1 00:00:12,900 --> 00:00:17,200 Hello, I'm Nari Woo from the SERVEONE Order Management Team 2 00:00:17,200 --> 00:00:22,500 Welcome to the 2025 SERVEONE MRO Process Order Management lecture 3 00:00:23,320 --> 00:00:26,620 First, a quick overview of PO management 4 00:00:26,880 --> 00:00:29,220 PO management means 5 00:00:29,220 --> 00:00:32,521 the buyer understands the delivery type and supplier selection logic 6 00:00:32,521 --> 00:00:34,419 based on master data, 7 00:00:34,419 --> 00:00:37,759 then creates and manages POs accordingly 8 00:00:38,199 --> 00:00:40,519 In this chapter, I’ll briefly cover the PO management standards 9 00:00:40,519 --> 00:00:44,740 and the updated assignee logic in 2025 10 00:00:44,740 --> 00:00:47,339 Then, we’ll dive into PO Simulation, 11 00:00:47,340 --> 00:00:50,114 the core logic for delivery type 12 00:00:50,114 --> 00:00:53,779 and automatic supplier selection 13 00:00:54,419 --> 00:00:59,200 First, let’s clarify the difference between orders and purchase orders 14 00:00:59,200 --> 00:01:02,399 SO is the customer’s request, 15 00:01:02,400 --> 00:01:07,634 while PO is SERVEONE's request for suppliers to deliver goods 16 00:01:07,634 --> 00:01:10,421 For reference, in 2024, SERVEONE 17 00:01:10,421 --> 00:01:14,781 processed about 8.7 million orders in Korea, 18 00:01:14,781 --> 00:01:19,400 which averages to 36,000 orders per working day 19 00:01:19,680 --> 00:01:24,959 SERVEONE manages POs efficiently by dividing them into 20 00:01:24,959 --> 00:01:28,300 real-time POs and batch-generated POs 21 00:01:28,740 --> 00:01:31,680 POs are divided into two type 22 00:01:31,681 --> 00:01:34,351 Real-time PO, created immediately with the customer SO 23 00:01:34,351 --> 00:01:40,659 Automatic PO, created through scheduled PO simulation batches 24 00:01:40,659 --> 00:01:45,240 Real-time POs apply to cases like Pre-Receipt orders or sub-materials, 25 00:01:45,240 --> 00:01:50,320 where the delivery type and supplier are already fixed, so no PO simulation batch is needed 26 00:01:50,320 --> 00:01:55,100 Automatic POs cover all other orders 27 00:01:55,520 --> 00:01:58,879 Currently, automatic batches run four times a day 28 00:01:58,880 --> 00:02:02,653 At 9 AM, 11 AM, 2 PM, and 4 PM 29 00:02:02,999 --> 00:02:08,280 Each batch includes all SOs created up to 30 minutes before the batch 30 00:02:08,280 --> 00:02:11,580 Also, for 10 minutes before and after each batch, order changes are not allowed 31 00:02:11,900 --> 00:02:16,999 Based on the PO simulation results, the delivery type and supplier are set to create PO 32 00:02:17,319 --> 00:02:20,040 There is no automatic batch on weekends 33 00:02:20,040 --> 00:02:23,340 So if a customer SO is created after 3 PM on Friday, 34 00:02:23,340 --> 00:02:26,340 it won’t be included in the 4 PM batch, 35 00:02:26,340 --> 00:02:30,879 and the PO will be created on Monday at 9 AM 36 00:02:31,319 --> 00:02:34,819 Understanding the batch schedule 37 00:02:34,819 --> 00:02:39,199 helps reduce unnecessary communication between team 38 00:02:39,199 --> 00:02:41,059 So not only buyers, 39 00:02:41,059 --> 00:02:45,859 but also sales and operations managers should know these batch times 40 00:02:46,019 --> 00:02:49,819 Next is the 2025 buyer assignment logi 41 00:02:50,139 --> 00:02:54,440 The buying team is determined based on the attributes of the operating unit 42 00:02:54,440 --> 00:02:58,640 In 2024, R&D was reassigned to the Buying Team 43 00:02:58,640 --> 00:03:03,219 For LG Headquarters, the construction materials and repair operating units 44 00:03:03,219 --> 00:03:05,560 are handled by either the LG Business Team 45 00:03:05,560 --> 00:03:10,636 or the EV Business Team, depending on the region attributes 46 00:03:11,016 --> 00:03:16,899 For LG promotional operating units, they are handled by both the LG Business Team and the Sales Business Team 47 00:03:17,999 --> 00:03:20,580 Next, let’s look at the PO simulation 48 00:03:20,580 --> 00:03:23,320 that determines the delivery type and supplier 49 00:03:24,020 --> 00:03:29,259 The PO simulation follows decision logic to set both the delivery type and the supplier 50 00:03:29,719 --> 00:03:35,519 Delivery type is determined using the sales/customer master, product master, and logistics master, 51 00:03:35,519 --> 00:03:40,140 which decide whether the order can go through the hub 52 00:03:40,140 --> 00:03:43,221 Then, the system checks for S-MRP master data 53 00:03:43,221 --> 00:03:45,821 and whether