SC123 Umoja Logistics Overview for Non-Peacekeeping Entities

Transcription

1 SC123 Umoja Logistics Overview for Non-Peacekeeping Entities Umoja Logistics Overview (non-pk) Version 10 Last Copyright Modified: United 20-March-15 Nations

2 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 2

3 Course Overview The purpose of the Umoja Logistics Overview course is to explain the Foundation processes for Inventory Management (IM). This course will also highlight some of the Warehouse Management (WM) processes and functionality for those locations which will have WM functionality implemented. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Course Duration: 2 hours 3

4 Course Objectives After completing this course, you will be able to: List the key benefits of the Umoja Logistics process Identify the key roles and responsibilities in the Logistics process Name the elements that constitute the Logistics Master Data Describe the Logistics process within Umoja Explain the high-level processes within Inventory Management in Umoja Explain the high-level processes within Warehouse Management in Umoja 4

5 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 5

6 Module 1 Objectives After completing this module, you will be able to: List the benefits of the Logistics process in Umoja Explain the logistical structure within Umoja Explain the high-level Foundation processes within Inventory Management in Umoja Explain the high-level Foundation processes within Warehouse Management in Umoja Explain the two types of storage locations in UN Describe the process changes driven by Umoja 6

7 Key Terminology Key Term International Public Sector Accounting Standards (IPSAS) International Commercial terms (Incoterms) Purchase Order (PO) Invoice Three-Way Matching Low Value Acquisition (LVA) Description A set of accounting standards issued by the IPSAS board for use by public sector entities around the world in the preparation of financial statements. A series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. These three-letter trade terms are related to common contractual sales practices. Incoterms help in clearly communicating the tasks, costs and risks associated with the transportation and delivery of goods. A buyer-generated document that authorizes a purchase transaction. A vendor-generated document that indicates the products, quantities and agreed prices for products delivered by the vendor. The comparison of information, such as, quantities, price per unit and terms on the vendor s invoice, with the information on the PO and the Goods Receipt. This is done through the Logistics Invoice Verification (LIV) process. A type of PO used for requirements that are up to $4,000 USD issued without the direct involvement of Procurement. This replaces the Short Form or Direct PO form used for low value procurement. 7

8 Key Terminology Key Term Moving Average Price (MAP) Material Master Batch Management Serialization Description Inventory costing/valuation method used in Umoja whereby, after each receipt of a particular material, the average unit cost of that material is recomputed by adding the cost of acquired units to the cost of units in inventory, and dividing by the new total number of units of that material. The calculation of MAP is at the Plant level (i.e. same across all Storage Locations) by material. Material master records contain all the information about the materials that the UN procures, stores and ships. The integration of all information about a material into a single record eliminates redundancy and makes it possible to store material data for all relevant system components in a single, central database. Specifically within Logistics, the Material Master incorporates valuation, batch management, serialization/barcode printing and quality inspection characteristics. A batch is defined as a subset or partial quantity of a material that is managed separately from other subsets of the same material. Each batch is identified not only by its material identification, but also by a separate batch number. This enable the management of materials by shelf/life expiration date to ensure proper controls and tracking. This characteristic is determined by the Material Master. The process by which each equipment received at a Plant is assigned a unique number for tracking within the life cycle management purposes. The serialization requirement for a material is determined by the Material Master. 8

9 Key Terminology Key Term Plant Storage Location Goods Receipt Material Document Movement Type Stock Type Description A location where materials are produced, purchased, stored, inventoried, shipped, received and valuated, or from which services are provided. A location that reflects inventory owned by a particular Funds Center in a plant. It also reflects geographical locations that fall within the same plant. Processing a receipt of Goods (Inventory or Consumables), against a Purchase Order or Stock Transport from another Plant. It is also may refer to the document generated to acknowledge receipt of goods, against an inbound delivery, conducted at the point of first receipt or transfer of ownership A Material Document is the reference document generated every time a goods movement in or out of inventory takes place with all relevant logistics and financial postings. A three-character field in the Umoja ECC system to describe the type of material movement that needs to be performed. It is used for all types of goods movement in Umoja, such as receipts and issues Identifies the status of the materials in Umoja: Unrestricted (available to issues), Blocked (not available to issue, In Quality Inspection (awaiting Inspection decision) 9

10 Key Terminology Key Term Inbound Delivery Document Virtual Goods Receipt Physical Goods Receipt Reservation Goods Issue Goods Transfer Description A system document generated against a goods purchase order where updated information about the delivery of the goods are maintained (Dates, Quantities, Shipping docs). This document contains key delivery data required for triggering and monitoring the inbound movement of goods to the UN office/location. Similar to an Advanced Shipping Notice (ASN) used by Freight Forwarders. A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a commodity vendor to UN occur at a named place of delivery, other than the final destination A Goods Receipt posted in Umoja when the terms of a contract specify that the delivery of goods by a commodity vendor to UN occur at the intended receiving destination A system document created by a requestor that is used to identify the demand for a specific material at a specific storage location Issuance of Inventory items from Storage locations. Goods Issue can be performed for multiple purposes, depending on the business scenario. Process of transferring inventories between storage locations of the same fund centre. Different modalities of transfer are supported (one step or two step 10

11 Key Terminology Key Term Outbound Delivery Document Stock Transport Order (STO) Stock Counting Description Document generated against a request for transport of stock from one Plant to another plant where updated information about the delivery of goods is maintained (picking locations, dates of shipping, quantities, bar coded items to be picked..etc) System document, similar to an internal PO, used to request the movement of materials from one Plant (Supplying Plant) to another Plant (Requesting Plant) in Umoja, defining all the relevant requirements (e.g. materials to be delivered, quantity and delivery date). STOs are used to move/transfer materials between the inventories of the two Plants, and therefore requires inventory management in Umoja to be enabled for both Plants. Enables the tracking and planning of stock counts on a regular basis. System analysis of stock rotation and value can support the prioritization of the count process. 11

12 Key Terminology Key Term Inventory Management (IM) Warehouse Management (WM) Warehouse Description Processes within logistics that encompasses: Management (that is, the recording and tracking) of stocks of materials on a quantity and value basis Planning, entry, and documentation of stock movements such as goods receipts, goods issues, physical stock transfers, and transfer postings Performance of physical inventory (stocktaking) Provides visibility of a material s physical location, down to the storage bin level, in the warehouse and is implemented in particular Plants to facilitate the management of physical space and the flow of goods within a physical structure. This is particularly valuable for those physical spaces where different inventory holders store their inventory. A Plant must have IM implemented to also implement WM functionality. A warehouse is the physical location where goods are stored and managed. It can hold inventory for different Funds and Funds Centers as a Central Warehouse. It has a hierarchical structure that defines, at the lowest level, the material quantity in a storage bin. Depending on storage requirements, it can consist of various areas, called Storage Types. These Storage Types are configured with standard put-away and picking strategies. 12

