Question

Customer Order Handling

  • 28 March 2022
  • 3 replies
  • 494 views
J
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Userlevel 5
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Hi Community 

need advice on the best method/ practise to use to handle customer order that are required to be in stock but not being shipped until the customer is ready to receive them which is current an unknown due to various factors.

We still need to manufacture the parts in the sales quantities but as we are unable to ship the products we currently push the date out until the end of the following month. We have been doing this for several months and now have a customer order book which shows demand to manufacture and ship multiple customer order lines at the end of the month which invalidates the accuracy of the customer order book. (see below)

We are currently still invoicing monthly to the custom even though we are not shipping the products physically or on the system.

is there a better way we can handle this situation so we can ship the products on the system or move them to a holding location until we are ready to physically ship them? 

regards

Jamie

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3 replies

S
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Userlevel 7
Badge +28

I don’t know if I’m clear on the problem. 

Are you saying the 1590 on hand are not really there because they are allocated to the existing backlog of orders that you just can’t ship right now?

If that is the case, what is the status of the held customer orders?  I would expect them to be in a Reserved status indicating that the material already produced is allocated to them and only new orders should be actioned.

Delivering the orders without physically shipping them out of the building creates a disconnect financially that I wouldn’t recommend.  However, there should be other ways to manage your situation, I just have to better understand to answer the question.

J
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Userlevel 5
Badge +9

Morning @ShawnBerk 

the comment “Are you saying the 1590 on hand are not really there because they are allocated to the existing backlog of orders that you just can’t ship right now?” is correct and currently we do not reserve the parts in stock to the customer order lines for some unknow reason.

I believe the first course of action should be to reserve all available customer order lines to get an accurate picture of required demand. Would it make sense to to push out the ‘Planned ship date/ delivery date’ into the future until we have a confirmed delivery date from the customer? 

regards

Jamie 

S
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Userlevel 7
Badge +28

Yes, we do that with all of the parked orders that we want to move beyond the control of MRP for the moment.  Our calendar runs till 1/1/2049 which is as far into the future as MRP will operate, we then set orders to 5/10/2099, or 9/9/2099 (they each have their own meaning), then everyone knows they are parked or not actionable or held by the customer or whatever and we let MRP run then against the actionable close in orders.

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