Material Supply ERP Module

Material Supply lets you identify outsourced items, generate a bill of materials (BOM) structure for assembly and issue/track outsourced components until they are returned. In addition, the system’s integration with various financial management tools lets you perform financial and audit control functions.

Planned Outsourcing

GLOVIA G2’s Material Supply MRP software module allows you to “pre-plan” the outsourcing of assemblies by enabling “buy item assemblies” to have a manageable BOM structure and adding the material supply item components required to the material supply planning table.

Once this has been done, the BOM components can be issued to the vendor with the release of a PO. They are then shipped, along with accompanying BOM shipping documents, detailing the material contents of the shipment.

Unplanned Outsourcing

In the dynamics of the manufacturing environment, occasions arise in which the need to outsource an assembly may not be planned. Due to the financial implications that result from the necessity to outsource an unplanned assembly, you need an application that can consistently and accurately manage material supply item POs on the fly.

With the Material Supply MRP software module, this is easily accomplished by adding the unplanned outsourced assembly’s components to the material supply item planning table – just as you would with a planned outsource assembly – then structuring the material supply item components as a BOM attached to the unplanned assembly’s PO.

Integrated Planning of Outsourced Materials

“Material Supply” items are planned by GLOVIA G2 Material Requirements Planning (MRP) or Project Resource Planning (PRP), and identified as components required to be provided to a supplier on the creation of a PO.

Versatility

The MRP application provides the financial control of three item types, thereby creating the capability for an extremely flexible relationship between manufacturer and supplier.

• Chargeable supply items: The supplier bills for the entire subassembly. The cost of the material supply items is subtracted from the supplier’s invoice total.
• Customer-furnished supply items: The supplier bills only for the value-added cost or his contribution to the subassembly.
• Consigned material: The supplier bills for the entire subassembly. Material Supply periodically checks inventory and generates a report used to charge the supplier through GLOVIA G2 Billing for supplied materials.

Other features of the GLOVIA G2 Material Supply MRP software module include:

Complete Visibility

The system manages materials at a supplier’s inventory location as though it were an extension to your location. Items are tracked until they are received back from the supplier: They are then backflushed or consumed to reflect issuance from the supplier, which provides continuous, full visibility.

Material Supply

• Supports outsource manufacturing
• Synchronizes supply component items with PO placement
• Generates BOM structure shipping document for buy item components
• Supports material supply item/supplier cross-reference
• Provides consistent pick, issue, pack and ship processes
• Identifies material supply items as supplier to supplier by using MRP/PRP
• Allows backflushing of selected components
• Provides definable supplier master locations
• Provides complete financial control and integration of all material supply item types

Supply Item Types

• Chargeable
• Customer-furnished
• Consigned

Purchase Orders

• Approve pre-planned or unreleased POs
• Discrete, unplanned “on the fly” processing for your outsourced materials
• Analysis notification of PO BOMs impacted by Engineering Change Notices (ECNs)
• Purchased item price roll-up

Material Movement

• Issue material supply items to POs
• Ship-to-Supplier Master Location management
• PO receipt of completed items from supplier backflushed or consumed reflecting supplier issue
• Validation and tracking of all components shipped to suppliers from the time they leave your facility until they are returned

Material Supply Integration

• EngineeringPRP/MRP
• Purchasing
• Inventory
• Work Orders
• Accounts Payable
• Billing
• Engineering Change

Accounts Payable

• Customer furnished supply items supports “value added” charges by supplier
• Chargeable supply items netted from supplier invoice

Billing

• Creation of accounts receivable invoices
• Periodic inventory reporting for consigned material billing to suppliers

Material Supply Audit Trail Facility

• Maintains Supply Item Deduction file to offset supply items
• Offset transactions included in supply item deduction report
• Tracks material supply POs through supplier master location
• Tracks receipt of completed PO items from supplier back to work center