Retail Inbound Quality Control in D365| Approach to D365 for Commerce with Adv WH Mgmt

Hi Guys, Hope you have read my previous post where we talked about the most common flow for cases that are coming inbound, and that is the putaway process. After they get received and palletized, they need to be put up. In this blog, we will talk about quality control and how that product is received, directed, and also what happens once it gets there because there’s a lot of D365 FO functionality around processing QC samples.

As I guess most of us are here to get the basic understanding of the Retail Warehousing process, so we are not going to use the Quality management for warehouse processes feature for this blog post. I will try to cover it in a separate blog.

Navigate to the Inventory management > Setup > Quality control > Item sampling where we have set up the sampling for product being brought into this warehouse. We can see here that there’s this sampling methodology called 10 each 4. And it requires a fixed quantity of 10 units to be removed from every PO line that’s brought into Retail Warehouse.

Navigate to Inventory management > Setup > Quality control > Quality associations that’s been set up that uses this sampling method, and it’s for the product Mesh BMX Gloves. So this means when this product comes into the building it will use the item sampling rate of 10EA4. That means 10 units must be removed in order before that product can be received.

Now it’s time to talk about receiving. To do that, we naturally need to create a PO. Navigate to the Procurement and sourcing > All purchase orders. Create a new purchase order. We will come down here and then indicate where the purchase order will be received, which is in site DC, warehouse 26 because that’s the warehouse I’ve set up associated with the USRT company.

Enter the lines on the PO. We are going to order just one line, Mesh BMX Gloves, and it will be for 100 quantity. So we have got enough to satisfy the sample requirement of 10, plus we can receive another case of 90 units. Hit refresh or Save to get that PO number because we want to use that in the receiving process, so it’s PO 001572.

Now imagine the truck is backing into the warehouse, and we start unloading cases that contain this new Glove. What we need to imagine that the receiving operator not only has the receiving screen open on the mobile device, but he also has a piece of paper that’s been printed out of the D365 FO that describes where different PO lines need to go. In other words, how many units need to go to QC, say, of this new Glove versus how many need to be put away as pallets or cases or whatever. As we have seen in our earlier post, we need to have a barcoded receiving document to guide the receiving process. But let’s say the operator sees this box and it has Mesh BMX Glove on it. He knows that he needs to send 10 units of that Glove to the quality control area. So he hits the Receive License Plate button on the Mobile device.

He scans the PO 001572 on that box and scans the SKU number. He knows he has to send 10 units of that to QC. He also selects the Disposition code that will direct the 10 units to QC.

And then he’s got to indicate what license plate is this sitting on and he scans LP00157201. And so it’s now been received.

Now let’s say there’s another box that’s right behind the previous one that we need to receive and it’s of the same item. But he’s already sent his quantity to quality control, so now he’s got to receive this next box of 90 units. And this one is going to go back to Case storage. So he just selects ToPACase disposition code to direct it there.

So we’ve got one box that needs to go to QC that’s the sample of 10 Units and then we have the other one of 90 units that has to go back and be put away into the case storage area. And he will give it a second license plate LP00157202.

So now we’ve got both boxes received. Let us look at the work that’s been created for these two cases.

• Navigate to Warehouse Management > Work > Inbound > Open Purchase Work.
• Select the Open Work for PO 001572.

We have two types of work – the first one here is the one that has to go to QC. So you can see here is the Mesh BMX Gloves, which got to have 10 units to be moved to R2QC01, and then from there, it needs to move from QC inbound 01 – QCIB-01. So this means we have to palletize it and then we have to move it from that palletization position to the inbound location inside of quality control.

We also have to receive and palletize for those other 90 units of the Glove that are not going to quality control, into R2PC01, and then we take them from there and we can choose our own location to put that case away because it’s not showing any location on the screen. And that’s exactly how we want it. Because, as we mentioned in the earlier post, the putaway process should be user-directed and not system directed.

