Logan Consulting. DRP Lite Nadia Truxell. Introduction – Nadia Truxell. Operations/Materials Manager – Scherdel Sales & Technology Automotive Supplier of Springs and Stampings Implemented QAD
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Logan Consulting
DRP Lite Nadia Truxell
Introduction – Nadia Truxell Operations/Materials Manager – Scherdel Sales & Technology Automotive Supplier of Springs and Stampings Implemented QAD Project Manager – Logan Consulting QAD Implementations and Business Process Consulting Automotive Food & Beverage Consumer Goods Industrial Products BA, Grand Valley State University, German Language
DRP Lite - Purpose DRP with Distribution Orders fits many business models Full DRP does not apply in every situation DRP Lite accomplishes DRP for planning and moving inventory with fewer transactions for specific business scenarios
The Basics… DRP DRP (Distribution Requirements Planning) DRP Lite
What is DRP? Distribution Requirements Planning (DRP) is a planning function designed for companies with multiple sites with supply and demand requirements. Distribution Requirements Planning (DRP) balances supply and demand in a time-phased manner for items transferred between sites. Intersite Request – Transfers demand across sites. Can be system generated or managed manually. Distribution Orders - Groups Intersite Requests at the shipping site processes into in-transit inventory at the receiving site. A Distribution Order Receipt transfers the inventory from the in-transit location into a warehouse location.
Why Use DRP? It is easy to balance supply and demand for items transferred between sites Automatic transfer of demand from the receiving site to the supplying site Effective dates for distribution networks Process can be very simple and automated where POs and SOs are not required.
The Basics… DRP Lite DRP (Distribution Requirements Planning) DRP Lite
Advantages - DRP Lite Model Streamlined process does not require Distribution Order Shipments or Receipts Shipping document created based on specified transactions DRP Planned Intersite Requests can still be utilized
Why Use DRP Lite? Realize benefits of DRP without actually using a Distribution Order Automated Requirements Planning Across Sites Visibility of Inventory In Transit Eliminate Steps in the Process Requesting Site order entry (Intersite Request vs PO) Supply Site order confirmation and entry (DO vs. SO) Picking and shipping (DO Picklist) Receiving (DO Receipt) Additional Benefits Create Shipping Documents based on specified Inventory Transaction Virtually “Ship” inventory in a Maquila Situation
DRP Lite – Real World Applications MaquilaA maquiladora or maquila is a factory that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the assembled product, back to the originating country. Short Transit TimeInterdependent Sites located near each other. Inventory can be transferred within minutes, or less than a day.
Maquila - 1 Distribution Center in US Demand Supply Manufacturing Site in Mexico
Maquila - 2 Customer in US Parent Company in US Demand Demand Supply Manufacturing Site in Mexico
Short Transit Time Finished Goods Warehouse Ingredient Warehouse Packaging Plant MfgSite
DRP Lite – Process Models
DRP Planning Setup MRP/DRP Control File Network Code Maintenance Source Network Maintenance Item Site Planning Maintenance Planned Orders Flag Order Policy Safety Stock/Safety Time Purchase/Manufacture Field Network Code Order Modifiers
MRP/DRP Control File
Network Code Maintenance
Source Network Maintenance
Item Site Planning Maint.
DRP Lite Setup Location Maintenance Company Address Number Range Management Inventory Movement Codes Shipping Group Maintenance
Location Maintenance
Company Address
Number Range Management
Inventory Movement Codes
Shipping Group Maintenance
Shipping Group Maintenance
Shipping Group Maintenance
DRP Lite – Step by Step Process
DRP Lite – MRP Detail –Receiving Site
DRP Lite - MRP Detail -Source Site
DRP Lite - Intersite Request Rpt
DRP Lite - Inventory Report
DRP Lite - Shipping
DRP Lite - Shipping
DRP Lite – Shipping Document
DRP Lite – Inventory In Transit
DRP Lite - Receiving
DRP Lite – Financial Impact Inventory transfers at Standard Cost Difference in Item-Site Cost recognized at Receiving Site
Advantages - DRP Lite Model Streamlined process does not require Distribution Order Shipments or Receipts Shipping document created based on specified transactions DRP Planned Intersite Requests can still be utilized Appropriate for specific business scenarios
Questions?
Thank You Nadia Truxell ntruxell@logan-consulting.com
DRP Distribution Requirements Planning
Power Solutions US Supply Chain Customers DC - 5 Fill & Form Dist Center FIP - 5 Fully Integrated Plant Enertec Mexico Multiple Battery Plants DAP - 2 DUF Assembly Plant PowerFrame - 1 Battery Grids Poly - 2 Poly Battery Cases External Vendors
DRP Regen/Net Change Screen shot – System generated Intersite Requests – Status= P
Culligan – US BusinessSupply Chain Customers COD Branches – 64 US CORP Warehouses - 2 CA and IL External Vendors (China, US)
Maquila - 2 Parent Company in US Customer Demand Demand Manufacturing Site in Mexico Supply