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On this blog we will cover stories from all around the Exact ecosystem.

Posts Tagged ‘Back to back order’

Drop shipments in controlled release

Written by Marco Kastrop on . Posted in Exact Online

Earlier I have announced that the Trade development team was working on the new functionality to support drop shipments. This functionality is currently in controlled release, which means that a selective group of customers is piloting this new functionality and will provide us valuable feedback which we will evaluate before making it available for all Exact Online Trade customers.

As explained in my previous blog: drop shipment is the process whereby goods are delivered by your supplier straight to your customer without your intervention. Translated into functionality this means that from the sales order (or group of sales orders) you can initiate purchase orders (back to back ordering). If a sales order line is marked as to be drop shipped (a sales order line will be marked automatically based on business rules) then when generating the purchase order system will mark it as a drop shipment purchase order. The main difference between a drop shipment purchase order with a normal purchase order is the delivery address. Also sales order lines marked as to be drop shipped will not appear in your normal goods delivery screen neither will the drop shipment purchase order lines in the goods receipt screen. Instead a new screen for creating drop shipment deliveries by your supplier will take care of the movement of products from your supplier to the customer.

Some additional features:

  • Quantity in drop shipment is visible on the stock positions overview
  • On the cockpit on your To Do-list you will be notified when drop shipments are late for delivery
  • Financially we will keep track of all in and out transactions on a separate ‘Goods in transit’ general ledger

Stay tuned for some more updates relating to Exact Online. If you have any questions or remarks, do not hesitate to post them!

From stock centric to order controlled purchase process

Written by Marco Kastrop on . Posted in Exact Online

The Exact Online Trade solution is commercially available since April 19th and is attracting more customers every day. Our solution is currently mainly based on trading companies that keep stock levels (reorder level, maximum stock) as a strategy to deliver orders to customers. Main advantage of keeping stock levels in your warehouse is that as a company you are in control of your lead times and correctness of your deliveries. An example of how we support your business, is that you can insert a web part on your cockpit that indicates your service level (% on time deliveries) towards your customers (see below).

Other considerations for keeping stock levels as a strategy:

  • The costs involved of keeping stock (every euro invested in stock cannot be invested elsewhere)
  • Item turnover (item velocity, how often do you sell the product)
  • Purchase lead time (time span between placing a purchase order and goods receipt)
  • Risk of not selling (unsalable stock)

Our current development activities are focused to not only support the stock centric process but also to control purchasing based on demand (back to back orders). What this means in practice is that instead of keeping stock with the help of stock levels, you will purchase based on outstanding sales orders.  This however may apply to some items (with e.g. just in time delivery by the supplier) and for some items (e.g. with a high turnover ratio) you will remain the strategy to keep stock levels. Therefore at first you can set per item whether the item is ‘Order controlled’ (or otherwise is considered ‘Stock controlled’). The distinction between order and stock controlled will be of great help for the purchaser to determine for which sales order lines, purchase orders can be planned /generated.

I think that with this extension we will be even more relevant for our trade customers, supporting multiple logistic strategies.

Let me know what you think!