Performing supply planning for your customer - Procedure

This topic describes the supplier's side of the procedure for planning an item for a customer, starting with the receipt of a forecast, and up to the replenishment of the inventory at the customer's site.

For an overview of the plan during all steps of the procedure, use the Item Customer Plan-Find (cpvmi0520m000) session.

This is a description of the most comprehensive variant of the procedure. Depending on the parameter settings, you can skip certain steps.

Step 1.  Forecast by Revision from Customer (cpvmi0506m100)

If in the Terms and Conditions Line (tctrm1620m000) session, on the Planning tab, the Forecast received from Customer check box is selected in the relevant terms and conditions agreement, your customer sends you messages that contain the forecast by using the Planning Schedule BOD.

If your customer sends you another revision of the forecast, you can use the Forecast by Revision from Customer (cpvmi0506m100) session to inspect this revision.

To enter forecast data received by fax or mail, use the Forecast from Customer (cpvmi0107m000) session. (Usually, however, the forecast is received automatically in LN by electronic messaging).

Step 2.  Accept Forecast from Customer (cpvmi0206m000)

Until you accept a forecast revision, the planning process does not take the revision into account.

To accept the forecasts, use one of the following methods:

  • To accept all received forecast automatically without checking, in the Planning Parameters (cprpd0100m000) session, select the Automatic Accept Forecast check box.
  • To accept the forecast for a range of items, use the Accept Forecast from Customer (cpvmi0206m000) session. To exclude revisions that do not comply with the agreed frozen zone- or frozen zone+, clear the Accept Forecast changes in Frozen Zone check box.
  • To accept a forecast for one particular item, start the Forecast by Revision from Customer (cpvmi0506m100) session, find the item and the revision, and click Accept Forecast. If the revision does not comply with the agreed frozen zone- or frozen zone+, LN asks you whether you accept the deviations.

If in the Terms and Conditions Line (tctrm1620m000) session, on the Planning tab, the Confirm Supply check box is cleared in the relevant terms and conditions agreement, skip the following steps and proceed with step 7, Generate Order Planning (cprrp1210m000).

Step 3.  Generate Planned Supply based on Forecast (cpvmi1211m000)

If in the Terms and Conditions Line (tctrm1620m000) session, the Confirm Supply check box is selected, generate planned orders for plan items for your customer by using the Generate Planned Supply based on Forecast (cpvmi1211m000) session.

Note: The planning cluster segment of the item code must be the planning cluster associated with the warehouse located at your customer's location. The VMI Relation field in the Items - Planning (cprpd1100m000) session must be Create Supplier Forecast.

Step 4.  Generate Confirmed Supply (cpvmi1210m000)

If in the Terms and Conditions Line (tctrm1620m000) session, on the Planning tab, the Confirm Supply check box is selected in the relevant terms and conditions agreement, you must send the customer messages that contain the confirmed supply.

To generate the confirmed supply, use the Generate Confirmed Supply (cpvmi1210m000) session. LN bases the confirmed supply on the planned orders generated in the previous step.

Step 5.  Confirmed Supply to Customer (cpvmi0108m000)

To check and adjust the confirmed supply manually, use the Confirmed Supply to Customer (cpvmi0108m000) session.

The Confirm Supply Horizon field in the Planning Terms and Conditions (tctrm1135m000) session determines for how many days you must guarantee the deliveries specified in the confirmed-supply message.

Step 6.  Approve Confirmed Supply to Customer (cpvmi0208m000)

Before the LN sends the confirmed-supply message to the customer, you must approve it.

To approve the confirmed supply, use one of the following methods:

  • To approve the confirmed supply for a range of items, use the Approve Confirmed Supply to Customer (cpvmi0208m000) session. Specify which checks the session must apply before approving the confirmed supply.
  • To approve the confirmed supply for one particular item, start the Confirmed Supply to Customer (cpvmi0108m000) session, find the item and the revision, and click Approve.
Step 7.  Send Confirmed Supply to Customer (cpvmi0208m100)

To send the confirmed supply, use the Send Confirmed Supply to Customer (cpvmi0208m100) session.

To send the confirmed supply to the customer, use one of the following methods:

  • Using Business Object Documents (BOD)
    Under Send Method, select Publish or Print and Publish.
  • Not controlled by LN
    Under Send Method, select Print. LN does not send the information. You must take care of that by other means, for example fax.
Step 8.  Generate Order Planning (cprrp1210m000)

After you generated and approved the confirmed supply, you must plan the item supply. To plan the item supply, use the Generate Order Planning (cprrp1210m000) session. The planning process takes the relevant terms and conditions agreement into account. The Planning Based On field in the Planning Terms and Conditions (tctrm1135m000) session determines the method to plan the item.

Step 9.  Item Customer Plan (cpvmi0520m000)

To view the result of the planning, use the Item Customer Plan-Find (cpvmi0520m000) session. The item customer plan displays demand and supply for a specific customer, whereas the item order plan displays demand and supply from all suppliers or customers.

Step 10.  Transfer Order Planning (cppat1210m000)

To turn planned orders into actual production orders, purchase orders, and warehouse transfers, use the Transfer Order Planning (cppat1210m000) session. Depending on the value of the Replenishment Based On field in the Planning Terms and Conditions (tctrm1135m000) session, some planned orders are marked as Not to be released and are blocked from transfer to the execution level.

LN turns planned distribution orders for shipments to the customer warehouse into either warehouse transfers or sales transfers. The Transfer Type field in the Order Terms and Conditions (tctrm1130m000) session in the applicable terms and conditions agreement determines the type of transfer used.

Reviewing historic data

To display an overview of all stored revisions of forecast and confirmed supply, use the Forecast Revisions from Customer (cpvmi0506m000) session and double-click a revision to display the details.

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