Consignment customers

I am looking for the best way to handle consigned inventory at a customer site. For our first consignment customer we set up separate branch/plant and used ST/OTs to transfer inventory from our DC to the consignment BP.

Our marketing companies have now been tasked to sign up at least 30 more consignment customers this year. The DC does not want to deal with that many BPs and it was suggested that we set up a single consignment branch and differentiate the customers by location. Some of the issues that this brings up are how to know who needs replenishing when DRP is run on the consignment branch and a message suggests a PO be placed. There are also issues if two customers use the same part.

Any suggestions for best practices would be greatly appreciated.

BTW. We are upgrading to 8.12 later this year.

Hello Mike,

Have you evaluated the Agreement Management (System 38) functionality for
consignments, loan/borrow, and exchange transactions?

Russell Karnap

That's an interesting suggestion...
but does anyone have any documentation or white papers on the purpose / utilization / functionality of Agreement Management to share it with us ?

Hello Jawad,

The last time I checked the Knowledge Garden, I saw at least one white paper
on Agreement Management, two white papers on consignment, and maybe two or
three solution search IDs on both Agreement Management and on consignment.
Also, the Documentation Disk for each version of JDE devotes several pages to
Agreement Management. However, the Documentation Disk does not address
consignments in any detail.

Russell Karnap

We need to distinguish here between goods I am consigning to my customer locations and goods my suppliers consign to me. My issue is with items I am placing in multiple customer locations and how to manage replenishment and DRP.

Can you brief your requirement in details.

May be "Ship Direct - Order Direct" may help you. This is a scenario when you don't hold the inventory and act as a trader for the goods.

As regard to Agreement management, it has more to do with Price and Quantity. It tracks basically how much you sell at what price under a particular agreement. Plus you cannot have multiple agreements in place at the same time for the same item with same customer.