FTS358: Supplier SMI Replenishment Order Process · This course describes the Supplier role in the Supplier Managed Inventory (SMI) process. It explains how Suppliers can use alerts

1© 3M 2019. All Rights Reserved. 3M Confidential.

Version:

Last Updated:

Web-Based Training

SAP Training

3M Business Transformation & Information TechnologyProgress set in motion >

Forecast To Schedule

19-06

3-Jun-2019

FTS358: Supplier SMI Replenishment Order Process


This course describes the Supplier role in the Supplier Managed Inventory (SMI) process. It explains how Suppliers can use alerts for exception management, propose planned receipts, and initiate replenishment orders (ROs) using Supply Network Collaboration (SNC).

After completing this course, you will be able to:

� Explain the SMI process.

� Manage exceptions using alerts in SNC.

� Process ROs.

Course Introduction


SMI enables the Supplier to leverage their knowledge and capacity to perform planning and execution.

Using SNC, the Supplier can log in and view 3M’s inventory levels in order to:

� Review expected demands.

� Propose planned receipts.

� Respond to alerts.

� Create ROs.

3M Suppliers use the process introduced in this course to trigger replenishment. Once ROs are published in SNC, the Supplier receives order information in their own eCommerce tool to fulfill the published RO and to create the Advanced Shipping Notice (ASN).

SMI Collaboration with SNC


The workflow for SMI collaboration in SNC consists of four steps. The 3M Supplier:

1. Logs in daily to review and respond to alerts.

2. Reviews inventory and demand.

3. Proposes planned receipts.

4. Creates and publishes ROs.

SMI Collaboration with SNC (continued)


This diagram illustrates the workflow between 3M and the Supplier:

SMI Collaboration Workflow

3M

SNC

Runs Planning ProcessAlerts Generated

Receives and Responds to Alerts

Reviews Inventory and Demand

Creates and Publishes ROs

SNC

Receives Inventory, Creates Goods

Receipt, Creates Proof of Delivery

Supplier

Proposes Planned Receipts


With the alert notification process:

1. The Supplier creates an alert notification profile within SNC to receive alerts.

2. The system sends alerts via email as specified in the alert notification profile.

3. The 3M Supplier receives an alert when one or more of the following situations occurs:

– Out of stock

– Below minimum stock

– Above maximum stock

3M Supplier Alert Management Overview

4. When the Supplier receives an email alert, the Supplier:

– Logs in to SNC.

– Accesses the Alert Monitor.

– View alerts.


Suppliers need to understand the differences between types of the alert messages when managing by exception.

� Projected Stock alerts give the longest advance notice of a possible shortage.

� Lead Time alerts give some advance notice of possible shortage.

� Stock on Hand alerts for below minimum or out of stock require immediate action.

When alerts display on the Alert Monitor window in SNC, the supplier should acknowledge the alert to indicate to 3M that required action will be taken.

The next slide describes the nine SMI alerts used by Suppliers and 3M.

3M Supplier Alert Management Overview (continued)


SMI Alerts

Description Alert # Function

Out of Stock – Projected Stock 0013 Out of Stock – Projected Stock (for SMI). The projected stock is zero or below zero.

Above Max - Projected Stock (for SMI) 0012 The projected stock is above the maximum stock level

Below Min. - Projected Stock (for SMI) 0011 Below Min - Projected Stock (for SMI) The projected stock is below the minimum stock level

Out of Stock – Within Process Lead Time (for SMI

7023 The projected stock falls to zero or below zero within the lead time.

Above Max - Within Process Lead Time (for SMI)

7022 The projected stock exceeds the maximum stock level within the lead time.

Below Min - Within Process Lead Time (for SMI)

7021 The projected stock falls below the minimum stock level within the lead time.

Out of Stock – Stock on Hand (for SMI) 7043 The actual stock on hand is zero.

Above Max – Stock on Hand (for SMI) 7042 The actual stock on hand is above the maximum stock level.

Below Min – Stock on Hand (for SMI) 7041 The actual stock on hand is below the minimum stock level.

Exception During Validation in Replenishment Order Collaboration

7122 SAP SNC has detected missing or incorrect data.


To log into SAP SNC:

1. Launch a supported web browser and access the 3M Supplier Direct global landing page:https://www.3m.com/3M/en_US/suppliers-direct/global-landing/

2. Select your location from the list. The link for the US location is: https://www.3m.com/3M/en_US/suppliers-direct/

3M Supplier Log In to SAP SNC


3. On the selected location’s 3M Supplier Direct home page, click Please Sign Inat the upper-right. You can also click Sign In/Registration on any window within the site where it appears.

