Author: Kiu Global

When an order goes to the shipping department for final delivery, Kiu BMP  is set up by default to utilize a one-step operation: once all goods are available, they are able to be shipped in a single delivery order. However, your company’s business process may have one or more steps that happen before shipping. In the two steps process, the items in a delivery order are picked in the warehouse and brought to an output location for shipping. The goods are then shipped.

In order to accomplish a Pick + Ship delivery in Kiu BMP , there are a few necessary configuration steps. These steps create an additional location, which by default is called Output. So, if your warehouse’s code is WH this configuration will create a location called WH/ Output. Goods will move from WH/Stock to WH/Output in the first step (picking). Then, they move from WH/Output to WH/Customers (in the case of sales orders) in the second step (shipping).

• Configuration:

• Allow management of routes: Kiu BMP configures movement of delivery orders via the routes. Routes provide a mechanism to chain different actions together. In this case, we will chain the picking step to the shipping step.

To allow management of routes, go to Configuration ‣ Settings.

Ensure that the radio button “Advanced routing of products using rules” is checked.

Click on Apply at the top of the page to save changes (if you needed to check the radio button above).

• Configure warehouse for pick + ship: 

To configure a Pick + Ship move, go to Configuration ‣ Warehouses and edit the warehouse that will be used.

For outgoing shipping , set the option to “Bring goods to output location before shipping (Pick + Ship)”

• Create a sales order

Install the Sale if it is not the case, and create a sales order with some products to deliver.

Notice that we now see 2 transfers associated with this sales order in the Delivery button above the sales order.

 

 

If you click on the 2 Transfers button, you should now see two different pickings, one with a reference PICK to designate the picking process and another with a reference OUT to designate the shipping process.

• Process a delivery

• How to process the picking step? 

Ensure that you have enough product in stock, and go to Inventory and click on the Waiting link under the Pick kanban card.

Click on the picking that you want to process. Click on Reserve to reserve the products if they are available. Click on Validate to complete the move from WH/Stock to WH/Output.

This has completed the picking step and the WH/PICK move should now show Done in the status column at the top of the page. The product has been moved from WH/Stock to WH/Output location, which makes the product available for the next step (Shipping).

• How to process the shipping step?

Go to Inventory and click on the TO DO link under the Delivery Orders kanban card.

Click on the picking that you want to process. Click on Validate to complete the move from WH/Output to the customer (Click Apply to assign the quantities based on the quantities listed in the To Do column). This has completed the shipping step and the WH/OUT move should now show Done in the status column at the top of the page. The product has been shipped to the customer.

 

When an order goes to the shipping department for final delivery, Kiu BMP is set up by default to utilize a one-step operation: once all goods are available, they are able to be shipped in a single delivery order.

• Configuration:

 There is no configuration needed. The default outgoing shipments are configured to be directly delivered from the stock.

    However, if advance routes is activated and you set another shipping configuration on your warehouse, you can set it back to the one-step delivery configuration. Go to Configuration ‣ Warehouses and edit the concerned warehouse.

Set the outgoing shipping as Ship directly from stock (Ship Only)

• Create a sales order

  Create a sales order (From quotation to sales order) with some products to deliver.

  Notice that we now see 1 delivery associated with this sales order in the button above the sales order.

 

 

If you click on the 1 Delivery button, you should now see your picking.

• Process a delivery

Go to Inventory and click on the  TO DO link under the Delivery Orders kanban card.

Click on the picking that you want to process. Click on Validate to complete the move from WH/Stock to the customer. This has completed the Shipping Step and the WH/OUT should now show Done in the status column at the top of the page, which means the product has been shipped to the customer.

Depending on factors such as the type of items you sell, the size of your warehouse, the number of orders you register everyday… the way you handle deliveries to your customers can vary a lot.

 Kiu allows you to handle shipping from your warehouse in 3 different ways:

• One step (shipping): Ship directly from stock
• Two steps (pick + ship): Bring goods to output location before shipping
• Three steps (pick + pack + ship): Make packages into a dedicated location, then bring them to the output location for shipping

 For companies having a rather small warehouse and that do not require high stock of items or don’t sell perishable items, a one step shipping is the simplest solution, as it does not require a lot of configuration and allows to handle orders very quickly.

 Using inventory methods such as FIFO  and FEFO require to have at least two steps to handle a shipment. The picking method will be determined by the removal strategy, and the removed items will then be shipped to the customer. This method is also interesting if you hold larger stocks and especially when the items you stock are big in size.

The three steps system becomes useful in more specific situations, the main one being for handling very large stocks. The items are transferred to a packing area, where they will be assembled by area of destination, and then set to outbound trucks for final delivery to the customers.

Minimum Stock rules and Make to Order have similar consequences but different rules. They should be used depending on your manufacturing and delivery strategies. The choice between the two options is thus dependent on your inventory strategy. If you prefer to have a buffer and always have at least a minimum amount, the minimum stock rule should be used. If you want to reorder your stocks only if your sale is confirmed it is better to use the Make to Order.

• Terminology

     Minimum Stock rules are used to ensure that you always have the minimum amount of a product in stock in order to manufacture your products and/or answer to your customer needs. When the stock level of a product reaches its minimum the system will automatically generate a procurement with the quantity needed to reach the maximum stock level.

