The Contract Purchasing MRP system provides the ideal situation for balancing purchases of an item across several sources of supply. The system allows one or more suppliers to be assigned for an item along with a supplier priority and split percentage. Releases generated by the system can then be automatically split on a percentage basis among multiple suppliers. Effectivity and review dates take fluctuations in supplier capacities into account and provide management control.
After contracts are set up, your material planners are free to communicate directly with your suppliers to coordinate contract releases for material deliveries. With each release, the supplier receives a full schedule update showing both currently released and forecasted delivery schedules.
By providing the capability for multiple contract releases with controls for valid date ranges, line quantities and pricing schedules, the MRP system eliminates the need for managing and controlling the large number of conventional purchase orders that would otherwise be required. Contract Purchasing automatically tracks and accumulates the actual receipts as they occur, providing up-to-the-minute order status. Totals for authorized and shipped amounts as well as quantities released are also available on demand.
Each release highlights new delivery requirements, changed schedule dates or quantities and delivery cancellations. Based on this updated demand schedule, material planners can then work directly with suppliers to synchronize delivery dates with the latest production plan.
True Just-in-Time material scheduling is a reality with this system because contract releases can automatically be converted from the computer-planned orders generated by the GLOVIA G2 Material Requirements Planning (MRP) and Master Production Scheduling (MPS) applications. This dynamic communication link is what allows Contract Purchasing to help you and your suppliers manage the supply process and reduce total lead-time and material costs.
Contact FUJITSU GLOVIA to learn more about implementing the GLOVIA G2 Contract Purchasing MRP software module for your manufacturing company.
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