Different ways of picking and posting. Which to choose?

Finance and Operations/AX User Forum
1

We are preparing our warehouse and processes to support locations. Currently we have only one (default) location, which is default for all receipt and issue locations in all warehouses, BOM, etc etc. We also use multiple warehouses, but because they’re all used for inventory, I want to combine them to one, beacuse I don’t see any advantages for having four.

In this one warehouse we want to use locations to specify where the worker has to put or pick the item.

Because a location can change over time (because there’s not sufficient space, or it’s easier to place an item near you) I am struggling with the default issue locations.

Nowadays, with the one location we use, the process is as follows:

  1. Creation of SO (SO screen)
  2. Confirm the SO (SO screen)
  3. Batch create the picking list for all open orders (Accounts receivable > Periodic > Sales update > Picking list)
  4. Pick the order
  5. Register each picking list line/whole picking list (Inventory management > Periodic > Picking list registration)
  6. Post the packing slip (SO screen)

This works well because there’s only one possible location. In the future, the item can be stocked at any location. So we need to have the picking location dynamically determined.

I have seen two options: Release Sales Order picking and Shipments.

The Release Orders screen determines the location dynamically, in alphabetical order, but only if the default issue location is removed. This could be a problem: I have to change the settings for all items and I don’t know what happens with items that are used in a BOM.

The second option is by using output orders, shipment templates and shipments. By using templates I can specify in which order the locations have to appear: instead of alphabetically I can use sort orders, which is very nice.

I have some questions about this:

  • It seems to me that ‘shipments’ is the only way to keep the default issue location on the item AND dynamically assign locations at pick time, right?

  • It seems to me that shipments are mainly used for pallet transports. That would be overkill: 98% of our pick actions are item level picks off the rack or even from the inbound dock (straight out of production) to the packing location. At the packing location each order gets its own pallet with address label on it (we deliver to the end customer). So I use the shipment function only for the dynamic location, not to prepare pallets for end customers.

  • If we need to use shipments for the location assignments, the new process would be:

  1. Create SO
  2. Confirm SO
  3. Batch create picking list OR use the release orders screen to generate picking list/output order
  4. Use shipments screen activate picking
  5. Pick and register in picking list registration screen
  6. Post packing slip

Is this correct?

I hope to see some opinions about my thinking process :wink:

2

Hey Henk,

Looks like you put some serious thought into this.

I think, providing you can deal without the default issue locations being specified, you might want to look at the release sales order picking a little further. As far as the production orders go, one way to resolve the issue of not having a location specified is either the “resource consumption” checkbox (which will try to consume out of the location either on the resource group assigned to the line or from the “default production input location” on the warehouse setup) or automatic reservations on the production order. If the material is reserved when the picking list is posted, the reserved locations will show on the picking list.

-Jake

3

Hello Jake,

Thank you for your answer :slight_smile:

I agree with you that I might want to try the release sales order picking first (see also my other topic about dynamic slotting), because that’s a little bit less complicated.

But I think I have to use Shipments (only for the location sort order function) when I’m combining the warehouses to just one (less is more). Now, to segregate bulk and picking, we are using multiple warehouses. Warehouse A is bulk, Warehouse B is picking. But if these are bceoming one, I have to segregate by location: first pick on the picking location, of that’s empy, refill from bulk.

If bulk is alphabetical before pick, the Release Sales Order Picking screen will assign the bulk location.

So it seems like this:
Keep the different warehouses → I can use RSOP screen (but then I still have the issue that when an item is moved between warehouses, the Sales Order still points to the old warehouse even when the location field is empty)

Combine warehouse → Must use Shipments (Sales Order is made, Item can be moved untill the worker starts picking, then the item is reserved.)

Is this correct? :slight_smile: