3 Implementing Store-Only Replenishment

You may choose a phased implementation approach to AIP in order to mitigate supply chain management risks. The supported approach is to first replace the legacy Store Replenishment Process with AIP. Once stability has been achieved, the footprint of the implementation can then be expanded to cover the Warehouse Replenishment process.

The purpose of this section is to outline the special considerations that should be given to a phased AIP implementation. There are several stages of such an implementation, ranging from the most basic Store Replenishment, with no Reconciliation, to performing Replenishment across the entire supply chain with Reconciliation between all nodes. Each stage is subsequently described and the key considerations identified. Note that the minimal required data is not a comprehensive list of every parameter required to make AIP run, simply a list of those parameters that require particular attention. First, however, a general approach to AIP Data Set up must be adopted.

Approach to Data Setup

With most systems, the quality of the output is directly related to the quality of the input data. This is especially true of AIP; for example, inaccurate data could produce orders for days where the destination is not open to receive them, or where the vendor does not ship.

An integrated supply chain product, AIP has been designed from the outset to keep replenishment planning activities across stores and warehouses consistent. Hence, the biggest benefits of AIP can really only be enjoyed when a full and accurate supply chain has been defined. For stores, this means that the into-warehouse supply chain should also been defined.

The most basic of Replenishment activities for the store does not need the warehouse supply chain above it to be accurately defined. However, given the design of the AIP Automation logic, if there is any intent to implement Reconciliation activities between the Warehouse and Store levels, or to Replenish Warehouses, then a full top to bottom supply chain should be defined from the outset.

The choice to turn off Automation either in part or completely should not be undertaken lightly. The driver for the Automation logic is the receipt of a new piece of reference data from an external system. Once the first day for that new piece of data has passed, any opportunity to use Automation to set up any part of the supply chain relating to the new data has also passed. Turning on Automation or some of its various elements does not retroactively fill in the pieces. Therefore, if Automation is turned off, the user can only manually provide the missing data.

For this reason, it is highly recommended that the GA Automation Logic be used in its entirety from the beginning. All the implementations described in the next section assume that Automation is turned on in its entirety from the outset.

Types of AIP Implementation

This section describes the types of AIP implementation which include:

• Replenishing Stores-Only, Without Reconciliation

• Replenishing Stores-Only, With Reconciliation

• Full AIP: Replenishing All Locations with Reconciliation

Replenishing Stores-Only, Without Reconciliation

This section describes AIP implementation for replenishing stores-only, without reconciliation.

Implementation Characteristics and Considerations

This is the most basic AIP implementation. AIP is responsible for replenishing stores without ever considering the availability of inventory in the warehouses servicing those stores. As such, the major consideration here is the accuracy of the into-store supply chain and replenishment methods.

Key Data Requirements

Table 3-1 describes the key data requirements for this type of reconciliation.

Table 3-1 Key Data Requirements for Replenishing Stores-Only, Without Reconciliation

	Minimal Data Requirement	Details
Data Management Screens	Full Into-store Supply Chain	SKU should be on sale and on supply at store. SKU should be in a profile with an associated store order cycle. Store source should be set. SKU should have a preferred ordering pack-size.
	Partial Into-warehouse Supply Chain	SKU Packs should be ranged to warehouses that act as sources for stores. Pallet Multiples into warehouses must be specified if pallet ordering by stores is required.
	Warehouse Reconciliation Setting	Reconciliation must be turned off for all SKU types for all warehouse locations.
RPAS Workbooks	Store Replenishment Methods Specified (and associated parameters)	Replenishment methods for all SKU/Stores should be specified with all associated parameters. Default settings should be specified in the SRP Admin Workbook. Exceptions can be specified in the SRP Maintenance Workbook.
	Warehouse Replenishment Method Set to No Replenishment	This is only required if a full into-warehouse supply chain has been specified (either manually or by automation). In this instance, setting No Replenishment as a default method in the WRP Admin Workbook ensures that no warehouse replenishment planning is performed.
External Interface	Store Inventory, On-orders and In-transits	These are assumed to originate from RMS and are required to accurately project the inventory levels at stores.

Replenishing Stores-Only, With Reconciliation

This section describes AIP implementation for replenishing stores-only, with reconciliation.

Implementation Characteristics & Considerations

From a functional perspective, the only difference between running the most basic Store only implementation and running this scenario is turning Reconciliation on. However, this mode of operation requires an almost complete into-warehouse supply chain to be set up. It is assumed that another system other than AIP is responsible for replenishing the warehouses. Therefore, the warehouse replenishment methods should be set to No Replenishment.

Reconciliation limits the warehouse-to-store transfers based upon the current and future projected warehouse inventory. This requires that external systems feed AIP all expected receipts (On-orders and In-transits) into warehouse as well as the current warehouse inventory.

Reconciliation as a process runs over the fixed period. The Fixed Period for a destination, such as a store, is based upon the sum of lead times between all the nodes that inventory must pass through in order to get to the destination (assuming there is no delay in a warehouse between a product being received and becoming available to meet demand). In a situation where it takes ten days to get inventory from a vendor to a warehouse, and a further five days to get that inventory from the warehouse to the store, the fixed period is determined as fourteen days (combined lead times of ten and five days minus one day). Any order into the store in the first fourteen days must come from either existing warehouse inventory or expected receipts into the warehouse that cannot be changed. Any into store transfer is reduced or cut if there is insufficient current or future inventory in the warehouse.

