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Currently, when planning intercompany orders, a planned purchase order is created in downstream company (Legal Entity A), but the requirement dates for the planned intercompany demand created in subsequent upstream legal entities [Legal Entity B (and Legal entity C, if it is triangulation order)] are the same as that of the original requirement date in the downstream company. Please find the details below:


Legal Entity A

Demand forecast : 09/12/2024 (9th December, 2024)

Planned Purchase order (Scheduled start date/order date) : 10/10/2024 (10th October, 2024)

Planned purchase order (Requirement date) : 09/12/2024 (9th December, 2024)


Legal entity B

Planned intercompany demand (Requirement date) : 09/12/2024 (9th December, 2024)


Legal entity C

Planned intercompany demand (Requirement date) : 09/12/2024 (9th December, 2024)


Purchase lead time (legal entity A) : 60 days


Transport days (legal entity C) : 60 days


Based on the demand in Legal Entity A:

  1. Planned purchase orders are created in Legal Entity A from the master planning
  2. Corresponding planned intercompany demand are created in Legal Entity B and C. Direct delivery is happening from Legal Entity C to Legal Entity A.
  3. The problem is with the highlighted days Requirement dates of planned intercompany demand in Legal Entity B and Legal Entity C


Users working in the processes related to Supply chain are getting impacted, because the requirement dates of the intercompany planned demand (in the net requirements of the shipping legal entity (legal entity C)), is not considering the transport days, which is resulting in incorrect demand planning for the delivery of the intercompany orders, which is resulting in non-fulfillment of customer orders in the procuring legal entity(legal entity A). Hence, loss of revenue for the organization.

Category: Planning
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