Using Direct Delivery in a Just-In-Time (JIT) Supply Environment

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Also see Using Separate POs, which covers direct delivery.

Overview

In organizations that use a Just-in-Time (JIT) strategy, supplies are delivered at (or close to) the time when they are needed. In Supply Chain, direct delivery is key to a JIT (Just-in-Time) strategy. Requisitions flagged as direct delivery are not filled from inventory, but are placed on purchase orders to be delivered directly to the requesting department.

To implement direct delivery:

Setting up Direct Delivery

For the department:

  1. On the department record, click the Direct Delivery field (Figure 1).
  2. Click Save and Submit.

Note: The Default Supply Asset Location for this department is MAIN in organization MHNC. (The examples below refer to this fact.)

Figure 1 - Department Record

For the vendor buy-from location

  1. From the vendor Buy-From Location list, locate the buy-from location to be used for direct delivery. (Figure 2).
  2. Click the edit icon. The buy-from location record appears (Figure 3).
  3. Select the Direct Delivery field.
  4. Click Save and Submit.

Figure 2 - Vendor Buy-From Location List

Figure 3 - Vendor Buy-From Location Record

Example 1: Direct-Delivery Requisition and PO

The figures below display a requisition and a purchase order created for the requisition, with the vendor buy-from location and the department set up as "Direct Delivery."

Figure 4 - Requisition for an Item Supplied Via Direct Delivery

Figure 5 - Direct Delivery Purchase Order for the Requisition in Figure 3

Example 2: Requisition Import - Direct Delivery

A direct-delivery flag is not included on requisition imports.  Requisition Imports use the department or the par cart direct-delivery flag.

Figure 6 is a sample requisition import from Pyxis for the item in a direct-delivery environment.

Figure 6 - Requisition Import for a Direct Delivery Environment

The requisition (1503) created from the Figure 6 import is in Figure 7. The requisition line is displayed in Figure 8.

Figure 7 - Requisition Generated from Import

 

Figure 8 - Requisition Line from the Import

An inquiry (i) on the requisition line displays the Direct Delivery flag (Figure 9).

Figure 9 - Requisition Line Inquiry Displays Direct Delivery Flag

Supply Chain puts the item on a direct delivery PO for the Cardinal buy-from location Valuelink (Figure 10). Valuelink is a vendor buy-from location for the item designated as direct delivery (Figure 3).

Figure 10 - PO For Requisition Import: Cardinal Valuelink is the Vendor's Direct Delivery Buy-From Location

Example 3: Non Direct-Delivery Requisition (Bulk)

The department for the requisition in this example is not set up as direct-delivery: in Figure 11, the Direct Delivery flag is not checked.

Figure 11 - Department Record for a Non Direct-Delivery Department

The requisition inquiry header and the inquiry line are in Figure 12 and Figure 13, respectively. The requisition -- for a stock item -- was created manually. The item is backordered because the on-hand quantity is less than the ordered quantity.

Figure 12 - Non Direct-Delivery PO

Figure 13 - Non Direct Delivery PO Line

The requisition is not direct delivery (Figure 14).

Figure 14 - Direct Delivery Field on the Requisition Not Checked

From this requisition, a non direct-delivery purchase order line is generated (Figure 15).

Figure 15 - Direct Delivery Column on the PO Line is Blank

The purchase order vendor buy-from location (Figure 16) is the default for Cardinal (McGaw Park), rather than, compared to a direct delivery PO, the Valuelink buy-from location (Figure 4 and Figure 10).

Figure 16 - Non Direct-Delivery PO Uses the Vendor Default Buy-From Location