Direct material supply (DMS)

Direct material supply (DMS) is a supply method in which (pending) receipts and available inventory on hand are used to meet high-priority demand within a user-specific cluster of warehouses.

Based on the DMS upon Receipt or DMS upon SFC Receipt setting in the Warehouse - Item (whwmd2510m000) session, you can run DMS in several ways:

  • Automatically

    After confirmation of a receipt line, DMS runs automatically.

  • Interactively

    After confirmation of a receipt line or reporting of an operation complete, the Direct Material Supply Distribution (whinh6130m000) session starts. In this session, users can change priorities and quantities for distribution before approving and processing.

  • Manually

    After receipt confirmation, users can start the Direct Material Supply Distribution (whinh6130m000) session from the following sessions:

    • Receipt Lines Awaiting Direct Material Supply (whinh3512m300)
    • Inspection Lines Awaiting Direct Material Supply (whinh3522m300)
Note

In case of multiple receipt lines, DMS is carried out for each receipt line, starting with the first line that qualifies for DMS.

Meeting demand

To meet demand, DMS uses two of the following main resources:

  • Receipts

    If demand is from the same warehouse, received goods are either cross-docked if the inventory is urgently required, or put away temporarily.

    If demand is from another warehouse, received goods can be transferred to the other warehouse by creating a transfer order and cross-docking the received goods for the transfer order.

  • On hand inventory

    If demand is from the same warehouse, available inventory can be outbounded if the inventory is urgently required.

    If demand is from another warehouse, available inventory can be transferred to that warehouse by creating a transfer order and outbounding the available inventory for the transfer.

For more information, refer to DMS and demand.

Supply flows example
The following figure shows possible supply flows to meet demand.
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In this example, receipt R1 will be put away and receipt R2 is used to meet demand.

Demand can be local (D1 and D2), and can be from other warehouses (D3 and D4). If local demand is outside a predefined time fence, this demand will not be taken into account yet. This is the case with demand D1.

Receipt R2 is used to meet demand D2, D3 and D4. D2 is local demand, so a cross-dock order C1 will be created and processed.

Demand D3 and D4 are from another warehouse (WH2), so a transfer order T1 and related cross-dock order C2 are created and processed. In destination warehouse WH2, a cross-dock order C3 is created for demand D4. No cross-dock order is created yet for demand D3, because this demand is still outside the time fence.

Inventory I2 is used for demand D2 by creating outbound advice O1.

Warehouse WH1 is the warehouse that will be used for DMS planning. This planning assigns receipts and available inventory to specific demand.

Planning

DMS planning can be run at various points in time:

  • During SFC operations
    DMS can be run automatically after reporting of an operation complete to show current demand and the distribution of supply. Without generating any cross-dock orders and/or transfer orders yet, DMS, in this way, offers a preview of the DMS run during or after receipt.
  • During warehouse receipts
    Based on the actual receipt quantity, demand can be met by creating transfer orders and cross-dock orders. In addition, available inventory can be taken into account at the time of actual receipt.
  • After warehouse receipts

    Using one of the following sessions, in which confirmed but not yet processed receipts can be selected for DMS planning:

    • Receipt Lines Awaiting Direct Material Supply (whinh3512m300)
    • Inspection Lines Awaiting Direct Material Supply (whinh3522m300)
  • During outbound advice
    Using the Generate Outbound Advice (whinh4201m000) session, DMS planning can be applied to a range of item-warehouse combinations for which the DMS on Inventory parameter is set.
  • Any time
    Using the Warehouse - Item Inventory (whwmd2515m000) session, DMS planning can be applied to a range of item-warehouse combinations for which the DMS on Inventory parameter is set.

For more information, refer to DMS planning and processing.

Setup questions and related parameter settings

As the supply flows example illustrates, using DMS requires answering a number of setup questions. The following table aims to help your organization answer these questions.

Setup questionParameter setting or solution
Will this warehouse be used for DMS planning?

On warehouse level:

  • DMS Supplied
Will this item be used for DMS planning in this warehouse?

On warehouse-item level:

  • DMS Supplied
  • DMS upon Receipt
  • DMS upon SFC Receipt
  • DMS on Inventory
When will DMS planning be triggered for this item and warehouse?

On warehouse-item level:

  • DMS upon Receipt
  • DMS upon SFC Receipt
  • DMS on Inventory
How will DMS planning be triggered for this item and warehouse?

On warehouse-item level:

  • DMS upon Receipt
  • DMS upon SFC Receipt
  • DMS on Inventory
From which warehouses should demand be taken into account?Use the Warehouse Supply Structures (whinh6140m000) session to define warehouse supply structure relationships.
Which types of demand should be taken into account?

On warehouse-item level:

  • DMS upon Receipt Demand Type
  • DMS on Inventory Demand Type
Which demand should be met first?Use the Priority Definitions (whinh6120m000) session to define planning priority rules.
Which demand is outside the planning horizon?

On warehouse-item level:

  • Planning Horizon for DMS upon Receipt
  • Planning Horizon for DMS on Inventory
Will DMS planning be run during SFC operations?

In SFC:

  • DMS on Completion

 

For more information, refer to DMS settings and master data.

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