      The Make to Order function will trigger a Purchase Order of the amount of the Sales Order related to the product. The system will not check the current stock valuation. This means that a draft purchase order will be generated regardless of the quantity on hand of the product

• Configuration

•       The Minimum Stock Rules configuration is available through the menu Inventory ‣ Inventory Control ‣ Reordering Rule in the drop down menu. There, click on Create to set minimum and maximum stock values for a given product.

Active: If the active field is set to False, it will allow you to hide the orderpoint without removing it.
Product Unit of Measure: Default unit of measure used for all stock operations.
Procurement Group: Moves created through this orderpoint will be put in this procurement group. If none is given, the moves generated by stock rules will be grouped into one big picking.
Minimum Quantity: When the virtual stock goes below the Min Quantity specified for this field, Kiu BMP  generates a procurement to bring the forecasted quantity to the Max Quantity.
Maximum Quantity: When the virtual stock goes below the Min Quantity, Kiu BMP  generates a procurement to bring the forecasted quantity to the Quantity specified as Max Quantity.
Quantity Multiple: The procurement quantity will be rounded up to this multiple. If it is 0, the exact quantity will be used.
Lead Time: Number of days after the orderpoint is triggered to receive the products or to order to the vendor

=> Then, click on your product to access the related product form and, on the Inventory submenu, do not forget to select a supplier.

Note: Don’t forget to select the right product type in the product form. A consumable can not be stocked and will thus not be accounted for in the stock valuation.

•  The Make to Order configuration is available on your product form through your Inventory module ‣ Inventory control ‣ Products (or any other module where products are available).

On the product form, under Inventory, click on Make To Order

Please refer Article 7.5.2 below for detailed instructions.

In order to be able to create new locations, you must allow the system to manage multiple locations. Go to Inventory -> Configuration -> Settings. In the Location & Warehouse section, tick the  Manage several Warehouses, each one composed by several stock locations box, then click on Apply

In the Inventory module, open Configuration ‣ Warehouse Management ‣ Locations In the Locations window, click on Create.

Type the name of the location in the Location Name field, and select the Parent Location in the list. The parent location can be a physical, partner or virtual location, and you can add as many sub-locations as needed to a location.

You can also fill in the Additional Information fields and add a note to describe your location.

=>  When you are finished, click on Save.

Note: A warehouse also corresponds to a locations. As the locations are hierarchical, the system will create the parent location of the warehouse, containing all the sublocation in it

In order to be able to create a new warehouse, you must allow the system to manage multiple locations. Go to Inventory -> Configuration -> Settings. In the Location & Warehouse section, tick the Manage several Warehouses, each one composed by several stock locations box, then click on apply

Open the menu Configuration ‣ Warehouse Management ‣ Warehouses

In the warehouses screen, click on Create. A new screen appears, with 3 fields :

• In Warehouse Name, insert the full name of the warehouse.
• In the Short Name field, insert a 5-characters code for your warehouse. Keep in mind that this code is the one that will appear in the lists, so make sure you choose a name that is easy to understand and easy to enter.
• In the Address field, you can select an existing company or create one on-the-go. Therefore, the address of your warehouse will be the same as the one of the companies you selected. You can also leave this field empty and edit it afterwards.

Click on Save to finish configuring your new warehouse.

Note: When you create a new warehouse, the system will create necessary picking type and main child location for this main location in the background

A Warehouse is the actual building/place in which your items are stocked. You can setup multiple warehouses and create moves between warehouses.

 A Location, is a specific space within your warehouse. It can be considered as a sublocation of your warehouse, as a shelf, a floor, an aisle, etc. Therefore, a location is part of one warehouse only and it is not possible to link one location to multiple warehouses. You can configure as much locations as you need under one warehouse.

There are 3 types of locations:

• The Physical Locations are internal locations that are part of the warehouses for which you are the owner. They can be the loading and unloading area of your warehouse, a shelf or a department, etc.
• The Partner Locations are spaces within a customer and/or vendor’s warehouse. They work the same way as Physical Locations with the only difference being that you are not the owner of the warehouse.
• The Virtual Locations are places that do not exist, but in which products can be placed when they are not physically in an inventory yet (or anymore). They come in handy when you want to place lost products out of your stock (in the Inventory loss), or when you want to take into account products that are on their way to your warehouse (Procurements).

In Kiu BMP, locations are structured hierarchically. You can structure your locations as a tree, dependent on a parent-child relationship. This gives you more detailed levels of analysis of your stock operations and the organization of your warehouses

Packages: The package is the physical container in which you put one or several products

• Packaging is the physical container that protects your product.

If you are selling computers, the packaging contains the computer with the notice and the power plug.

In KIU BMP, packagings are just used for indicative purpose.

For example, you are selling eggs. In your warehouse, you manage the eggs individually. Lots of eggs are scrapped and you do it egg by egg. The unit of measure is Unit(s).

If you are selling eggs by the dozen, the selling unit of measure is the Dozen. You will set it on your sale order.

The cardboard trays that contains the dozen of eggs is the packaging.

When you are selling several trays, you might wrap all the trays into a box or in a plastic wrapping. It is the package.