SHIPPING CONCEPTS

Objectives

After studying this presentation, you should be able to do the following:

• Understand Shipping Process in industry• Understand Shipping Terms• Understand Shipping execution in Oracle

Applications• Shipping Execution Change Orders• Trips Stops• Create LPNs/ Containers

DIRECT SHIPPING

• Put Material away from the Manufacturing Area• Bring the same material from storage area for

packing and loading to trucks• E.g – Maruti , Flex Industries

SHIPPING WITH PICK RELEASE

• Direct Shipping Scenario not applicable in all scenarios

• What Happens in the case of a spare parts warehouse or where the inventory is kept for days before shipping , In these cases the pick release is required before the material can be shipped

WHAT IS PICK RELEASE ?

• System to select the correct material to allocate for a particular sales order on the basis of user defined rules.

• The assumption that forms a pick release is that the material is on hand in a warehouse storage location when the warehouse is ready to begin processing for shipment.

• Think of spare parts warehouse to understand the concept of pick release.

• In case of industries which make material which are make to order , the material is already allocated to a customer and hence redundant.

SHIPPING STEPS

• Release Sales order – (Look for Parameters)• Pick Release• Move Order - -Allocate/Detailing• Move Order - Transact• Assign ship line to delivery• Assign delivery to a trip / LPN • Ship Confirm• Backorder • Close Trips – Optional

Release Sales Order

• Releases orders from manufacturing to shipping warehouse ; why ??

• Order is interfaced to Shipping • Order becomes available for Shipping

Pick Release

Pick release – Please refer pick release rules – Shipping Parameters

• Pick release creates move orders , One move order is created per pick release batch per organization.

• Move Orders will use the Picking Rules set up in Oracle Inventory to locate the material required to fulfill the Move Order Line. Together with item sub inventory defaults (required if the staging sub inventory is locator controlled), the Picking Rules suggest the staging transfer transaction lines with appropriate source information that will be required to obtain enough material in the staging

You can now determine the number of pick release steps the system will prompt them to employ in order to move material from Pick Release to Ship

Confirmation.

Move orders

• A Move Order is a request for a sub inventory transfer or account issue

• Pick Wave Move Orders are pre-approved requests for sub inventory transfers to bring material from its source locations in the warehouse to a staging Sub inventory.

Move Order Line Allocating

• In order to release the Move Order lines created at Pick Release to the warehouse and print pick slips the lines must be allocated. The process by which the Picking Engine generates transaction line suggestions is called “Allocating”

• Allocating process for a Pick Wave Move Order Line also creates a high level (organization level) Reservation for the item(s) if no Reservations previously existed.

• Choose to do allocation immediately after the Move Order Lines are created or to postpone this step until a later point in time.

Move Order Line Allocating

• Allocating the order lines immediately after they are created is called “auto-allocation”.

• Postponing the allocation process is referred to as “manual-allocation”.

• You can set up a default detailing mode in the Shipping Execution organization parameters. This default can be overridden at each Pick Release.

Pick Confirmation

• The Move Order Line Details (transaction lines) created by the detailing process must be transacted to confirm the material drop-off in staging. This process is called Pick Confirmation

• Execute the sub inventory transfer that moves the material from its source location in the warehouse to the Staging location

• Transfers the high level Reservation to a detailed Reservation (including lots, sub inventory and locators) in the Staging location.

• Report a missing quantity or change the transaction line if the picker chose to use material from a different lot, serial, locator or sub inventory.

Pick Confirmation

• The Pick Confirm transactions can occur immediately after the lines are detailed. This option is called “auto pick confirm”. You can set up a default Pick Confirm policy in the Inventory organization parameters. This default can be overridden at each Pick Release.

• Material transacted only to the staging sub inventory and reserved

• AND CAN STILL BE CANCELLED AND TRANSACTED BACK TO THE INVENTORY

Staging Locations

• The destination sub inventory on the Pick Wave Move Order is the staging Location into which the picked material should be deposited.

• Each organization should designate at least one staging sub inventory. Each batch created at picks Release will have the same destination staging sub inventory.

• The default staging sub inventory and locator to be used for all Pick Wave Move Orders are Specified through Oracle Shipping Execution’s Shipping Parameters form..

Ship Confirm• Material picking process ends when the items are ship

confirmed out of Inventory. • Ship confirming the items removes the existing

Reservations and performs the sales order issue transaction.

• You may choose to ship confirm only part of the Sales Order quantity. In this case, the balance of the sales order may be backordered. Backordering at Ship Confirm automatically splits the Sales Order into two lines. – The first line represents the shipped quantity– The second line represents the backordered

quantity.

Release Statuses• Not Ready for Release

• This status occurs when a delivery line is manually imported into Shipping Execution using the Import Delivery Line program prior to the line reaching the shipping workflow in OM.

• Ready for Release• This status occurs when an order line has reached the

Shipping Workflow activity in Order Management meaning the line has been booked, scheduled and imported into Shipping Execution.

• Submitted to Warehouse• This status is displayed when Pick Release is run. The

Pick Release process creates a Move Order Header & Mover Order Line in Inventory. This is a common status for users that perform a two-step pick release process. This status indicates that inventory allocation has occurred however pick confirmation has not yet taken place.

Release Statuses • Backordered

• The status of Backordered is assigned to a line under the following circumstances.

1) The Pick Release process attempted to allocate inventory to the line and all or a partial quantity of the item was not available. In this case the system automatically backorders the discrepant quantity.

2) At Ship confirm the user enters a shipped quantity for an item that is less than the original requested quantity.

3) The user Backorders and entire delivery.4) The user records a missing quantity by transferring a

reservation to cycle count.

