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Inventory Stocked for Customer

  • 1.  Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    Hello,

    We are using NAV 2015 and are in the process of installing Jet Analytics.

    A few notes about our company.  We are a manufacturer and distribution company, with five warehouses scattered across the US.  We utilize stockkeeping units and item cross references, but are not currently using variant codes (we are open to the idea).

    We have agreements with some customers to stock consigned inventory at their location and invoice them when they use the product.  We also stock product at our facilities for those specific customers and other customers we do not consign inventory for.  A new customer we do not consign inventory for, is requesting to see what inventory we have on hand at our warehouses specifically for them.  In the past, we have used a different location code, but moved away from this process several years ago due to the number of location codes that would be required and expanding to multiple warehouses.

    Is there a good way to track and report in NAV what inventory we have in stock at our warehouses for a specific customer?

    Thank you,

    ------------------------------
    Kristina Frank
    Controller
    Cline Tool & Services
    Newton IA
    ------------------------------


  • 2.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    Kristina,

    It sounds like you have moved away from the suggestion I would make utilizing the Location Codes.  With the ability to have pre-filtered lists, I would think the long list of Locations wouldn't cause much burden on the Users.

    Anyway, I am curious to see how other people handle this without using Locations.

    ------------------------------
    Ben Baxter
    Consultant
    Accent Software, Inc.
    carmel IN
    ------------------------------



  • 3.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    I too would have suggested separate locations.  I suppose if you could logistically assign specific bins within a location, that could work too if it would make inventory transactions any easier for you.

    ------------------------------
    Lewis Rosenberg
    IT Manager
    Mars Fishcare
    Chalfont PA
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    ------------------------------



  • 4.  RE: Inventory Stocked for Customer

    Posted 24 days ago
    Kristina,

    how do you segregate and define the inventory physically available to a specific customer? Is the same inventory available to any other customer or is there a time limit by which this customer has to buy all the inventory allotted to them?

    A simple way to allocate inventory  for a specific customer would be using reservations by creating a Sales Order and reserve the item quantity on it.


    ------------------------------
    Sebastjan Leban
    Talking Rain Beverage Company
    Preston WA
    ------------------------------



  • 5.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    Make that 3 votes for locations; it's what I've always done for these types of situations. You can run physical inventory easily by location, you invoice your customer out of their location.

    I've not tried to use bins in the same manner but that might work virtually the same way as locations. The downside here might be the fact that you will have to track bins for everything in that specific warehouse. But if you used CUST as the warehouse code and require bins for that location, you would reduce the list of locations and still be able to track the customer inventory at the bin level.

    I would stay away from variants, we are still missing the ability to require a variant when desired. This then allows users to miss populating that field and thus your data is not accurate.

    As with anything new, make sure you setup and test in a copy of your company or in your sandbox database.

    ------------------------------
    Kim Dallefeld
    Kim@Dallefeld.com
    Dallefeld Consulting, LLC
    Member of Dynamics Consulting Group
    Ft. Worth, TX
    2019 NAVUG Board of Advisors
    Past NAVUG Board Chairman
    NAVUG Programming Committee
    ------------------------------



  • 6.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    My first question would be whether these are items which you stock regardless of the customer.  If the items are specific for the customer, using a different Customer Posting Group for those items would help differentiate the items.  If these are items you stock for other or for yourself, then reserving them against a sales order or using lot numbers may also be an option.

    ------------------------------
    David Wiser
    Project Manager
    Tigunia
    Seattle WA
    ------------------------------



  • 7.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 24 days ago
    I agree with others, we've used Locations as well for consignment. We did this in the jewelry business.

    ------------------------------
    Kristoffer Ruyeras
    Solutions Architect
    Tigunia
    Seattle, WA
    ------------------------------



  • 8.  RE: Inventory Stocked for Customer

    SILVER CONTRIBUTOR
    Posted 22 days ago
    Hi,
    We also have all kinds of consignment.
    It depends on what you need it fore.
    For the items which are part of stock we can sell (in the main warehouse), we have use the Global Dimension 2.
    This is available in the Value Entries and so we can make a report of Sales. Each supplier has their own Global Dimension 2 (as a kind of brand).

    If the stock is physical separated we work with 'External' Warehouses (Locations in NAV).
    For each dealer (in our case) we create in Bin with code CST-999999, where 999999 is the customer code.
    As soon as they sell Items we create a sales order with the correct location and Bin Code (the Bin Code is customized).
    As all the stock for one dealer is in 1 Bin Code, we can easily make a stock overview.
    Stock moves with a transfer from the main warehouse to the External Warehouse, with a some customization.

    ------------------------------
    Annette van der Muur
    Application Manager
    Hal Leonard Corporation
    ------------------------------



  • 9.  RE: Inventory Stocked for Customer

    NAVUG ALL STAR
    Posted 22 days ago
    @Kristina Frank

    I also would have suggested separate locations. Given that you have concerns with the number of locations you would have due to this type of activity, I would consider the suggestion of using customer specific bins inside a Customer Warehouse. A few questions, which I believe have been asked or alluded to previously:

    1.​ Do you actually segregate the inventory physically?
    2. If so, is your physical location setup so that you can label bins or areas to specific Customers?
    3. What happens when another Customer orders the same item and you have no other inventory on hand?
    4. Specifically for the new Customer - if it is not consigned inventory, what is their expectation for you to be able to hold inventory just for them?

    Good luck!

    ------------------------------
    Amanda Mayer
    New View Strategies
    Milwaukee WI
    ------------------------------



  • 10.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 21 days ago
    I too agree that locations is the easiest way to go. It really makes doing inventories much easier. It almost makes things easier for our Accounting Department.

    ------------------------------
    Gregory Alford
    Director of Technical Resources
    Tri Star Metals LLC
    Carol Stream IL
    ------------------------------



  • 11.  RE: Inventory Stocked for Customer

    SILVER CONTRIBUTOR
    Posted 21 days ago
    We have used different locations when the goods are physically out of our control at the consignment customer.  If you have inventory that is a special version of an item that is only suitable for a specific customer, we have used both unique item codes and variant codes.  If the BOM is unique, a unique item is better, but if it is just a special packaging format or a unique color, a variant may be ok.

    Our system has a "Require Variant" checkbox, but that may be a customization.  Once checked, you cannot process any inventory transactions on that item without a variant code.

    If you are selling the exact same item to multiple customers, and they all want to have stock set aside for them, unique bins in a single location could work.  You would need some training and controls on the pick process to ensure that inventory is pulled from the correct bins for each order.  Reservations against a sales order can also be used hold stock for each customer.

    ------------------------------
    Eric Moe
    Global Supply Chain Manager
    Industrial Revolution
    Tukwila WA
    ------------------------------



  • 12.  RE: Inventory Stocked for Customer

    TOP CONTRIBUTOR
    Posted 21 days ago
    Thank you to everyone who has replied to his post.  I appreciate everyone sharing their knowledge and past experience.

    We have product stocked for specific customers, but we have sold the stock to other customers.

    We also have product stocked for a customer with contract pricing for that specific customer.  In this situation, a new item number is created and the inventory is segregated in our warehouse from stock of the same item purchased at a standard price.  This item can only be sold to a specific customer because we have a contract withe the vendor and customer.

    Our new customer is pro-active in managing their inventory.  We do not have a contractual agreement to stock inventory, only the guarantee we will not shut the plant down.  The request is more focused on items with long lead times and custom made product, but also wanting to know if they order 100 pieces of an item, we have it in stock.

    To give everyone an idea, we were nervous to introduce multiple NAV locations for product shipping from one facility.  We want to make this easy to report as well as not complicate our order writing process.  Based on everyone's feedback, we are looking at locations again and may have to introduce a "culture" change within our organization.

    Bins may be another option...

    Thank you for the feedback and I look forward thinking through this creatively with our community.

    ------------------------------
    Kristina Frank
    Controller
    Cline Tool & Services
    Newton IA
    ------------------------------



  • 13.  RE: Inventory Stocked for Customer

    Posted 21 days ago
    Hi Kristina,

    I appreciate you sharing your challenges with segregating and reporting on inventory that you own, from inventory that your customers own at multiple locations spread across the U.S.

    That can be quite a challenge and at some point you run into the limitations of working solely within NAV.  You may not be at this point yet, but when you are ready it might be worth exploring an ISV external system with real-time integration to NAV such as WithoutWire.

    WithoutWire is an inventory management system built to handle inventory tracking at multiple locations with VMI or consigned ownership designations.  We provide security controlled access through our portal to satisfy Customer requirements for read-only visibility.  And the best part can be that we do not require a one-to-one match of sites in NAV and sites in WithoutWire.  The primary advantage being that you can solve supply chain inventory tracking, movement and reporting visibility challenges without complicating accounting best practices!

    https://withoutwire.com/micro-inventory-sites/

    Do not hesitate to reach out if you are interested in learning more!

    My Best,

    Steve
    612-343-0404 x109

    ------------------------------
    Steve Dwyer
    VP Sales and Marketing
    WithoutWire Inventory Sciences
    Minneapolis MN
    ------------------------------



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