slicing-scm/docs/BP-SCM-ENGLISH.md

Supply Chain Management — Business Processes

1. Procurement Process

PR → PO → GR → 3-Way Match → Invoice → Payment

1.1 Purchase Requisition (PR)

Trigger: Department identifies need for materials or services.

1. Requestor creates PR with item details, quantity, estimated cost, and justification
2. PR routes through multi-level approval based on amount thresholds:
   • Level 1: Department Manager (up to Rp 10M)
   • Level 2: Supply Chain Manager (Rp 10M–Rp 100M)
   • Level 3: Director (>Rp 100M)
3. Approved PR is converted to Purchase Order
4. Rejected PR may be revised and resubmitted

Key fields: PR# (auto), requestor, department, required date, line items (SKU, description, qty, UOM, est. price), justifications, approval history

1.2 Purchase Order (PO)

Trigger: Approved PR or direct procurement need.

1. Procurement officer selects supplier (system suggests preferred suppliers)
2. PO captures: supplier, delivery warehouse, line items (SKU, qty, unit price), delivery date, payment terms
3. PO approval workflow with configurable authority limits:
   • Up to Rp 50M: Procurement Manager
   • Rp 50M–Rp 500M: Finance Manager
   • Above Rp 500M: Director
4. PO sent to supplier via email (PDF) or supplier portal
5. Supplier acknowledgment tracked

PO lifecycle: Draft → Pending Approval → Approved → Partially Received → Completed → Closed

PO Amendments: Changes to approved POs (qty, price, delivery date) require an amendment record with reason capture. Re-approval required if amendment exceeds threshold.

1.3 Goods Receipt (GR)

Trigger: Physical goods arrive at warehouse.

1. Warehouse staff creates Goods Receipt Note (GRN) linked to PO
2. Received quantities recorded per PO line item
3. Quality Inspection: Items routed to inspection queue
   • Pass → Accept into inventory
   • Fail → Reject or Quarantine with NCR
   • Partial → Accept good qty, reject defective
4. Inventory levels auto-updated upon GRN confirmation
5. Putaway to suggested bins based on item category

Discrepancy handling: Qty or quality mismatches flagged automatically. Shortages recorded as pending receipt.

1.4 Three-Way Matching

Trigger: Supplier invoice received.

1. System matches: PO quantity × unit price ↔ GR quantity ↔ Invoice quantity × unit price
2. Match statuses:
   • Matched — all three documents agree → payment queued
   • Mismatch — discrepancies identified → resolved via debit/credit note or override
3. Mismatches require disposition: approve with tolerance, create debit note, or reject invoice

1.5 Supplier Performance

• On-Time Delivery %: PO lines delivered on or before requested date
• Fill Rate %: Quantity delivered / quantity ordered
• Defect Rate %: Rejected qty / total received qty
• Composite Score: Weighted average of above metrics
• Non-Conformance Incidents: Quality issues tracked with severity (Critical/Major/Minor), disposition (Return/Rework/Concession), and corrective action tracking
• Blacklist/Approval: Suppliers can be flagged as Under Review, Blacklisted, or Pending Onboarding with full audit trail

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2. Inventory Process

Receipt → Putaway → Storage → Pick → Pack → Ship
                    ↓
          Transfer / Adjustment / Count / Usage / Disposal

2.1 Inventory Tracking

• Real-time visibility across all warehouses and bin locations
• Stock quantities: On Hand, Available (On Hand − Reserved), Reserved (allocated to orders)
• Valuation methods: FIFO, LIFO, Weighted Average supported
• ABC Classification: A = 80% value, B = 15%, C = 5% — drives cycle count frequency and review priority
• **Lot/Batch Tracking: Each receipt lot tracked with manufacture date, expiry date, and remaining shelf life. FEFO (First Expired First Out) for picking.
• Serial Number Tracking: Individual units tracked through lifecycle: Receipt → Storage → Ship → Return → Retire