13 Key Terminology Key Term Storage Type Storage Section Storage Bin Quant Warehouse Transfer Order Description A physical or logical division of a complex warehouse, distinguished by the warehouse procedures used or its organization form or function. It is a unique area within a warehouse that is characterized by the space it occupies and the way it is organized and is configured based on spatial, technical and organizational characteristics. Storage types can drive Put-Away and Picking strategies implemented at the warehouse. Examples: Bulk storage, Open storage, High rack storage, Picking area, Shelf storage, etc. A storage section is a logical or physical subdivision in a storage type that groups together storage bins with similar characteristics such. Examples: Heavy materials, Fast moving items, Slow moving items, etc. A storage type generally contains several storage spaces or slots - called storage bins. The bin is the smallest addressable unit of space in a warehouse. Since the address of a storage bin is often derived from a coordinate system, a bin is often referred to as a coordinate. The coordinates of bins indicate the exact physical position of the stored goods in the warehouse. Separate identifiable quantities of material that are stored in the warehouse/bin. Transfer Orders are the documents used to track requested movement of goods within the warehouse. 13

14 Umoja Logistics Benefits The benefits of Umoja Logistics are: Material Master is shared across Procurement and Logistics processes through one global Material Master record, ensuring consistent and accurate data. This supports processes such as quality inspection, batch management, etc. This also ensures the material procured is the same as the one received and then inventory managed Good Receipt is conducted in the same system where Procurement and Financial activities take place. This results in reduction of discrepancies and more timely execution of payments Standardization of the Inbound process across the Secretariat, inline with industry best practice, and enhanced visibility on expected deliveries will enabling better planning and reduced needs for additional time spent on offline communications such as phone calls and s IPSAS compliance regarding transfer of ownership, for example, virtual receipt of goods that are freight-forwarded, and physical verification/stock counting 14

15 Umoja Logistics Benefits The benefits of Umoja Logistics are: For a small, specific set of materials subject to Quality Management, Quality Inspection enables a two-step Receipt process which requires a final inspection step to release the received materials for use. Visibility of inspection results enables a metric on the timing of the process and impact of timely payments to vendors One system is used to record requirements from offices against inventory items held by the inventory owner and made visible to users. Materials can be requisitioned/bought specifically for inventory to service current and planned needs Reporting allows Requisitioners to understand how much inventory is being held (both quantity and value) at any given point since receipts and issues are tracked in one system. System also tracks the rates of rotation of inventory. It aids a decision-maker on whether levels are current to service requirements Issues to user/maintenance orders are tracked in one system. Periodic physical inventory verification supports stock accuracy. Materials indicated as equipment are tracked beyond the point of issue such as serial number, warranty, location, etc. 15

16 All Umoja Entities Entities with IM Entities with WM Umoja Logistics Business Models The applicable Umoja Logistics processes that are being deployed to each UN entity depend on whether that location is implementing Inventory Management (IM), Warehouse Management (WM), or neither. Goods Purchased Goods Purchased Goods Purchased Goods Received Goods Received Goods Received Goods Consumed (no longer tracked in Umoja) Goods Consumed (no longer tracked in Umoja) OR Goods Stored, Tracked, Issued & managed in Inventory (IM) Goods Consumed (no longer tracked in Umoja) OR Goods Stored, Tracked, Issued & managed in Inventory (IM) & Physical Location of Goods tracked and managed in Warehouse (WM) 16

17 Roles & Responsibilities Likewise, the Umoja Enterprise Roles that are mapped to users in a particular entity depend on the Umoja Logistics functionality that is being deployed to that particular plant location: All Plants that procure goods in Umoja will require the core set of Logistics roles to support Inbound Goods process, including Goods Receipt In addition to the cores set of roles, Plants that manage inventory in Umoja will need additional roles to support the Inventory Management functionality To support those Plants deploying Warehouse Management functionality, in addition to all of the above roles, an additional set of roles is required 17

18 Roles & Responsibilities Applicable Role General Tasks CORE ROLES ALL ENTITIES WHO PROCURE GOODS IN UMOJA Inbound Coordinator Updates information about inbound movement of goods to the Plant based on information provided by commodity vendors and freight providers Manages the information flow to indicate transfer of ownership Enables downstream operations to be optimized through provision of shipment/movement information Cannot perform virtual or physical goods receipt transactions in Umoja Receiving User Receives goods against commercial procurement or interoffice/location transfers during the Physical Goods Receipt process and determines if goods should be received into Blocked stock. Performs Physical Goods Receipt transactions in Umoja to confirm UN acceptance of goods during transfer of ownership, in accordance with the Incoterm Barcodes and updates received batches, as applicable Cannot perform Quality Inspection and Inventory Management transactions Issues goods receipt slips and prints labels, as needed 18

19 Roles & Responsibilities Applicable Role General Tasks CORE ROLES Cont d ALL ENTITIES WHO PROCURE GOODS IN UMOJA Virtual Direct Receiving User Receives goods against commercial procurement during the Virtual Goods Receipt process Performs Virtual Goods Receipt transactions in Umoja to confirm UN acceptance of goods during transfer of ownership, in accordance with the Incoterm Barcodes and updates received batches, as applicable Cannot perform Quality Inspection and Inventory Management transactions This role is also used for users who are required to conduct Direct Receipt, in those exceptional cases Inspection User Performs the quality inspection of materials (outside of Umoja) to ensure that the materials meet the contractual requirements as specified by UN and are in good working condition Enters the quality inspection results using a specific transaction in Umoja to release items from Quality Inspection lot and support follow-on processes Cannot perform any Virtual or Physical Goods Receipt transactions in Umoja 19

20 Roles & Responsibilities Applicable Role General Tasks INVENTORY MANAGEMENT ANY ENTITIES WHO WILL MANAGE INVENTORY IN UMOJA Inventory Senior User Approves reservations for local inventory goods movement (goods issue/goods transfer) Approves Stock Transport Orders for Shipment and oversees Outbound Delivery process Initiate Physical Inventory Counts Conducting Goods Transfer across Plants and Scrapping Inventory User Performs Goods Transfer transactions in Umoja Performs Goods Issue transactions on approved Reservations in Umoja Creates the Stock Transport Order (STO) in Umoja Creates Reservations in Umoja (as required) Updates the inventory count in Umoja Performs Goods Issue for Outbound Deliveries/Shipments Logistics User Creates and updates Outbound Deliveries based on Stock Transport Orders Property Control User Reviews and Approves inventory counts to post results in Umoja Obtains pre-approval, outside of Umoja,to adjust inventory counts 20

