Vendor Managed Inventory Portal B2B—Exercises

This exercise describes how to demonstrate the business-to-business (B2B), vendor-managed inventory (VMI) process of IFS Applications in conjunction with the portal/portlet web interface.

The Basic Data Setup section presents detailed work instructions on how to set up the basic data required for running the scenario, while the Required Data section describes how to build up a data history to support the scenario.

The Configuration - Portal and Portlets section briefly describes how to configure the web portal and each portlet used in this scenario.

Finally, the Main Exercise section offers a step-by-step guide through the VMI scenario from the supplier perspective.

Please note that all mentioned and shown dates need to be replaced as shown below:
11.06.2008 = Sysdate + 1
12.06.2008 = SysDate (the date on which the scenario is planned to run)
12.06.2008 = Sysdate –1 and so on.

Technical Configuration

To run the VMI process, you need to install several components on the web server. Depending on how comprehensive a solution you would like to run (for example, in a demo scenario), you need to install components in both the business-to-business (B2B) and business-to-employee (B2E) applications on the server.

As a minimum, the following web component has to be installed:

In Purchase Order B2B (PURBBW), all portlets and web pages for the VMI B2B process are available. If you want to mirror the VMI process for the application owner, you can either run the Windows application or the B2E web application. It is recommended to run the B2E application to make use of full VMI functionality. Certain features—such as message entry in the Outside Operator Notes field and information displayed in the Last Updated By column—are not available in the Windows interface. If you choose to run the B2E web application, the following components need to be installed on the web server:

If you wish to run a more extensive flow that includes demand initiated by your customer or subcontractor, you should also include the following components in the installation:

In more complex flows, it is partly necessary to run the Windows application with the Supply Chain and Manufacturing products installed.

Basic Data Setup

Enter Site

Purpose: The purpose of this exercise is to set up the basic data for the default site.

Windows:
Site
 Sites per Users

  1. Create a new site named VMI in the Site window,
  2. Add this site to your user in the Sites per Users window.
  3. Register this site as the default site. Right-click the line and then click Set as Default Site.

General exercise for Entering Site

Enter Inventory Part

Purpose: The purpose of this exercise is to set up the basic data for inventory parts.

Windows:
Inventory Part

  1. Enter an inventory part with the data in the table below, replacing XX with your initials.
Site Part No Part Description Part Type Planner Inventory UoM Purch Lead Time Estimated Material Cost
VMI XX-PART-01 VMI Part 01 Purchase * PCS 3 66

General exercise for Purchased Inventory Part

Enter Supplier

Purpose: The purpose of this exercise is to set up the basic data required for running this particular functionality.

Windows:
Supplier

  1. Create XX-VMI (replacing XX with your initials) as a new supplier for the VMI part, XX-PART-01, in the Supplier window. If you want to use data from an existing supplier, right-click and then click Copy Supplier.
  2. The Copy Existing Supplier window will appear. Enter values in the fields under Copy From and Copy To, and then click OK.
  3. On the Invoice tab, add additional mandatory information in the corresponding fields as indicated below.
Supplier Type Supplier Group Currency Payment Term
External 0 USD 0

General exercise for Supplier Setup

User Details - Define B2B Supplier

Purpose: The purpose of this exercise is to define your user as a business-to-business supplier in IFS Solution Manager.

Windows:
Create User

  1. In the User window, query for your user.
  2. Create a new line in the All Properties tab, enter VENDOR_NO in the Name field and your supplier XX-VMI (replacing XX
  3. In the Create User window, search for your user.
  4. Right-click in the upper part of the window and then click User Properties. The User Properties dialog box opens.
  5. Create a new line.
  6. Enter VENDOR_NO in the Name field and your supplier XX-VMI (replacing XX with your initials) in the Value field.
  7. Close the dialog box.

Note: This setup is done in the IFS Solution Manager.

Supplier for Purchase Part

Purpose: The purpose of this exercise is to set up the basic data required for running this particular functionality.

Windows:
Supplier for Purchase Part

  1. Connect part XX-PART-01 to supplier XX-VMI in the Supplier for Purchase Part window. In the General tab, define the price (66 USD) and also select Consignment if you would like to use consignment.
  2. Click the Inspection Info tab, and in the Receive Case field change the receive case from Receive into arrival to Receive into arrival, Inspect at Arrival. Using the List of Values, select inspection code A.

