Retail Fulfillment Overview

Purpose: You can use the retail fulfillment option to coordinate the fulfillment of backorders from retail outlets.

How does retail fulfillment work? Retail fulfillment allows you to:

• identify backordered items that may be available for shipment from retail outlets

• select the items you would like to fulfill from one or more retail outlets

• place the order lines on hold while you contact the retail outlets to determine whether they can fulfill the backorders

• cancel the order lines when you confirm that the retail outlet(s) have shipped the items.

In this topic:

• Process Overview

• Retail Fulfillment Setup

• Important Information on Retail Fulfillment

Process Overview

Step one, identify items: Use the Submitting the Retail Fulfillment Selection (SFUL) menu option to identify the items that are backordered, but that are available in retail outlets. This initial selection is approximate, and may include items on orders that may be disqualified for retail fulfillment at the next stage in the selection process.

You will need to update the item availability information for each retail outlet prior to running this menu option. See Retail Fulfillment Setup.

You must run this selection before you go to step two.

Step two, select items and quantities: Use the Working with Retail Fulfillment Selection (RFUL) menu option to review the items that have been identified for retail fulfillment selection, and generate selection of the specific order lines to be fulfilled by retail outlets. This menu option allows you to review each backordered item, including:

• quantity backordered

• quantity available in retail outlets

• next expected delivery date of the item on open purchase orders, if any

• a soldout control code, if one has been defined for the item in the SKU file

Use this option to indicate the total quantity of each item to attempt to fulfill from retail outlets. The system creates Retail Pick records for the selected items and retail outlets, selecting outlets in such a way that the distribution across outlets is as even as possible. Also, the system updates the selected orders by:

• putting the order line on hold and setting the Cancel date so the order line will not be considered for standard fulfillment

• writing a message to order history to help you identify orders selected for retail fulfillment

You can use a user exit point to call an external program that will generate the actual pick slips for the outlets. See Retail Fulfillment Setup.

You can also indicate whether to sell out an item instead of attempting to fulfill it. The system updates the SKU file, and the item will be eligible for selling out the next time you run Processing Auto Soldout Cancellations (MASO).

Step three, confirm retail shipment: Use the Confirming Retail Fulfillment Selection (CFUL) menu option to confirm shipment of an item from a retail outlet. When you confirm a retail shipment, the system cancels the shipped unit from the held order line.

You will need to prevent the system from refunding the customer for the retail shipment as it would for an ordinary cancellation. You can use a user exit point to call an external program to help you manage this process. See Retail Fulfillment Setup.

You can also void a retail pick if the outlet will not be able to fulfill the shipment, or for any other reason.

Retail Fulfillment Setup

Retail outlets: You set up a retail outlet as a warehouse, and set the Retail type field for the warehouse to S. When you run the retail fulfillment selection, the system checks warehouses whose Retail type is set to S to see if the backordered items are available there.

You need to update the inventory within each retail warehouse before you begin the retail fulfillment process to make sure the system has accurate item availability information.

To save time, you can create a single location for each retail outlet “warehouse” and adjust the on-hand quantity of each backordered item within the same location. It is not necessary to create more than one location, since the retail outlet is not a true warehouse where you keep stock; it is on the system for retail fulfillment purposes only. For example, if you use batch or interactive inventory transactions, you can create both item warehouse and item location records by entering adjust (A) transactions for each backordered item and retail outlet.

For more information:

• creating warehouses: Warehousing Creating and Maintaining Warehouses (WWHS)

• creating locations: Warehousing Creating and Maintaining Locations (WLOC)

• entering inventory adjustments: Warehousing Working with Inventory Transactions in Batch Mode (WITB)

 

Note: Entering an inventory adjustment will produce a change to inventory valuation that will post to the General Ledger Interface file. You can also update the necessary files directly to avoid general ledger postings.

Default cancel reason code: Before you can process a retail fulfillment, you must set the Cancel Reason Code for Retail Fulfillment Confirmation (G11) system control value. You should not use this cancel reason code elsewhere, so you can distinguish retail fulfillment shipments from ordinary cancellations.

Item price threshold for retail fulfillment: Optionally, use the Minimum Item Price Eligible for Retail Pick Ticket (I76) system control value to specify a cutoff unit selling price for order detail lines to generate retail pick slips. Unless the unit selling price of an order detail line exceeds this value, the system does not generate a retail pick slip.

User exit points: You can set up the following user exit points if you want to initiate your own external programs at key points in the retail fulfillment process:

• RTLPICKGEN: when you create Retail Pick records to coordinate retail outlet fulfillment of backordered items. You might use this user exit point to call your own program that generates printed retail picks.

• RTLCONFIRM: when you confirm the shipment of a backordered item from a retail outlet. You might use this user exit point to call your own program that prevents refunding the customer for the items fulfilled from the retail outlet, since the retail fulfillment acts as a “cancel” in CWDirect.

• RTLVOID: when you void a retail pick slip. You might use this user exit point to call your own program that updates a unique file used to track retail fulfillment transaction history.

See System Operations Working with User Exit Point (WUEP).

Important Information on Retail Fulfillment

It is important to note the following before using retail fulfillment:

No authorization takes place for the shipment in CWDirect. The authorization for retail outlet shipments must take place at the retail outlet.

You must take steps to make sure you do not generate a refund for retail shipments. There is no automatic way to prevent the generation of a refund for the retail confirmation, which acts as a cancellation to the order. You can use one of the user exit points, described earlier, to initiate your own program for this purpose.

All regular cancellation updates take place when you confirm retail shipment. For example, updates to demand regarding total number and dollars cancelled take place.

Not all backordered items are eligible for retail fulfillment, even if they are available at retail outlets. For example, set components, items with special handling, partially reserved items, order lines priced at or below the Minimum Item Price Eligible for Retail Pick Ticket (I76), and orders with more than one payment method are not eligible, although these items will be included in the initial backorder quantity when you first submit the retail fulfillment selection. See Selecting Backordered Items for Retail Fulfillment for details.

You will need to process any returns against retail shipments using a negative quantity. This requirement is necessary because there is no confirmed shipment or invoice for the retail outlet shipment.

The system will not generate any backorder cards for items awaiting retail fulfillment. Once you void the retail pick(s), however, the order line will be eligible for backorder card generation.

The system does not recalculate freight for retail outlet shipments. The customer is still charged for freight, regardless of the setting on the order.