21 Roles & Responsibilities Applicable Role General Tasks WAREHOUSE MANAGEMENT THOSE LIMITED ENTITIES ALSO DEPLOYING WAREHOUSE MANAGEMENT IN UMOJA Warehouse Senior User Generates Transfer Orders (TO) for management of goods Put-away and Picking in the Warehouse Initiates Warehouse Counts Can create and manage bins in the Warehouse structure Warehouse User Confirms Transfer Orders (TO) after Put-away or Picking Updates Warehouse Counts 21

22 Umoja Foundation: Key Inventory & Logistics Processes 1 Inbound Goods This process is performed when goods are received from commodity vendors and shipment from other locations. Inherent in this process is the tracking of inbound goods movement and, upon receipt, basic physical verification, Receipt and Inspection and part of Batch Management 2 Local Inventory Goods Movement This process involves the issue or transfer of inventory without shipment. 3 Deliver & Ship This process involves issue of inventory that requires physical shipment. 4 Inventory Counting and Controlling This process conducts a physical count of inventory to verify the quantity and condition of materials in the warehouse. 5 Warehouse Management Warehouse Management covers all the processes reflecting the movement of goods within the Warehouse Structure including warehouse counts. 22

23 Logistics Execution Processes Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b Storage Location 2 Storage Location Goods Transfer Goods Issue Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 23

24 Inventory Management: Foundation Process This course does not include the following Foundation processes for Inventory Management: Production This process is used for stamps and publications to track raw material consumption and finished goods generated through an Internal Production process. This is introduced in the Umoja Production Job Aid. Receipt of Services This is a different process and is introduced in the Umoja Service Receipt Process course. 24

25 Logistical Structure within Umoja A plant is the location where materials are produced, purchased, stored, inventoried, shipped, received and valuated or from which services are provided. A storage location reflects the inventory owned by a particular Funds Center in a plant. It also reflects the geographical locations that fall within the same plant. One Funds Center can therefore have multiple storage locations. However, no two Funds Center can share the same storage location. Materials in inventory are managed in storage locations Plant PLANTS: Peacekeeping Mission, Special Political Mission UNHQ OAHs (UNON, UNOG, UNOV, etc) Entities (UNEP, UN-HABITAT, etc) Storage Location Material Material Material Material Storage Location Material Material Material Material STORAGE LOCATIONS: Plant-specific physical location Site where goods are physically received and/or stored Site where fund center controls inventory SAU for PK mission Organizational Unit at HQ/OAHs (i.e. Section) 25

26 Structural Elements for Logistics: IM & WM There are two types of storage locations: Transit Storage Locations (Virtual Goods Receipt & Transit Locations) Transit locations have been created to indicate where goods are geographically located prior to arrival to final destination. They support the Virtual Goods Receipt process and have no financial derivation (no correspondence to Funds Center). Stocking Storage Locations (ex. Medical Section, Facilities Management, etc.) Material/Inventory is physically stocked and managed at these storage locations Linked to one Funds Center/Plant, reflecting ownership and deriving financial postings Note: For technical reasons, fixed assets always require receipt into a storage location (even when they are not procured for inventory/stock and are procured for consumption/immediate use). Accordingly, a specific storage location (A000) is available for this purpose in each plant 26

27 Introduction to Umoja Logistics IM & WM Umoja will act as both an Equipment and Inventory Management solution, as well as a financial one. The full scope of Umoja will implement both an Inventory Management, as well as a Warehouse Management solution Transit Location (Virtual) Inventory Management (IM) Warehouse Management (WM) Implemented at ALL plants with inventory to: Manage inventory levels and enables the recording and tracking of materials on a quantity and value basis, at the storage location level Includes planning, entry and documentation of stock movements (Goods Receipt, Goods Issue, Physical Stock Transfer, Transfer Posting and Physical Inventory Verification) Integrated with Financial Accounting to enable financial posting Implemented at PARTICULAR plants to: Facilitate the management of physical space. Reflects the structure of a warehouse and monitors the allocation of storage bins, and any transfer transactions within the warehouse Manage the flow of goods within a physical structure. Enables the user to view the flow of materials using advanced Put Away and Picking Strategies Reflect the impact of IM transactions on WM operations Note: This course will primarily focus on IM aspects, and only highlight key differences with WM, as this will be covered in a dedicated WM course for those locations where it is implemented.

28 Impact of Requisitioning There are several steps within the Umoja Requisitioning process that have downstream effects on Logistics activities: Availability Checks Requisitioners will have access to check availability of items in stock prior to requisitioning to avoid of items that can be directly requested in inventory. Stock Replenishment In order to receive items for Inventory, Requisitioner will need to indicate the items as Inventory relevant on the requisition, otherwise they will be consumed/expensed on delivery. Storage Location For items procured for inventory, a storage location will be needed on the requisition to indicate the final holding location for the inventory. The Storage Location also derives Account Assignment and Funding information. Fixed Asset Requisitioning For globally recognized fixed assets*, the Material Master requires the generation of a Fixed Asset Master record at the point of requisitioning. Inventory Request for Stock Requisitioners should be guided to check stock availability and request stock through reservations *For locations with lower IPSAS thresholds (e.g. UNEP, UN-Habitat), users may be required to manually create Fixed Asset Master Records. 29

29 What s Changing? With the implementation of Umoja, several business processes are changing: System Integration Goods Receipt and Inspection Goods Movement Financial Implications Inventory Management Reporting Note: These processes are governed by IPSAS/OPPBA guidelines/procedures and documented in publications such as the Procurement manual and other policies/manuals issued by UN 29

30 What s Changing? System Integration Integrated system allows for one global standard process for management of inventory levels and recording of movements Umoja links Procurement, Logistics and Finance functions. These functions share the Material Master Data through one global material record, insuring standard quality inspection, batch management, serialization, and valuation requirements Documents (e.g. Purchase Orders, Goods Receipts, Invoices, Reservations and Goods Issues) share the same information, and eliminating data re-entry Users have access to the same information through one integrated system. One system is used to record requirements from offices against inventory items held by the inventory owner, and made visible to users The Requisitioner has access to stock information to support procurement decisions. In addition, the Requisitioner is responsible for many decisions that impact downstream, inventory management Procurement Finance Logistics 30