3M Supplier Log In to SAP SNC (continued)


4. On the Enterprise Network Login window, enter your Username and Password and click LOGIN.



5. Under the Quick Links section at the right of the 3M Supplier Direct window, click 3M ERP to access SNC.

6. You can also click the blue 3M ERP button as seen below, or as on the Source

to Pay Transactions window accessed from the Suppliers sub-topic list.



7. The SNC portal opens in a new window.

8. On the Supplier tab and the Supply Network Collaboration second-level tab, the default Alert Monitor window displays.



To receive alerts, all Suppliers must set up an Alert Notification profile. Access the Alert Profile Settings job aid for further instruction: Go to the 3M Supplier Direct Supplier Learning Academy, and click the Supply Network Collaboration (SNC) link:https://www.3m.com/3M/en_US/suppliers-direct/resources/supplier-learning-academy/snc-training/

On the Alert Monitor window, threesections are available:

1. Selection

2. Statistical View

3. Detailed Alert Summary

3M Supplier Alert Management

1.

2.

3.


In the Selection section, specify criteria such as Customer and Product to filter the displayed list of alerts.

3M Supplier Alert Management (continued)


In the Statistical View, all the alerts that meet the criteria in the Selection section are listed in High, Medium and Low buckets.



The Detailed Alert Summary lists all alerts under the selected alert bucket. Here Suppliers can view alert details such as Alert Type, Creation Date / Time, Partner From, Partner To, Acknowledged (Y or N), and Notes (Y or N).

The Supplier can add acknowledgements and notes, or delete the alert. In addition, alert details can be viewed by exception type to identify the cause of the problem.



To see the alert details, click the row header for an alert to select it, and the alert details appear below. The Supplier can examine alert details, perform corrective action, and clear the alert.



The Supplier views the inventory and demand information on these windows:

� Min/Max Replenishment Overview is a dashboard of all items; use the color coding to identify which items need additional review and action (management by exception).

� Min/Max Replenishment Details

provides an item view including stock on hand, and uses color coding to flag when projected stock drops below minimum or is out of stock.

3M Supplier Inventory and Demand Process


1. From the Replenishment menu, select Min/Max Replenishment Monitor, then click Min/Max Replenishment Overview.

3M Supplier Inventory and Demand Process (continued)


2. The Min/Max Replenishment Overview window appears. Click the Hide Quick Criteria Maintenance toggle to reveal fields for entering selection criteria.



3. In the Customer Location field, enter the 3M location number where the product should be shipped

4. In the Product field enter the product number.

5. Click Go to display those products.



The results appear. In this example, red color coding highlights Projected Stock that is below the minimum stock required.



Next, the Supplier proposes planned receipts to bring the inventory within the minimum-maximum range:

On the Min/Max Replenishment Details

window, the Supplier proposes planned receipts. The receipts may be planned by the system or manually.

3M Supplier Replenishment Process


3M Supplier Replenishment Process (continued)

The system can generate planned receipts based upon system parameters such as Total Replenishment Lead Time, Lot Size, Minimum Stock, and Maximum Stock.

1. From the Propose Planned Receipts menu, click Propose Planned Receipts.



The system displays a Replenishment Started message, and generates proposed planned receipts for all items that meet your timeframe and selection criteria.



2. If satisfied with the proposed planned receipts, click Save.

3. If you need to manually modify or propose the planned receipts, from the Grid Arrangement drop-down list, select Min/Max Ship-From Location.



A new row with duplicate information appears beneath the row to be modified. Because the white background indicates the field can be edited, you may modify the quantity for each planning period.

4. Click Save, and the system replaces the previous quantity on the original row with the manually entered quantity.


Finally, the 3M Supplier creates and publishes ROs prior to shipping the planned receipts.

The Due List for Planned Receipts

contains all the proposed planned receipts to create a consolidated RO.

Create and Publish ROs


1. From the Delivery menu, select Receipts and Requirements, then click Due List for Planned Receipts (SMI).

Create and Publish ROs (continued)


2. Click the row header of one of the due list lines to select it.

3. Click Create RO.



4. Populate the SO No. field.

5. Click Publish.

6. When the prompt appears, click Yes to publish.



7. On the Reference Documents tab, verify the PO No. field is correctly populated.



The course described the SMI process using SNC. Key points covered include:

� Receiving and responding to alerts

� Reviewing inventory and demand

� Proposing planned receipts

� Creating and publishing ROs

Conclusion