8-12 discrete sig supplier consigned with vmi
TRANSCRIPT
1 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
EBS Supplier Consigned and/or VMI
Susan Flierl
Product Strategy Director
2 Copyright © 2011, Oracle and/or its affiliates. All rights reserved.
The Safe Harbor
The following is intended to outline our general product
direction. It is intended for information purposes only, and
may not be incorporated into any contract. It is not a
commitment to deliver any material, code, or functionality,
and should not be relied upon in making purchasing
decisions. The development, release, and timing of any
features or functionality described for Oracle’s products
remains at the sole discretion of Oracle.
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Program Agenda
Overview
EBS Consigned Inventory from
Supplier
Oracle Collaborative Planning
– EBS Supplier VMI
– EBS Supplier Consigned VMI
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• Reduce working capital
• Reduce stock write-offs
• Reduce lead time Buyer
• Increase sales
• Reduce lead time
• Strengthen customer relationship Seller
EBS Consigned Inventory from Supplier Business Benefits
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• Consigned Stock - Inventories, generally of finished goods, that
are in the possession of customers, dealers, agents, and so on,
but remain the property of the manufacturer by agreement with
those in possession. Syn: consignment inventory Source:
APICS 13th Edition
• Consignment – Process of a supplier placing goods at a
customer location without receiving payment until after the goods
are used or sold Source: APICS 13th Edition
• “Consignment simply defers the transfer of ownership of and
payment for goods” Source: EIDX
EBS Consigned Inventory from Supplier Definition
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Consigned Inventory & Vendor Managed Inventory (VMI) Separate business processes often used in combination
Regular
Sale VMI
Consigned Consigned
VMI
Ch
an
ge in
ow
ners
hip
Sta
ndard
U
pon U
se
Inventory replenishment
Customer Supplier
• Consigned Inventory -
deferring the change of
ownership of and payment for
goods until materials are used
• VMI - a means of optimizing
supply chain performance in
which the supplier has access
to the customer’s inventory data
and is responsible for
maintaining the inventory
level required by the customer
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EBS Consigned Inventory from Supplier
• Modules required
• Oracle Purchasing
• Oracle Inventory Management
• Oracle Payables
• Oracle iSupplier Portal (to publish Consumption Advice)
Negotiate Consignment Arrangement
Request Consigned
Material
Receive & Manage
Consigned Inventory
Consume Consigned Inventory
Publish Consumption
Advice Invoice
EBS Consigned Inventory from Supplier High-level Business Flow
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Create Blanket
Purchase Order
Setup Consigned Terms on
ASL
Setup Pay-on-Use on
Supplier Site (optional)
Request Consigned
Material (PO)
Receive consigned inventory
Track consigned inventory
Count consigned inventory
Manage aging of
consigned inventory
Consume consigned inventory
Generate consumption
advice (Blanket Rel)
Generate invoice
(when Pay-on-Use)
Collaborate with Supplier
(iSupplier Portal)
Match and pay invoice
Manage returns to supplier
EBS Consigned Inventory from Supplier Business Flow
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• Consumption reporting
frequency
• Maximum number of
days consignment
allowed (aging
Negotiate Consignment
Terms
EBS Consigned Inventory from Supplier
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• Identify inventory nearing
maximum consignment
time
• Once consigned
inventory has past time
limit, user must manually
enter Transfer to Regular
transactions
Manage aging
Consigned Inventory Aging
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EBS Consigned Inventory from Supplier Change in Ownership of Consigned Inventory
Issue to Production/Backflush
Sales Order Issue
Inventory Organization Transfer
Subinventory Transfer
(configurable)
Transfer to Regular
Implicit consumption * Explicit consumption
* Implicit transactions automatically generate a Transfer to Regular transaction
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Consigned Shipments
Consigned Receipts
Consigned Returns
Consigned On-Hand
Inventory Transactions for
Consigned Inventory
Consumption Advices
iSupplier Portal information
Supplier Collaboration
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• Reconciliation easier when self-bill via setting up Pay-on-Use feature
• Segregating consigned and owned material is more straightforward
• Costing
• Consigned Inventory from Supplier is not valued
• Off-line process required to periodically report on-hand value of Consigned Goods
(e.g. for insurance)
• Cycle Counting and Physical Inventory
• Inventory owner not on count cards
• All increases in on-hand quantity booked as owned inventory
• Use Consigned Inventory Diagnostics to identify setup errors
preventing proper consumption or billing of consigned inventory
EBS Consigned Inventory from Supplier Tips
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• Increase automation of Returns process
• Support Return To Vendor for consigned inventory consumed via implicit
transaction
• Support Return to Vendor after consumption advice created
• Transfers
• Support transfer of Consigned Inventory from Supplier without forcing change
in ownership
• Encumbrance Accounting
• Allow Consigned Inventory from Supplier in Operating Units using
Encumbered Accounting
• Perform encumbrance accounting on Consigned Inventory from Supplier
transactions
EBS Consigned Inventory from Supplier Top Enhancement Requests
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• Consigned Inventory from Supplier Process Guide
• Development Contacts
• [email protected] – Product Strategy
• [email protected] – Product Management
EBS Consigned Inventory from Supplier Resources
EBS Supplier VMI and EBS Supplier Consigned VMI with Oracle Collaborative Planning
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Receive items
Pay on receipt/use
Check
inventory
status
Ship items
VMI Agreement
(with supplier)
VMI Agreement VMI Agreement
Receive items
Pay on receipt/use
Ship items
VMI Agreement
(with customer)
Send consumption
advice
Vendor managed and consigned inventory Automate inventory replenishment with suppliers and customers
CUSTOMER YOU SUPPLIER
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Vendor managed and consigned inventory Reduce inventory carrying cost
Full consigned
inventory support
Pay on receipt
Pay on use
Enable suppliers to cost
effectively manage your
inventory
Automated review and
replenishment
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 20
Setup VMI on ASL
Publish order forecast
Run VMI replenishment
engine
Review/adjust replenishment
orders
EBS Supplier VMI
Business Flow
Copyright © 2012, Oracle and/or its affiliates. All rights reserved. Insert Information Protection Policy Classification from Slide 12 21
Decide whether replenishment
automatic or manual
Specify approvers on
replenishment orders
Select replenishment method
Specify replenishment
information (forecast horizon,
days of supply)
Setup VMI Attributes
EBS Supplier VMI
22
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