Applications Materials Management and Logistics Implementation Guide
11g Release 1 (22.214.171.124.0)
Part Number E20385-01
This chapter contains the following:
Transit Time: Explained
Origin Type and Destination Type: Points to Consider
You can define the shipping method and transit time required for a shipment to be transported from a point of origin to a destination. This enables you to effectively calculate the initial ship date of the shipment in order for it to arrive at the destination on the planned delivery date. For example, you define an origin to destination combination from Florida to London. Next, you assign the shipping method, Air, to it and define a transit time of 3 days. When you receive an order with a requested delivery date of July 3, 2011 for destination London, the transit time you defined earlier helps you determine the initial ship date. The initial ship date is date by when the shipment should be shipped from your warehouse in Florida in order for it to reach the customer on the planned arrival date of July 3, 2011. In this case, the initial ship date is calculated as being 3 days prior to the requested delivery date on July 1, 2011. Shipping costs are applied based on the shipping method used.
The following aspects can assist you in creating transit time records for future use:
Origin and destination combination
Shipping method assignment
Transit Time web service
Defining an origin and destination combination enables you to create a shipping lane between locations where you deliver shipments. These locations can be of types Internal location, External location, Geography, and Zone. A few examples of the location types are, Internal Location: Warehouse, External Location: Customer site, Geography: place or country such as California or American Samoa, and Zone: a grouping of geographies such as the Asia Pacific.
You cannot delete a transit time record for an origin and destination combination if an open shipment exists for the same combination.
You must assign a shipping method to a specific origin and destination combination. For example, Express by Air. You can assign more than one shipping method to an origin and destination combination.
After you assign the shipping method, you can specify the transit time in number of days required to transport goods between the defined origin and destination using that specific shipping method. This enables you to calculate the initial ship date for shipments when you receive an order.
Additionally, you can choose to specify the maximum weight and volume capacity that can be transported daily using the assigned shipping method. You can also assign the cost per unit and the currency in which the cost is calculated. This will further assist you in planning the delivery of shipments by the requested delivery date.
You can also define and bulk upload transit times quicker using the Transit Time web service. For example, you can create and upload transit time records from all inventory organizations to all regions with multiple shipping methods for each origin and destination combination.
After you specify an origin and destination location, you can define the transit times by shipping methods. For example, you can ship goods from origin A to Destination B via Truck, Rail, and Air. You can define the transit time by shipping method, such as:
Truck- 5 days
Rail- 2 days
Air- 1 day
When an order is placed for delivery from origin A to destination B, the customer also specifies the date on which the goods are required to reach the destination. This date becomes the planned delivery date. After the shipping method is determined based on transportation costs, the specified transit times is used to calculate the date on which the shipment should be shipped from origin A in order for it to reach destination B by the planned delivery date.
Before selecting the origin and destination types consider:
What is the ship-from organization and ship-to location?
You must determine the point of origin and the destination and then select the origin type and destination type. The four origin and destination types are Internal Location, External Location, Geography, and Zone. The origin and destination locations will appear based on what you select as origin and destination types. For example, the location types can be, Internal Location: Warehouse, External Location: Customer site, Geography: region or country such as American Samoa or Canada, and Zone: a grouping of geographies such as Asia Pacific. After you specify the origin and destination combination, you can add multiple shipping methods and transit times at a later point in time. This also allows you to offer a range of shipping methods and time choices to your customer.