In order to support the Purchasing and Supply business process,
Minster Logistics:
includes:
- Product Classification, using Pareto and Cost and demand analysis
- Stock Policy Management to deliver critical and over-stock warnings to maintain optimum stock levels and thereby effectively minimising stock capital employed
- Stock Replenishment using Sales forecasting models, for example, Seasonal, averaging or profiled
- Purchase Orders can be automatically generated and transmitted
- E-commerce/EDI links can be used to optimise communications across the Supply Chain
- Goods Receipt bookings can be confirmed using the web-based diary function
- Daily Purchase routines can be used to purchase very short shelf-life products
- Direct deliveries can be planned
More detail on how Minster Logistics can support the Purchasing and Supply process……
Purchase Order Processing
The objective of the Purchase Order Processing module is to use accurately maintained stock levels in conjunction with known and forecasted sales demand, to raise and monitor purchase orders, so that control over stock holdings and product availability is maximised.
Product Classification / Stock Policy Levels
Stock items are classified using the Pareto concept. It is usual to classify into four groups; A, B, C and D. Classification is based on the cost of sales value over a specified time period, e.g. 3 months.
Corporate standards can then be defined for the Purchasing Stock Policy parameters for each class. These parameters define order frequency, critical stock level, buffer stock, maximum stock level etc.
Product Review
On a daily basis the system reviews the stock level of every product to determine whether a purchase order should be raised. In deciding whether to re-order, the system uses the standard corporate rules and links stock-holding, undelivered purchase orders, advance sales orders, forecast sales demand, supplier’s lead time, stock policy levels, preferred order days, preferred delivery days etc.
The system offers a choice of sales forecasting methods, including:
-
Simple Averaging
-
Seasonal – where the system applies this years sales trend to last years weekly/monthly sales to arrive at its forecast.
-
Profiled – where the user assigns a sales profile to the product or group of products.
The profile defines when the sales are expected to occur throughout the year.
The system automatically raises purchase orders as appropriate.
Sending Purchase Orders to Suppliers
Purchase Orders can be automatically transmitted to suppliers in a variety of formats, including XML and Tradacoms. The orders can be transmitted to the suppliers via e-mail, fax or via a Value Added Network. The system caters for Order Acknowledgements from suppliers, and Advance Delivery Notes, which can be used to plan the Goods Receipt activity.
Sales Order Processing
The Sales Order Processing module has been designed to provide added value to the supplier / customer relationship by ensuring fast and accurate capture of sales orders, using interactive tele-sales sessions, EDI transmissions or the Internet.
Electronic Receipt of Orders
Orders can be received electronically in a variety of formats including XML, Tradacoms and Edifact.
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