We have a customer that wants us to build and warehouse units/parts, etc. for their salespeople to sell to end customers. They want to own the inventory and we warehouse and ship for them.
What’s the preferred way to do this? Or is this outside the scope of IFS?
Hi
I think the situation you described could be handled using IFS, and the best way to do this is by using either Customer Consignment Stock or Vendor Managed Inventory (VMI), depending on the deal you have with the customer.
1. Customer Consignment Stock:
• IFS allows you to store inventory that still belongs to your customer in your warehouse.
• You can keep track of the stock, manage where it’s located, and even ship it to customers, but your customer still owns it until it’s sold or used.
2. Customer as the Supplier (VMI):
• In this option, the customer acts as the supplier, but you manage their stock in your warehouse.
• IFS handles things like storing and shipping the items to the customer’s clients.
• You can still use the stock for sales orders, but ownership stays with the customer until it’s sold.
Key Steps in IFS:
• Inventory Part Setup: Set up the parts in IFS, marking them clearly as either consignment or VMI items.
• Ownership Tracking: IFS will keep track of who owns what stock so that you don’t mix up what belongs to you versus what belongs to the customer.
• Shipping: Use the normal shipping functions in IFS to send the stock to end customers.
• Billing: Set up billing rules so that you can invoice the customer smoothly based on when the stock is used or shipped.
I would think this way, you can manage the stock properly while keeping track of ownership and making sure invoicing happens at the right time.
If this response helps you, please mark it as the correct answer, as it will also assist other community members in future.
Regards
Chanuka
Thank you so much for your reply! I’m excited this is possible!! I like the VMI option best. I’m curious about the inventory part setup. Do you have an example?
Hi
I’m sorry I don’t have any example.
but I could share the below document with you. So hope you would get better understanding on this.
If this response helps you, please mark it as the correct answer, as it will also assist other community members in future.
Regards
Chanuka
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