The value proposition of Reconciliation is therefore dependent upon the accuracy and consistency of the following two pieces of information:

• The calculated Fixed Period

• The horizon over which expected receipts are passed to AIP

The calculation of the Fixed Period is entirely dependent upon the into-warehouse and store supply chains. The supply chain definitions must be accurate if an appropriate Fixed Period is to be determined. A complete picture of expected receipts over the Fixed Period is also required. An incomplete set of expected receipts would lead to the inventory picture over the Fixed Period being understated and store orders being reduced or cut unnecessarily.

Passing Expected Receipts over a greater time period than the Fixed Period does not cause any harm. Neither does overstating the Fixed Period, as long as there is genuinely a full picture of expected Receipts to accompany the longer period.

Key Data Requirements

Table 3-2 describes the key data requirements for this type of reconciliation.

Table 3-2 Key Data Requirements for Replenishing Stores-Only, With Reconciliation

	Minimal Data Requirement	Details
Data Management Screens	Full Into-store Supply Chain	SKU should be on sale and on supply at the store. SKU should be in a profile with an associated store order cycle. Store source should be set. SKU should have a preferred ordering pack-size.
	Almost Complete Into-Warehouse Supply Chain (no warehouse order multiple required)	SKU Packs should be ranged to warehouses that act as sources for stores. SKUs should be assigned Order Groups (assignation performed at the Demand Group level). Into-warehouse source splits must be specified. A warehouse location orderable unit must be specified for each source with a positive split percentage. Pallet Multiples into warehouses must be specified if pallet ordering by stores is required, but are not required as warehouses are not being replenished. Order Multiples into warehouses need not be specified as warehouses if they are not being replenished by AIP.
	Warehouse Reconciliation Setting	Reconciliation must be turned on for appropriate SKU types at all warehouse locations.
RPAS Workbooks	Store Replenishment Methods Specified (and associated parameters)	Replenishment methods for all SKU/Stores should be specified with all associated parameters. Default settings should be specified in the SRP Admin Workbook. Exceptions can be specified in the SRP Maintenance Workbook.
	Warehouse Replenishment Method Set to No Replenishment	This is only required if a full into-warehouse supply chain has been specified (either manually or by automation). In this instance, setting No Replenishment as a default method in the WRP Admin Workbook ensures that no warehouse replenishment planning is performed.
External Interface	Store Inventory, On-orders and In-transits	These are assumed to originate from RMS and are required to accurately project the inventory levels at stores.
	Warehouse Inventory, On-orders and In-transits	While AIP is not generating orders into warehouse, AIP does require this information to properly project the availability of inventory in the warehouse against which store orders are reconciled.

Full AIP: Replenishing All Locations with Reconciliation

This section describes AIP implementation for full AIP that replenishes all locations with reconciliation.

Implementation Characteristics & Considerations

This is the full AIP implementation. Warehouse Order Multiple and Warehouse Replenishment methods and associated parameters are the only additional requirements over the previous implementation. At the point of full implementation, AIP is mastering all orders into all locations, and expects all such orders to be fed back as On-orders and In-transits.

Key Data Requirements

Table 3-3 describes the key data requirements for this type of reconciliation.

Table 3-3 Key Data Requirements for Full AIP: Replenishing All Locations with Reconciliation

	Minimal Data Requirement	Details
Data Management Screens	Full Into-Store Supply Chain	SKU should be on sale and on supply at store. SKU should be in a profile with an associated store order cycle. Store source should be set. SKU should have a preferred ordering pack-size.
	Full Into-Warehouse Supply Chain	SKU Packs should be ranged to warehouses that act as sources for stores. SKUs should be assigned Order and Delivery Groups (assignation performed at the Demand Group level). Into-warehouse source splits must be specified. Warehouse location orderable unit must be specified for each source with a positive split percentage. Order Multiple for each Warehouse location orderable unit must be specified. Pallet Multiples into warehouses must be specified if pallet ordering by stores is required, but are not required as warehouses are not being replenished.
	Warehouse Reconciliation Setting	Reconciliation must be turned on for appropriate SKU types at all warehouse locations.
RPAS Workbooks	Store Replenishment Methods Specified (and associated parameters)	Replenishment methods for all SKU/Stores should be specified with all associated parameters. Default settings should be specified in the SRP Admin Workbook. Exceptions can be specified in the SRP Maintenance Workbook.
	Warehouse Replenishment Methods Specified (and associated parameters)	Replenishment methods for all SKU/Warehouses should be specified with all associated parameters. Default settings should be specified in the WRP Admin Workbook. Exceptions can be specified in the WRP Maintenance Workbook
External Interface	Store Inventory, On-orders and In-transits	These are assumed to originate from RMS and are required to accurately project the inventory levels at stores.
	Warehouse Inventory, On-orders and In-transits	These are assumed to originate from RMS and are required to accurately project the inventory levels at warehouses.