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Collecting data for items cancelled on orders

  • 1.  Collecting data for items cancelled on orders

    Posted 8 days ago
    We have customers that require if we do not have an item in stock for their order that we cancel the line off the order and ship to them the product we do have.  This process results in never recording demand on the items that were cancelled on the orders which results in an ugly cycle of we don't have the item, it gets cancelled, then the next time they order it, we don't have it because we never have the demand captured.

    I am looking to discuss what others may be doing to capture this type of demand in order to allow to account for it in our planning.  I have considered BI reporting on the cancelled lines, one concern is capturing the demand for this process vs a true cancellation.

    Your thoughts and comments are appreciated.

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    William (Mac) McLendon
    CRC Industries, Inc.
    Horsham PA
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  • 2.  RE: Collecting data for items cancelled on orders

    GOLD CONTRIBUTOR
    Posted 8 days ago
    Hi William,

    We have a similar situation where we need to capture demand but cancelled lines don't do that. We have one customer that drops massive orders early Monday morning, and we have to ship by Wednesday and they don't allow for back orders. Any lines that we currently do not have stock for get put on a dummy order that obviously won't ship because there is no inventory. Once our planning software has picked up that dummy order and calculated the demand, those dummy orders get cancelled on Friday.

    Totally agree that this is not an ideal process and rather manual and ugly, but this is what works for us for now. I do believe there are reports you can run to report cancelled lines, but then you have to manually add them into your demand unless you have a dummy order in the system that automates that part. Not sure there is a good solution, if you find one, I'd be curious to know :)

    Thanks!

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    Kerstin Newman
    Business Analyst
    StarTech.com
    London ON
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    Conference-AXUG_200x200


  • 3.  RE: Collecting data for items cancelled on orders

    Posted 7 days ago
    Kerstin,

    That is a great step forward that could support our planning processes.  I will bring that to our team.

    Regards,

    Mac McLendon

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    William (Mac) McLendon
    CRC Industries, Inc.
    Horsham PA
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    Conference-AXUG_200x200


  • 4.  RE: Collecting data for items cancelled on orders

    SILVER CONTRIBUTOR
    Posted 6 days ago
    Mac,

    Are you using the Demand forecasting tool in AX/D365?  If so one possible solution I've seen in the past is that when a line is cancelled you have a small script that runs and adds the item, quantity and requested ship date to the Historical External Demand table that Demand forecasting uses along with the sales transaction data.  This way the data is collected and used for calculating the future forecast even though the sales order did not ship.

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    Jonathan Anderson
    Senior Managing Consultant
    BKD, LLP
    Denver CO
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    Conference-AXUG_200x200


  • 5.  RE: Collecting data for items cancelled on orders

    TOP CONTRIBUTOR
    Posted 4 days ago
    Agree with Jonathan, your operating plan seems to be based off of having material prior to customer demand coming in so exploring how forecast options can be applied is a good approach, whether that's doing it manually or externally and just applying those forecasts to planning or using the more advanced Demand forecasting tool in AX2012R3 and D365 that Jonathan mentioned, or other ISVs that do statistical forecasting.

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    Andrew Lencsak
    Solution Delivery Manager
    Arbela Technologies
    Irvine CA
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    Conference-AXUG_200x200


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