Blanket Sales Orders and Releases

What Is?

Manufacturers have moved toward simpler methods of supply. To this end, sales order processing has simplified where inputs to sales orders are now done through a blanket order. This is the first step in the simplification process.

The blanket order, through Requirements Planning, creates expected requirements. In addition, this blanket order establishes terms and conditions that dictate customer call-offs that ensue. Call-off schedules also known as Vendor releases and material releases are typically sent to the supplier in weekly and monthly cycles; these are normally transmitted by fax or Electronic Data Interchange. This eliminates the need to raise a purchase order every time an item is required. Reduction of administration is the aim of this process where the goal is to empower the operators to bring in material and parts on a Just In Time (JIT) basis.

The Blanket Sales Order and Releases solution fulfils these needs, though initially meant for the automotive industry, but more recently for other industries that too endeavor to mimic world-class manufacturers.

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SYSPRO Solution

The Blanket Sales Orders and Releases system enables you to set up, track and reconcile Release System contracts and releases between Original Equipment Manufacturers (OEM’s) and their customers (particularly the Motoring Industry).

These contracts, which govern blanket orders placed for the supply of material over time with multiple deliveries, have historically been managed manually. This has made it difficult and time-consuming to provide an accurate means of tracking cumulative release quantities and converting them into deliveries. The underlying problem for suppliers is that it takes so long to action a new release that management cannot examine the ramifications of any changes. The process is inherently difficult and error-prone, often resulting in the supplier incurring penalties for stopping the OEM’s assembly line. The supplier is neither able to check timely that the OEMs are adhering to the contract, nor do they have time to establish their own capability of meeting the new requests. This results in missed delivery dates, emergency purchasing and production control in a permanent state of expediting. The Blanket Sales Orders and Releases system is designed to address these problems.

It enables the easy capture or import of a new release and provides the necessary tools to manipulate the release and advise the customer of what has been accepted or changed and why. It enables updating of existing scheduled orders automatically, and provides an audit trail of deliveries so that disputes over quantities supplied to date can be resolved. It also enables the various tasks to be subdivided so that the appropriate level of staff can be employed for each function.

Sales can define the parameters and contractual arrangements negotiated with the OEM.
Entry clerks and/or EDI methods can be used to quickly record a new release.
Management can review the new request comparing it with base data, contractual arrangements and production practicality. They can manipulate it to suit their needs and capability and accept the results.
Sales orders can be altered automatically to reflect the new accepted delivery schedule and a paper and/or EDI advice of the acceptance can be sent to the OEM.
Base data is updated, on shipment, for comparison with the next release, while a paper and/or EDI Advance Shipment Notice (Invoice) is sent to the OEM.
At any time, management can examine the base data to resolve queries such as unbalanced opening cumulative quantities. Examination of the history of release acceptances may reveal the reason for over/under stocking or poor delivery performance and form the basis for negotiating the next contract.

Process Flow

The Blanket Sales Orders and Releases solution is designed as an effective method of setting up contracts between Original Equipment Manufacturers (OEM’s) and their customers (particularly the Motoring Industry) to provide an accurate means of tracking cumulative release quantities and converting them into sales order quantities.

Currently, there are a large number of manufacturers who employ a manually-managed system which is error-prone as well as being time-consuming to maintain. Often the records of the supplier and OEM do not agree on what has been supplied to-date and there is no easy method of verifying these figures.

The Blanket Sales Orders and Releases solution is aimed at providing a filter program that enables the easy capture of a new release (or import of a release as an Electronic Data Interchange file) as well as providing the necessary tools to manipulate the release and advise the customer of what has been accepted/changed and why. The solution enables you to update an existing scheduled sales order automatically, and provides an audit trail of deliveries so that disputes over quantities supplied to date can be resolved.

The underlying problem for suppliers is that it takes so long to action a new release that management cannot examine the ramifications of any changes. The process is inherently difficult and error-prone, often resulting in the supplier incurring penalties for stopping the OEM’s assembly line.

The supplier is neither able to check timeously that the OEMs are adhering to the contract, nor do they have time to establish their own capability of meeting the new requests. This results in missed delivery dates, emergency purchasing and production control in a permanent state of expediting.

The Blanket Sales Orders and Releases solution is specifically designed to split up the jobs involved so that the appropriate level of staff can be employed for each function.

Blanket Sales Orders Process Flow

Integration

Blanket Sales Orders and Releases cannot run standalone and integrates with the following solutions:

Accounts Receivable

Contract pricing, scheduled orders and EDI trading partners are configured in Accounts Receivable against a customer.

Inventory

Provides the stock codes interchange whereby customer stock codes can be entered and matched to the selling company’s stock codes.

Sales Orders

Scheduled orders are created when blanket sales orders are released.

Module Dependencies

Essential Module

Accounts Receivable
Inventory
Sales Orders

Blanket Sales Orders Integration to other SYSPRO solutions

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