Fulfillment/Replenishment Methods
Fulfillment and Replenishment methods are the different ways in which an inventory item can be handled by the StreamV Order Entry and Purchasing systems. Fulfillment refers to the manner in which a sales order line is completed or “fulfilled”, and replenishment refers to the way in which inventory quantities are “replenished” (purchased). In general, the replenishment/fulfillment methods discussed in the following sections apply to stocking items only.
Inventory purchases in StreamV can be broken down into four major categories based on the method in which the sales order lines will be fulfilled and/or the item will be replenished. The fulfillment methods supported by the StreamV Purchasing System include:
• Warehouse – Warehouse fulfillment is used to fill customer orders from the on hand quantities present in your warehouse locations. As customer sales orders are processed, the system updates the quantities stored in each inventory item, and on a regular basis, the PO Recommendations report is used to create requisitions for the total quantity needed for each item in each warehouse location.
• Special Order – Special Order Processing allows you to create one or more purchase order lines for each special order sales order line, and to link these purchase order lines to the sales order. This method is similar to using warehouse replenishment and setting the reorder point for the item to 0, but in this case, the system creates a requisition for each order line automatically during sales order entry process and it links the requisition to the line. The Link between the sales order and purchase order is also allows the system to block deletion of the sales order line for the item once a purchase order is placed for the item (the system requires the po to be cancelled before the sales order item can be cancelled). Later, when the PO line is received, the system will also preferentially allocate the inventory from the linked purchase order line to the appropriate sales order lines. Special order items are received into a warehouse location before being shipped to the customer.
• Vendor Shipment - Vendor shipment sales order lines (sometimes also referred to as vendor drop shipments) are fulfilled by the vendor for the item sending the goods ordered by the customer direct to the customer. As Vendor Shipment sales order lines are entered, the system automatically creates PO requisitions for the order line. These requisitions are then converted to purchase orders and the purchase order is sent to the vendor. The vendor then ships the product to the customer, and invoices you for the items delivered to the customer. As vendor shipment purchase orders are created, the system automatically moves information from the sales order to the purchase order (such as the ship to address) so that the vendor has the information required to ship the goods.
• Inter-Facility Transfers. – The Inter-Facility Transfer or IFT System is used to process inventory transfers between physically separated warehouse locations – it is appropriate for situations where the items being transferred are in transit for a period of time, and you need to track the items and quantities being transferred while they are in transit.
The first three of these methods are used during customer sales order processing and during the normal purchasing process. The Inter-facility transfer system is used to restock a warehouse location from another warehouse location. The IFT system is used only for stocking items, and it is used only when you wish to replenish one inventory location using the on hand quantity from another warehouse location. Each of these replenishment methods is described in greater detail in the following sections.
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Fulfillment/Replenishment Flags