As a result of replenishment, stock transport orders are generated which reflect the store demands for basic or further assortments (products like e.g. shoe polisher, perfume). These types of products can be externally purchased on a short-term basis, which does not require long pre-planning and pre-ordering phases.
The buyer automatically generates the collective purchase order, which consolidates the demands of stores or customers, and creates an external PO to the vendor.
Central Procurement and Distribution of Goods
It is possible to use the merchandise distribution functions to control the flow of merchandise from the vendor to the recipient (store or customer) if the recipients of the materials are known at the time of procurement. Either an allocation table (push method) or a collective purchase order (pull method) can be used to plan distribution. The goods are procured externally and usually flows through the distribution center. They can either be put away in the distribution center or moved through the distribution center using cross-docking or flow-through.
Using the push method, planning for merchandise distribution takes place using an allocation table. The procurement documents (vendor orders) and issue documents (warehouse orders or sales orders) are then generated as follow-on documents for the allocation table.
When the pull method is used, issue documents (sales orders or warehouse orders) for the recipients exist already. Collective purchase orders are created as procurement documents in which the issue document quantities for each material and distribution center are added together.
Collective purchase orders are used to plan merchandise distributions. You can use a collective purchase order to combine the requirements of recipients, that may exist in the system as warehouse orders or sales orders, to create a single order for a vendor ("pull" process). Distribution data for a collective purchase order is kept in the system and you can then use this to control and monitor the distribution of merchandise to recipients.