Re: Consignment

Simple way we handle this is with DRP.

Setup new stockroom for the client site as consignment stockroom. Set it
up in DRP ensuring that items agreed to be held are setup in DRP Item
Master with agreed quantity as Safety Stock. Run the network that
incorporates this stockroom as often as you feel is required to ensure
that the level of agreed consignment stock is maintained.

When selling to customer out of the consignment stock simply process
against the consignment stockroom code to remove sold items from physical
stock

Next DRP run will attempt to replenish stock back to agree level.

We use this process with around 20 consignment stockrooms in 3 separate
DRP networks (depending on major centre that supplies them).

Customers sign an agreement to which there is an addendum of items and
quantities agreed to. This is used to setup DRP and as a baseline for
regular stock checks. Agreement is that customers are responsible for the
items and agree to purchase anything missing from check of physical
against agreed quantities.

BR


Rick Allen
Sandvik Mining and Construction Tomago Pty Limited., MIS
Office Phone: +61 (0)2 4985 2622


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Randy Stratton <rstratton@xxxxxxxxxx>
Sent by: system21-bounces@xxxxxxxxxxxx
05/10/2007 05:29 AM
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Subject
[SYSTEM21] Consignment






We are attempting to have orders placed into our system, when shipped,
would be consignment inventory to the customer. The inventory value needs
to stay in our system (this is still our inventory), when the customer
sells the product, we would then bill the customer for this product. Has
anyone done anything like this? If yes, how are you handling this?

Thanks.

Randy Stratton
Director IS
Alsons Corporation
517-439-1411

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