Managing Material Procurement Process for Product Variants

In this process, a sales order is created for a configurable material. A MRP run takes place which creates a purchase requisition for a material. This purchase requisition is converted into a purchase order.

The following video shows the roles individual users play in the material procurement process.

As you just saw, the process steps for a procurement process include:

• Internal Sales Representative: Creates a sales order for a configurable material.
• Production Planner: Performs an MRP run. A purchase requisition is created
• Purchaser: Creates a purchase order out of requisition
• Warehouse Clerk: Posts goods receipt
• Payable Accountant: Creates supplier invoice

The benefits of a procurement process for Variant Configuration are:

• Improve your company's manufacturing and procurement performance
• Enable highly individualized products in manufacturing and Procurement.
• Use object dependencies for allowed combinations

In this scenario, the process starts with the creation of a sales order. A configuration is performed.

A MRP run takes place for this sales order.

For a configurable component a purchase requisition is created. This requisition is now converted to a purchase order.

To run this scenario, some predefinitions have to be executed.

In the following video, Configuration Modeler Thomas creates a reference characteristic to control price information.

After creation of the characteristic Thomas adds it to an existing class. The following video demonstrates this task.

The following video demonstrates how Thomas opens product modeling environment and defines new dependencies for two different seat types.

The following video demonstrates how Purchaser Tom creates a purchasing info record. This record specifies the price at which a forkseat is bought at supplier side.

A purchase order can display a characteristic, relevant for the purchased component. In the following video, Tom creates such a characteristic.

Now the real process starts.

In the next video, Kate, the Internal Sales Representative creates a sales order for a forklift. Some components, like the forkseat, are procured externally.

In the next video, Production planner Nikhil starts a MRP run, due to empty stock for the forklift seat.

Tom wants to find out the purchase requisition number for the forklift seat, which can be seen in the following video.

In the next video, Tom creates a purchase order depending on the purchase requisition.

The next video shows how Warehouse Clerk Jim posts the goods movement when the forklift seat arrives at the warehouse.

In the last video, Laura, the Payable Accountant, creates a supplier invoice for the purchase order.

Now you should have an impression of "How to maintain an material procurement process with Variant Configuration".