Hi Experts!
One of my groups is using scheduling agreements, however I do not think they are using it the way SAP had intended.
Example: They use Scheduling agreements, similar to a blanket order. However, the blanket order quantity is fluid and the order can remain open even when the initial quantity has been fulfilled. These Scheduling Agreements will contain many items, sometimes around 30-40 line items.
The staff basically conducts two activities for these customers: enter new scheduling agreements with updated validity dates and expedite releases with a less than two week time frame. These expedites are communicated by the customer via email.
The customers submit a 16 week forecast via EDI as well as a firm 2 week JIT. Most scheduling agreement activity occurs systematically, although there are daily expedites for each customer for a few parts.
Initially, when entering a scheduling agreement, the staff does not indicate the JIT schedule. However, they do enter into the Forecast delivery schedule, basically just to activate and allow communication from customer.
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My concern is should scheduling agreements contain that many items?
Also, the staff makes many changes in the scheduling agreements and when it reaches the time when the period for the scheduling agreement, what ever material they did not get to ship, they ship it to the customer in one bulk. Are you suppose to do that with scheduling agreements?
In addition, sometimes the staff allocates some of the materials promised to the customer on the scheduling agreements to another customer, then just re-allocates it back at a later time...should this be done or is it bad business practice?
What are good business practices for usage of Scheduling Agreements? Any information will be greatly appreciated. Thank you for your time in advance!
WC
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