Let's start by giving you some context. At the time that this article was written, here are some hard facts for ATS overall:
On average, each ATS site that handles inventory has over 60% of their inventory classified as an INACTIVE SLOB. This represents around 75,000 parts each month.
In dollars, that means ATS is carrying between $15M and $16M in inventory stock that is just sitting there doing nothing. That M means Millions - it's not a typo.
"Inactive Slob" means the part has been in stock for more than one year and has not been issued within the last 365 days! If you want to see how your site is doing you can run the Active Inactive report or look in the Site View Metrics App in Power BI.
Company-wide, if you look at how often we are hitting service level when it's a stocked item, we are running in the at 97%.
If it is a part that we do not stock, we are consistently hitting in the 87% range.
Why did we start out with that information?
Part of your responsibility as a Supply Chain Specialist is to not add parts that we do not need to your inventory.
It's not hard to see that the KEY is COMMUNICATION! All the way around! Ensure your Techs are communicating when they cancel a part need. Ensure you are communicating with the Buyer if a part need is no longer needed.
The Part Need Screen is a great tool to help you manage this! PARTS: How do I know which Work Order the parts are for?
1. If the part is for a Task, and it is not needed, it is your responsibility to contact the Buyer to see if the PO can be Canceled.
1.1. If the part has already been shipped, it may be beneficial to return it to the Vendor.
1.1.1. There are several factors that go into that decision. These include: What is the cost? Is there a long-lead time? When was the last time it was used? How much is the shipping cost to send it back? Is there a restocking fee?
2. If, after confirming they have enough product to fulfill the order, the vendor finds out they are short, the Buyer will adjust the existing PO and create a new PO for the remaining Quantity.
3. On a PO GNS, if you find that you need more money added to the Purchase Order, the Buyer may choose to add a new line to the PO or to create a new PO all together.
Once any receiving has taken place, the dollar amount cannot be increased or decreased without the receipt being backed out by the buyer.
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