bundled delivery applies 54 00:03:45,821 --> 00:03:49,960 Finally, for orders going through the hub, the detailed delivery type is determined 55 00:03:50,440 --> 00:03:54,540 Supplier selection is based on factors like minimum order quantity, delivery availability, 56 00:03:54,540 --> 00:03:57,580 purchase price, and supplier evaluation 57 00:03:57,980 --> 00:04:02,259 SERVEONE has four delivery types 58 00:04:02,259 --> 00:04:05,659 Direct delivery which supplier ships straight to the customer, 59 00:04:05,660 --> 00:04:10,480 No-stock which goes through the hub, Center, and VMI 60 00:04:11,080 --> 00:04:15,399 Direct delivery ships straight from the supplier to the customer without SERVEONE's physical inspection, 61 00:04:15,399 --> 00:04:18,580 so delivery proof must be uploaded once completed 62 00:04:19,100 --> 00:04:23,139 For No-stock delivery, the supplier delivers to logistics center, 63 00:04:23,139 --> 00:04:28,300 then SERVEONE ships to the customer via own fleet or courier service 64 00:04:28,620 --> 00:04:30,880 In No-stock POs, the inbound hub 65 00:04:30,881 --> 00:04:34,889 is decided by the supplier master’s default hub, 66 00:04:34,889 --> 00:04:38,659 and the outbound hub is set by the customer’s operating unit 67 00:04:38,659 --> 00:04:43,380 For Center and VMI, these are products managed under S-MRP 68 00:04:43,380 --> 00:04:47,139 Center stock is settled at inbound due to pre-purchase 69 00:04:47,139 --> 00:04:51,219 VMI stock is settled at customer outbound completion 70 00:04:53,019 --> 00:04:56,639 Now, let’s look at the auto logic for 71 00:04:56,639 --> 00:04:58,760 delivery type and supplier selection 72 00:04:59,119 --> 00:05:03,320 Delivery type is determined by the SO’s Customer master, Product master, 73 00:05:03,321 --> 00:05:07,082 Logistics master, S-MRP data and order info 74 00:05:07,082 --> 00:05:10,479 These four methods will be determined 75 00:05:10,859 --> 00:05:14,900 These master fields are 76 00:05:14,900 --> 00:05:18,240 straightforward in meaning 77 00:05:18,520 --> 00:05:21,560 Please review the items on the next pages 78 00:05:21,560 --> 00:05:25,339 If you grasp their operational implications, 79 00:05:25,339 --> 00:05:28,040 that’s enough 80 00:05:28,040 --> 00:05:30,359 So I’ll skip the detailed explanation here 81 00:05:31,100 --> 00:05:35,879 Our supplier selection logic is simpler than delivery type 82 00:05:35,879 --> 00:05:39,979 First, it checks if a designated supplier exists in the sales master 83 00:05:39,979 --> 00:05:43,720 Then it looks at Pre-Receipt status 84 00:05:43,720 --> 00:05:47,379 and any assigned supplier info 85 00:05:47,379 --> 00:05:51,600 Next, it checks the supplier’s direct delivery coverage 86 00:05:51,600 --> 00:05:53,359 to determine the supplier 87 00:05:53,959 --> 00:05:58,460 Many assume the first priority in supplier selection is purchase price, 88 00:05:58,460 --> 00:06:00,240 but in fact, it’s minimum order quantity 89 00:06:00,600 --> 00:06:02,441 Even if the price is low, 90 00:06:02,441 --> 00:06:06,757 if it doesn’t match the customer’s order quantity or conditions, it’s meaningless 91 00:06:06,757 --> 00:06:08,540 That’s why MOQ comes first 92 00:06:08,940 --> 00:06:11,879 The second priority is delivery availability 93 00:06:12,119 --> 00:06:16,640 After the delivery type is set, 94 00:06:16,640 --> 00:06:20,659 the system checks if it matches the supplier’s delivery coverage 95 00:06:20,659 --> 00:06:24,079 If it does, the supplier is eligible 96 00:06:24,379 --> 00:06:27,301 Sometimes this results in a PO 97 00:06:27,301 --> 00:06:29,628 going to an unexpected supplier 98 00:06:30,020 --> 00:06:34,260 This usually happens when the delivery type is set as direct delivery 99 00:06:34,260 --> 00:06:38,500 To fix this, you can either change the delivery type 100 00:06:38,500 --> 00:06:40,641 to No-stock by updating the master data, 101 00:06:40,641 --> 00:06:43,321 or request an update to the supplier master 102 00:06:43,321 --> 00:06:45,939 to correct the delivery availability info 103 00:06:46,419 --> 00:06:50,079 The third priority is purchase price, using the lowest purchase price as the standard 104 00:06:50,079 --> 00:06:52,500 The fourth priority is the supplier evaluation score 105 00:06:52,501 --> 00:06:54,341 If two suppliers have the same lowest price, 106 00:06:54,341 --> 00:06:59,619 the system uses the evaluation score in the supplier master to make the decision 107 00:07:00,139 --> 00:07:04,339 As an