Just In Time Ordering
Contents
Summary
This article explains how to set up "Just in Time" ordering on your Platinum system.
More information
"Just In Time" Ordering is the concept of timing stock deliveries from your suppliers to co-incide with the moment that the stock is required for production or sale. Platinum Ordering can be configured to follow "Just in Time" rules using the settings described below.
System Settings
There are three system settings required to configure your system for "Just in Time" Ordering.
Go to " Reports & Settings Maintenance Options System Administrator". Go to " Module Settings Purchase Ordering".
- Set "Just in time ordering" to 'Y'.
- Set "Default order lead time" to an appropriate number for your business. This is the expected number of days it will take for stock to arrive after an order is placed unless it is set for an individual stock code or supplier.
- Set "Lead time margin days". This is the number of days to be allowed for supplier or shipping problems. The purpose of this delivery margin is to allow for potential problems in the delivery chain. With no margin then your supply to your clients becomes entirely dependent on your suppliers' ability to supply exactly when they should, every time! No supplier is ever 100% perfect so a margin provides a level of protection against supplier and delivery problems.
Individual Supplier Settings
To set a 'Lead time' for an individual supplier, follow these steps.
Go to " Accounts Purchase Ledger Supplier File Maintenance Add or Edit Supplier".
Go to the [Ordering] tab.
- Set the 'Lead time' for this supplier. This is the expected time in days from placing an order to stock delivery, for the selected supplier and will over-ride the system setting above.
Individual Stock Items
To set a 'Lead time' for an individual stock item, follow these steps.
Go to " Stock Control Add or Edit Stock Items". Go to the [Suppliers] tab.
- Set the 'Lead time' for this stock item from this supplier.
Usage
When you use the Stock Reordering program, it will only recommend ordering stock lines conforming to "Just in Time" requirements and your holding of un-necessary stock will be minimised thus minimising your financial investment in that stock.
With the "Just in Time" ordering set up, the system will first check the Individual Stock Item setting; if this is set to '0', it will fall back to the Individual Supplier setting; if this is set to '0', it will fall back to the System Setting for "Default order lead time".
 | Warning: Please be aware that it is not a perfect world and that there will be an inevitable level of failure and variability within your supply chain so "Just in Time" ordering will minimise your holding in stock but may also lead to failure to supply your customers because of problems with your suppliers. |
See also
