Distribution Order in Service Management
Multi-Site Inventory Movement & Inter-Company Transfers in IFS ERP
How ESS streamlined inventory coordination across multiple service locations with automated distribution orders, achieving 98-99% inventory accuracy and 40% faster processing.
Multi-Site Service Organization
A multi-site service organization utilizing IFS ERP to manage inventory, procurement, and service delivery across multiple locations needed to streamline their inter-site inventory movements. ESS implemented a comprehensive Distribution Order solution that automated the coordination between demand and supply sites.
Key Takeaways
Demand and supply sites must have the same inventory part number to move goods
Distribution orders support inter-company movements within the same database
System manages default coordinators for streamlined entry and processing
Automatic Receipt reduces manual effort by auto-receiving goods into stock
Flexibility in how orders are released and executed for diverse operations
Multi-Site Coordination Challenges
The client faced significant challenges coordinating inventory movements between multiple sites to meet service demands efficiently
Complex Manual Processes
Moving parts between supply and demand sites required extensive manual coordination
Lack of Synchronization
No automatic sync between inventory parts, purchase parts, and sales parts records across sites
Order Release Inefficiencies
Delays and stock imbalances caused by inefficient handling of order releases
Limited Visibility
Poor visibility into order statuses and history affecting planning and coordination
Multi-Company Automation
Difficulty automating supply orders across sites in multi-company environments
"These issues resulted in delays in parts availability, increased administrative overhead, and reduced service responsiveness."
Distribution Orders in IFS
Enabling planned movement of inventory parts between sites for efficient internal stock transfers
Automated Creation & Release
IFS automatically creates necessary purchase and sales part records if they don't exist, reducing manual setup
Internal Customer & Supplier Setup
Demand sites registered as internal customers, supply sites as internal suppliers for clear transaction pathways
Coordinated Order Processing
Distribution orders generate corresponding released customer and purchase order lines for consistent workflows
Automated & Manual Control
Orders created manually or automatically via MRP, Master Scheduling, Dynamic Order Processing, and Distribution Allocations
Status Tracking
Order History command monitors changes including stops and cancellations with clear accountability
Distribution Order Workflow
Demand Site
Internal Customer
- • Initiates distribution order
- • Receives transferred goods
- • Auto-receipt into stock
Distribution Order
IFS Automation
- • Auto-creates purchase/sales parts
- • Generates PO & CO lines
- • Status tracking & history
Supply Site
Internal Supplier
- • Fulfills distribution order
- • Ships inventory parts
- • Updates order status
Implementation Approach
System Configuration
- Configured inventory parts across demand and supply sites for consistent part numbering
- Set up demand sites as internal customers and supply sites as internal suppliers
- Defined default coordinators, Distribution Order Prefix, and numbering sequence
Process Setup & Automation
- Enabled automatic creation of purchase and sales part records upon releasing Distribution Orders
- Activated Automatic Receipt to streamline receiving at demand sites
- Integrated with MRP, Master Scheduling, DOP, and Distribution Allocations
User Training & Change Management
- Trained coordinators on managing Distribution Orders end-to-end
- Established guidelines for order release timing and status change policies
- Implemented order tracking procedures using Order History feature
Testing & Rollout
- Conducted thorough testing for automated record creation and inter-site transfers
- Rolled out incrementally across sites for smooth adoption
- Gathered continuous feedback for process optimization
Measurable Outcomes
Reduced Processing Time
Through automation and real-time synchronization
Inventory Accuracy
Via integrated transfers
Manual Entry Reduction
Through auto-generated DOs
Service Level Improvement
Enhanced responsiveness
Cost Reduction
Optimized operations
Faster Receipt Processing
Using auto-receipt functionality
Long-Term Strategic Value
Supply Chain Agility
Rapid, coordinated movement of parts between sites, responding quickly to demand fluctuations and reducing downtime
Centralized Visibility & Control
Real-time insights into inventory, transfers, and stock levels across all sites for accurate planning and decision-making
Cost Optimization
Automated internal order handling, reduced manual processing, minimized excess inventory and logistics costs
Service Excellence
Faster part availability and delivery between sites, enhancing service responsiveness and customer satisfaction
Scalable Digital Integration
Standardized, automated processes that scale efficiently as new sites or business units are added
Lessons Learned
Prioritize Workflow Remodeling
Remodel business workflows before re-implementing the core application for smoother system incorporation
Embrace Task-Oriented Workflows
Implement specific task-oriented systems like pallet handling and request systems to reduce downtime
Digitalize Immediately
Move to online reporting via terminals and QR codes to eliminate paperwork and log data immediately
Integrate Sales and Production
Streamline communication so production can be altered as soon as sales data is processed
About ESS
Your IFS Implementation Partner
Enterprise Software Solutions Inc. (ESS) is a premier ERP implementation and support company, recognized for delivering successful projects across manufacturing, distribution, and service verticals for over 15 years. As a dedicated IFS Gold Partner, ESS specializes in comprehensive ERP implementation and migration services.
Core Services
- Full-cycle ERP implementation
- Post-implementation support
- Third-party API integration
- Data migration solutions
Technical Expertise
- Legacy to modern ERP migration
- RESTful APIs & IFS customization
- Microsoft, SAP, BAAN expertise
- Epicor P21 implementation
Streamline Your Multi-Site Operations
Let ESS help you implement Distribution Orders and optimize inventory movement across your service locations.