1 / 16

Supplier Consignment

Why Consignment . Reduction of expedites Less over time, airfreight, disruption to the factorySmoother demand profileEliminate reschedulesImproved material flowLevel load factorySignificantly Improved Vendor Scorecard (40 points guaranteed) if 100% on consignmentPOU (pay on use)No invoice neededEliminate the matching errors from receipts to invoiceVisibility to supplier's inventory and net requirements in iSupplier PortalImproved OTTR Improved LT .

emily
Download Presentation

Supplier Consignment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

    1. Supplier Consignment 2009

    3. Weekly Steps to Take to Maintain Program Retrieve the weekly Net requirements forecast from iSupplier Portal. Load forecast into supplier’s MRP system to drive component requirements. Calculate the inventory quantity below the stocking agreement minimums or above the maximums. Calculate quantity on the forecast within supplier’s internal manufacturing LT. Calculate the inventory in-transit. Schedule production to maintain the stocking program inventory along with material within the manufacturing LT. Ship product for the consignment item on the delivery document (standard PO) received via iSupplier Portal.

    4. Example of Inventory to Start Manufacturing Minimum Stocked Inventory Level = 200 pieces Current Stocked Inventory = 150 pieces Manufacturing LT = 20 (in 5 day weeks) Minimum Inventory Calculation 200 – 150 = 50 pieces needed to maintain minimum stocking agreement Forecast Calculation 75 + 90 = 165 pieces needed to maintain building to the 20 day forecast to provide a 5 day LT Work in Process at Supplier = 100 pieces Need to start 115 pieces in production this week to maintain the Honeywell Stocking Program Agreement. (50+165-100)

    5. Viewing Consignment via iSupplier Portal

    6. Viewing Consignment Item Data

    7.

    8. Viewing Consigned Receipt Data

    9. Viewing Consumption/Pull Data

    10. Viewing Consigned Use Invoices

    11. Viewing Payments

    12. Consignment Invoice/Payment Process Honeywell will generate the USE invoice based on the Blanket Agreement price and pull (or “USE”) quantity. You won’t need to invoice for any consigned product. Sending in invoices on these parts after they are on consignment will put your invoices on hold. Confirm you aren’t sending an invoice to Honeywell on these consignment items. Payment cycle starts based on the invoice date as triggered by a material pull from the consigned location at Honeywell. 1 delivery document number will be given for shipping material against. This will be the same delivery document for a 1 year period. 1 Blanket Agreement number will be given that the invoices will generate against. This Blanket Agreement will be updated or replaced as necessary for price adjustments. Payments will be made with the agreed upon terms per the Honeywell check run / EFT / WFT pay schedule based on the invoice date as triggered by the pull of the inventory from consignment.

    13. E-mail Alert: Consigned Material Used by Honeywell Intl Inc From: Email Notifications (HBC Oracle Instance - HBCPRD03) [mailto:OracleWF@honeywell.com] Sent: Wednesday, July 16, 2008 11:56 PM To: Supplier_Portal_Contact@AnySupplier.com Subject: Consigned Material Used and/or Invoiced by Honeywell Intl Inc. Supplier the below Consigned Blanket Release has been created based on material used.    Doc Nbr:  7499730    Release Nbr:         96    Shipment Nbr:       1    Invoice Nbr:  USE-16-JUL-08-92735    Hywl Item Nbr:  4561AA    Supplier Item Nbr: 4561BB    Qty Used:              250    Unit Price:             2.46    Hywl Loc:  WCO    ----------------------------------------------    Doc Nbr:  7499739    Release Nbr:           121    Shipment Nbr:         1    Invoice Nbr:  USE-16-JUL-08-92738    Hywl Item Nbr:  4562AB    Supplier Item Nbr: 4562CD    Qty Used:             300    Unit Price:              .04    Hywl Loc:  WCO

    14. Shipping Instruction Summary Key Points Each consigned item has one shipping/delivery document associated with it. Ship items against their respective delivery document numbers. NO skids with both consigned and non-consigned items. But: It is ok to mix consigned items on a skid with other consigned items. If it is appropriate to the part size and type, partial skids are ok It is ok to ship quantities that are not on skids Attach the Consignment Label (see next slide) to each skid of consigned items. It needs to be placed prominently on at least 2 sides, and we recommend placing it on all 4 sides.

    15. Shipping Label

More Related