31 What s Changing? Goods Receipt and Inspection Umoja introduces the concept of deliveries as a central tool for logistics planning. It reflects planned future movements of inventory, providing visibility to sending and receiving locations of upcoming goods movement requirements Umoja supports IPSAS delivery principles by enabling the virtual receipt of goods, for certain Incoterms Umoja supports inspection of goods received from commodity vendors for a limited set of materials (i.e. vaccines) as a separate step which clears invoices for payment after making the inspection decision. Currently, invoices are manually certified prior to payment Goods acquisitions through the Low Value Acquisition (LVA) PO process need to be "received" by a Receiving User in Umoja in order to pay invoice 31

32 What s Changing? Goods Movement Goods movement is indicated by a Movement Type, a three-character field in the Umoja ECC system that describes the type of material movement that needs to be performed. It is used for all types of goods movement in Umoja, such as receipts and issues. Each inventory movement always requires a movement type Intra-plant and inter-plant movements follow standard processes Goods issue is tracked in one system. Materials indicated as equipment are tracked beyond the point of issue Availability of a system to reflect requirements and shipments between plants as part of a standard process, providing visibility of requirements, transit stock, etc 32

33 What s Changing? Financial Implications The Movement Type used in a goods movement, drives the financial posting Goods Issues and Transfers can be budget relevant (funded by receiving entity) or non-budget relevant Umoja ECC s Three-way Matching functionality enables a cross-check of PO, Goods Receipt and Invoice. If the documents cannot be matched, the system can block the payment. If the documents do match, payments can be cleared for processing, according to the payment terms Umoja ECC performs Three-way Matching Goods Receipt Invoice Umoja ECC Purchase Order 33

34 What s Changing? Financial Implications Umoja ECC s Three-way Match functionality allows the comparison of quantities, price per unit and terms appearing on the vendor s invoice, with the information on the PO and Goods Receipt. Purchase Order Goods Receipt Invoice Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms Item 1 Material: Quantity: Item 2 Material: Quantity: Contract terms 34

35 What s Changing? Inventory Management Reservations reflect future demands on inventory and provide the tool for the requesting department to communicate future requirements of goods Availability of Material takes into consideration future planned goods movement, giving more accurate forecasts of true inventory levels Visibility any user in the system can review available stock levels at a specific location System enables periodic inventory counting and provides information to aid decision maker on prioritizing counting based on turnover rates and other system analyses 35

36 What s Changing? Reporting Since receipts and issues are tracked in one system, standard ECC reports allow users to understand: Expected inbound deliveries and dates for goods received from commodity vendors List of open reservations and requirements for local Goods Issue/Transfer Expected outbound deliveries and dates for inter-plant goods issued How much inventory is being held (both quantity and value) Note: Relevant reports are discussed within each Level 3 transactional course. 36

37 Learning Checkpoint 1 Which of the following describes the activities needed to manage the physical space where inventory is stored? Select the correct options. A. Inbound Goods B. Inventory Management C. Warehouse Management D. Inventory Counting and Controlling 37

38 Learning Checkpoint 1 Which of the following describes the activities needed to manage the physical space where inventory is stored? Select the correct options. A. Inbound Goods B. Inventory Management C. Warehouse Management D. Inventory Counting and Controlling Option C is the correct answer. Warehouse Management (WM) is used to manage the flow of goods within a physical structure. 38

39 Module 1 Summary The key points covered in this module are listed below: There are three models of Logistics processes that are implemented at Umoja entities The key benefits of the Logistics process include ensuring data consistency, reduction of discrepancies and more timely execution The foundation processes for Inventory Management: Inbound Goods, Local Inventory Goods Movement, Stock Transport and Delivery and Inventory Counting and Controlling Foundation processes for Warehouse Management 39

40 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 40

41 Module 2 Objectives After completing this module, you will be able to: Identify the Master Data elements used in Umoja Logistics Explain how Material Master Data is related to other Supply Chain Master Data elements Explain the impacts of the Material Master on Inventory Management 41

42 Materials Management Terminology Materials: Everything the UN plans, procures, produces, transports, stores, or sells is defined by a Material Master record with a unique ID. Materials 42

43 Materials Management Terminology Within the set of Materials, we have subsets of features or settings that breakdown Materials for management purposes: Consumables, Equipment and Inventory. Materials Equipment: Individual, physical objects that are maintained as autonomous units and can be installed at a functional location or in part of a technical system. Equipment All equipment is serialized, meaning it is assigned a unique number for the Equipment Master. Items with an Equipment Master record can be tracked for issue to individuals, operational, maintenance and/or stewardship purposes. 43

44 Consumables Materials Management Terminology Consumables: In Umoja, consumable means that an item is bought for immediate use consumption and not held in stock for future use. Materials Equipment 44

45 Consumables Materials Management Terminology Some entities/plants manage Inventory in Umoja. For entities that do not, all materials will be consumed upon receipt. Materials Equipment Inventory: Materials in stock that are procured specifically for inventory/stock (decision at time of requisition) and not consumed immediately upon receipt, are stocked and managed centrally as part of Inventory Inventory Equipment which has not yet been issued out may be held in stock. While in stock, Equipment is considered part of Inventory as well. 45

46 Consumables Materials Management Terminology Umoja is also designed to track and report financially on Fixed Assets and Financial Inventory according to IPSAS requirements. Materials Fixed Assets: Equipment that has a value above the IPSAS thresholds, is additionally designated as a fixed asset based on IPSAS 17 Guidelines. Equipment Fixed Assets Inventory All Fixed Assets will be Equipment but not all Equipment are Fixed Assets. Materials classified as Fixed Assets can also form part of Inventory if they are not currently in use. 46

47 Material Master The Material Master Data is a Master Data record that contains information about the products procured, stored and shipped by UN. It determines how the material will be managed from initial requisitioning through to downstream processes such as receiving and inventory management. It impacts both Supply Chain Management and Financial Management aspects in the system. Some key components of the Material/Service Master include: Unique ID of a material/service Product ID Example: (Projector: Dig) Type of product or service. Matches the equivalent UNSPSC classification Product Category Example: (Projectors, Supplies) Material Master Inspection, Batch Management, Serialization criteria, Material Type Material Management Settings Example: Serialization Flag GL Account Code derived from product category, Asset and/or Equipment Assignment, Valuation Class Financial Management Example: General Ledger 47

48 Global Material Master Management Settings Besides general characteristics (e.g. Unit of Measurement), each Material has several other setting or flags, which if set, will have an impact on how that material is managed during activities in Logistics, Finance, etc. Serialization Materials with the Serialization flag require serialization/bar coding upon receipt. This is necessary to create records in the Equipment Master Example: Servers, Laptops Batch Managed Materials with the Batch Managed flag enable creating of batch numbers and enable Inventory control through batch characteristics (Shelf Life, Expiration date, Vendor Batch) Example: Rations, Medications Quality Managed Materials with the Quality Managed flag have an inspection requirement at receipt (usually based on contractual terms) Example: Vaccines 48