General exercise for Supplier for Purchase Part

Inventory Locations

Purpose: The purpose of this exercise is to set up the basic data required for running this particular functionality.

Windows:
Inventory Locations

  1. Define two inventory locations for site VMI—one arrival location and one picking location—in the Inventory Locations window.

General exercise for Entering Inventory Location

Required Data

Building a History

Purpose: The purpose of this exercise is to process some purchase orders (POs) and enter demand for the part (XX-PART-01).

Windows:
Purchase Order
 Register Purchase Order Arrivals
 Purchase Order Receipt
 Material Requisition

Create and process three purchase orders with the following data:
PO No.1: Receipt date: 26.07.08.
70 pieces received into Arrival with QA failures: 10 pieces scrapped, 20 pieces returned for credit, 40 pieces received into Inventory and PO closed
PO No.2: Planned receipt date: 02.08.08.
50 pieces received into Arrival with QA failures: 20 pieces scrapped, 30 pieces received into Inventory and PO closed
PO No.3: Receipt date: 03.08.08.
80 pieces received into Arrival with no QA failures

  1. First, you need to enter the purchase order in the Purchase Order window. Create a new record and select XX-VMI as your supplier from the List of Values. Define the receipt date, i.e., 26.07.2008, and save the order header.
  2. Create a new record at the line level, select your part from the List of Values, specify a quantity of 70, and then save the record. Now release the purchase order by right-clicking and then clicking Release.
  3. Receive the purchase order into the arrival location in the Register Purchase Order Arrivals window. Select the line with your purchase order, right-click, and then click Receive Order.
  4. The Receive window appears. Enter the arrival location and click OK.
  5. Complete the receiving process in the Purchase Order Receipt window. Query for your order, right-click, and then click Register Inspection Results. The Register Result window will appear.
  6. Create a new record, enter the desired quantity to be scrapped (10 pieces), and select a scrap cause from the List of Values. Then click Apply.
  7. Click the Return tab. Create a new record, enter the quantity to be returned (20 pieces), and select a return reason from the List of Values. Also change the return type to Return Credit. Then click OK.
  8. Now move the remaining 40 pieces into your picking location by clicking on the Single tab, right-click the line and then click Move to One Location. The Move Purchase Order Receipt window opens.
  9. Finally, select the destination location (i.e., the picking location) from the List of Values and click OK.
  10. Repeat the process for the other two purchase orders.

General exercise for Entering Purchase Order
General exercise for Handling Purchase Order
General exercise for Reporting Arrival
General exercise for Handling Quality Inspection

Create a material requisition with two material requisition lines for your part:
Line 1: Need date: 02.07.08. Quantity: 120 pieces
Line 2: Need date: 05.07.08. Quantity: 100 pieces

  1. Enter a new material requisition in the Material Requisition window. Create a new record and select an internal customer from the List of Values. Save the requisition header.
  2. Now enter two new requisition lines for your part (XX-PART-01) with need dates of 02.07.08 and 05.07.08, respectively, and due quantities of 120 and 100 pieces, respectively.

General exercise for Enter Material Requisition

Configuration—Portal and Portlets

Purpose: When you first log on to the portal using your user name, you may have to configure the portal in order to show the required portals.

General Configuration Portal

In the main web portal, click Configuration in the header.

The configuration page allows you to define the layout and content of the portal. More specifically, it allows you to determine how many columns you want to use for displaying the portlets and which portlets you want to display.

For most of the roles, two or three columns with a column width of 288 each are recommended. If you use three columns, the right column should be used for general portlets.

The Add portlet list contains the available portlets based on your security profile. Select the appropriate portlets for the role and click Add. Now define the column(s) in the Number of columns field. Also define the order of the selected portlets in each column by using the directional arrows (Move to left, Move to right).

For more information on portal configuration, click Help in the header.

Configuration of Portlets

The following portlets will be used for the VMI exercises:

Apart from the portlets given above, the following portlets are recommended to be included in a VMI portal:

Purchase Parts VMI B2B Portlets

Use the Purchase Parts VMI B2B portlet to view parts at the location of the customer that you are responsible for. Since the system allows you to have a different part number and part description, the portlet displays your part number and part description together with the customer's part number and part description. You can limit the number of parts displayed in the portlet by entering search criteria in the portlet customization.

