QAD Clients Benefit From Integrated Intercompany EDI Ordering Processes
Logan Consulting’s clients often have multiple operational divisions in different countries that are required to manage third party transactions which include Purchase Order processing in the ordering country and associated Sales Order processing at the supplying company.
Logan Consulting recently implemented an Intercompany model in 2016EE using the following processes and transactions:
Ordering Country / Organization – Supplier Schedules and Schedule Update From MRP – MRP planned order requirements update the Intercompany Supplier Schedule, which is then sent via EDI to the supplying country organization
Supplying Country / Organization – Incoming EDI creates a Customer Schedule Release in QAD. Requirements are review and updated, after with a Required Ship Schedule is updated/created. Shipping uses the QAD Advanced Shipping Process (Pre-Shippers/Shippers) which results in a confirmed Shipper. The ASN for the confirmed shipper is then exported.
Ordering Country / Organization – QAD can automate the EDI Document Import, which can create PO Shipper and the associated PO Shipper Receipt transaction. The product is received into a pre-defined in transit location via the PO Shipper Receipt, and eventually transferred from in transit to stock when physically received at the dock.
A few key benefits of the model above include automation of non-value added processes and visibility of in transit inventory. The model can be made even more efficient with the implementation of Evaluated Receipts Settlement (ERS) to automatically create the AP Supplier Invoice. Additional intercompany settlement tools can be implemented as well.
Logan Consulting has also implemented the model above using discrete Sales Orders and Purchase Orders (instead of schedules and Enterprise Material Transfer (EMT) functionality.
At Logan Consulting, we believe it is important to include the automation of transactions such as the ones above, while balancing scope of the implementation or upgrade project. QAD provides the functionality to support such automation.
2020 Nucleus Research Report on ERP Technology