Sometimes you receive a Sales Order for which you need to gradually produce and ship goods. It can be a bulk order of one product or an order consisting of different products with different manufacturing and supply processes. In this case, Kladana provides you two methods how to manage it.
- Two methods of producing and shipping in several batches against one Sales Order
- General hints
- How to create and manage a few related Production Orders against one Sales Order
- How to split quantity of finished products into lines (batches) in one Production Order
Two methods of producing and shipping in several batches against one Sales Order
Method 1
- You create a Sales Order and on the basis of it create a few related Production Orders (PO).
- You can split ordered items by name and/or by quantity for these POs.
- After completing the production process for each Production Order — you can dispatch finished goods.
Method 2
- You create a Sales Order and on the basis of it create one related Production Order (PO).
- In the PO you create several lines (like batches) with finished goods and estimated quantity for every batch. Don’t worry if you don’t know how much actually you will produce for each batch — you can change the quantity of finished goods and used raw materials later, e.g. daily after production.
- After production for each line is completed you can dispatch finished goods.
Use several Production Orders against one Sales Order in the following cases
- Ordered items require a rather different supply process. For example, the sofa and shelves were ordered, for the sofa you have to purchase upholstery fabric and wait for it to arrive, for shelves everything is in stock and you are ready to produce them.
- Ordered items require a rather different manufacturing process. For example, different spare parts were ordered, some of them you make in your own fabric, other spare parts sub-contract manufacturing.
- You know in advance the size of batches. For example your customer ordered 1,00,000 t-shirts and wants to receive 1000 t-shirts as they are ready.
Split one Production Order into lines (batches) in the following cases
- Ordered quantity of the same product is huge, you produce a different quantity every day and want to dispatch as much as you produce 2 times a week.
- Supply process is not consistent. For example, you produce some type of biscuits with chocolate filling; you have some filling in stock, some is on the way from your supplier, some supplier is going to dispatch and the last part is promised to you in 2 weeks. You don’t want to wait when 100% of filling for the order will be in stock and want to produce as much as you can according to the availability of chocolate filling.
Anyway, we recommend you to consider both variants, test them, and choose the most suitable for you.
General hints
- Don’t forget to reserve finished goods for Sales Order and raw materials for Production order (tick ‘Allocate order to committed stock’ in transactions). If not reserved — both goods and materials will look like ‘available’ for other orders and can be unintentionally sold or used for other Production Orders.
- Prohibit ‘negative stock’ for accurate stock counting process. For this in Settings >> Account Settings choose ‘Disallow records that reduce Stock below zero’
How to create and manage a few related Production Orders against one Sales Order
Let’s imagine that you received a Sales Order for the following items:
- 350 simple T-shirts (blue),
- 200 simple T-shirts (white),
- 60 T-shirts with application (yellow),
- 60 T-shirts with application (white),
- 60 T-shirts with application (red).
In stock you have 100 ready T-shirts simple (blue) and 300 T-shirts simple (white). Also you have enough fabric of all colours in stock. But you need to purchase applications to produce T-shirts with applications, the supplier can dispatch them in 7 days only. Your customer agrees with several shipments, he wants T-shirts as soon as possible.
What should you do
- 200 T-shirts simple (white) and 100 T-shirts simple (blue) will be dispatched immediately (Shipment_1).
- You start to produce 250 blue T-shirts and dispatch them in 3 days (PO_1 and Shipment_2).
- You purchase applications, after they arrive you produce remaining T-shirts with applications. You start to sew them before applications arrive at your warehouse, but finalize the production process only when applications are in stock and dispatch the remaining part as it is ready (PO_2 and Shipment_3).
How it can be managed in Kladana
- Before starting using Kladana for regular operations, you have to create Product cards both for finished products and raw materials, Routings and BOMs. For more information, see Products, Routings and BOMs.
- Create a Sales Order and check stock level for each line item. Use ’Stock Replenishment’ to create separate PO_1 and PO_2 for missing T-shirts. Analyze which and how much raw materials are required and if you have these materials available in stock. Make a plan how you can ship an order and receive confirmation from your customer.
