h) Outside Processing
STEEL MANAGER III metal center software provides Metal Distribution companies the option of outsourcing any processing that is required based on customer requirements. It does this while keeping track of all raw materials outside the warehouse, all related costs, and all finished goods to be returned.
Outside processing will be necessary if the production process is not performed in-house or the in-house process is at maximum capacity. In either case, the raw material or intermediate product is sent out to a processing vendor to fulfill the customer's order. Once the material has been processed, it will be returned to your warehouse and then delivered to the customer, or possibly shipped directly to the customer. Steel Manager III (SM3) metal service center software keeps track of every facet of this process.
Order Entry
The outside processing will be initiated by the entering and printing of an outside processing document. This is a multi-purpose document. It will first be used to pick the raw material in the normal manner, i.e. either by scanning the bar codes or writing the tag numbers on the document. The items will be manifested and shipped in the normal manner.
The processing details are also recorded together with their negotiated prices. The resultant finished goods are also recorded. These can be directly reserved against a particular sales order. If any finished good is an "odd shape" a scanned drawing will accompany the order. A record of the returning inventory will also be logged in the manifest.
Order Confirmation
Once the material has been processed, it will be returned from the vendor to the primary warehouse. The actual weights of all the finished goods will be entered together with any off-cuts and scrap. Once again, the latter can have their cost re-valued based on the "saleability" of the material. Any loss in value will be distributed over the finished goods. Only once the capturing is complete will the raw material be relieved and the finished goods updated.
It must be noted that if any finished goods are allocated to a sales order and that order is canceled, then the corresponding items will be returned to inventory should the process be completed. If the process has not been initiated, then the production document can be aborted. This rule also applies to in-house production. All active customer work orders can now be picked and shipped as normal.
Outside Warehouse
In order to keep track of all raw material outside the primary warehouse at vendor locations, SM3 metal center software transfers the material to an "outside" warehouse when the production order is initially confirmed. When the raw material is finally relieved, it does so in this "outside" warehouse. At any point in time, you can do an inventory report of this warehouse and it will list all inventory at vendor locations.