On each part line an action command is available. Clicking this VMI Portal View command will populate all VMI portlets with the current part. A prerequisite for this is that the portlet has a part number search field in its customization page. The part number is sent as a global variable to the current VMI portal you have chosen to install your purchase part VMI portlet in. If you wish to reset the portal, use the Refresh Portal link available after you have activated the global variable. This will populate each portlet with its original setting.

To determine if a global variable (like the part number) is activated or not, see the portal main frame. If a part number is activated, the current part number is displayed in the portal header. If not, nothing but the current portal name is displayed.

Future Demand Details B2B and Future Demand Graph B2B Portlets

Configure the Future Demand Details B2B portlet by selecting your site and part and by defining a time frame.

Site Part No From Current Date To Current Date
VMI XX-PART-01 20 40

If you use a planning method on your inventory part that enables you to define a safety stock and/or an order point, you can optionally choose to display those levels in the Future Demand Graph B2B portlet. To do so, select the Display Safety Stock Level and Display Order Point Level check boxes in the portlet configuration.

Inventory Part/Planning Data

Purchase Orders B2B Portlet

Select the states for the purchase orders that are to be displayed in the portlet:

Register/Update Order/Shipment B2B Portlet

This portlet does not have to be configured.

Quality Statistics Graph B2B and Quality Statistics B2B Portlets

You can customize the Quality Statistics Graph B2B portlet to display, for instance, quantities per shipment in pieces or in parts per million (this information can alternatively be displayed in cumulative quantities). You can also set the diagram to cover any chosen time period with a maximum of one year.

In the Quality Statistics B2B portlet configuration, choose your part and your site.

Main Exercise

Purpose: The purpose of this lesson is to offer a step-by-step guide through the VMI process from the supplier's perspective.

VMI Process Description from the Supplier Perspective

The following scenario assumes that you are a VMI supplier for your part (XX-PART-01). By using the Purchase Part VMI B2B portlet you can, within the same portal, switch between parts available on your VMI site.

  1. Log on to your B2B portal with your user name and password.
  2. Check the demand and supply for your part (XX-PART-01) in the Future Demand Details B2B and/or Future Demand Graph B2B portlet.
  3. Determine if and when a new supply is necessary. (Demand/supply should show that a new supply of at least 70 pieces is needed before 2008-07-05.) By analyzing the Qty Onhand and the Safety Stock /Order Point levels, the supplier could get a more accurate picture of the quantity to supply.
  4. Create a new purchase order in the Register/Update/Order Shipment B2B portlet by clicking Enter.
  5. When registering a new purchase order header, you need to define the receipt date. (You can also enter information in the other fields, but those are not mandatory.) Click Save & Return after you have entered the data.
  6. The Wizard Purchase Order appears. Now you are able to enter the purchase order lines. Click View Parts to see the parts that are available for the customer.
  7. Select the purchase part you would like to use and click Create Lines. If the supplier used a part number that differed from that of the buyer, this would be indicated in the Supplier Part No field.
  8. Now enter the desired quantity (100) and click Finish.
  9. Click OK to finish the purchase order registration.
  10. Click Update in the header and evaluate the demand/supply again. Now you have to confirm the delivery date. In the Purchase Orders B2B portlet, select your latest order in Planned state and click Actions. Click Confirm. In the Future Demand Details B2B portlet, the supplier could view the updated Qty Onhand after the latest purchase order has been added.
  11. If the agreement between the supplier and the buyer stipulates that, for instance, the buyer is to confirm or release the purchase order, the supplier could monitor adherence using the Register/Update Order/Shipment B2B portlet.
  12. In addition, the buyer can view who has made the latest changes in the purchase order in a corresponding page in the business-to-employee (B2E) application. In this case, we (as the supplier) confirm the purchase order by clicking Actions in the upper right-hand corner and then clicking Confirm. The Last Updated By field will be updated to Supplier (assuming the buyer made the previous change).
  13. When the supplier has shipped the purchase order, he or she can optionally send an event server message by e-mail to the buyer (or any other available communication method supported by IFS Applications). To do so, click the purchase order line and then click Shipment Notification.
  14. In the VMI process, you can monitor the quality of each VMI part. For this purpose, the two portlets Quality Statistics Graph B2B and Quality Statistics B2B are available: one graph portlet and one portlet displaying the quality statistics per order.