Clickable Business Models eBusiness Education Acronyms Cross References
B2B Content Standards EC Technology Standards Glossary Implementation Guidelines
Implementation Options General Recommendations References Methodology/Legends
 Home | Copyright Notice and Legal Disclaimers | Navigation Help | Tour! | Downloads | Contact Us | Site Index | Search
 Replenishment Scenarios Index | Supporting Documentation | Downloads | FAQs |
EIDX Replenishment Scenarios - Supporting Documentation

General Information and Considerations

Special Notes:   

See also Component Models:


Recommendations on Which Process to Use

Taking into consideration the information discussed above, EIDX makes the following recommendations for the application of forecast/planning and replenishment models:

Planning Forecast (Replenishment Model 1 - Planning Forecast with Discrete Purchase Order)

Material Release (Classic) (Replenishment Model 2 - Planning Forecast with Discrete Release Against BPO) or Embedded Release (Replenishment Model 3 - Planning Forecast with Embedded Release Against BPO)

Classic Material Release vs. Embedded Release
Classic Material Release, which involves the use of discrete releases, should be considered if one or more of the following conditions apply:

  • When Releases are more frequent than weekly or when more precise ship schedule requirements are needed than allowed in 830/DELFOR
    • Daily shipments
    • JIT - specific time of day specified
    • Specific location within a ship-to address
    • Bar-code / label data needs to be conveyed
  • Contractual terms are such that forecast files do not imply authorization to ship (a discrete release must be issued per contract)
  • When the forecast is a consolidated (corporate) forecast, not segregated by forecast-type, ship-to location, etc.
  • If the trading partner’s system cannot process releases embedded within the material release forecast file (it can be processed by the planning system but can't be processed by the open order or shipping system)

Unless the above conditions apply, Embedded Release is recommended. It is more efficient, and saves on transmission and processing costs.


Forecast-Based SMI (Supplier Managed Inventory) (Replenishment Model 4 - Forecast-based SMI)

Things to Consider When Choosing a Replenishment Process

The choice of whether to use a replenishment process, and if so, which one, may depend on any one of the following:


Summary Comparison of Methodologies

 

Planning
Forecast

Classic Material Release

Embedded Release

Forecast-based Supplier-Managed Inventory

Seller determines replenishment requirements

No

No

No

Yes

Forecasted demand is net of inventory on-hand

Yes

Yes

Yes

No

Minimum and maximum inventory targets set

No

No

No

Yes

Blanket purchase order used

No

Yes

Yes

Yes

Stand-alone (Discrete) purchase orders used

Yes

No

No

No

Discrete releases against blanket orders used

No

Yes

No

No

Releases embedded in forecast file

No

No

Yes

No

Ship notices required

No

No

No

Yes

Products have stable demand

May or may not

Recommended

Recommended

Recommended

Products suitable for long-term contractual commitment

May or may not

Recommended

Recommended

Recommended

Suitable for environment where shipments for a single product are daily or more often

No

Yes

No

Yes

Use for multi-source products

Yes

Yes

Yes

Not recommended

Complexity of technical testing and implementation for supplier with integrated systems

N/A

High

High

Very High

Complexity of technical testing and for suppliers with PC-based systems

N/A

Med

Med

Med

Complexity of business implementation for the buyer

Low

High

High

High

Complexity of business implementation for the supplier

N/A

High

High

High

 


Last updated 24 February 2003