Inter Site Logistics
Moving Inventory easily between
plants
Jim Simunek
Jim.simunek@cistech.net
Overview
• Inter-Site Logistics is designed to:
– Plan transfer (purchase) orders for an item in the
demand warehouse
– Use Customer Orders to create planned manufacturing
orders in the supplying warehouse (MRP/AVP)
– Convert the planned orders into ‘transfer’ orders
– Pick and ship parts from the supplying warehouse;
optionally, create manifest
– Track the goods while in transit
– Receive goods into the demand warehouse (by item or
manifest)
Overview
• ISL orders ship using COM CO and Transfer
Order without impacting AR and AP
• ISL works for:
– Plant #2 builds a part that is used in Plant #1
production
– Central manufacturing plant with multiple
distribution centers for CO shipping
– Multiple CO processing centers with a single
shipping location
Production Feeds
• B is made in warehouse #2
• A is made in warehouse #1
A
• B is transferred to warehouse #1
• Warehouse #1 uses item B to build Item A
C
B
• Item Master Set up for B flags it as a Make item
(Item Type = 1 or 2)
• Lead Time code in Warehouse #1 = P (purchase)
D
E
• Lead Time Code in Warehouse #2 = M (make)
• Planned order in Warehouse #1 MRP will create
Transfer Order
File Set-up
• Demand Warehouse (Plant 1) is set up as a
customer in COM for supplying warehouse
• Supplying warehouse (Plant 2) is set up as
a vendor in demand warehouse
• Items can be ‘flagged’ as ISL items by
vendor or by planner
• Tailoring files determines ISL options to be
used
Tailoring Options
File Set up
• Control file determines if parts are
automatically adjusted (with IA transactions)
if there is ‘remaining’ inventory in the
transfer warehouse. For example:
– Warehouse 2 ships 100 pieces
– Warehouse 1 receives 98 pieces
– ISL will create an IA transaction for -2 if control
file specifies automatic clear of inventory on
receipt into demand warehouse
Transfer Warehouse
• Need to create a Transfer Warehouse to
hold inventory while it’s being moved from
warehouse 2 to warehouse 1
• All ISL items will require an Item
Balance/Warehouse record for the transfer
warehouse (XA will build the record if it
doesn’t exist)
• Transfer warehouse needs to be controlled
warehouse with transfer locations (i.e. truck,
boat, plane, etc)
Planner Defaults
Planner defaults are
recommended to be
used over item
defaults to facilitate
planning.
Item Defaults are Exceptions to Planner set-up
Questions?
Material Planning
• ISL works with:
– MRP
– MRP with MPSP
– Advanced Planner (AVP)
• Run planning in the demand warehouse first
to get P-Plan orders for the transfer item
• Run planning in supply warehouse to see
requirement from demand warehouse
ISL Item Set-up
• In Item Balance/Warehouse file, ISL items
need to:
– Have a ‘Master Level Item Code’ (MLI) = M
(multiple sources of requirements)
– Have a ‘Plan Customer Order Code’ = 5 (all
customer orders on or after the MRP start date)
• Lead Time in the demand warehouse is
transit time from supply warehouse
• Lead Time in supply warehouse is
production lead time
MPSP
Material Planning
Material Planning
Transfer Orders
• Transfer Orders have 2 parts:
– Demand warehouse has transfer order that
begins with letter ‘X’
– Supplying warehouse has customer order in
COM
• Transfer orders can be created in MRP
Order Release/Review or manually
Order Release/Review
XO/CO Relationship
• ‘X’ (transfer) order is linked to Customer Order
• Transfer Order serves as ‘on order’ in demand
warehouse
• CO serves as ‘requirement’ in supplying
warehouse
• CO is not removed from COM until shipped item
is received in demand warehouse
Questions about planning?
Shipping
• When item is transferred, ISL ‘ships’ the
transfer CO and moves the inventory from
warehouse #2 to the In-transit warehouse
• Bills of Lading, Manifests, etc. can be
created when goods ship
• Inventory is on hand in the transit
warehouse
Shipping
• Pick List can be created to pick the
ISL/COM orders
• Have option to create manifest
– Benefit of manifest is that goods can be
received in the Demand warehouse by manifest
number rather than item-by-item
• Goods will be transferred (TW transaction)
from the Supply warehouse to the In Transit
warehouse
Ship InterSite Orders
Use this option to ship an
InterSite order
The display allows you to
Create a new manifest
Select the order to be
shipped
Select the inventory
location that the order
is to be shipped from
Shipping ISL Order
• Option to create a shipping manifest
• Displays a list of transfer orders (begins with
‘X’)
• Select the orders to be shipped
• Enter the ship quantity of each order
Manifest Details
Ship Transfer Order Screen
– The body of the display shows
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Shipping warehouse
Manifest number
Order number
C.O. number
Item number
Transfer warehouse
Quantity ordered
Quantity shipped
Quantity remaining to be shipped
Location
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Batch/lot
FIFO date
Available quantity
Ship quantity
ISL transfer warehouse
location
If the order is complete
Weight
Number of containers
Type of container
Sample Manifest
In Transit Warehouse
• Must be Location Controlled warehouse
– Minimum number of Locations:
• Truck
• Plane
• Boat
• Should be non-planning warehouse linked to
supply warehouse for MRP
– Since CO remains as demand until final receipt,
on hand inventory in transit is necessary to
create a valid MRP plan
Receive ISL Order
• If a Manifest was created, can receive by Manifest
number
• If a Manifest was not created, receive by item
number
• Item will be transferred from in-transit warehouse
into demand warehouse
• X order and CO will be deleted/copied to history
• Depending on tailoring, if quantity remains in Intransit warehouse the system will create an IA
(Inventory Adjustment) to zero out the balance
Receiving Screen
Receiving
• When goods are received, in transit
warehouse is cleared of inventory
• Transfer Order is completed
• Quantity on hand in warehouse #1 is
increased
• Can receive multiple items by manifest
History
• ISL tailoring determines if transfer order
history is kept
• Manifests, if not entirely transferred, can be
purged/deleted via menu option
• Also have IM Transaction History and COM
history
Summary
• ISL with MRP will create transfer orders for
goods that are used in one plant and
manufactured in a different plant
• ISL tracks goods in transit with the In Transit
warehouse
• No impact to AR or AP when goods
shipped/received
Summary
• ISL is a very easy, user friendly application
to set up and use
• Does an outstanding job of moving
requirements and tracking inventory
Questions?