Distribution Order

A distribution order is used for movement between warehouses. The warehouses can belong to the same or different divisions (legal units). Distribution orders use stock transaction type 51='Distribution order issue'.

Distribution order lines can also be directly assigned to supply specific demand order lines such as a customer order line. Distribution orders are used for warehouses that have a supplying warehouse from which deliveries are made.

The distribution order type defines how the orders are processed.

Outcome

A distribution order results in these movement between warehouses:

  • Movement between warehouses by automatically created order proposals is generated by the MRP or DRP run. For multilevel distribution networks, this process can continue down through the various levels of regional warehouses.
  • The warehouses can be placed in the same facility or they can belong to different facilities.
  • The facilities can also belong to the same division or to different divisions. If the facilities belong to different divisions, M3 Multiple Unit Coordination (MUC) is used.

As part of the process, these M3 tables are updated:

  • All physical stock transactions are stored in the MITTRA table
  • The distribution order uses the MGHEAD and MGLINE tables
  • The distribution order type is stored in the MGTYPE table.

Before you start

The conditions in Basic Settings for Requisition and Distribution Order and Settings for Distribution Orders and must be fulfilled.

Description

M3 Distribution Order Processing enables you to control the flow of material across your entire hierarchy of distribution warehouses, such as to and from central warehouses, subcontractors and other manufacturing companies. It is specially designed for a diversified environment and is therefore highly configurable. Aside from being directly related to warehouse management and transportation planning, it automatically handles financial and statistical transactions as an integral part of the process.

M3 Distribution Order Processing also enables you to execute continuous replenishment programs for your entire warehouse network.

The distribution calendar controls all your planning and scheduling. In addition to the valid days for inter-warehouse transfers, and includes transportation lead time for each delivery method between warehouses. To optimize transportation costs, M3 can include orders likely to be delivered within a certain time period on the same delivery.

M3 workflow for distribution order - Enter, allocate, and dispatch

  1. Distribution order proposals are specified in 'Planned Distribut Order. Open' (DPS170). Proposals are created by an MRP or DRP run, or are specified manually. Releases of the proposals into distribution orders are done here.

  2. An order header is created in 'Req/Distr Order. Open' (MMS100).

  3. Order lines are created in 'Req/Distr Order. Open Lines' (MMS101).

  4. A quick entry, which enables you to specify all needed data on only one panel, is done on the (MMS100/N) panel. The N-panel must be selected as the opening panel.

  5. Delivery addresses are connected in 'Req/Distr Order. Connect Delivery Addr' (MMS110).

  6. Allocation can be automatic or manual, and set up in several ways.

  7. If there is a stock shortage and you cannot allocate the total order quantity, then you can do a pre-allocation. This means that you pre-allocate to an acquisition order that includes the same item numbers as your requisition order (demand order).

  8. The dispatch handling and packing can be automatic or manual, and set up in several ways. This is described in Dispatch Handling.

  9. Adjusting reported quantities is done in 'Picking Correction. Adjust' (MMS429)

  10. If an item is moved from one warehouse in one facility to another warehouse that belongs to another facility, you may want to transfer the costing information to the other facility as well. That transfer is done in 'Distributed Item. Transfer Cost' (DPS290).

M3 workflow for distribution order - Goods receipt at the receiving warehouse

  1. If you know the order number or the delivery number, use 'Goods Receipt DO/RO. Report' (MWS440) to receive the goods on the requisition order.

  2. If you would like to display a list and search for the order or delivery number, use 'Goods Receiving DO/RO. Open Toolbox' (MWS442).

  3. Put-away at a location is done in 'Goods Receiving DO/RO. Report Details' (MWS445).

  4. Search for a suitable location and/or split and put away the quantities at several locations in 'Location. Select' (MMS160).

  5. If there is a stock shortage and the requisition order should be put away at a cross-docking location and allocated to a demand order, then you automatically display 'Cross-Dock Selection Results. Open' (MWS160) when you receive the goods.

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