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Supply chain | Supply Chain Management, Commerce
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Sales Order Reservation

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Posted on by 5

Hello,

My customer needs to process around 4000 sales order lines each day. Most of the orders come in with EDI automatically. Number of lines on an order varies from 1 to proximately 50 lines. Quantities on the lines are always different, almost never full boxes or cartons. Normally, there is sufficient on-hand stock. If not, they’ll have it the next day or at least the day after.  

 

Their main requirements are:

  • No backorders to avoid extra transportation cost. They are allowed to ship one day later a complete order instead of a partial shipment today and another tomorrow.
  • Creation of a load should be avoided if, at the end, the orders on the shipment for that load cannot be shipped completely.
  • An order should only be reserved if we are sure that the whole order can be reserved. This to avoid that stock is blocked due to reservation until other missing items on the order become available.

Current process is

  • (1) Sales orders creation
  • (2) Reserve sales orders with “Inventory Management” – “Sales Order Picking”
  • (3) Load Planning Workbench: create load for selection of orders
  • (4) Validate Load
  • (5) Select load in load planning workbench and Release to Warehouse

 

Fulfillment policies of 100% are setup. When a load is validated (step 4 above), the system will stop the creation of shipments and work if the complete order cannot be picked. This is ok but a bit late for them.

Reservation of the order lines is not done automatically at order creation because, at that moment, you don’t know if the complete order can be reserved.

In the screen “Release sales order picking”, you have a column “Possible delivery percentage” for the complete order but this is not perfect. Example: even if you have reserved the complete order, but the total demand for an item (for all open orders) is more than the quantity available for reservation, the possible delivery % is lower than 100.

Questions:

  • Do you have a suggestion to change the process of order reservation? Target is 100% reservation or no reservation, before loads are created.
  • I have my doubts about the “Possible delivery %” calculation. For me, the calculation seems to be wrong.
  • Any other ideas or maybe suggestion for add-on are also welcome.

 

Best regards,

Dany Leemans

I have the same question (0)
  • Verified answer
    ColbyGallagher Profile Picture
    3,668 on at

    The release sales order picking screen is an inventory management process to create picking routes, but you mention loads and using release to warehouse from the load planning workbench, which is and advanced warehouse management process.

    So are you using the release sales order picking screen to maintain reservations?  If so, yes I agree this form doesn't really work as expected, particularly the lower portion of the form and calculation of the available physical.   I've raised bugs with MSFT, they don't seem to want to fix it.  

    Have you looked at using fulfillment policies and the job at Warehouse mgmt -> Release to warehouse -> Automatic release of sales orders?   Have this run in batch every ~5 minutes and tick the "keep reservations on release failure" and your SO's will keep accumulating reservations until they hit the fulfillment policy % and then will drop for picks.  No loads will be created until they drop. 

    pastedimage1654177353100v1.png

    Here's documentation on fulfillment policies, sounds like you would want them at 100%: docs.microsoft.com/.../sales-orders-and-fulfillment-rates-in-warehouse-management

  • Sneha M Profile Picture
    Microsoft Employee on at

    You could use the warehouse management module option: Release to warehouse > Automatic release of sales order for release to warehouse.

    Also enable the option 'Reserve when orders are released option'. This will help reserve inventory when this job is executed.

    This post is my own opinion and does not necessarily reflect the opinion or view of my company or Microsoft

  • Leemans Dany Profile Picture
    5 on at

    Hello,

    I did the setup as you described above. This seems to be the right approach. We are still looking at whether we will keep the reservations on the lines if we do not have 100% fulfillment.

    The big advantage with what you suggest is that a lot of manual work is eliminated and one can focus on the problem cases.

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