| drop-shop and kanban orders - need explaination [message #215660] |
Tue, 23 January 2007 06:53  |
kumar_apps
Messages: 51
Registered: November 2006
Location: hyderabad
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Member |
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Hi,
Can anybody help me understand what are drop-ship orders from Order Management and Kanban orders from Inventory .
I got the above doubt while going through the subject "Requisition Import Process" option in the Purchasing Options.
If possible pls. relate your explaination to this subjet.
Regards
Kumar
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| Re: drop-shop and kanban orders - need explaination [message #215783 is a reply to message #215660] |
Tue, 23 January 2007 22:06  |
merlinrajesh
Messages: 105
Registered: November 2006
Location: Chennai
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Senior Member |
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Dear Kumar,
Drop ship items are ship directly from a supplier to the customer who placed the order.
The customer calls with a request for goods, which is captured in a sales order. A purchase requisition, then a purchase orders is generated to notify your supplier about the requirement. After the supplier has shipped the item to the customer, they notify your purchasing department. Then regularly scheduled automatic interface updates the sales order with this data. Once purchasing enters receipt information, the sales order information is passed to Accounts Receivable for Invoicing.
Kanban is a replenishment method where signals were made in the form of color coded cards to indicate the need of replinishment.
Kanban is a means of supporting pull-based replenishment in manufacturing systems. A Kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory. Kanban systems are typically applied to items that have relatively constant demand and medium-to-high production volume.
Kanbans represent replenishment signals that are usually manual and highly visible, such as a color-coded card that moves with the material, a light that goes on when replenishment is required, or an empty bin that is moved to the supply location to
trigger replenishment.
The system includes an API that can be called by external systems, such as bar code readers, to trigger replenishment signals.
Kanbans can be replenished from an external supplier or an internal organization.
Thanks & Regards
Merlin Rajesh
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