Inventory Management: The Inventory Management Process

The graphic below provides a look at the standard process for ordering and filling internal orders through the Inventory Management solution.

Step 1: In this step, requisitioners shop for items. Users shop in the same manner for internal inventory items as they do for items from third party suppliers. Both catalog and non-catalog requests can be generated for internal suppliers (stockrooms, stores, etc.). For more information on this process, refer to The End User Experience in Supplies Manager and Shopping for Inventory Items.

Step 2: The Purchase Requisition and Purchase Order process varies greatly per organization and is dictated by an organization’s workflow and approval process. When a cart is submitted a purchase requisition (PR) is created. The final step of the PR process is to create a purchase order (PO). Your PO process may or may not have any approval steps.

Step 3: If the order is for a third-party supplier, it is typically sent to the supplier for processing or exported out of the JAGGAER application for further processing, then fulfillment by the supplier. If the order is for an internal (stockroom) supplier, a Sales Order is generated.

Step 4: This step represents the overall process of stockroom processing. Steps 5 – 10 represent standard activities that happen during this step, but additional activities and options may occur, which are listed in Additional Stockroom Tasks.

Step 5: You can automatically allocate inventory to incoming orders if the items are available. If the full list of requested items is available in inventory, then the order is processed (Steps 6 and 7). If the full list of requested items is not available, go to Step 8.

Step 6: This step consists of a number of sub-steps, which in summary, allows you to process and complete the order from the system’s perspective. The individual activities include assigning an order to yourself for processing and viewing and printing a packing slip.

Step 7: Shipment delivery is an activity that occurs outside of the system. Oftentimes, the packing slip is used as a means for receipt validation (i.e. – the requisitioner signs the packing slip to indicate he/she has received the goods). Another option is to allow users to enter their receipts in the system. This is highly recommended if all other receipts are recorded in this manner.

Step 8: If the requested order cannot be filled completely, the remaining items will automatically be placed on back order. If part of the order can be filled, an initial shipment is generated and can be delivered to the requisitioner (Step 7). Items on back order are used as an indicator for replenishment ordering. If the items being requested are not already on order, a new order is typically placed for the items needed. Lastly, if the requisitioner decides they do not need the item or for other reasons, such as an item being discontinued, an order or part of an order may be canceled. Refer to Processing Backorders or Canceling Items in an Order for details.

Step 9: Replenishment ordering is a standard part of any inventory management process. Orders are placed by stockroom personnel to replenish stock in the stockroom and to fill any back orders. See Replenishment Ordering for more information.

Step 10: Replenishment orders can be placed directly in the application and received through the system. The solution also accommodates situations where items outside of the system can be received into the system. After the appropriate inventory is received to complete the back order, a new shipment should be generated. Refer to the following for more information:

Step 11: Once an order is fully complete – meaning all items are either fully shipped or have been canceled, the order should be closed. Depending on your organization’s preference, this may happen at the same time the packing list is printed or you may choose to do this when delivery verification is received.

Step 12: Requisitioners can track their orders as they move from a requisition to a sales order. Additionally, stockroom personnel can view order and shipment history. Refer to Viewing and Tracking Stockroom Orders for more information.