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Loading Vendor Product Lines: Pros and Cons?

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JonA
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10/24/2008 11:43 AM
    We're tossing around the idea of loading an entire product line of nearly 15,000 items into PO25. Currently the OR reqs items as specials if it's not one of the 200 items we have built in Lawson for that product line. And then they get the cost wrong or the vendor cat number wrong and it makes more work for Purchasing. I've resisted this in the past thinking the maintenance would be a nightmare.   But I have no real basis for this argument. Has anyone else done this? What would be the pitfalls?

    We implemented and went live in 2004 on 8.0.3 and it was recommended by the consultant to load only the inventory items into IC12 and load all items in the item master into PO25 so there was cost to pull from. My manager and I didn't agree, so we added all items in the IC12's, well at least those items that were purchased at those locations. And in PO25 we only added items that were on actual supply contracts.

    And it is a supply contract we want to load that has 15,000 items. The vendor just wants to supply us contract pricing on those 200+ items we have purchased in the past.

    It's our contracts manager that is suggesting we do this. I am fairly experienced with Addins and have loaded quite a few contracts this way before, so loading and (I'm hoping) maintenance will be ok.

    Jon
    Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
    David Williams
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    10/24/2008 1:44 PM
      I would not recommend loading 15,000 items into PO25 - it will be a nightmare to maintain. Your vendor should be able to give you a report of items that you have purchased over the past year. I suggest adding any new items (not already in your item master) to IC11 and PO25 and updating your current PO25 records with current pricing.
      David Williams
      dguhr
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      10/24/2008 1:53 PM
        David, Can you be more specific about what the nightmare will be.. We also want to get as many of the IC11 items in the PO25 as possible.
        David Williams
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        10/24/2008 2:34 PM
          The biggest problem is keeping the pricing current. That and the fact that you will more than likely not need to keep records for about 14,000 of the items! I haven't see anyone yet load every item possible in a contract because you want to control what's ordered (even if you can buy something doesn't mean you should give requesters the ability to do so).
          David Williams
          JonA
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          10/24/2008 5:30 PM
            This mostly for orthopedic vendors.  The OR will order what they need and if it's not in the item master they will order a special.  What the OR wants the OR gets.  We can't capture the contract price if it's a special.  And these are actual supply contracts we're dealing with so price changes should not happen often.  One particular contract I saw was good for 3 years with aggregate increases once a year. Updating pricing is pretty simple with Addins.
            Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
            Bill Ianni
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            10/25/2008 8:20 PM
              I wouldn't build out IC12's because surgery items are usually in surgical system and billing databases too. Who wants to keep them all in synch! Instead, I'd keep them as X type and pursue an EDI relationship with Hanger for PO's, Confirmations, Invoices and Catalog Updates. You can get a complete EDI 836 catalog and forget the add-ins solution. If Hanger can't accommodate EDI, the PO536 program will take a cvs. PO25 will hold pricing for X items.
              JonA
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              10/27/2008 1:47 PM

                I won't build all those IC12's but I don't see how I can add an X item to PO25.  Requires an item number (9.0 Apps). 

                Jon

                Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health
                Bill Ianni
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                10/27/2008 4:38 PM
                  It requires an Item Master (IC11), but does not require that item to be further identified as I or N in IC12. Therefore, it's an X type item. There is a flag on PO25 that adds the IC12 as your're building the PO25 lines so you don't have double work.
                  David Williams
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                  10/27/2008 4:44 PM
                    If an item in built in IC11 then it is NOT an "X" type item. It is an "N" type by default unless it's added to IC12 as an inventory item. X type items are free form special items that don't exist in the item master.
                    David Williams
                    Bill Ianni
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                    10/27/2008 5:13 PM
                      That's certainly true. I just tested it. it works though.