Manufacturing and distribution sites

The functionality available in the IFS application is inter-site order handling.  It’s possible to define a demand and supply site and, if there is an external demand to demand site, it can be fulfilled from the supply site.

For example, let’s assume that the Demand site is A and Supply Site is B.  if there is an external demand to site A and, if there is no product available in the site, it can be delivered from site B.

Manufacturing Site can actually sell to Distribution Site and collect the profit in this case to realize the gains in the manufacturing site P&L. You can set prices in such a way that Distribution site and Manufacturing Site keeps their part of the share. 

This can be achieved through IFS Inter-company, Inter-site business,

There are two options you can use,

1. Use Inter-company, Inter-site Distribution Orders (Easy to set-up/use. Best suits for Make-To-Stock business, because Distribution Orders, by design, can’t handle different Sourcing options at Supply end)
2. Use Inter-company, Inter-site Order Flow (System will directly create Shop Order at Supply end. Suitable for both Make-To-Stock & Make-To-Order business)

Note : I’ve removed Screenshots and added Data-setup and Process as a seperate document, because it does not allow me to add all my screenshots directly on to this post,

Data setup for using Option 1

In Supplier for Purchase part window, you can define a Part as a Multi-Site Planned Part. If your Supplier is an Inter-company Supplier (Supplier connected to a Site in a different Company than Distribution Site’s Company), when you run your Planning engine at Demand end (Say MRP), depending on what Demands you have, system will create Distribution Orders to full fill those Demands,

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Process

Inventory Part Availability Planning data before MRP Run,

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Inventory Part Availability Planning data after MRP Run,

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When you Release these Distribution Orders, the system will create back to back Purchase Order (Distribution Site) and Customer Order (Manufacturing Site) pair to facilitate the inter-company, Inter-site movement. However, by design, Distribution Orders can only create Customer Orders with Supply option ‘Invent Order’ and that’s why this is only applicable for Make-To-Stock business (You need to have Stock already Manufactured at Supply end. Or else, you need to start manufacturing with a manually Pegged Shop Orders),

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You can Invoice both Purchase Order and Customer Order, so if you use correct Order/Invoice Prices, Distribution Site and Manufacturing Site (Rather respective Companies) can share the Profit as appropriate.

Data setup for using Option 2

Prerequisite: This flow uses inter site Messaging, so you should have necessary EDI/MHS setup (Internal Supplier and Customer should be set-up with respective Message classes, should have Connect/Batch servers up and running, etc..).

Same Inter-company Supplier is used, but Part is not a Multi-Site Planned Part. When you run your Planning engine at Demand end (Say MRP), depending on what Demands you have, the system will create Purchase Requisitions to full fill those Demands,

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Process

Inventory Part Availability Planning data before MRP Run,

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Inventory Part Availability Planning data after MRP Run,

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By converting these Purchase requisitions to Purchase Orders and sending them to Manufacturing Site via Inter-site Messaging, you can create a Customer Order to facilitate the inter-company, Inter-site movement. This Supply end Customer Order Line can be created with Sourcing option ‘Shop Order’ so you can use this for both Make-To-Stock and Make-To-Order businesses.

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Here also, you can Invoice both Purchase Order and Customer Order, by using correct Order/Invoice Prices, Distribution Site and Manufacturing Site (Rather respective Companies) can share the Profit as appropriate.

IFS Inter-company, Inter-site business.docx

Thank you so much for these responses. We are at that cross road again so this is helpful. 

Dears,

Picking this up, with an additional question:

Lets say the distribution site sells at different prices to different costumers. The distribution site keeps 30% of the profit, the rest goes to the manufacturing site.

So the Distrubution sells part A for $100. It enters the CO for $100. The system will automatically create a PO to the Manufacturing site, not for the $100 but for $70. In the manufacturing site, the CO is created for $70.

Next week, the same part is sold for $200. Now the CO is entered for $200. The system will now create the PO for 140, and a CO at the manufacturing is created for 140.

Is this also achievable using the discussed flows? I want to achieve to that the Distrubution site enters a CO for a certain price, and everyting following afterwards grabs that price.

Thanks!