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Supply chain | Supply Chain Management, Commerce
Suggested answer

Unit conversion

Posted on by 332

Hello,

Can someone explain me the best way to setup different unit conversions for the same item based on vendor please?

1.e. One vendor can supply Item A in Boxes with 50 each in it.

Another vendor can supply the same item A in Boxes with 100 in it.

Do I just create Box > Each as Intra-class conversion and handle different pricing on Trade agreements?

Or do I create 2 intra-class conversions Box50 > 50 each and Box100 > 100 each?

Thanks!

Indiiguna 

  • Unit conversion

    Setting up unit conversions for different vendors offering the same item in varying packaging sizes can be approached in a couple of ways, depending on your specific needs and the capabilities of your inventory management system. Here are two common approaches you can consider:

    1. Single Intra-Class Conversion: You can create a single intra-class conversion from the base unit (e.g., Each) to the common unit of measurement (e.g., Box) and handle the different packaging sizes through trade agreements or vendor-specific pricing. In this case, you would create a conversion from Each to Box, and then manage the different quantities within the Box through pricing agreements with each vendor.

    2. Multiple Intra-Class Conversions: Alternatively, you can create separate intra-class conversions for each vendor's packaging size. For example, you would create one conversion from Box50 to Each and another from Box100 to Each. This approach allows you to directly convert between the vendor-specific packaging sizes and the base unit, which can be helpful for more granular inventory management.

    Both approaches have their pros and cons:

    • Single Intra-Class Conversion:

      • Pros:
        • Simplifies the setup by having fewer conversions to manage.
        • Easier to maintain if you have many vendors with varying packaging sizes.
      • Cons:
        • May be less flexible for managing vendor-specific pricing if you need to apply different pricing strategies based on packaging size.
    • Multiple Intra-Class Conversions:

      • Pros:
        • Provides more granular control over inventory quantities and pricing for each vendor's packaging size.
        • Allows for more precise inventory management.
      • Cons:
        • Requires more setup effort as you'll need to create and maintain conversions for each vendor's packaging size.
        • Can become cumbersome to manage if you have many vendors with different packaging sizes.

    Ultimately, the best approach depends on factors such as the complexity of your inventory management needs, the number of vendors you work with, and the capabilities of your inventory management system. If you're unsure, you may want to start with the single intra-class conversion approach and adjust as needed based on your experience and requirements.

  • Suggested answer
    Awab Al-Habal Profile Picture
    Awab Al-Habal 55 on at
    RE: Unit conversion

    We have the same issue with many items we buy from different vendors. 

    My workaround was to not define box conversion at all and just buy the item with each and the purchaser will handle how many boxes required based on the vendor he will deal with.

    The other solution is to have different items with different unit conversion (as the other reply mentioned). 

  • nunomaia Profile Picture
    nunomaia 10,684 Super User 2024 Season 1 on at
    RE: Unit conversion

    I would create a different box type, Box50, Box100 and then handle different prices on trade agreements

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