Understanding Over-Shipping Tolerance in Order Management
When managing orders, it’s not uncommon to encounter situations where the shipped quantity exceeds the requested quantity. This is where Over-Shipping Tolerance comes into play. In this article, we’ll delve into what Over-Shipping Tolerance is, how it works, and its significance in the Order Management process.
What is Over-Shipping Tolerance?
Over-Shipping Tolerance, often abbreviated as OST, is a feature in the Order Management (OM) process that allows for the shipment of goods in excess of the requested quantity. This tolerance is set as a percentage and determines the maximum allowable over-shipment relative to the requested quantity.
How does Over-Shipping Tolerance work?
To understand how Over-Shipping Tolerance works, let’s consider an example. Suppose you have an order for 10 units of a product, and the Over-Shipping Tolerance is set at 50%. This means that you can ship up to 15 units (10 + 50% of 10) without violating the Over-Shipping Tolerance.
Setting Over-Shipping Tolerance
The Over-Shipping Tolerance can be set at a global level or for specific items. To set the global Over-Shipping Tolerance, you can access the Profile settings under OM: Over Shipment Tolerance. For item-specific settings, you can navigate to the Item -> Order Management page.
Two Ways to Over-Ship
There are two ways to utilize Over-Shipping Tolerance in the Order Management process:1.
Manual Over-Shipping at Ship Confirm
When you reach the Ship Confirm stage, you can manually increase the Shipped Qty to exceed the requested quantity. This can be done by adjusting the Shipped Qty field in the Shipping page tab. Once confirmed, the order status will change to Shipped, and the Shipped Qty will reflect the over-shipment.2.
Over-Shipping at Pick Confirm
Alternatively, you can over-ship by picking more units than requested during the Pick Confirm stage. This is done through a Transact Move Order, where you specify the quantity to be picked. When you proceed to ship the order, you will ship the quantity picked, which may exceed the requested quantity.
Table: Over-Shipping Tolerance Settings
| Setting | Description |
|---|---|
| Global Over-Shipping Tolerance | Set at the Profile level, applies to all orders |
| Item-Specific Over-Shipping Tolerance | Set at the Item level, applies to specific items |
Significance of Over-Shipping Tolerance
Over-Shipping Tolerance is crucial in the Order Management process for several reasons:1.
Flexibility in Shipment
It allows for more flexibility in the shipment process, enabling you to accommodate unexpected changes in demand or supply.2.
Reduced Inventory Costs
By shipping more than requested, you can reduce the risk of stockouts and minimize inventory costs.3.
Improved Customer Satisfaction
Over-Shipping can help in meeting customer expectations and enhancing their satisfaction.
Conclusion
Over-Shipping Tolerance is a valuable feature in the Order Management process that provides flexibility and helps in managing inventory effectively. By understanding how it works and its significance, you can make informed decisions to optimize your order fulfillment process.