exception, when an order is created in the SSP Mall, 108 00:07:04,339 --> 00:07:09,200 the system uses SSP supplier status as the third priority 109 00:07:09,460 --> 00:07:11,960 For SSP representative products, 110 00:07:11,961 --> 00:07:17,581 the purchase info includes whether the supplier is SSP-designated, so these are managed separately, 111 00:07:17,581 --> 00:07:21,299 and the PO is directed to that assigned SSP supplier 112 00:07:21,679 --> 00:07:25,819 As mentioned earlier, I think the people in charge 113 00:07:25,819 --> 00:07:29,139 will understand the meaning of each master information 114 00:07:29,139 --> 00:07:34,059 in the automatic delivery type determination criteria by reading through it once, 115 00:07:34,059 --> 00:07:35,660 so I will skip over it 116 00:07:36,219 --> 00:07:38,859 This information can be found in Planned PO Inquiry 117 00:07:38,859 --> 00:07:43,279 Click the PO simulation number for a completed SO, 118 00:07:43,279 --> 00:07:48,879 and a popup will show each simulation item with values of Yes or No 119 00:07:48,879 --> 00:07:51,299 These values are the criteria for delivery type decisions 120 00:07:51,299 --> 00:07:52,860 It’s best to check them directly in practice, 121 00:07:52,860 --> 00:07:56,420 seeing it firsthand makes it easier to understand 122 00:07:56,819 --> 00:08:00,559 This table shows the detailed logic for how the final delivery type is decided 123 00:08:00,559 --> 00:08:04,140 based on each master data field 124 00:08:04,560 --> 00:08:09,039 Using the sales/customer master, product master, and logistics master, 125 00:08:09,039 --> 00:08:14,080 the system decides whether the order can go through the hub 126 00:08:14,080 --> 00:08:16,981 Then it checks for S-MRP data 127 00:08:16,981 --> 00:08:19,454 and whether bundled delivery applies, 128 00:08:19,454 --> 00:08:23,079 to determine the detailed delivery type for hub-routed orders 129 00:08:23,179 --> 00:08:27,919 As an exception, when the order falls into a courier delivery area rather than a hub self-delivery area, 130 00:08:27,919 --> 00:08:31,660 the shipping hub may be set to the supplier’s primary receiving hub 131 00:08:31,660 --> 00:08:33,880 instead of the customer’s hub 132 00:08:34,460 --> 00:08:37,539 This logic is designed to reduce unnecessary hub-to-hub transfers, 133 00:08:37,539 --> 00:08:39,819 so please keep it in mind 134 00:08:40,039 --> 00:08:44,200 Also note that if the assigned supplier is capable of nationwide self-delivery 135 00:08:44,200 --> 00:08:48,619 or if it is a linked supplier, some orders may be switched to direct delivery as another exception 136 00:08:48,619 --> 00:08:52,440 Please review the table logic with these exceptions in mind 137 00:08:53,200 --> 00:08:56,519 Here are the detailed criteria for supplier selection I mentioned earlier 138 00:08:56,859 --> 00:09:00,319 Most of the points should be straightforward to understand 139 00:09:00,319 --> 00:09:03,539 For the second priority, delivery feasibility, 140 00:09:03,539 --> 00:09:07,239 when the shipping method is determined as direct delivery, 141 00:09:07,239 --> 00:09:10,759 the system checks whether the supplier’s master data includes a self-delivery service area 142 00:09:10,759 --> 00:09:13,480 that matches the order’s delivery region 143 00:09:13,940 --> 00:09:17,339 The purchase price is not the item price shown in the purchase information 144 00:09:17,339 --> 00:09:20,799 It means the aggregated purchase condition value 145 00:09:20,799 --> 00:09:22,619 for that specific order 146 00:09:23,239 --> 00:09:25,719 In practice, the product price in the purchase info 147 00:09:25,720 --> 00:09:28,840 and the purchase price in the order info can differ 148 00:09:28,840 --> 00:09:32,439 So it’s important to keep in mind that conceptually, these two are not the same 149 00:09:32,859 --> 00:09:36,600 To summarize the supplier selection logic so far, 150 00:09:36,600 --> 00:09:39,320 please note only the exception case where the inbound hub for non-stock orders 151 00:09:39,320 --> 00:09:43,899 is applied identically as the outbound hub 152 00:09:45,079 --> 00:09:49,479 The purchase order status is determined based on the delivery type and supplier decision 153 00:09:49,479 --> 00:09:51,600 from the order simulation 154 00:09:51,900 --> 00:09:57,260 There are three statuses: Pending, On Hold, and Error 155 00:09:57,520 --> 00:10:01,639 First, the supplier decision method is divided into 156 00:10:01,639 --> 00:10:04,383 