2.2 Warehouse Management

• Multi-location hierarchy: Company > Warehouse > Zone > Aisle > Rack > Bin
• Putaway rules: System suggests optimal bin based on item category, velocity, size
• Transfers: Stock moved between warehouses with full traceability (Transfer Request → Dispatch → In Transit → Receive)
• Cycle Count: Periodic count sessions with variance reporting:
  1. Create session (target items/zone)
  2. Blind count (counter sees no system qty)
  3. Variance report with expected vs actual
  4. Adjustment posting with reason code and supervisor approval
• Physical Stock Take: Full inventory count at period end with frozen operations
• Pick List: Generated from confirmed sales orders with route-optimized pick sequence

2.3 Stock Adjustments

• Reason codes: Damage, Expired, Found, Recount, Write-Off, Other
• Mandatory supervisor approval for write-offs above threshold
• Full audit trail with before/after values

2.4 Low Stock & Reorder

• Reorder Point: When current stock falls below configured minimum
• Safety Stock: Buffer against demand variability
• EOQ (Economic Order Quantity): Optimal order quantity calculation
• Auto-suggested reorder: System generates replenishment recommendations

2.5 Inventory Aging

• Items grouped by age brackets: 0–30d, 31–60d, 61–90d, 91–180d, 181–365d, 365+d
• Slow-moving and obsolete items flagged for review and potential disposal

2.6 Material Usage & Disposal

• Usage: Consumption recorded with cost center / project allocation. Auto-deduct from inventory.
• Disposal: Expired, damaged, or obsolete stock disposed with reason, method, and approval.

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3. Order Fulfillment Process

Sales Order → ATP Check → Confirm → Pick → Pack → Ship → Deliver → Invoice

3.1 Sales Order (SO)

Trigger: Customer places order (manual entry or e-commerce integration).

1. Order entry with customer info, line items, delivery address, requested date, payment terms
2. Availability-to-Promise (ATP) check at order entry:
   • System checks on-hand + incoming POs − existing reservations
   • Provides earliest fulfillment date
   • Partial ATP: some qty available now, balance on backorder
3. Order confirmed upon availability or customer acceptance

SO lifecycle: Draft → Confirmed → Picking → Dispatched → Delivered → Closed

3.2 Pick, Pack, Ship

1. Pick List generated from confirmed SOs (optimized for warehouse route)
2. Items picked from bins, quantities confirmed
3. Packing: Items packed and labeled. Packing list generated.
4. Shipment Created: Carrier assigned, tracking number captured
5. Delivery Confirmation: POD captured (timestamp, recipient name, signature)

3.3 Backorder

• Partial fulfillment creates automatic backorder for unfulfilled quantities
• Backorder fulfilled when stock becomes available (next PO receipt)
• Customer notified of backorder status

3.4 Returns / RMA

Trigger: Customer requests return (defective, wrong item, damaged, or change of mind).

1. RMA (Return Merchandise Authorization) created with reason code
2. Return approved based on policy:
   • Defective → Immediate approval
   • Customer request → Subject to return window
3. Disposition: Repair & Return, Replace, Refund, Credit Note, Scrap
4. Inventory re-instated for acceptable returns
5. Quality inspection for returned items before re-stocking

3.5 Sales Invoicing

• Auto-generated upon shipment dispatch or delivery confirmation
• Invoice matched to SO line items
• Payment status tracking: Unpaid → Partial → Paid
• Overdue payment alerts with configurable thresholds

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4. Supplier Lifecycle

Onboarding → Qualification → Contract → Performance → Evaluation → (Renew / Replace / Blacklist)

4.1 Onboarding

• Supplier registration with company details, tax ID (NPWP), bank accounts, contacts
• Multiple contacts per supplier with roles and preferred channels
• Supplier categorization: Raw Material, Finished Goods, Packaging, Services, Logistics

4.2 Contracts

• Contract captured with validity dates, payment terms, scope
• Auto-renewal and expiry alerts
• Approved price lists per SKU

