Consignment Warehouse - How managing logistical issues within SL

unknown

We have a consignment warehouse with our largest customer.

Background:

1) We are issued an annual blanket PO for each part number.

2) At the time of shipment / transfer, the quantity left on the blanket PO has to be reduced by the quantity shipped / transferred.

3) When the customer receives the shipment / transfer, they reduce the quantity left available to ship on the blanket PO on their end.

4) As the parts are consumed a report is generated capturing every pull of every part, as expected.  The data is supplied to us in a trailing 24 hour document.

5) At the customer, those parts pulled from the previous 24 hours, triggers a payment voucher on their end for which I need to then relieve the consignment inventory of all the pulls and generate the invoices.

Here are our obstacles to overcome:

1) Our customer expects the transfer to appear as a shipment.  Each part transferred is on its own document containing the part number, PO number, PO line number, quantity shipped, heat lots, and certificate of conformance.

2) The demand (qty left to ship to customer) on our blanket PO from customer must be reduced by the quantity shipped/transferred to match the customer's side when they receive the shipment / transfer. 

If this is done by a traditional shipment method, a queue is created for an invoice in SL which will never be generated from that shipment as we are paid as the product is consumed.  If we handle this as a transfer, the blanket PO will not be reduced until the parts are actually consumed by the customer from the consignment warehouse.  The delay in timing has to be eliminated; avoided.

The goal here is to ship / transfer parts to the customer consignment warehouse, produce the document meeting customer requirements, reduce the quantity left to deliver on the customer blanket PO at the time of shipment / transfer, and not generate a queue for an invoice which will be handled as parts are consumed at some point in the future.

I am hoping other SL users are dealing with this scenario as it is common in aerospace.

Regards,

Lance

kwmyers

We created a warehouse in SyteLine named CONS.  We use transfer orders to get items from our main warehouse into CONS.  Then when something is used from CONS, we create a customer order that pulls from CONS instead of our main warehouse to relieve the stock and invoice the customer.  That's the short version.  I don't know if this will work in your situation or not.