Customer-specified and Auto-determined 157 00:10:04,383 --> 00:10:08,883 Then, depending on the priority order mentioned earlier 158 00:10:08,883 --> 00:10:13,939 and the existence of purchase information, the final PO status is classified 159 00:10:14,419 --> 00:10:17,560 Basically, regardless of the supplier decision method, 160 00:10:17,560 --> 00:10:22,019 if valid purchase information exists, the status becomes Pending 161 00:10:22,019 --> 00:10:25,560 If no purchase information exists, the status becomes Error 162 00:10:26,160 --> 00:10:28,540 If there is no purchase info for a designated supplier, 163 00:10:28,540 --> 00:10:31,799 the message will be “Supplier cost not set, undecided” 164 00:10:31,800 --> 00:10:37,260 If there is no valid purchase info at all, the message will be “Supplier not decided, no purchase info” 165 00:10:37,260 --> 00:10:42,160 Both cases result in Error, but the messages differ 166 00:10:42,660 --> 00:10:48,040 The On Hold status applies only when the supplier is chosen by auto-decision 167 00:10:48,040 --> 00:10:50,839 When multiple purchase information records exist under the same criteria, 168 00:10:50,839 --> 00:10:53,400 when the decided supplier cannot deliver, 169 00:10:53,401 --> 00:10:58,479 or when the minimum order quantity is not met, then system shows error message 170 00:10:59,239 --> 00:11:03,179 This is the overall PO process summarizing the purchase order simulation 171 00:11:03,539 --> 00:11:07,839 After the customer SO is created, the system first checks for pre-receipt handling, 172 00:11:07,839 --> 00:11:11,100 customer-specified supplier, or purchase-specified supplier 173 00:11:11,100 --> 00:11:14,840 If no designation exists, the order runs through the PO simulation 174 00:11:14,841 --> 00:11:17,921 Then valid orders move to PO Pending 175 00:11:18,420 --> 00:11:22,560 Others remain as PO Error or On Hold 176 00:11:23,100 --> 00:11:28,939 Pending orders are processed during the 1st and 4th automatic batch runs, where POs are generated 177 00:11:28,939 --> 00:11:31,980 Suppliers then receive the POs, deliver the goods, 178 00:11:31,980 --> 00:11:36,159 or reject the order if delivery is not possible 179 00:11:36,639 --> 00:11:41,240 As mentioned earlier, PO Errors and On Hold statuses 180 00:11:41,240 --> 00:11:45,379 occur in the process 181 00:11:45,379 --> 00:11:49,739 The root cause is usually missing or invalid purchase info 182 00:11:50,239 --> 00:11:55,500 For PO Errors, you must create valid purchase info based on the error reason 183 00:11:55,500 --> 00:11:57,980 If no valid purchase info exists at all, 184 00:11:57,980 --> 00:12:02,200 the message shows Supplier Not Determined / No Purchase Info 185 00:12:02,200 --> 00:12:05,039 If a designated supplier’s info is missing, 186 00:12:05,040 --> 00:12:07,614 the message shows Supplier Price Not Determine 187 00:12:07,614 --> 00:12:13,359 In each case, update the purchase info and check with the sales manager 188 00:12:14,019 --> 00:12:16,959 For On-Hold POs, you can resolve them 189 00:12:16,960 --> 00:12:20,837 by updating purchase info or supplier master data as needed 190 00:12:21,199 --> 00:12:24,099 The buyer can then review the case, 191 00:12:24,099 --> 00:12:26,396 make adjustments such as price changes, 192 00:12:26,396 --> 00:12:30,380 and directly release the hold 193 00:12:30,880 --> 00:12:34,600 Simulation messages and handling methods are documented in detail, 194 00:12:34,601 --> 00:12:36,981 so please refer to them in practice 195 00:12:36,981 --> 00:12:41,379 Purchase order errors occur when valid purchase information is missing 196 00:12:41,379 --> 00:12:45,580 After the SO is created, delays are inevitable 197 00:12:45,581 --> 00:12:50,260 while purchase info is reviewed or vendor quotes are arranged 198 00:12:50,620 --> 00:12:52,860 Please minimize unnecessary requests 199 00:12:52,860 --> 00:12:56,240 Keep purchase information updated 200 00:12:56,240 --> 00:13:00,119 to meet customer deadlines and avoid claims 201 00:13:01,059 --> 00:13:06,660 In the case of rejections, the purchasing manager in charge must handle them thoroughly 202 00:13:06,660 --> 00:13:12,081 Depending on the supplier’s reason for rejection, you should coordinate with relevant departments to resolve it 203 00:13:12,520 --> 00:13:17,239 Rejected cases can be managed in the PO history screen 204 00:13:17,239 --> 00:13:20,800 by using the Order Confirmation Request menu 205 00:13:21,100 --> 00:13:24,620 They