4.3 Performance Evaluation

• Periodic scorecards generated automatically
• KPI weights configurable by procurement admin
• Rating: Excellent (90+), Good (75–89), Fair (60–74), Poor (<60)

4.4 Corrective Actions

• Supplier NCRs trigger corrective action requests
• CAPA (Corrective and Preventive Action) tracking
• Repeated failures lead to blacklist review

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5. Logistics & Transportation

Ship → Track → Deliver → Confirm → Invoice

5.1 Shipment Planning

• Outbound shipments planned with carrier assignment
• Freight Cost Comparison: Compare rates across carriers for given origin, destination, weight, and volume
• Documents generated: Bill of Lading, Packing List, Delivery Note, Commercial Invoice, Certificate of Origin
• CO₂ tracking per shipment (distance × transport mode factor)

5.2 Real-Time Tracking

• Carrier API integration (JNE, Tiki, SiCepat, etc.)
• Tracking statuses: Pending Pickup → In Transit → Out for Delivery → Delivered → Exception
• Location history with timestamps

5.3 Delivery Confirmation

• ePOD (electronic Proof of Delivery) capture
• Condition recording: Good / Damaged / Partial
• Delivery photo capture (optional)

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6. Demand Planning

Historical Data → Forecast → Scenario → Replenishment → Procurement

6.1 Forecasting

• Statistical methods: Moving Average (3/6/12 months), Exponential Smoothing
• Manual overrides with reason capture for promotions, seasonality, market events
• Forecast accuracy tracking: MAPE (Mean Absolute Percentage Error) per SKU
• Seasonal adjustment factors for products with demand patterns

6.2 Replenishment Planning

• Net Requirement = Forecast Demand − Current Stock − Open PO + Safety Stock
• Suggested order quantities based on EOQ
• One-click conversion to Purchase Requisition

6.3 Scenario Planning

• "What-if" simulations: supply disruption, demand spike, currency change, supplier switch
• Impact analysis per SKU with risk rating
• Recommended actions for each scenario

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7. Quality Management

Incoming Inspection → Pass/Fail → NCR → CAPA → Closure

7.1 Inspection Plans

• Checklist items per item group/category
• Sampling method: 100% inspection, AQL (Acceptable Quality Level), Fixed Sample
• Acceptance criteria per checkpoint

7.2 Inspection Records

• Created at goods receipt or during production
• Score and result (PASS / FAIL) per inspection
• FAIL triggers NCR creation

7.3 Non-Conformance Reports (NCR)

• Severity: Critical (safety/regulatory), Major (functionality), Minor (cosmetic)
• Dispositions: Return to Supplier, Rework, Accept with Concession, Scrap
• Root cause and corrective action tracking
• Status: Open → In Progress → Closed

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8. System Administration

8.1 User Management & RBAC

• Role-based access per module: View, Create, Edit, Delete, Approve, Export
• Roles: Admin, Supply Chain Manager, Procurement Officer, Warehouse Operator, Logistics Coordinator, Finance Officer, Sales Representative, Read-Only Viewer

8.2 Approval Matrix

• Configurable per document type (PR, PO, MR, SO)
• Multi-level: up to 3 approval levels by amount threshold
• Delegation can be configured for absences

8.3 Document Numbering

• Auto-numbering per document type with configurable format
• Prefix + Year + Running counter

8.4 Audit Trail

• Immutable log of all CUD (Create, Update, Delete) and approval actions
• Fields: Timestamp, User, Action, Module, Document#, Old/New values
• Retention: 3 years minimum

8.5 Integrations

• ERP (SAP, Oracle, Odoo) — bidirectional
• E-commerce (Shopify, WooCommerce) — inbound orders
• Accounting (QuickBooks, Xero) — bidirectional
• Carriers (JNE, DHL, FedEx) — outbound + tracking
• Notifications: Email (SendGrid/SMTP), SMS (Twilio), In-App
• SSO: SAML 2.0 / OIDC

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Document version 1.0 — May 2026 Confidential — PT SCM Group