Transport leadtime on purchase orders - Can i use inventory leadtime for this?

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Hey,

We are company that has around 250 different vendors who delivers to both of our 2 different warehouses. Sometimes an article takes 2-3 days to transport from the vendor to our warehouse and then also an issuemargin of 1 day when the goods has been recieved.

Can i use inventory leadtime (i assume this is mainly used for production companies) for this? Or is there any option that really says "transport leadtime" (from vendor).

Thanks

/André

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Weaveriski 23,620 Moderator on at

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Yes us another option, setup transport days. Inventory lead time would only work with transfer orders (or production with no route), you can setup transport days by vendor and warehouse to add time in. Receipt margins can be added by planning depending upon what you use.

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Hi Steven,

Acctually we are currently working with Columbus Food (Danish consulants) in this case but they don't seem to know what we are looking for.

I've tried finding "transport days" but i would like to figure it out how I can set up transport days by vendor? I don't seem to find it.

Reciept margin for us is 1 day since our warehouses needs 1 day to get the goods into it's place after arrival.

Thanks

/André

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Weaveriski 23,620 Moderator on at

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Hi Andre

Apologies transport days is outbound shipment, on the inbound the 2-3 days should be part of the lead time of the product, what are you putting in the purchase lead time? Why is it not the time it takes for the vendor to deliver? There is no segregation of the lead time into elements from the vendor, if they say it will take 10 days that includes the 2-3 transport days because that is the time to you, not simply the time to dispatch.

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No worries!

Okay. Hmm, well we both use EXW on some vendors and DAP on others and we would like to seperate them. Also, our vendors deliver different products which has different leadtimes.

/André

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Weaveriski 23,620 Moderator on at

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EXW is an issue, but you could create an EXW warehouse which you purchase into, and then you have the transfer order from the EXW to stores to reflect "your" time. Not sure if transport days is reflected in TO's you would need to check. I will assume DAP is your site so the lead time would be included. It would mean depending upon the terms of the order you alter the destination warehouse, but in reality that is what you do anyway because one you have to pick up yourself.

The lead time is defined on the product or the trade agreement, so I see no issue in vendors delivering different products with different lead times, that is normal.

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Hi again Steven, thank you for your quick response

Well that could be an idea. So you mean we should set up different warehouses depending on what kind of trade agreement we have? (EXW, DAP etc?) one for each?

I could just explain how our company works so you have a better overview over it:

We are a wholesaler who has about 250 different vendors and very many customers and about 4000 different products.

We have 2 different sites (locations) where we have our storage facilities.

Regarding the vendors: Either we use DAP (the vendor delivers to us) and on some we use EXW (we send a truck to pick up the goods at their warehouse). Many of the vendors also needs to be connected to both of our warehouses since we store the same products at both of our warehouses. Different vendors also uses different coverage codes (min/max, period and requirement) but period is the most common.

We have tried setting up different scenarios but our best result was when we made about 20-25 coverage groups containing our vendors. One with Period 7 days, one with 14 days and one with 28 days, then one requirement and then one min/max.

We also use transfer between our sites since some vendors only delivers to one of our warehouses.

Below we show our own conclusion on how to maintain our different vendors. The red text at the top would be for when vendors delivers to both of our warehouses and the "use specific settings" would be for mainting when vendors only delivers to 1 of our warehouses and we supply the other one ourselves with transfer orders. In this solution we have set up different coverage groups (Item coverage "transfer") and 14 in this case stands for that the priod is 14 days (this means the vendor will deliver to us every 14 day).

I know it might be hard to understand when I'm explaining here on a forum but I hope you could see the bigger picture and maybe come with some advice, we feel that we have a hard time explaining this to our consultants who are present.

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Weaveriski 23,620 Moderator on at

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Hi André

It part it depends upon the mix of the supply and why you differ between delivery and collection (I guess a combination of time/urgency and cost). The separate of EXW and DAP by warehouse does not really work when you bring planning into play because I am guessing (you are correct these are difficult to answer on forums :-)) that the decision is not one you "plan" but more one you make when needed. What you are looking for is a differentiation by planning based upon the type of delivery, but how often is that delivery type fixed? If it is fixed then yes you could have two separate warehouses to hold stock, buy it in with different lead times taking into account the full delivery time and then transfer them both into the main warehouse and you can set all of this up automatically, however if the decision is made to change the delivery terms this then impacts on the supply chain and you have to consider then what you do with the delivery - it is the balance between automation and human decisions.

So in the chain I propose Vendor A delivers EXW and this lead time is your pickup time, you then add in a transfer time from the EXW warehouse to your main supply warehouse as a transfer order. Vendor B delivers the same item DAP where the lead time includes the transport time and for this one I would bring it directly into the main warehouse because the lead time reflects this. One disadvantage with AX is there is no real supplier-item file, so the differentiation of lead time is by the trade agreement and you need planning to look at this, so you cannot set a "default" vendor. Another issue is the inventory lead time is for the item, so if you had different vendors with different lead times this is a problem, I am pretty sure setting the transport days from Warehouse to Warehouse dose not work, but then again I have not tried it in D365O so give it a go.

You actually state that the vendors are connected to your two warehouses, my suggestion of EXW as a warehouse was purely to reflect the vendor supply, and not a real physical building, but it seems you have two for different reasons, and perhaps one is a real EXW but it does depend why you have two, they could be purely geographical.

I suggest looking at the two warehouse approach and seeing where the gaps are, apologies for the red text in your image, but I dont read Danish :-)

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