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Host 104

Host 104. Creating Purchase Orders. Agenda. Purchase Order Terms PO Types Methods of creating POs Item File POs CCS PCPO Wrap-up. Pick a Card – Any Card. Is Your Card Here?. The Making of a PO. What Info is needed for POs?. Item File Retails Item Type Cost. Vendor Master

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Host 104

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  1. Host 104 Creating Purchase Orders

  2. Agenda • Purchase Order Terms • PO Types • Methods of creating POs • Item File POs • CCS • PCPO • Wrap-up

  3. Pick a Card – Any Card

  4. Is Your Card Here?

  5. The Making of a PO

  6. What Info is needed for POs? • Item File • Retails • Item Type • Cost • Vendor Master • Payment Terms • Allowances Purchase Order

  7. PO Status • Active – active within system but not at stores yet. Vendors can only see active “working” POs. • Canceled – canceled by Wal-Mart or the order has arrived at stores • Historical – already received and archived

  8. PO Types • PO types indicate how and when merchandise ships to stores • PO types DO NOT have to match your Item type

  9. Buyer Hardlines POs • 03 – Buyer Generated • Distribution order that goes through DC • 07 – Ship & bill (DSD) • Distribution order for direct shipment • 67 – New Store Ship & Bill (DSD) • Merchandise sent direct to new stores • Created by buyer or New Store Planning

  10. Buyer Softlines POs • 10 – WPM (Softlines) General Order • This reserves quantity with the vendor, but doesn’t distribute the merchandise • 11 – WPM Breakpack • Used when creating breakpacks • 12 – WPM Seasonal • Seasonal softlines merchandise • 17 – WPM Ship & Bill (DSD) • Regular ship & bill direct to stores

  11. Buyer Import POs • 14 – WPM Import • Softlines merchandise that is imported from overseas • 43 – Import • Imported from overseas that is buyer-ordered flow through merchandise

  12. Buyer Tab POs • 16 – WPM Tab/Circular • Softlines advertisement • 53 – Tab/Circular • Tab merchandise to go through DC • 57 – Tab/Circular Ship & Bill (DSD) • Tab merchandise sent direct to store • 45 – Hardlines Import Tab • All imports tab merchandise uses this PO type

  13. Buyer Sample POs • 04 – Softlines Import Samples • 05 – Hardlines Domestic Samples • 09 – Softlines Domestic Samples • 46 – Hardlines Import Samples Used to purchase either domestic/import and either hardlines/softlines samples for management meetings and other events

  14. Automatic Replenishment POs • 33 – Assembly Distribution • Cross-docks through the warehouse • 37 – Assembly Ship & Bill (DSD) • Ships direct from vendor to stores Replenishment using the automatic replenishment system based on sales and profiles

  15. Replenishment Manager POs • 20 – Staple Stock • Stored in the warehouse all year long • 22 – Staple Stock Seasonal • Stored in the warehouse, but only during the on-season • 40 – Import Staple Stock • Replenishable Import items stored in the warehouse all year long • 42 – Import Seasonal Staple Stock • Seasonal Replenishable Import items stored in the warehouse, but only during the on-season

  16. Store POs • 50 – Quick Response • 83 – Store Replen • 87 – Store Replen Ship & Bill (DSD) • 93 – Non-stop Replen • 97 – Store Replen Ship & Bill (DSD)

  17. Vendor POs • 77 – Vendor Managed • Vendors monitor inventory and issue POs

  18. Purchase Order Terms • Order Date • Ship Date • MABD • Cancel Date • Break Packs • Warehouse Packs • Vendor Packs • Parting Orders (Distribution) • Collect vs. Prepaid

  19. What is the Order Date? • The date a purchase order is created in the system

  20. What is the Ship Date? • Also known as the “Do Not Ship Before Date” (DNSB) • Shipments should NOT arrive before this date

  21. What is MABD? • Must Arrive By Date • Only for replenishable • Calculated date for arrival of a PO at a DC. • Calculated using current vendor lead time by destination DC, which is an average of order to receiving date. • Shipments should be received at DC prior to this date • POs are based on this date

  22. What is the Cancel Date? • Also known as “Do Not Ship After” (DNSA) date • This date CANNOT be after the MABD • If DNSA is after MABD, DNSA is changed to equal MABD

  23. What are Break Packs? • used to assemble a variety of products for the store. Saves vendors money! • Always show the number of units in a pack

  24. What are Break Packs? • Example • Vendor ships 12 blankets together in one box. The warehouse sends 3 blankets to the store in one box. • 12= Vendor Pack • 3 = Warehouse Pack • 4 = Inners

  25. Vendor Pack 12 units (blankets) total

  26. What are Vendor Packs? • The original packaged goods sent from the vendor to the warehouse • The total units in one box sent

  27. Warehouse Packs Inners/Warehouse Packs (4) 3 Blankets 3 Blankets 3 Blankets 3 Blankets

  28. What are Warehouse Packs? • The packs sent from the warehouse to the stores • The total units sent in one box (inner for break packs) to the stores.

