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Third Party Logistics – How to Use #2

Continuing my blog on 3PL and how to use.

In my last blog, I briefly described what the 3PL scenario is and when it is used. I also covered the basic business configuration and masterdata needed to ensure this process works. We ended that blog with a successful MRP run that found out our safety stock violation, and proposed a purchase.

In this blog we will now test the sales order process.

in Sales Order Work Center

Create a new sales order for any customer, but change the ship-to address to be

12 Olympus Park,

Quedgeley,

Gloucestershire

GL2 3ER

Add the new item “BoilerEV112” and it should automatically select the ship-from location to be our 3rd Party Managed warehouse.

If this is what you get in your system we are ready to now process these transactions.

We now follow the standard ByD processes

In Supply Control Work center

process Purchase Proposals – Release the proposals for our boiler.

With a purchasing contract in place, the action of releasing the proposal will automatically create and send our supplier the Purchase Order for our boilers.

You can see these purchase orders in the dedicated 3rd Party Logistics Work Center,

in the Purchase Orders view

 

These purchase orders can be processed manually, when you receive the delivery notification from your 3rd Party logistics provider. This will have an impact on the stock overview/product planning screen, just as if the stock was in your own warehouse.

Where available stock is now updated to 6, less 1 for our sales order. Using the standard order2Cash process wwe now release the customer demand for delivery

This will create Outbound Delivery Proposal.

In production systems, this can be automated via “3PL Outbound Delivery Runs”, for demo purposes though you can create the request manually.

from the 3PL Requests View, create the outbound delivery

 

Again, this now falls back into standard Order2Cash process and generates a standard Customer Invoice Request, based on the outbound delivery.

 

Hopefully my 2 blogs have helped you understand and “knit” together a credible story around how ByD supports 3PL.

In my next blog i will describe a potential integration scenario where information is passed automatically from ByD to a 3pl system and back again.

 

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