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 Complex Shipping Units

Purpose

A large part of the business of companies that manufacture and sell consumer products involves the management and shipping of product pallets that contain collections of different finished products to be sold as single units. These collections are commonly called complex shipping units (CSUs).

CSUs can be classified into two groups: product Displays and product Sets . Sets cannot be separated into the finished product components and cannot be sold individually. Displays are made of finished products, which are sold individually. Since CSU Displays can be broken up, Displays have an impact on the demand of the individually sold finished products.

The sales of products in Displays or Set leads to lower sales of the individual product on the shelf. The impact of CSUs on the demand of its components that are sold individually needs to be considered in order to have a more accurate visibility, forecast, and replenishment of the individual product demand.

Within the short-term horizon the CSUs are forecasted as standard items. In order to consider the impact of the CSUs on the component demand requires that the system recognize the relationship between the CSU and the component materials. The relationship is defined by a Productin Data Structure (PDS).

Implementation Considerations

When CSUs are implemented as a significant part of the replenishment process, their impact must be considered in the short-term forecasting of dependent products.

You can only use the CSU function in an SCM Server installation.

Integration

The CSU functionality is integrated into the SNC platform user interface. Each CSU has a product number and a corresponding PDS. User interaction with CSU is provided in the following SNC interface:

In the Master Data area, IPPE Work Bench Express, the PDS for the product (CSU) is defined, including where components are assigned. The product is defined as a CSU by setting the CSU flag in the Product extensions screen.

In the Forecasting area, CSU product numbers are recognized and selectable. In the Short-term forecasting area, CSU product numbers are processed appropriately in forecasting operations.

Features

CSU Displays and Sets have the following features.

CSU Displays and Sets

CSU type

Description

Relationship to component

Set:

Product with sample

Finished product has a small sample or leaflet attached. The changes to the product dimensions (e.g. weight, volume) are negligible.

New product number, but same UPC/EAN number and price as main finished product.

Set:

Bundled products

More than one finished product packed or bundled together e.g. set with shampoo and conditioner, disposable with small sample of new wipes.

New product number, EAN/UPC number and price. Set cannot be broken into components andsold separately.

Display:

Warehouse CSU

Displays for clubhouses containing finished products

Part of baseline business (non-promoted)

Own product number and EAN/UPC number, however components are sold individually. Components are not available as finished products on the shelf, only in the display itself

Display:

Merchandising CSU

Displays for promotions with 6-12 weeks lead time, always available

Own product number and EAN/UPC number, however components are sold individually from the display. Components are additionally available as finished products in the shelves.

Display:

One-time CSU

One-time displays on price list for a limited time e.g. 6-12 months

Same as merchandising CSU

Constraints

CSU functions and maintenance are limited to Reponsive Replenishment.

Only one level is shown of CSU PDSs.