| | Direct Material SupplyDirect material supply (DMS) is a supply method that uses
pending receipts and available inventory on hand to meet high priority demand.
This method is followed within a cluster of warehouses specific to a user. In
DMS, goods are directly shipped to the customer warehouse from the supplier
instead of the own warehouse. The direct material supply concept implies that goods received from suppliers or
produced in manufacturing shops move directly to their point of consumption
without storing it in a storage warehouse. DMS uses the Cross-docking concept
to avoid storage of goods in the warehouse, and the Warehouse Transfer Order
concept to move the goods directly to the point of consumption, which is
usually another warehouse. Direct material supply (DMS) can be run in these
ways: - Automatically
- Interactively
- Manually
Warehouse supply structures are defined for Direct material supply, a user-specific cluster of warehouses, which consists
of one or more supply warehouses and a number of destination warehouses. Before
using Direct material supply, at least one warehouse supply structure must be
defined. If you use Direct
material supply (DMS), you can define planning priority rules for
cross-docking. These rules specify conditions that can be applied to a specific
situation and a specific order, and result in a priority figure when applied to
a specific order. Aggregating the priority figures of all applicable priority
rules results in a planning priority, which in turn is used as the system priority. The Direct material supply (DMS) orders require proper
planning to ship the goods directly to the customer from the supplier instead
of supplier's own warehouse. The received goods are either cross-docked to the
customer if urgently required, or put away temporarily. LN supports these
methods of DMS planning: - DMS upon receipt
- DMS upon SFC receipt
- DMS on inventory
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