are divided into order confirmation requests and order cancellation requests, 206 00:13:24,621 --> 00:13:27,761 and you choose the type depending on the reason 207 00:13:28,060 --> 00:13:31,939 An order cancellation request does not mean it is immediately canceled 208 00:13:32,139 --> 00:13:37,340 The operations or sales manager will confirm with the client, and if cancellation is possible, 209 00:13:37,340 --> 00:13:41,360 it will be registered as on hold first, then processed 210 00:13:42,720 --> 00:13:47,499 Please refer to the actual processing screen shown here 211 00:13:47,499 --> 00:13:49,600 for details on each request reason 212 00:13:51,140 --> 00:13:53,979 Next is the actual system manual 213 00:13:53,979 --> 00:13:57,640 Please refer to the screen, we will move on without explanation 214 00:13:57,920 --> 00:14:02,320 Now let me explain the replenishment PO simulation 215 00:14:03,020 --> 00:14:07,240 Based on S-MRP reference information, the replenishment PO simulation 216 00:14:07,240 --> 00:14:11,959 determines the supplier, the replenishment PO target, and the quantity 217 00:14:12,359 --> 00:14:15,039 Here, S-MRP reference information refers to 218 00:14:15,040 --> 00:14:18,420 master data required to run S-MRP 219 00:14:18,420 --> 00:14:22,779 This includes safety stock, maximum stock, lot size, and inbound lead time 220 00:14:23,419 --> 00:14:29,000 The target of the replenishment PO simulation is VMI and center inventory under S-MRP management, 221 00:14:29,000 --> 00:14:33,419 where available stock is below the reorder point 222 00:14:34,239 --> 00:14:39,099 The buyer sets the reference data in S-MRP 223 00:14:39,099 --> 00:14:43,100 and the replenishment PO type 224 00:14:43,100 --> 00:14:46,080 Based on this, the replenishment PO simulation is run, 225 00:14:46,080 --> 00:14:49,900 and the ROP and replenishment order quantity are determined 226 00:14:50,660 --> 00:14:54,220 The buyer then executes the replenishment PO 227 00:14:54,220 --> 00:15:00,120 and, if necessary, creates an outbound order for center inventory returns or VMI withdrawals 228 00:15:01,880 --> 00:15:05,480 Before covering the details of the replenishment PO simulation, 229 00:15:05,480 --> 00:15:08,860 let\'s look at the S-MRP registration process 230 00:15:09,360 --> 00:15:12,540 The buyer selects the inventory items to manage, 231 00:15:12,540 --> 00:15:15,719 calculates logistics costs via CST, 232 00:15:15,720 --> 00:15:19,898 and performs a P&L analysis, then proceeds with S-MRP registration 233 00:15:20,359 --> 00:15:24,020 Unlike center inventory, 234 00:15:24,020 --> 00:15:28,099 MI is a contract to rent space in our logistics center 235 00:15:28,099 --> 00:15:31,620 A separate VMI material contract is required, 236 00:15:31,620 --> 00:15:36,659 and the standard contract is available in the e-contract system 237 00:15:37,279 --> 00:15:41,800 Based on the logistics costs allocated from CST, 238 00:15:41,800 --> 00:15:44,019 the buyer must conduct a P&L analysis 239 00:15:44,019 --> 00:15:48,240 and review inventory operations with a focus on improving profitability 240 00:15:49,960 --> 00:15:54,180 Now let’s go over each of the S-MRP reference data items 241 00:15:54,620 --> 00:16:00,780 The required data are safety stock, maximum stock, lot size, and inbound lead time 242 00:16:00,780 --> 00:16:05,580 Safety stock is set based on the average monthly sales of up to the past three months 243 00:16:06,160 --> 00:16:09,840 The recommended safety stock is the three-month average monthly sales 244 00:16:09,840 --> 00:16:12,579 multiplied by 24 working days 245 00:16:12,579 --> 00:16:17,160 In practice, safety stock is usually set to the average one- or two-month inventory level, 246 00:16:17,160 --> 00:16:18,880 limited to normal stock 247 00:16:19,540 --> 00:16:23,160 Maximum stock is recommended at twice the safety stock, 248 00:16:23,160 --> 00:16:28,400 though for imports or long lead-time items, a higher maximum stock may be set 249 00:16:29,040 --> 00:16:33,819 Lot size is a different concept from MOQ 250 00:16:33,819 --> 00:16:37,719 It should be understood as the multiple order unit rather than the minimum order quantity 251 00:16:38,279 --> 00:16:41,799 Even if customer sales quantities are calculated per unit, 252 00:16:41,799 --> 00:16:45,060 when negotiating with suppliers on inventory operations, 253 00:16:45,060 --> 00:16:50,379 the release standard is often based on box or pallet quantities 254 00:16:50,379 --> 00:16:54,419 In most cases, this pack quantity becomes the multiple order uni 255 00:16:54,719 --> 00:16:59,619 Inbound LT is also a different concept from the standard delivery LT in the product master 256 00:16:59,619 --> 00:17:02,640 It generally refers to the lead time required for 257 00:17:02,640 --> 00:17:06,780 the replenishment order to arrive at our hub 258 00:17:07,240 --> 00:17:11,519 This information may need to be updated due to 259 00:17:11,519 --> 00:17:13,839 changes in customer demand or supplier conditions 260 00:17:13,839 --> 00:17:17,360 Since the replenishment order simulation runs based on this data, 261 00:17:17,360 --> 00:17:19,980 it must be checked and revised regularly 262 00:17:20,140 --> 00:17:23,740 Under here is 2025 inventory manager assignment logic 263 00:17:23,740 --> 00:17:25,820 Based on the highest purchase volume operating unit, 264 00:17:25,820 --> 00:17:29,020 the manager is designated from 265 00:17:29,021 --> 00:17:32,423 the Purchasing HQ, Sales HQ, or LG HQ 266 00:17:32,423 --> 00:17:35,979 If there are no performance records in both 2024 and 2023, 267 00:17:35,979 --> 00:17:39,079 the manager is assigned to the detailed category manager 268 00:17:39,079 --> 00:17:42,760 of the initial operating unit listed in the item master information 269 00:17:43,360 --> 00:17:46,159 If an inventory manager change is required, 270 00:17:46,159 --> 00:17:49,740 you can coordinate with the current manager and then send a change request email 271 00:17:49,740 --> 00:17:52,480 to the inventory manager within the Purchasing Management Team 272 00:17:53,540 --> 00:17:57,599 Next, based on the S-MRP reference data mentioned earlier, 273 00:17:57,599 --> 00:18:00,739 I will explain the logic for updating the reorder point, 274 00:18:00,739 --> 00:18:04,019 optimal ordering date, and inventory status of stocked items 275 00:18:04,719 --> 00:18:11,179 The formula for the reorder point is the sum of safety stock and the daily average sales quantity multiplied by the inbound LT 276 00:18:11,179 --> 00:18:13,199 Conceptually, safety stock is the minimum quantity 277 00:18:13,199 --> 00:18:16,408 that SERVEONE must always hold 278 00:18:16,679 --> 00:18:21,260 When placing replenishment orders, you must account for how many units are sold daily 279 00:18:21,260 --> 00:18:27,779 and how long it takes for the replenishment order to arrive at our logistics hub 280 00:18:27,779 --> 00:18:31,319 This way, when the new stock arrives, 281 00:18:31,319 --> 00:18:36,000 the remaining stock level at the hub aligns with the safety stock 282 00:18:36,220 --> 00:18:38,939 So, like the example, 283 00:18:38,939 --> 00:18:44,359 if the safety stock for PVC gloves is 3,200 units, the daily average sales are 1,040 units, 284 00:18:44,360 --> 00:18:47,800 and the inbound lead time is three days, 285 00:18:47,800 --> 00:18:51,320 the buyer should place a replenishment order when inventory reaches 6,320 unit 286 00:18:51,320 --> 00:18:53,902 This is calculated as the safety stock of 3,200 plus the daily average sales of 1,040 287 00:18:53,902 --> 00:18:58,922 multiplied by the inbound lead time of three days 288 00:18:58,922 --> 00:19:03,000 By doing so, inventory will not fall below safety stock 289 00:19:03,000 --> 00:19:07,079 and will be replenished at the right time 290 00:19:07,439 --> 00:19:11,760 For the optimal order date and inventory status, it’s best to review the concepts briefly 291 00:19:11,760 --> 00:19:13,540 and then move on 292 00:19:15,320 --> 00:19:18,199 There are three types of replenishment orders 293 00:19:18,519 --> 00:19:22,019 Automatic orders are created after the simulation, 294 00:19:22,019 --> 00:19:25,699 based on the target and quantity 295 00:19:25,700 --> 00:19:28,263 Semi-automatic shows the results to the buyer, 296 00:19:28,263 --> 00:19:32,720 who then manually confirms and creates the order 297 00:19:33,060 --> 00:19:36,040 Manual means no simulation is run, 298 00:19:36,040 --> 00:19:39,420 and the buyer adds items 299 00:19:39,421 --> 00:19:43,078 and quantities directly 300 00:19:43,640 --> 00:19:48,520 Replenishment targets are checked once a day for both automatic and semi-automatic orders 301 00:19:48,520 --> 00:19:53,840 If available stock falls below the reorder point, the item is flagged for replenishment 302 00:19:55,940 --> 00:20:00,540 Available stock means hub inventory in S-MRP, 303 00:20:00,540 --> 00:20:02,601 plus incoming stock, 304 00:20:02,601 --> 