to keep track of manually.

    Can SIA look through two layers of BoM to manage raw material requirements (in multiple warehouses) for specific SO demands, with long lead times between steps?  The SIA demos I've seen didn't show this functionality.

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    Kevin Moyes
    Technical Systems Analyst
    Munjal White Consulting Co.
    Toronto ON
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  • 14.  RE: Inventory planning options?

    Posted 03-24-2021 12:59
    Yea - that may be a bit much for SIA.  I think it handles multi-level bills, but throwing in different warehouses could be a non-starter.

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    alan niergarth
    Velosio LLC
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