- Go back to the Sales Order and create a Shipment_1 for 200 T-shirts simple (white) and 100 T-shirts simple (blue).
- For PO_2 you have to purchase missing materials for the stage ‘application’. Order them. For that, press the ‘Supply’ button and choose ‘Purchase order’. Then go to Purchase >> Purchase Orders list, find order, check it, send it to your Supplier and wait till missing raw materials are received at your warehouse. For more information, see Supply.
You can use Statuses in both Sales Order, Purchase Order and Production Order to mark the progress, statuses for this process can be changed only manually (for now we don’t support Workflows for Production section). For more information, see How to manage statuses. - Before or after p.4 you can start the production process for both PO_1 and PO_2. Start it. We can complete PO with simple T-shirts and we can complete only some stages in order with T-shirts with applications because we don’t have enough materials for this stage. For more information, see Production Process Tracking.
- When PO_1 is finished you notice this in the Production Orders list. Go to related Sales Order and create Shipment_2.
- When missing raw materials for PO_2 arrive, you can notice this again by statuses or if the responsible for supply person informs someone who is responsible for the production process. Now PO_2 can be finished too.
- After PO_2 is finished go to related Sales Order and create Shipment_3.
- We finished with the Sales Order. What we wee in Sales Order ‘Related transactions’ tab and in Stock movement report now.
How to split quantity of finished products into lines (batches) in one Production Order
Let’s imagine that you received a Sales Order for the following items:
- 6000 simple T-shirts (white).
T-shirts current stock level is 100. You have enough raw materials to produce 1200 T-shirts, remaining raw materials you need to purchase. Your speed of production can vary as 270-320 T-shirts daily. The Customer wants to receive T-shirts as soon as they are ready by batches, but not less than 1200 t-shirts for one shipment.
What should you do
- Split Production Order into lines (batches) with approximately 1200 T-shirts in every batch.
- Then subsequently you start the production process for each batch. If required — the size of butch can be changed.
- With the start of first batch production, purchase missing raw materials and wait for them to proceed with manufacturing.
- After completing the production for each batch you are ready to ship the quantity produced in this batch.
How it can be managed in Kladana
- Before starting using Kladana for regular operations, you have to create Product cards both for finished products and raw materials, Routings and BOMs. For more information, see Products, Routings and BOMs.
- Create a Sales Order for 6000 T-shirts, than create related Production Order using ‘Stock Replenishment’.
- In the newly created Production Order in the tab ‘Finished Products’ add lines with T-shirts and change the quantity for each line. Eventually the Production Order will consist of 6 lines with 1200 for each of them.
- Go to the tab ‘Raw Materials’ and check out if there is a lack of materials. Quantity of necessary raw materials is calculated as total for all lines in Production Order. Supply missing raw materials. For this press the ‘Supply’ button and create a Purchase Order. For more information, see Supply.
- Go to the newly created Purchase Order, send it to the Supplier, after raw materials arrive at your warehouse — create a Receiving.
- While you are waiting for the missing raw materials you can start production of the first batch of T-shirts — 1200 pcs. Start to produce. For more information, see Production Process Tracking.
- After you finish producing the first portion of T-shirts they appear in stock. What you can see in related Sales Order now.You can change the actual produced quantity of finished products and used raw materials, e.g. instead of 1200 — produce 1290. Don’t forget to change both the quantity of finished products along with the quantity of used raw materials. For more information, see How to change actually produced goods and used raw materials in PO.You can use Statuses in both Sales Order, Purchase Order and Production Order to mark the progress, statuses for this process can be changed only manually (for now we don’t support Workflows for Production section). For more information, see How to manage statuses.
- Create Shipment_1 related to the Sales Order and Ship it to your customer.
- Then go back to the related Production Order. Monitor using statuses if raw materials arrived, then start production of the next batch, then next one and so on.
- After completing each batch, the person who is responsible for the production process may inform the sales manager that one more portion is ready for shipment. So after receiving the information you can proceed with Shipment_2, Shipment_3 and so on.
- What you can see in the ‘Related Transactions’ tab of the Sales Order after completing the production for the entire initial Sales Order.