00:20:07,279 minus open SO quantities 305 00:20:07,759 --> 00:20:12,160 Replenishment quantity is calculated as 306 00:20:12,160 --> 00:20:18,220 maximum stock in S-MRP minus available stock 307 00:20:18,220 --> 00:20:22,219 If a multiple order quantity is set, 308 00:20:22,219 --> 00:20:26,720 the replenishment adjusts to that unit 309 00:20:27,160 --> 00:20:30,760 If the calculated quantity is smaller than the MOQ, 310 00:20:30,760 --> 00:20:33,020 the system will not process it 311 00:20:33,020 --> 00:20:37,900 In that case, the buyer must review and update MRP info or place a manual order 312 00:20:38,540 --> 00:20:43,799 If replenishment exceeds max stock set by the buyer, 313 00:20:43,799 --> 00:20:48,539 it requires agreement with the Inventory Manager 314 00:20:48,879 --> 00:20:54,719 In the PVC glove example, 38,000 max stock 315 00:20:54,719 --> 00:21:00,600 minus 13,500 available stock equals a replenishment of 24,500 316 00:21:01,100 --> 00:21:03,580 To summarize, replenishment happens 317 00:21:03,580 --> 00:21:07,331 not when stock falls below safety stock, 318 00:21:07,331 --> 00:21:10,659 but when available stock is less than the reorder point 319 00:21:10,660 --> 00:21:15,246 Replenishment quantity = max stock – available stock 320 00:21:15,959 --> 00:21:21,000 For VMI stock with a separate VMI contract, 321 00:21:21,000 --> 00:21:23,538 the supplier is predetermined 322 00:21:23,538 --> 00:21:27,800 For Center stock, unlike normal customer order logic, 323 00:21:27,800 --> 00:21:30,340 since SERVEONE pre-purchases, 324 00:21:30,341 --> 00:21:32,442 only purchase price is considered 325 00:21:32,442 --> 00:21:35,899 The supplier with the lowest purchase price is chosen at the replenishment point 326 00:21:36,359 --> 00:21:42,079 If prices are the same, the supplier with the higher evaluation score is selected 327 00:21:43,839 --> 00:21:46,979 Next is the VMI order process 328 00:21:47,479 --> 00:21:52,739 Unlike Center stock, VMI is requested to the supplier front system 329 00:21:52,740 --> 00:21:55,980 The supplier receives it, issues a shipment instruction, 330 00:21:55,980 --> 00:21:59,700 and uploads inspection reports if required 331 00:21:59,701 --> 00:22:04,188 After confirming shipment, the order details appear as normal 332 00:22:04,480 --> 00:22:07,759 For sub-materials, inspection reports are mandatory, 333 00:22:07,760 --> 00:22:10,464 so for the people in charge, 334 00:22:10,464 --> 00:22:14,899 please refer to the VMI manual for details 335 00:22:15,679 --> 00:22:19,660 Replenishment orders can be partially canceled depending on the stock type 336 00:22:19,960 --> 00:22:23,999 For VMI, once shipment is confirmed, cancellation is not possible 337 00:22:24,000 --> 00:22:26,192 A CSR must be issued 338 00:22:26,192 --> 00:22:29,439 So please notify suppliers in advance 339 00:22:29,440 --> 00:22:34,244 to ensure shipment confirmation is handled properly 340 00:22:34,679 --> 00:22:39,340 For Center stock, cancellation is possible 341 00:22:39,341 --> 00:22:44,100 before supplier acceptance, at order receipt, or at shipment rejection, 342 00:22:44,100 --> 00:22:47,279 similar to regular non-stock direct orders 343 00:22:47,839 --> 00:22:50,460 As mentioned earlier, available inventory 344 00:22:50,461 --> 00:22:55,740 includes replenishment orders confirmed for shipment by suppliers 345 00:22:55,740 --> 00:23:01,400 Long-delayed replenishment orders can cause mismatches between available inventory and actual stock 346 00:23:01,400 --> 00:23:04,959 This may lead to stockouts and delivery delays 347 00:23:04,959 --> 00:23:09,939 So buyers must take note of this and manage inventory accordingly 348 00:23:10,759 --> 00:23:13,819 Next is long-term inactive inventory management 349 00:23:13,819 --> 00:23:16,800 At SERVEONE, long-term inactive inventory 350 00:23:16,801 --> 00:23:21,841 is defined as items with no shipment for over six months or with turnover days exceeding six months 351 00:23:21,841 --> 00:23:24,560 We monitor inventory monthly 352 00:23:24,561 --> 00:23:28,056 and conduct physical checks twice a year 353 00:23:28,520 --> 00:23:31,320 So buyers managing inventory 354 00:23:31,321 --> 00:23:34,408 must prevent long-term inactive stock 355 00:23:34,408 --> 00:23:38,366 by regularly updating S-MRP master data 356 00:23:38,366 --> 00:23:42,559 and managing changes in customer demand 357 00:23:44,019 --> 00:23:48,220 For inventory withdrawal, center stock is pre-purchased by