49 Supply Chain Master Data The Material Master Data is related to two other Supply Chain Master Data elements: Equipment Master Data and Asset Master Data. Material Master All materials in Logistics Execution are procured using the Material Master Record and managed in Inventory How much do I buy? Where do I have in stock? What can I issue? What can I transport? Equipment Master Asset Master Materials that must be tracked, installed, maintained, operated, and managed are defined as equipment and tracked using an Equipment Master Record for that item What is due for maintenance? Where/with whom is the equipment? Fixed Assets are UN materials that have a financial value above the IPSAS thresholds and are tracked using an Asset Master Record for that item What is the depreciation expense for the period? Per IPSAS, equipment over IPSAS threshold are also considered fixed assets and would have both an Equipment Master and Asset Master Record for that item 49

50 Example of Integration of Master Data Elements 1. User Requisitions 3 x Network Servers for Inventory Based on definition in the Material Master, if item requisitioned is a fixed asset, per IPSAS definition, a fixed asset record is created. These servers cost $25,000 each INVENTORY VIEW Plant : UNON Storage Location : ICT001 Material Number : , Server Quantity : 3 Value : See FA View as these items are assets Material Master 2. Servers Received into Umoja Servers are serialized/barcoded, due to definition at the Material Master level 3. Equipment Records Automatically created for each Server at time of receipt 4. Material is a Fixed Asset Batch program updates values in fixed asset record EQUIPMENT VIEW FIXED ASSET VIEW Equipment Description Server 1 Server 2 Server 3 Barcode UN001 UN002 UN003 Eqpt Master Fixed Asset Description Value Server 1 $25,000 Server 2 $25,000 Server 3 $25, Asset Master

51 Financial vs. Operational Inventory It is important to note that Financial Inventory, or inventory whose valuation is reflected on financial statements (as per IPSAS 12 Policy Framework Guidelines), is not the only inventory that is tracked in Umoja. Operational Inventory, or any inventory that needs to be tracked for management purposes, can also tracked in Umoja. For example, while lightbulbs would not be considered relevant to IPSAS, they can be essential to fulfill a Facilities Management office s mandate of building maintenance. Therefore, any lightbulbs that are held in stock could be managed as Inventory in Umoja so the office knows how many lightbulbs they have in stock and their total value, and would be assigned a specific Storage Location. Operational Inventory Fin. Inv. Inventory Managed in Umoja 51

52 Inventory Valuation Inventory Valuation Principles: 1. Umoja will be guided in the valuation of Financial Inventories with IPSAS 12 guidance issued by the Office of Programme Planning, Budget and Accounts (OPPBA). 2. Fixed Assets as per IPSAS -17 which are managed in Inventory have zero value for inventory purposes (the value is tracked in the Asset Master record) 3. Operational Inventory valuation in Umoja is tracked at the Umoja Plant level and is based on Moving Average Price or MAP. Moving Average Price is calculated by dividing the total value of a material at a plant by its total quantity. Example: A Plant has quantity 4 items of Material A in inventory across the entire Plant (i.e. All sections). Two items of Material A were purchased at $100 USD each, by Section X. Two items of Material A were purchased at $200 USD each, by Section Y. Therefore, the overall MAP for Material A at this Plant (for both Sections) is: MAP for Material A : $600 / 4 = $150 USD 52

53 Inventory Valuation Inventory Valuation Principles: 4. Finally, Split Valuation may be applied for certain Material Types with certain material management settings to allow the system to distinguish between new and used items. At the time of Goods Receipt, any split valuated materials received in Umoja will have a new valuation category set and the unit price automatically populated, based on the PO price (this price will then affect the overall MAP for that Material in the Plant) For certain Material Types (all ZERS Spare Parts, and some ZSAA Supplies & Equipment (those that are serialized), if they are issued and subsequently returned to inventory, they will be given a used valuation category and carry a value of $0 in inventory. Because these materials can have split valuations for new and used status, having more used items with $0 value, will not dilute the new MAP for that particular material Transit Location (Virtual) 53

54 Different Modules in Umoja Manage Different Functions After being received and issued, Equipment is managed in the Plant Maintenance (PM) module of Umoja. Inventory / Warehouse Management Material Master Plant Maintenance Equipment Master Receiving Inventory Local Issuing Inbound Logistics Source to Acquire POs Inventory: Storage Location/Warehouse-Bin Counted Issued Equipment (track on issue) Supplies (not tracked on issue) Transferred Shipped Some financially relevant Some only operational Equipment: Functional Location Tracked/Installed/Assigned Maintained/Disposed Counted Some Fixed Assets Some based on nature/value 54

55 Learning Checkpoint 1 All goods managed in Logistics Execution have a record in the. Fill in the blank with the correct option. A. Equipment Master B. Asset master C. Material Master 55

56 Learning Checkpoint 1 All goods managed in Logistics Execution have a record in the. Fill in the blank with the correct option. A. Equipment Master B. Asset master C. Material Master Options C is the correct answer. All goods are mapped to a particular Material with a specific Material ID number. 56

57 Module 2 Summary The key points covered in this module are listed below: The Material Master Data is linked to two other Supply Chain Master Data: Equipment Master Data and Asset Master Data The Material Master Data is a Master Data record that contains information about all products procured, stored and shipped by UN The Material Master impacts Inventory Management with respect to valuation, batch management, serialization/barcode printing and quality inspection 57

58 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 58

59 Module 3 Objectives After completing this module, you will be able to: List the high-level Logistics Execution processes in Umoja Describe the Inbound Goods process in Umoja Describe the Local Inventory Goods Movement process in Umoja Describe the Stock Transport and Delivery process in Umoja Describe the Inventory Counting and Controlling process in Umoja Describe the Warehouse Management process in Umoja Identify the key reports used across the Umoja Logistics process 59

60 Logistics Execution Processes The overall Logistics processes explained in the Level 3 courses are: 1 Inbound Goods Process 2 Local Inventory Goods Movement 3 Stock Transport and Delivery 4 Inventory Counting and Controlling 5 Warehouse Management (applicable for only some plants) 60

61 Inbound Goods Process The Inbound Goods process is performed when goods are received from commodity vendors and shipment from other locations. Inherent in this process is the tracking of inbound goods movement and, upon receipt, basic verification to affirm that goods being received conform to the PO/contract. This process is described in the 350 Umoja Inbound Goods Process course. 61

62 Logistics Execution Processes Inbound Goods Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b Storage Location 2 Storage Location Goods Transfer Goods Issue Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 58

63 Inbound Goods Process - High Level Flow Purchase Order Created Inbound Delivery system document generated from the PO in the background by Umoja Inbound Delivery(s) Updated Inbound Delivery updated during shipment with information from the commodity vendor Inbound Delivery Monitor List of Inbound Deliveries is generated for a specific location Facilitating local planning activities Goods Receipt Goods received against Inbound delivery -Confirm Quantity -Quality Inspection, Blocked or Unrestricted Stock -Bar Code labels created -GR Receipt Form Technical Inspection Required? YES Inspection Issue /Transfer Final location Material Doc (Recording GR Transaction) Put Away in Warehouse Management Purchase Order Updated (Invoice Verify) Consumed/ Expensed Budget & Accounting Updated 63

64 Virtual and Physical Receipt for Common UN Incoterms The transfer of ownership that occurs between the seller and buyer is dictated by the Incoterm. Thus, a Virtual Goods Receipt can occur at any location prior to the final receiving UN location. The Incoterms 2010 commonly used by UN are depicted below: Point of Origin Port Onboard Vessel Port UN Location EXW UN Virtual Receipt FCA Seller UN FOB Seller UN DAT Seller UN Seller Seller DAP DDP Physical Receipt 64

65 What is a Virtual Goods Receipt? Virtual Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Vendor Delivers at Destination IPSAS requires goods to be received at the point of transfer in ownership from the commodity vendor to UN, as dictated by the appropriate Incoterms. This can occur before goods are physically received by the UN office/location, for example when they are placed at the disposal of a UN-designated freight-forwarder. In Umoja, this is considered as a Virtual Goods Receipt. Within the Virtual Goods Receipt process: Inbound Deliveries are updated with relevant information provided by commodity vendor to confirm delivery of goods The Virtual Receiving User receives the goods against the Inbound Delivery Umoja ECC will automatically perform three-way match and clear the payment for processing 65

66 Incoterms Applicable for Virtual Goods Receipt Virtual Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Vendor Delivers at Destination Incoterms: EXW Ex Works FAS Free Alongside Ship FCA Free Carrier FOB Free on Board DAT Delivered at Terminal CFR Cost and Freight CIF Cost, Insurance and Freight CIP Carriage and Insurance Paid To CPT Carriage Paid To 66

67 What is a Physical Goods Receipt? Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Physical Goods Receipt Vendor Delivers at Destination Physical Goods Receipt refers to the process where commodity vendors deliver directly to the UN office/location, as dictated by the appropriate Incoterms. Within the Physical Goods Receipt process: The Receiving User receives the goods against the Inbound Delivery in Umoja For a standard Goods Receipt, Umoja ECC will automatically perform three-way match and clear the payment for processing If discrepancies are found, goods can be moved to a blocked status and the invoice for payment cannot be paid until resolved Requisitioners are notified by a system-generated upon Goods Receipt (underdeliveries and blocked goods are indicated) 67

68 Incoterms Applicable for Physical Goods Receipt Vendor Delivers at Origin or Other Named Place (e.g. Port of Delivery) Physical Goods Receipt Vendor Delivers at Destination Incoterms: DAP Delivered at Place DDP Delivered Duty Paid DDU (Removed from 2010 Incoterms) 68

69 Umoja ECC Stock Type Umoja ECC uses movement types to perform the receiving actions taken. When a movement type is used, goods are received to a certain stock type. A stock type defines the system state that classifies goods. Stock types used in Umoja are Unrestricted Stock, In Transit Stock, Quality Stock and Blocked Stock. Unrestricted Stock In Transit Stock Material available for use upon receipt This stock type allows full financial posting and invoice processing Material in transit to receiving location Material has already been withdrawn from storage at the issuing plant, but has not yet arrived at the receiving plant It is included in the valuated stock of the receiving plant 69

70 Umoja ECC Stock Type Stock types used in Umoja are Unrestricted Stock, In Transit Stock, Quality Stock and Blocked Stock. Quality Inspection Stock Material requires inspection before receipt Invoice processing is blocked until inspection results are recorded in the system Goods that pass inspection are moved to Unrestricted Stock Goods that do not pass inspection are returned to the vendor In Blocked Transit Stock Material Material in not transit available to receiving for use upon location receipt Material Should has only already be used been in withdrawn exceptional from cases storage at the issuing Used plant, when but goods has not are yet clearly arrived damaged at the or receiving have different plant It is specifications included in the from valuated the PO stock of the Upon receiving receipt plant of such goods UN will not accept ownership until resolution is reached with vendor This stock type blocks full financial posting and invoice processing 70

71 Local Inventory Goods Movement When a Requisitioner requests goods locally (that is, without shipment), a reservation must be created to specify the movement. The Requisitioner will distinguish whether the goods are for stock (reservation against another storage location) or for immediate use (e.g. reservation against a Cost Center and project). Once the reservation is approved, the goods will be issued or transferred appropriately. The system stock levels and financial postings are updated accordingly. This process is explained in the 339 Umoja Local Inventory Goods Movement course. 71

72 Logistics Execution Processes Local Inventory Goods Movement Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b 2 Goods Transfer Storage Location 2 2 Goods Issue Storage Location 3 4 Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 67

73 Inventory Management After goods requisitioned for inventory have been received through the Goods Receipt process, the material will populate a Section s inventory in the receiving Plant. Its ownership and general physical location is reflected in the Storage Location which is linked to a Fund Center. Its status in inventory type is determined by its Stock Type (i.e. available for issue or not). Inventory in Umoja has the following attributes: It is stocked and issued in support of the inventory holding office s mandate It is replenished, stocked and issued from a centrally managed location It is physically counted and accounted for on a regular basis (at least once a year per IPSAS/OPPBA requirements) It is integrated with Financial Accounting to enable financial posting 73

74 Reservation Management Overview Reservations are used to identify the demand for a specific material/inventory item from a Storage Location. Reservations inform the Inventory Senior User of the requirements of the requesting departments. The Inventory Senior User can then act upon the request and provide the goods to the requesting department. The requesting entity will distinguish whether the goods are for immediate use (Goods Issue) or for inventory (Goods Transfer) by entering in a specific movement type. 74

75 Goods Issue and Goods Transfer The following diagram describes Goods Issue and Goods Transfer process. Storage Location (Unrestricted) Must be from a Storage Location and Unrestricted Stock Goods Issue Work Order (Consumption) Cost Center (Consumption) Project (Consumption) STO/Outbound Delivery* (Plant to Plant) Goods Transfer Goods are transferred between Storage Locations within the same plant Storage Location 1A (Same Fund/Fund Center) Stock Types Storage Location 1B (Same Fund/Fund Center) Goods are transferred between Stock Types within the same plant* Unrestricted Quality Stock Types Unrestricted Quality *Note: This section is discussed in detail in the Stock Transport and Delivery Job Aid. Blocked Blocked *This cannot be requested through the Reservation process 75

