Before K3S can create suggested orders that are accurate, Supplier Organization is required. This wizard will simplify organization if you are new to the system by focusing only on the most common settings needing attention to first organize a supplier.
These steps include:
- Supplier Settings
- Product Settings
- Product Demand
- Order Cycle Analysis
You can use the Supplier Organization Wizard by selecting “Suppliers Not Organized” under the Assigned Tasks from the main menu.
Step 1: Supplier Settings
- Lead Time: The amount of time it takes from when you place the order to when you receive the order.
- Lead Time: Click on the number next to ‘Days from order placed to marked received’ and enter the lead time for this supplier. Going forward, the Lead Time is automatically updated based on receipts each period as you receive shipments.
- Quoted Lead Time From Supplier’ is a reference field that is not used for calculations but to store what a supplier promises and, by default, is set up to display your received date on your purchase order.
- Fixed Cycle: If the supplier is on a Fixed Cycle, it requires an order on a specific day of the week at fixed frequencies every time you order (i.e. every Monday).
- Bracket Levels: A minimum or maximum buying constraint placed on a purchase order for a particular type of unit (cost, volume, weight, pallet, counter, Other…).
- The bracket level is a constraint or requirement you must meet to create an order for a supplier. Click the ‘Add Level’ button to add a bracket level if it isn’t added and selected yet. Click ‘All Bracket Level Settings’ button if you need to select a different level or do more Bracket Level Settings maintenance.
- If your bracket level is based on counting pallets, layers, cases, or something similar you will use the Counter option. For example: If your supplier requires 10 pallets you will set the unit to Counter and put the value at 10.
Step 2: Product Settings
On this page, you are reviewing the product settings most commonly used for developing orders. When you finish reviewing the settings for this particular product below you will click the next button in the upper right-hand corner. The numbers listed tell you what product you are on and how many total products you need to go through with this supplier.
- Buy Multiple: This tells the system what increments of quantity to buy in for purchase orders. The initial number is pulled over from your ERP System, ERP. If the number from your ERP is incorrect you can adjust below in the K3S Override field. If the K3S Override is set at 0 the number from your ERP is used.
- Current Values: Check and ensure the values being brought over from your ERP are correct. If they are not you may override them in the override field per each value. If the override is set to 0 the value from the ERP is used.
- Counter: If your supplier’s bracket level is based on pallets, layers, cases, or something similar here you will input how this product will be added up to make 1 Counter unit. For example: If your bracket level is 10 pallets and you have set, on supplier settings, the level to be 10 Counters on this product you will set how many products it takes to make one pallet. If it takes 100 products to fill a pallet you will input 100 in the Counter column.
Step 3: Product Demand
On this screen you are reviewing the product history, checking the period average, determining if the products need a seasonal profile and if the product should be forecasted manually by the buyer and not by the system. When you finish reviewing the demand for this particular product below you will click the next button in the upper right-hand corner. The numbers listed tell you what product you are on and how many total products you need to go through with this supplier.
- Product History: Does the history and history graph for this product look correct?
- Product Average: Does the period average for this product look accurate? If history needs adjustment click the ‘Edit History’ button.
- Seasonal Profile: Check to see if this product is seasonal. If the system has detected this product may be seasonal you will see a message in red above the product history that says ‘Possibly Seasonal’. Even if that message is not displayed the product may still be seasonal. Use your best judgment to check and if you believe the product to be seasonal you may apply a seasonal profile by clicking the ‘Create Seasonal Profile’ button.
- Manual Product: Does this product need to be manually bought and not forecasted by the system? If so click the User Status and change to Manual.
Step 4: Order Cycle
In this step, you are choosing the optimal order cycle for your supplier. The Order Cycle setting is used to determine the best strategy for how often you order from the supplier. The optimal order cycle is crucial for an accurately suggested order while lowering costs. The user can automatically calculate a ‘best fit’ order cycle by clicking the best fit button. The center order cycle in the five listed will be the optimal one as determined by the system. When you want to update your order cycle click the number on the left and confirm the update. It is important to confirm the update because it will record the last time you reviewed the Order Cycle for the supplier.
Make sure to update your order cycle to get the date stamp!
After you complete all 4 steps, the supplier will have accurate suggested orders and it will be ready to go.