Because we’ve received these goods and have created a quality order for this product. The Quality inspector will now perform Quality test on this. Navigate to Inventory Management > Periodic tasks > Quality management > Quality orders. There he will see that there’s a quality order 000027 that’s been created for 10 units of new Glove. And there’s a certain series of tests that may have to perform.

The other thing that we should look at is the on-hand inventory for this item. So for this particular one, we have 0 in physical inventory of which 100 is reserved which is the same that we order in PO 001572.

What it did it when we receive the PO 001572 is that it has put under Physical Reserved. So after we do the quality order, this will change. And that completes the receiving process associated with quality-control bound merchandise.

Now we need to palletize the product that needs to go to quality control and actually move it to QC Inbound and complete the quality control work. Navigate to Warehouse Management > Work > Inbound > Open Purchase Work. Select the Open Work for PO 001572. We see that we’ve got these 10 units that need to be moved to R2QC01 and palletized there.

So let us go back to the mobile device terminal. Choose Palletize IB Case mobile device menu item that’s specially designed for Palletizing.

Scan / Enter the license plate on which we received earlier which is LP00157201.

And you can see that it’s confirming that is this the one you got? Click OK. So it says that particular product since it needs to go to QC, you need to put it into the QC staging location or palletizing location there at the dock door. So I just need to type in the location check digit. And probably in the actual implementation, you’ll use a check digit that is printed on the wall as a barcode to confirm that you put it in the correct location.

Now imagine we might get several cases that need to go to QC. And eventually, we got a full pallet. And now it’s time to move that pallet of several cases to the inbound side of the quality control area. We put a cone on top of that pallet or we put a nice colored little placard that says QC on it to reinforce where we want it taken. And the material handling operator comes by with the motorized pallet jack and says, OK, this must be ready to move and I see the QC placard on the side, so I’m going to move all these cases to the quality control area. To do that, he goes into the Moves menu in the mobile device, and he chooses Move case inbound to area menu item specially designed to move license plates to different staging Inbound locations.

We need to type in the license plate. You can imagine has reached QC and dropping this off. So he’s scanning the license plate number.

And it recognizes it and it says, please scan the location you’re dropping it off in. So that’s QCIB01 and he confirms by entering the check digit. And so the case that requires QC is sitting in QC.

Let us do the quality control work itself. Navigate to Inventory Management > Periodic tasks > Quality management > Quality orders. So here is our quality order 000027 for that PO 001572.

You can see that there’s one test that we have set up for this product, and we’re just going to evaluate the cleanliness of the product. It’s really just a yes/no kind of thing. Click on the Results and indicate how many of the 10 units that we got of this new Glove are really clean. And let’s say 8 of them are clean. So we select the Outcome as Pass. But let’s say we have 2 of the units that are dirty. So we select Dirt as Outcome. So consequently those two fail.

Now, this doesn’t mean that the whole sample fails. It depends on what the expectation is for quality. Click on the validate button to validate this test is complete. So you can see that we have 8 that pass and 2 that fail. And then what we have to do is we have to validate the overall sample itself because you can imagine you could have several different tests in addition to cleanliness and so some of them may pass, some of them may not, so then you have to validate the whole sample. So we do that by clicking on the validate button at the top menu bar. It asks who’s completing this quality order, select the validated by and click OK.

It turns out that this sample passes. So two units failing is not enough for the overall sample to fail. So we have completed the quality order on this product. It’s passed. And now it’s available for sale. If we go into the on-hand inventory for this product. Now the physical reserve is only 90. It’s now made the sample 10 units now available for sale over the Internet or to the retail stores or wherever it needs to go next. Once we perform the Palletization of the other 90, they will also be moved from Physical reserved.

So that’s one of the nice features that go along with the quality control functionality. You can limit that stock from being allocated to orders until it actually passes QC. So that summarizes the QC functionality that Retail Warehouses need and I hope you got the understanding of how D365 FO meets those requirements.

In the next blog, we’re going to look at how the products are received and directed to the Value Inbound Services or Prep area.

Feel free to reach out for any clarifications. If you like my blog posts then comment and subscribe to the blogs.

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