  29. What are Booking Orders? • First order created to allow vendor to prepare merchandise • This booking order must be split to let vendors know where to send the merchandise and how much to send

  30. Why are orders Split? • Process of distributing items from the vendors to the warehouses • Example: If 100 cases are ordered it has to be determined which DCs should receive them and by how much. DC 6063 DC 6003

  31. Why are orders split? • Imports – vendor ships booking order to Vancouver DC and we distribute • Softlines distributes items from the DCs to the stores after split

  32. What is Collect and Prepaid? • Shipment of products can be made using the Wal-Mart carrier or the vendor’s prefered carrier • Collect – Wal-Mart carrier • Prepaid – Vendor’s carrier • Using Collect allows you to track items completely through the pipeline

  33. What is FOB Point? Indicates who owns the merchandise and at what point in the pipeline they own it. • W = Wal-Mart does NOT own merchandise until it arrives at stores/DCs. If damaged in transit, vendor replaces it. • V = Wal-Mart owns merchandise as soon as it leaves vendor. If damaged in transit, Wal-Mart replaces it.

  34. Creating Push POs • 2 Methods: • Item File Purchase Order Template • CCS & PCPO

  35. Creating Push POs • When do you use which method? • Item File Templates – quick, store-specific purchase orders. • CCS & PCPO – distributed orders that meet the sales patterns of the stores. Non-replen orders only! (03, 07, 43, 53, 57)

  36. Creating POs with Item File • Download template from ISDCanada or Retail Link

  37. Exercise • Run a DSS report on an item to determine past sales history (include traited and valid stores column) • How many units do you want to order based on last year’s sales? • Keep in mind new stores opening up! • Complete a PO template in order to create a PO for that item

  38. Creating POs with CCS Customized Classification System

  39. What is CCS? • Customized Classification System • Hardlines driven • Assists you with creating distributions • Compare item from last year to help with better distribution this year Can be used for PO types 03, 43,53, 07, 57 ONLY

  40. How Do I use CCS? • Create a classlist name • Select time you want to compare (may not want to include markdown periods) • Select the item/fineline/subclass you want to compare to (you can select linked items) • Select rules (i.e. do you want to compare by $ or units) • View Reports • Check Sister Stores/Scaling

  41. Let’s Try CCS!

  42. Exercise • Create a classlist based on: • last year’s sales for the holiday season. • For a fineline in your area • For new/relo stores for the last 2 months and the next 3 months

  43. What’s PCPO? • Personal Computer Purchase Order Generator • Create & distribute POs for promotional and seasonal events. • Use classlist from CCS to help generate distribution and PO • Domestics & Imports

  44. What Types of Orders can I Create? • Domestic – can have multiple shipments • Import – Single Flow Thru –Cannot have multiple shipments • Import – Multiple Flow Thru – Can have multiple shipments

  45. What is a Sister Store? • Store that has an established sales history • Parent store is new store that requires sister store sales history for 13 months • Used to generate orders and make predictions on new stores • Stores are scaled based on their market and performance • Scaling needs to be reviewed to ensure it’s accurate!

  46. Goals of Import PCPO? • Reduce storage space requirements and costs • Minimize overstocking & under stocking the stores • Distribute entire seasonal quantity

  47. Let’s Try PCPO • Start • Programs • Wal-Mart Applications • PCPO

  48. PCPO Summary • Better distribution than using Retail Link • You can always cancel PO in PCAN • You MUST ALWAYS look at distribution before you can upload it

  49. Challenge of the Day! • Use a classlist existing in the system to complete a What If Analysis for your PO and item number. DO NOT upload to the mainframe!!!!!

  50. What’s the Next Step? • POs need to be parted to let the vendors know how much merchandise should be shipped to each DC • Apparel also takes another step to distribute merchandise to each of the stores from the warehouse

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