Consignment Purchase Orders -- BPCS-L

Hi ...

This is intriguiging.

So, do you process a receipt transaction and then hold the consignment itemsin BPCS inventory with a zero inventory value? Are the consignment inventorycounts held in BPCS?

Do shipments from Clover to the ultimate customers generate revenue forClover in the form of some sort of per-unit handling fee rather than thetypical sales less COSales = gross profit revenue cycle? Said another way,is your A/R collected from the owner of the consignment inventory ratherthan the enterprises that receive shipments of the inventory from yourwarehouse? If these guesses are correct, then it seems as if the owner ofthe inventory cuts an invoice to its customer once you tell that enterprisethat a shipment has departed from your door.

If you do process a BPCS receipt transaction, I'm curious how you get theinventory removed from BPCS when you ship it.

All these questions prove that I'm in the dark about your business process... but the point that keeps popping into my head is that you may not bedoing yourself any favors by processing the purchase orders in BPCS. Whycan't the owner of the consignment inventory cut POs that are drop shippedto you? They would have to have some sort of PO on their system anyway ifthey wanted to 3-way match before paying their supplier.

If you can't convince the consignment inventory owner to cut his own POs,then maybe you need a blanket PO processed outside of BPCS and managereleases against the PO using a Kanban signal.

En pocas palabras, don't let the business process owner at Clover convinceyou that this is a BPCS software problem.


Peace to you,

Milt Habeck
President
Unbeaten Path
www.upisox.com

North American  (262) 681-3525
International (888) 874-8008








From: frank.shaw@xxxxxxxxxxxx
To: bpcs-l@xxxxxxxxxxxx
Sent: Thursday, March 01, 2007 4:22 AM
Subject: [BPCS-L] Consignment Purchase Orders


We require a method whereby we can place a purchase order for stock items
for which we expect receipt of stock but that is where the chain of events
stop.
No creditors invoice will ever be captured against these orders as these
stock items are managed on behalf of a third party and they only get paid
once the stock is sold.
At month end we programmatically perform the following on both HPH and
HPO:
change the status in both HPH and HPO to '3'.
make the qty received and qty costed the same as qty ordered.

The purchasing month end then purges these records.

We would manage this workaround easier if volumes weren't so large but we
literally have thousands monthly.

Any ideas/input/feedback would be welcomed.

Kind regards,

Frank Shaw
Clover Information Services
Tel: +27 11 758 5380
Mobile: +27 82 451 0256
Fax: +27 11 758 5300

Email: frank.shaw@xxxxxxxxxxxx