Release Statuses• Staged

• The line receives the status of staged once inventory has been allocated and pick

• Confirmed• The allocation step and the pick confirmation step

can be done manually or automatically based on business needs. This is determined by a set up step in Shipping Parameters.

• Shipped• The Shipped status indicated that the delivery that

the line is assigned to has been set to in transit and that the OM and Inventory interfaces have run.

Release Statuses

• Not Applicable• The Not Applicable status applies to non-shippable

order lines. An example would be lines that are invoiced but not physically shipped. Items such as service and warranty would have statuses of Not Applicable

• Cancelled• The cancelled status applies when the order line has

been cancelled in OM.

Order Line Changes Management in Shipping

• Order changes are allowed as long as orders are not booked or interfaced with Oracle Shipping Execution. However, once orders are interfaced in Shipping and Pick Released there are limitations to changes allowed.

• The objectives of the Line Change Management design is to allow most of the Sales Order changes up until the Delivery lines are Staged or Ship Confirmed.

• Only change requests entered after the Sales Order Lines are Booked and interfaced with Shipping Execution (Shipping) are validated by the change logic in Shipping. Order Attribute changes propagate in Shipping based on the Shipping change logic.

Shortcuts within Shipping Execution

• Many steps in shipping are routine and repetitive• In such scenario , it makes sense to automate most of

the processes involved – Use Pick Release Rule– Use Ship Confirm rules

Shortcuts within Shipping Execution

• Release Sales Orders SRS– The Release Sales Orders SRS allows you to pre-

determine the picking criteria used when the system considers lines eligible for pick release. Other criteria in this concurrent program determine the operations performed on the order lines submitted for release, such as, allocation,pick confirm, packing, appending deliveries, assigning deliveries, and staging location.

– One of the most important features of the Release Sales Orders SRS is that you can create a moving pick window. By creating a picking window, you setup the system to consider orders for pick release within +/- ‘x’ number of days of the system date and then schedule the Release Sales Orders concurrent program to run at intervals that suit your business needs. The system will then initiate pick release automatically each day without user intervention

Shortcuts within Shipping Execution

• Auto Pack Deliveries SRS– The Auto-Pack Deliveries SRS allows the system to

perform pack planning on delivery lines assigned to deliveries.

– If you typically pack items into containers, then this concurrent program can be used to perform this operation on multiple deliveries on an ad hoc basis or scheduled to occur automatically.

Shortcuts within Shipping Execution• Process Deliveries SRS

– The Process Deliveries SRS serves a dual function, it allows the system to assign delivery lines to deliveries and it allows the system to assign deliveries to trips.

– One variation on assigning delivery lines to deliveries is that the program can be setup to first append lines to existing deliveries, and if no eligible open deliveries exist, then the system will create a new delivery before assigning the delivery line.

– The benefit of this concurrent program is that it allows the system to automatically group matching delivery lines into deliveries, and matching deliveries into trips, thereby eliminating the manual effort and creating fewer deliveries and trips in the system. By having fewer shipping entities to manage, system performance stays efficient.

Shortcuts within Shipping Execution• Ship Confirm Deliveries SRS

– The Ship Confirm Deliveries SRS allows the system to select deliveries whose assigned delivery lines are all staged. The system then ship confirms the deliveries. You can schedule this concurrent program so that the process is initiated automatically.

– The benefit of this concurrent program is that you can ship confirm many deliveries simultaneously, either as a manual or automatic process, which will help eliminate processing steps.

– You can also prevent individual deliveries from being ship confirmed during the Ship Confirm Deliveries process. In the Shipping Transactions form, query the delivery that you want to exclude from being selected by the Ship Confirm Deliveries SRS and uncheck the ‘Enable Auto Ship Confirm’ field.

Shortcuts within Shipping Execution• Use Pick and Ship Action

– If your shipping process is simple, then you can take advantage of the Action ‘Pick and Ship’. This feature is selected from the Action menu within the Shipping Transactions form at the delivery line level or delivery level.

– When this action is initiated then the shipping entity is simultaneously pick released and ship confirmed.

– A couple of prerequisites apply before you can use this feature. A Ship Confirm Rule must be specified in the Shipping Parameters for the organization and the user must have the privilege granted for Pick and Pack.

Shortcuts within Shipping Execution• Use Pick , Pack and Ship Action

– Pick, Pack, and Ship is a feature very similar to Pick and Ship, except that it automates another step in the process. When this action is selected

– From the Action menu, then the delivery line(s) is pick released, systematically packed, and ship confirmed.

– A couple of prerequisites for packing to occur are that the shipping parameter for Auto-pack options must be selected and that a container-item relationship must be predefined prior to selecting the action. If no container-item relationship is defined then the delivery line will be picked and shipped without packing.

– Confirm Rule must be specified in the Shipping Parameters for the organization, a container-item relationship must be defined

– the user must have the privilege granted for Pick, Pack, and Ship.

Shortcuts within Shipping Execution• Use Pick , Pack and Ship Action

– Pick, Pack, and Ship is a feature very similar to Pick and Ship, except that it automates another step in the process. When this action is selected

– From the Action menu, then the delivery line(s) is pick released, systematically packed, and ship confirmed.

– A couple of prerequisites for packing to occur are that the shipping parameter for Auto-pack options must be selected and that a container-item relationship must be predefined prior to selecting the action. If no container-item relationship is defined then the delivery line will be picked and shipped without packing.

– Confirm Rule must be specified in the Shipping Parameters for the organization, a container-item relationship must be defined

– the user must have the privilege granted for Pick, Pack, and Ship.