5 Ways JD Edwards Outbound Inventory Management Simplifies Vendor Managed Inventory
We all know that effective inventory management is critical to success, especially in a world of omnichannel shopping and next-day delivery expectations where suppliers are constantly looking for new ways to optimize inventory holdings, handling costs, and stock-outs. One way to effectively improve inventory management is by embracing business models like consigned inventory and vendor managed inventory (VMI).
To execute on this model, companies are turning to JD Edwards EnterpriseOne’s Outbound Inventory Management module. Let’s take a closer look at what Outbound Inventory Management is as well as some of the ways this module can simplify your VMI process.
What is JD Edwards Outbound Inventory Management?
Outbound Inventory Management is a module within JD Edwards Enterprise One 9.2 that supports the business process for managing goods as part of the order-to-cash process. This process includes shipping goods, billing goods, monitoring usage, and replenishing goods.
The module is designed for industries as varied as life sciences, industrial manufacturing, food and beverage, and wholesale distribution. Outbound Inventory Management also works with JD Edward’s Sales Order Management module to provide your business with a complete enterprise resource planning (ERP) solution, so if you already use that module, you’re ahead of the curve.
Outbound Inventory Management supports two different VMI models: Consigned Inventory, where inventory is owned by the supplier and is in the possession of the customer (buyer), and VMI without consignment, where inventory is owned either by the supplier or by the customer. Here are five ways Outbound Inventory Management simplifies these models:
5 Ways Outbound Inventory Management Makes VMI Easier
1) Enter Outbound Orders
Using Outbound Inventory Management allows you to set up outbound inventory agreements and attach them to both consigned and VMI orders automatically or manually, whichever best suits your current process. The solution also allows you to create mixed orders with different kinds of order detail lines, such as both consigned order detail line and VMI order detail line, saving you the hassle of having to make them separately.
2) Reduce Inventory Holding Costs and Stock-outs
This module is perfect for those who want to help suppliers remove the hassles of managing and holding inventory at the warehouse. For example, imagine being able to move inventory from your warehouse to the customer’s location and invoicing them only when the consigned inventory is consumed and reported. Add in the fact that, because the supplier maintains the inventory levels at the customer’s location, the customer doesn’t have to worry about stock-outs, and it’s a win-win scenario for both parties.
3) Manage Outbound Inventory Agreements
Outbound Inventory Management gives users the ability to create and manage all outbound inventory agreements for items or groups of items with the same characteristics. This functionality helps you to better record all transactions, stay on top of volume balances, and decide whether you and your business partners are complying with the agreement terms.
4) Track Inventory in Real Time
Inventory is a major company asset, so having real-time visibility of your products can save you money. This solution allows you to monitor and track on-hand inventory, what’s in transit, and what’s being returned or repaired, turning logistics from a black box to a set of actionable data.
5) Access UX One Role-Based Pages
Finally, this module allows VMI account and agreement managers to access UX One pages based on their roles, meaning they can review and take action on important information to manage the order-to-cash process efficiently and cost-effectively.
Benefits of Outbound Order Management with VMI
Of course, those are just a few of the many ways that JD Edwards Outbound Inventory Management helps to reduce complexity and optimizes the VMI process. Because the solution can manage the entire VMI and consignment lifec ycle, including setting up agreements, ordering, shipping, invoicing, and replenishing, it will help strengthen customer/supplier collaboration and forecasting accuracy, all of which leads to better customer experiences. And when your customers are happy with your business, so will you.
How to Get Started
If you aren’t already taking advantage of Outbound Inventory Management’s many benefits, now’s the time to upgrade. And if you’re already using Outbound Inventory Management, you’re ahead of the curve. But just because you’re using something doesn’t mean you’re making the most of it. That’s where we come in.
Our senior-level JD Edwards consultants have the experience and insight to help you make the most of Outbound Inventory Management, as well as any other JD Edwards modules you may be using. A knowledgeable consultant can also help you clean up and clear out issues you’ve been having with your platform (even those you might not have known about). Whether you’re completely new to the process or an old pro, Surety Systems is here if you’re looking to improve the way your company does VMI.
Contact us today to get the ball rolling.