Warehouse Management - Pull Flow Strategies

This section gives an overview of Warehouse management - Pull flow strategies. There is a realistic business scenario,  a technical configuration guide and detail business flows steps.

Other topics related to Warehouse Management in OpenERP: 

Contents

  1. 1 Definition - Pull flows:
    1. 1.1 Step 1 - Configuration of Pull Flows in OpenERP
    2. 1.2 Step 2 - Define a scenarios for Pull Flows in OpenERP warehouse management:
    3. 1.3 Step 3 - Sell and deliver 10 pieces of product CPU1
    4. 1.4 Step 4 - Check stock level in the Shop1
    5. 1.5 Step 5 - Check the Planned Stock Movements 
    6. 1.6 Step 6 – Issue the goods for shipment to the store from central warehouse
    7. 1.7 Step 7 – Receive the goods into the shop
    8. 1.8 Step 8 – Check the Inventory Analysis Report
    9. 1.9 OpenERP Configuration Support 
    10. 1.10 Next Sections
  2. 2 Further Reading
    1. 2.1 Business Processes in OpenERP
      1. 2.1.1 Overview of Functional Logistical Processes in OpenERP
      2. 2.1.2 Business Process and Model Mapping Methods
      3. 2.1.3 How to create an incoming Shipment Processs
      4. 2.1.4 How to create a Bill-Of Material in OpenERPW01  - Warehouse Management in OpenERPWarehouse Management - Warehouse OrganisationWarehouse Management - Push Flow StrategiesWarehouse Management - Pull Flow Strategies Warehouse Management - An Implementation Approach
    2. 2.2 Using MRP & JIT in OpenERP
      1. 2.2.1 What is Materials Requirements Planning (MRP) & Just-In-Time (JIT) in OpenERP? 
    3. 2.3 Configuration of Knowledge Management in OpenERP
      1. 2.3.1 How to configure OpenERP's Knowledge Management 
    4. 2.4 Printing Report, Labels, Forms in OpenERP
      1. 2.4.1 How to print Forms, Reports, Labels, etc.  in OpenERP
    5. 2.5 Example xPython Programming and OpenERP Interfacing
      1. 2.5.1 How to use xPython with OpenERP
    6. 2.6 OpenERP Implementation Approach
      1. 2.6.1 An OpenERP Implementation ApproachWarehouse Management - An Implementation Approach


Warehouse Management - Pull Flow Strategies


Definition - Pull flows:


Pull flows are related to the processing of sales / procurement orders. A classical example of Pull flow is when a shop sells products to a customer. If the product is not in stock the product is sourced from a central warehouse or regional buffer.

When a product is sold in the shop a new procurement order is created Shop, it is converted into another procurement (B, via a Pull flow of type 'move') requested from the Holding. When procurement order B is processed by the Holding company, and if the product is out of stock, it can be converted into a Purchase Order (C) from the Supplier (Pull flow of type Purchase). The result is that the procurement order, the need, is pushed all the way between the Customer and Supplier.

Technically, Pull flows allow to process procurement orders differently, not only depending on the product being considered, but also depending on which location holds the 'need' for that product (i.e. the destination location of that procurement order).


Pull Flow Strategies





Step 1 - Configuration of Pull Flows in OpenERP

To explain a pull flow for the product CPU1, the first steps is to configure the minimum stock rules of CPU1 for the company OpenERP S.A. and Shop 1 using the menu Warehouse ‣ Automatic Procurements ‣ Minimum Stock Rules or by selecting the product concerned and then clicking the Minimum Stock Rules action.


Configure the specifications for a pull flow by selecting the Logistics Flow tab in the product master. 

This 1st configuration will triggers a RFQ when stocks-levels go below the min. quantity (10 items). 

The 2nd configuration creates a delivery order from the central warehouse to the shop. During the shipping the stocks are recorded as being in an internal shipping storage. 

Step - 1 - Pull flow configuration in OpenERP

Step 2 - Define a scenarios for Pull Flows in OpenERP warehouse management:

  1. Sell 10 x CPU1 from Shop1 to company BaconConsult (do not forget to confirm your sales order) and issue the goods to the customer. In the example below you can see the current stock level of CPU1 of 15 parts. This will reduce the stock in the shop from 15 PCE to 5 PCE which is below the minimum stock level
  2. Run the scheduler to replenish the stocks in the shop1 stores Warehouse ‣ Schedulers ‣ Compute Schedulers. 
  3. Then check the stock moves for product CPU1 from the menu Warehouse ‣ Traceability ‣ Stock Moves.. 


Pull Flow - Scenario Details


Step 3 - Sell and deliver 10 pieces of product CPU1

In this scenario sell and delivery 10 pieces of product CPU1

Step 3 – Sell and deliver 10 pieces of product CPU1


In the report you see the stocks have reduced in Shop1 to 5 pieces (as expected), which is below the min. Stock levels configuration.  As the minimum stock level for Shop1 has been configured as 10 PCE, this condition will now trigger a replenishment order from the main warehouse.


Step 4 - Check stock level in the Shop1



Step 4 – Check Shop1 stock-level



Step 5 - Check the Planned Stock Movements 


Run the scheduler to trigger the replenishment of stocks in the shop1 stores Warehouse ‣ Schedulers ‣ Compute Schedulers. 
Go to the “Stock Moves“ report under /Warehouse/Traceability/Stock Moves to see the planned stock movements


Step 5 – Check Stock Movements

Step 6 – Issue the goods for shipment to the store from central warehouse


Step 6 – Issue the goods for shipment to the store from central warehouse


Step 7 – Receive the goods into the shop


Step 7 – Receive the goods into the shop

Step 8 – Check the Inventory Analysis Report


Step 8 – Check the Inventory Analysis Report




OpenERP Configuration Support 


Do you need some on-site or remote support with your Warehouse management configuration?  - Contact info@baconconsult.eu


www.baconconsult.eu





Further Reading

Business Processes in OpenERP

Configuration of Knowledge Management in OpenERP

Printing Report, Labels, Forms in OpenERP

Example xPython Programming and OpenERP Interfacing

OpenERP Implementation Approach