Special Packaging by customer tie to buy part

[Chris Kelleher]

Mfg/pro 8.5f
Progress 8.3b

We have a part, say XYZ. We purchase the part from an outside source in our
packaging and sell to our customers. Normally this part is package 50 pcs
per box.

We now have a large OEM customer that wants the parts shipped in 1,100 pc
bulk for use on their line. We need to order part XYZ in both bulk and 50
pc boxes. We want MRP to be able to use demand on this part to generate the
PO's to our vendor. The key is that we need to be able track the demand and
create the PO based on the packaging type as we don't want to handle the
parts in a re-packaging operation. We have to schools of thought and need
to find if option 2 is possible.

1 - Create different part numbers based on packaging. i.e., 50 pc boxes are
XYZ and bulk pack is XYZ-R. Orders for the XYZ-R will cause MRP to generate
PO's for the bulk packaged parts. Orders for the XYZ will generate PO's for
the smaller package.

2 - Same part number regardless of packaging! The problem here is tying the
Customer packaging requests, bulk or 50 pc, to the PO generated by MRP. The
PO to our vendor *must* clearly state the packaging type or we upset the
customer or our inventory. Is this possible? If so how?

Steven Lesniak

Shepherd Caster Corp.
SLesniak@shepherdcasters.com

 

[Chris Kelleher]

Steven,

I don't understand why you want to use the same part number for the
two different-sized packages of XYZ that you sell. My thinking is
that you are NOT selling XYZ; you are selling "50 pc packages" of XYZ
and "1100 pc packages" of XYZ. These are different items, in my
opinion.

What is the advantage of using a single part number?

Jack

 

[Chris Kelleher]

Well that has been the core of the "holy war" going on here. It looks like
the winning side is two part numbers. Unless someone can give a solid
reason not to then that will be it.

Steven

 

[Chris Kelleher]

Has anybody thought of configured parts??? Isn't that what they are for??
If you have the same part with different options, why create demand for the
same part just because it has different packaging options.

 

[Chris Kelleher]

The argument is just that, the "demand" is actually different because we
have to order them differently. Your view/opinion is not wrong, but just
may not fit this situation.

Steven

 

[Chris Kelleher]

Hey, don't get me in the middle of an online "holy war" I'm just the
messenger....

I think we could argue this until the end of time and neither side will give
in. It all seems to come down to what works best for each company and for
that matter situation. *My* logic tells me that you are correct, but when
I'm presented the facts from both sides of the battle, I can see how two
part numbers would be best *in this situation.*

Steven

 

[Chris Kelleher]

Two part numbers for the same item are not necessarily "stupid"; it all
depends on the "situation" as so aptly stated.

Other considerations may be:

- volume
- uniqueness (e.g.: are they packaged for this one customer only?)
- history of stockouts (is there one planner for both items or two
planners, one for each; warehouse personnel using "product knowledge" and
substituting without doing the paperwork)
- Demand fluctuations: is customer jerking you around everyday
- lead time

As customers expect companies to jump through hoops more and more (and if
we don't accommodate, they WILL go elsewhere...), we must devise more
clever ways to accomplish what are often initially viewed as less than
optimal techniques.

BR,

Charley

 

[Chris Kelleher]

One final question.... Is this automotive customer EDI and do you get EDI
releases for this part? If so trying to set-up two internal parts for the
same customer part for the same customer will be a disaster in customer part
cross ref. It would be interesting to see how your releases would get
loaded, since your customer has only one unique part number.

 

[Chris Kelleher]

We are non-Automotive. The customers that buy this part do not use EDI.
The customer/customers that will buy the bulk pack of this part do not buy
in any other packing and "most likely" will not.

Basically, the bulk pack is targeted for a large OEM assembly. The 50pc is
for the "retail" distribution network.

Steve