SERVEONE, 358 00:23:48,221 --> 00:23:50,401 so treat it as return 359 00:23:50,401 --> 00:23:54,380 If normal sales are not possible, we handle it through discount sales, third-party sales, 360 00:23:54,381 --> 00:23:57,590 or disposal such as scrapping 361 00:23:58,240 --> 00:24:01,879 VMI is based on hub space rental, 362 00:24:01,880 --> 00:24:04,480 so withdrawals must be pre-agreed with the supplier 363 00:24:04,481 --> 00:24:07,337 The supplier requests the VMI withdrawal directly, 364 00:24:07,337 --> 00:24:12,939 and the buyer accepts it and creates the withdrawal PO 365 00:24:14,700 --> 00:24:20,759 Next is the system manual for SMRP, covering registration, replenishment, and withdrawal 366 00:24:20,760 --> 00:24:25,180 Please refer to it as needed in your work 367 00:24:25,459 --> 00:24:29,221 This page shows inventory information inquiry, modification, and deletion, 368 00:24:29,221 --> 00:24:32,001 and also allows changing the inventory management status 369 00:24:32,280 --> 00:24:37,560 Changes are applied to the SMRP master after approval, 370 00:24:37,560 --> 00:24:40,640 which will be explained in detail on the next page 371 00:24:41,099 --> 00:24:45,057 Normal hold is a menu to change the inventory management status 372 00:24:45,057 --> 00:24:48,998 Select the item, execute the menu, and save 373 00:24:48,998 --> 00:24:51,838 Then the status changes immediately 374 00:24:52,204 --> 00:24:54,840 In the SMRP inquiry menu, 375 00:24:54,840 --> 00:25:00,440 you can request modification or deletion of the MRP master with manager authority 376 00:25:00,639 --> 00:25:04,139 If the deletion target is not reflected in the master, 377 00:25:04,140 --> 00:25:09,280 the buyer must confirm whether to proceed with replenishment or deletion 378 00:25:09,280 --> 00:25:12,240 Additional work is needed to 379 00:25:12,240 --> 00:25:14,150 manually change the shipping type 380 00:25:14,419 --> 00:25:18,779 This can cause delays in supplier acceptance 381 00:25:18,780 --> 00:25:22,040 and eventually lead to customer delivery delays 382 00:25:22,339 --> 00:25:25,399 Please keep master data 383 00:25:25,400 --> 00:25:28,800 and inventory status up to date 384 00:25:28,800 --> 00:25:31,840 This ensures reduced workload for managers and compliance with delivery deadlines 385 00:25:32,620 --> 00:25:35,099 The FAQ covers questions 386 00:25:35,099 --> 00:25:37,780 frequently asked in practice 387 00:25:37,780 --> 00:25:39,560 We will look at two main cases, 388 00:25:39,561 --> 00:25:42,660 and the rest you can review as reference 389 00:25:43,159 --> 00:25:47,259 The first question is, “What if purchase info is valid, 390 00:25:47,260 --> 00:25:51,100 but the order error is not resolved 391 00:25:51,100 --> 00:25:53,221 even after re-running the simulation?” 392 00:25:53,561 --> 00:25:58,241 This happens when the order needs purchase info 393 00:25:58,241 --> 00:26:01,559 for a designated supplier such as customer-designated, 394 00:26:01,560 --> 00:26:04,534 buyer-designated, or pre-receipt 395 00:26:04,819 --> 00:26:09,279 Check the order’s simulation result 396 00:26:09,280 --> 00:26:11,070 and error message in the order forecast screen, 397 00:26:11,070 --> 00:26:13,328 then fix the designated supplier’s purchase info 398 00:26:13,328 --> 00:26:16,104 or resolve it through cross-department coordination 399 00:26:16,984 --> 00:26:20,344 The second question is, “What if inventory purchased in the past 400 00:26:20,344 --> 00:26:23,864 has now expired and cannot be returned to the supplier?” 401 00:26:24,044 --> 00:26:26,604 If the stock cannot be returned, consumed, or resold, 402 00:26:26,604 --> 00:26:29,604 write-off can be reviewed 403 00:26:29,604 --> 00:26:31,764 If inventory cannot be returned, 404 00:26:31,765 --> 00:26:35,045 consumed, or resold, 405 00:26:35,045 --> 00:26:37,084 a write-off review is possible 406 00:26:37,084 --> 00:26:41,704 Currently, the write-off process is carried out once each half year 407 00:26:42,064 --> 00:26:44,985 In relation to this, prior inventory inspection 408 00:26:44,985 --> 00:26:48,064 and final confirmation of disposal plans are required 409 00:26:48,064 --> 00:26:49,504 For any questions about the process, 410 00:26:49,504 --> 00:26:53,844 please contact the Inventory Management Manager in the Purchasing Management Team 411 00:26:54,924 --> 00:26:57,684 Please review the remaining content by each person in charge 412 00:26:57,684 --> 00:27:00,304 That concludes this lecture