Distribution Chain
This document explains the concept and the scope of the distribution chain and its relation to the M3 Global CTP concept.
The distribution chain is used to define the internal distribution of goods within a company. In a straightforward customer order scenario, the delivery to customer comes from a warehouse or a manufacturing unit or a specific supplier. But when more extended distribution networks are included, the path from supply to the customer may become more complex. The path may include distribution and reloading at a number of locations before reaching the customer. This path, including a number of warehouses, is defined as the distribution chain.
The distribution chain is defined as a number of warehouse IDs linked in a specific order. Unlike the supply chain, the distribution chain does not include the external links to customer or supplier.
Before you start
The warehouses to be used in the distribution chain must be entered.
Purpose
Use this concept in one of these scenarios:
- To visualize the internal flow from supply to demand when internal distribution is included.
- To calculate lead time correctly through all internal links.
- To initialize distribution orders automatically.
You use the distribution chain when you need to describe scenarios where internal distribution through multiple warehouses is linked directly to a customer order.
The Global CTP is executed during customer order line entry or during customer order simulation. The information in the distribution chain is retrieved at the same time as the information from the supply model lines.
If a specific alternative (supply model line) contains a distribution chain, this information will be used and visualized.
The information is then used to create the proposals.
Outcome
An automatic proposal is created for a customer order and all its linked distribution orders. The internal distribution lead times are automatically taken into account when promising and creating a customer order.
The distribution chain is used as a part of the Global CTP, to support and enhance the order promising and the order fulfillment process. The distribution chain is linked to an entry in 'Supply Model Lines' (MMS059).
A proposal is created showing how a customer request can be supplied when internal distribution is required. The result is stored temporarily in the supply distribution file (CTSUPC), and can be viewed in 'Supply Alternative Management. Open' (CTS100). The information in this file is then used when creating linked distribution orders.