76 Budget Relevant Goods Issue When goods are issued from a storage location, the movement can be budget relevant or nonbudget relevant. For instance, a Goods Issue to a different Cost Center would be budget relevant. Other factors, such as a Service Level Agreement (SLA), may determine budget relevance. Goods Issue (Budget relevant) Goods Issue (Non-budget relevant) Requesting entity is responsible for funding the goods. Budget: Receiving fund is impacted when posting Accounting: Inventory Account is credited, and Expense Account is debited Inventory value will be reduced by the same amount Sending entity is responsible for funding the goods. Budget: No budgetary impact when posting Accounting: Inventory Account is credited, and Expense Account is debited Inventory value will be reduced by the same amount 76

77 Reserved Stock Available Stock Inventory Management: Available Stock This diagram describes how the system calculates the available stock: Storage Location Available Stock PO Delivery Current Stock (Unrestricted) PO Delivery Quantity Outbound Delivery Current Stock (Unrestricted) Reservation 1 Reservation 2 Reserved Stock (Reservations, Outbound Deliveries) Safety Stock* *Will be activated with MRP (Material Requirement Planning) only in Umoja Extension *Safety Stock 77

78 Putting it Together Goods Issue Checklist When performing a goods issue, the Requisitioner and Inventory Senior User needs to consider the following items: Requisitioner Inventory Senior User Who is requesting the goods Requisitioner What is being requested Material, Quantity and others. Where do the goods need to be delivered Requesting Entity Who is paying Requesting Entity (budget-relevant) Sending Entity (non budget-relevant) Where are the goods issued from (Sending Entity) Local Plant Create Shopping Cart to Procure Inventory Obtain from Another Plant 78

79 Stock Transport Order and Delivery When a Requisitioner requests goods that require shipments across plants, an STO can be created. An STO is similar to an internal PO and is used by the Requesting Plant/Central office to inform the sending plant of requirements (materials to be delivered, quantity and delivery date). After the STO is approved, the goods are picked and issued. The Inbound Goods process occurs at the Receiving Plant. The system stock levels are updated accordingly. This process is explained in the Umoja Stock Transport Order Job Aid. 79

80 Logistics Execution Processes Deliver and Ship Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b Storage Location 2 Storage Location Goods Transfer Goods Issue Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 75

81 Inventory Counting and Controlling The Umoja Inventory Counting and Controlling process supports the UN process of conducting a physical count of inventory to verify the quantity and condition of materials in the inventory. A Physical Inventory document can be created manually, where the Inventory Senior User determines the counting on an ad-hoc basis (in accordance with policy guidelines). After the physical inventory is conducted, the system and physical stock levels should match. This process is described in the Umoja Inventory Counting and Controlling course. 81

82 Logistics Processes Inventory Counting and Controlling Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b Storage Location 2 Storage Location Goods Transfer Goods Issue Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 78

83 Inventory Counting and Controlling: Activities The Inventory Counting and Controlling process involves the following activities: What to Count The process begins with the generation of the required Physical Inventory document against the required count either: Location-Based or Material-Based When to Count The frequency of counting can be determined either: Manually or Cycle Count driven by Material Master record setting (Not initially implemented) How to Count Counting is conducted using: Posting Block: All posting for a certain material or plant is blocked until the count results are entered and any differences are posted 83

84 Inventory Counting and Controlling: Activities The Inventory Counting and Controlling process involves the following activities: Conduct Physical Count Once the inventory sheets are printed out, the actual physical inventory count is realized for the given materials Enter Count in Umoja Afterwards, the count result is entered in Umoja and then any discrepancies against the quantities are reviewed Post Differences The inventory may be recounted until final counts are accepted and inventory differences are posted Financial Posting Once actual counts are approved, the values are posted in the system, resulting in the creation of Umoja material and accounting documents 84

85 Logistics Execution Processes Warehouse Management Vendor Virtual GR (Inbound) Port 1 1 Physical GR (Inbound) Plant A Goods Issue to STO/Outbound Delivery (Outbound) 3 Physical GR (Inbound) Plant B Physical GR (Inbound) Storage Location 1a Storage Location 1b Storage Location 2 Storage Location 3 2 Goods Transfer 2 4 Goods Issue Inventory Counting & Controlling Warehouse UN1 5 Work/Sales Order Cost Center Project Project 78

86 Warehouse Management Within Logistics, Umoja acts as both a financial as well as an Equipment and Inventory Management solution. Users whose plants are implementing warehouse management need also to take the Umoja Warehouse Management Job Aid. Transit Location (Virtual) Inventory Management (IM) Implemented at ALL plants with inventory to: Manage inventory levels and enables the recording and tracking of materials on a quantity and value basis, at the storage location level Includes planning, entry and documentation of stock movements (Goods Receipt, Goods Issue, Physical Stock Transfer, Transfer Posting and Physical Inventory Verification) Integrated with Financial Accounting to enable financial posting Warehouse Management (WM) Implemented at PARTICULAR plants to: Facilitate the management of physical space. Reflects the structure of a warehouse and monitors the allocation of storage bins, and any transfer transactions within the warehouse Manage the flow of goods within a physical structure. Enables the user to view the flow of materials using advanced Put Away and Picking Strategies Reflect the impact of IM transactions on WM operations

87 Introduction to Umoja Logistics IM & WM Plant A Plant B Plant & Engineering Supply Safety & Security IM SLoc 0001 SLoc 0004 Central Warehouse Two storage locations can be linked to one physical warehouse to separate ownership of goods. WM Some storage locations are not linked to any physical warehouse. They represent separate areas, that are not divided into bins. Warehouse 002 Storage Locations: For Plants with only IM functionality deployed, Storage Locations will reflect the ownership of the particular inventory as well as the physical area as well For Plants that also have WM functionality deployed, the physical location of inventory will be reflected within the warehouse structure. Warehouses: A Warehouse in Umoja reflects the physical space where goods are centrally managed at a bin level. Inventories from multiple storage locations that are physically co-located can be managed in one Warehouse structure. Transit Location (Virtual) 87

88 Warehouse Structure Warehouse Management provides visibility of the material location down to the storage bin level in the warehouse. The hierarchical warehouse structure contains the following basic elements: Warehouse Number Storage Type Storage Type Storage Type Storage Section Storage Section Storage Bin Storage Bin Quant Quant 88

89 Warehouse Terms Warehouse Number An entire physical warehouse is defined in using a single warehouse number Storage Type Each of the warehouse areas that make up the warehouse is defined as a storage type." The storage type is configured based on spatial, technical and organizational characteristics Storage types drive Putaway and Picking strategies implemented at the warehouse Storage Section and Bin Each storage type is divided into storage sections. Each storage section consists of a row of storage spaces called storage bins A storage section generally includes all bins that have certain characteristics in common The coordinates of the bins indicate the exact position of the stored goods in the warehouse Quant A quant is a material quantity in a storage bin 89

90 Reports There are several key reports used across the Umoja Logistics process. Inbound Delivery Report The user generates daily report that displays all inbound deliveries at the UN office/location/location. This provides delivery dates and corresponding shipment information/documentation. Purchase Order Report The user can generate a list of Purchase Orders by PO number for a UN office/location/location. This allows the user to find the status/details of a particular PO. Other variations of this report allow views (e.g. by Vendor, by Material, etc.). Material Document Report The user can generate a list of the Material Documents (Goods Receipts) that have been posted by material or multiple materials. From the output list, the user can search for and display a particular material document. 90

91 Reports There are several key reports used across the Umoja Logistics process. Stock Availability Report The Stock Availability is a report used to ascertain the availability of inventory at the required plant, on the required date. Stock Overview Report The Stock Overview report allows the user to view stock types by material, plant or storage location. Warehouse Stock Report The Warehouse Stock report allows the user to view stock types by storage location and plant. List of Reservations The Reservations list allows to identify outstanding reservations for processing (issuance of transfer) 91

92 Scenario 1: Materials Consumed Upon Delivery/Receipt To conclude, the following three business scenarios summarize how the Umoja Logistics processes are integrated beginning from the initial purchase of goods. Purchasing Inbound Logistics (Receipt) Inbound Logistics (Delivery) Requisition/ Shopping Cart Inbound Delivery Goods Delivered to Buying Unit Requisition Approval Goods Receipt (Final Destination or Virtual) Goods Receipt Form signed by Buying Unit PO Creation PO Approval Goods Receipt form and labels generated Notification (Requisitioner, Buyer and Receiving User) Manual Tasks System Tasks Note: This scenario will be present in every entity procuring goods in Umoja, regardless if they manage operational inventory in Umoja or nor. Even locations with IM functionality will also receive to 92 consume in their operations

93 Scenario 2: Inventory Managed but not in Warehouse Purchasing Inbound Logistics/Inventory (Receipt) Inventory (Delivery) Inventory (Issue or Transfer) Create Requisition Referencing final Storage Location Inbound Delivery Goods Delivered to Buying Unit Reservation Process Requisition Approval Goods Receipt at Central Receiving to IM Storage Location Goods Receipt Form signed by Buying Unit Goods Issue Performed from relevant IM location PO Creation Goods Receipt form and labels generated Goods Issue Form Generated PO Approval Notification (Requisitioner, Buyer and Receiving User) Manual Tasks System Tasks 93

94 Scenario 3: Warehouse Managed Materials Purchasing Create Requisition Referencing Storage Location linked to Warehouse Inbound Logistics/ Inventory Goods Receipt Inbound Delivery Warehouse Goods Receipt Goods Received automatically to WM GR Area Inventory Issue or Transfer Reservation Process Warehouse Issue or Transfer Issue Transfer Order generated Requisition Approval Goods Receipt to IM Location Generate Transfer Orders Goods Issue Performed from relevant IM location Transfer Order form printed PO Creation Goods Receipt form and labels generated Place in the Warehouse and confirm TO Goods Issue Form Generated Goods Picked from Warehouse Goods Delivered to user PO Approval Notification for (Requisitioner, Buyer and Receiving User) User signs TO form Transfer Order form confirmed Manual Tasks System Tasks 94

95 Learning Checkpoint 1 refers to the process where commodity vendors deliver directly to the UN office/location, as dictated by the appropriate Incoterms. Fill in the blank with the correct option. A. Virtual Goods Receipt B. Physical Goods Receipt C. Inbound Delivery D. Inventory Counting and Controlling Process 95

96 Learning Checkpoint 1 refers to the process where commodity vendors deliver directly to the UN office/location, as dictated by the appropriate Incoterms. Fill in the blank with the correct option. A. Virtual Goods Receipt B. Physical Goods Receipt C. Inbound Delivery D. Inventory Counting and Controlling Process Option B is the correct answer. Physical Goods Receipt refers to the process where commodity vendors deliver directly to the UN office/location, as dictated by the appropriate Incoterms. 96

97 Learning Checkpoint 2 Which of the following Stock Types blocks full financial posting and invoice processing? Select the correct option. A. Quality Stock B. In Transit Stock C. Blocked Stock D. Unrestricted Stock 97

98 Learning Checkpoint 2 Which of the following Stock Types blocks full financial posting and invoice processing? Select the correct option. A. Quality Stock B. In Transit Stock C. Blocked Stock D. Unrestricted Stock Option C is the correct answer. The Blocked Stock blocks full financial posting and invoice processing. 98

99 Module 3 Summary The key points covered in this module are listed below: The overall Logistics processes include Inbound Goods, Local Inventory Goods Movement, Stock Transport and Delivery, Inventory Counting and Controlling and Warehouse Management The Inbound Goods process is performed when goods are received from commodity vendors and shipment from other locations The Umoja Inventory Counting and Controlling process supports the UN process of conducting a physical count of inventory to verify the quantity and condition of materials in the inventory The Warehouse Management process is implemented in particular plants to facilitate the management of physical space The reports in Logistics process involve Inbound Delivery report, Purchase Order report, Material Document report, Stock Requirement report, Stock Overview report, Warehouse Stock Report, and Physical Inventory Report 99

100 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 100

101 Course Summary The key points covered in this course are listed below: The key benefits of the Logistics process include ensuring data consistency, reduction of discrepancies and more timely execution The roles involved in the Logistics process are Inbound Coordinator, Virtual Receiving User, Receiving User, Inspecting User, Property Control User, Inventory User, Inventory Senior User and Logistics Coordinator The Material Master Data is a Master Data record that contains information about all products procured, stored and shipped by UN. The Material Master Data is linked to two other Supply Chain Master Data: Equipment Master Data and Asset Master Data The overall Logistics processes include Inbound Goods, Local Inventory Goods Movement, Stock Transport and Delivery, Inventory Counting and Controlling and Warehouse Management 101

102 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 102

103 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 103

104 Agenda Course Introduction Module 1: Umoja Logistics Overview Module 2: Logistics Master Data Module 3: Logistics Execution Processes Course Summary Course Assessment Course Survey 104

105 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 105

106 Congratulations! You have successfully completed the Umoja Logistics Overview: Non PK course. 106