Wednesday, May 21, 2025

Blue Yonder OMS Essentials: Dropship, Vendors, Procurement Orders & More

Blue Yonder OMS Concepts and Product Management Guide
Blue Yonder OMS Concepts and Product Management Guide

1. Purpose of Commits

Commits in Blue Yonder OMS represent inventory allocation decisions. They serve to:

  • Reserve inventory for specific customer orders
  • Guarantee fulfillment from a particular location
  • Prevent overselling by tracking allocated inventory
  • Support order promising with accurate availability information

Example: When a customer orders a red sweater, the OMS creates a commit to reserve this item at the best fulfillment location.

2. Data Exchange in Commits

The data exchanged during commits includes:

  • Item identifiers (SKU, UPC, etc.)
  • Quantity information
  • Location details (source and destination)
  • Reservation timeframes
  • Order reference information
  • Status data (soft vs. hard commit)
  • Inventory availability status

Example commit data exchange:

{
  "commitId": "CMT-12345",
  "orderId": "ORD-98765",
  "itemId": "SKU-RED-SWEATER-M",
  "quantity": 1,
  "sourceLocationId": "DC-NORTHEAST",
  "commitStatus": "HARD_COMMIT",
  "creationTimestamp": "2025-05-19T10:30:00Z",
  "expirationTimestamp": "2025-05-21T10:30:00Z"
}

3. Interactions with Commits

Commits interact with several OMS components:

  • Inventory Management: Commits reduce available-to-promise (ATP) inventory
  • Order Orchestration: Orchestration engine uses commits to determine fulfillment options
  • Sourcing: Commits created after sourcing decisions determine fulfillment locations
  • Fulfillment Execution: Warehouse systems identify what needs to be picked
  • Order Promising: Commits affect delivery date calculations

When customer orders change (e.g., quantity increase or cancel), commits are modified, released, or newly created as needed.

4. Procurement Purchase Order

A Procurement Purchase Order (PO) in Blue Yonder:

  • Official document sent to suppliers requesting products
  • Details quantity, price, and delivery dates
  • Used for replenishing DC or store inventory
  • Legally binding when accepted

Example PO:

Purchase Order #: PO-20250520-001
Vendor: Acme Clothing Suppliers
Ship To: Northeast Distribution Center
Items:
- SKU-12345 | Men's Black T-Shirt | Qty: 200 | Unit Price: $8.50
- SKU-67890 | Women's White Blouse | Qty: 150 | Unit Price: $12.75
Requested Delivery: June 5, 2025
Payment Terms: Net 30

5. Dropship

Dropship is a fulfillment method where:

  • The retailer doesn't physically handle merchandise
  • Orders are forwarded directly to suppliers/manufacturers
  • Supplier ships products directly to the customer
  • Retailer manages customer relationship and payment
  • Package appears to come from the retailer (white labeling)

Example: Furniture ordered online ships directly from manufacturer to customer's home.

6. Dropship Vendor

A dropship vendor in Blue Yonder OMS:

  • Fulfills customer orders directly
  • Receives order details electronically
  • Configured for direct-to-consumer shipping
  • Integrates via API or EDI
  • Has attributes like shipping methods, lead times, packaging

OMS maintains vendor profiles for routing decisions based on performance and capabilities.

7. Procurement Transfer Order

A Procurement Transfer Order (TO) is:

  • Internal request to move inventory between company-owned locations
  • Used for store replenishment, DC balancing, regional coordination
  • Contains origin and destination info
  • May include transportation and handling details

Example Transfer Order:

Transfer Order #: TO-20250520-003
From: Northeast Distribution Center
To: Manhattan Flagship Store
Items:
- SKU-34567 | Designer Handbag | Qty: 5
- SKU-78901 | Premium Sunglasses | Qty: 12
Requested Delivery: May 25, 2025
Transportation Method: Company Fleet
Special Instructions: Store preparing for Memorial Day promotion

8. Make-To-Order and Monogram Order

Make-To-Order (MTO):

  • Production begins after order receipt
  • Custom specifications or configurations
  • Longer lead times
  • Requires specialized OMS workflows

Monogram Order:

  • Personalization by adding initials, names, or text
  • Captured with special attributes
  • Includes extra fees and processing time

Example: Leather wallet with initials "JDW" embossed.

9. Value-Added Services in BY OMS

Value-Added Services (VAS) include:

  • Gift wrapping and packaging
  • Personalization (monogramming, engraving)
  • Bundling and kitting
  • Gift messaging
  • Installation
  • Extended warranties
  • Special packaging (eco-friendly, premium)

Implemented through service attributes, instructions, fees, and workflows.

10. Costs in Blue Yonder OMS

Costs tracked include:

  • Product unit and landed costs
  • Shipping and handling
  • Fulfillment operation costs
  • Return processing
  • Store labor
  • Dropship vendor markup
  • VAS costs
  • Transfer costs
  • Inventory holding
  • Markdowns and obsolescence

Used to determine most profitable fulfillment options.

11. Product Manager Tasks

Key responsibilities of a Product Manager in Blue Yonder OMS:

  • Define product requirements and features
  • Coordinate between business, IT, and vendors
  • Ensure integration readiness
  • Test and validate workflows
  • Monitor release and deployment
  • Collect feedback and drive continuous improvement
  • Train internal users and stakeholders
  • Manage documentation

12. UAT and When It's Done

User Acceptance Testing (UAT) is done when:

  • Development and system testing phases are complete
  • All critical features are implemented
  • Test environment mimics production closely
  • Business users can verify real-world scenarios
  • Acceptance criteria are met without critical defects

UAT ends with formal sign-off and readiness to deploy.

13. Product Manager Documentation

Product managers document:

  • Requirements and specifications
  • Business process flows
  • Configuration guides
  • Test cases and results
  • Release notes
  • User manuals
  • Change logs and defect reports

This documentation supports development, training, and support.

14. MVP in Blue Yonder Context

MVP (Minimum Viable Product) refers to:

  • Basic OMS functionality for initial launch
  • Includes essential order capture, inventory, fulfillment
  • Supports critical business workflows with minimal complexity
  • Allows early user feedback and iterative enhancement

MVP balances rapid deployment with business value.

15. Work Order

A Work Order in OMS is:

  • A task or job instruction for warehouse or manufacturing
  • Details items to pick, pack, or assemble
  • Includes schedules and priority levels
  • Monitored for status and completion

16. New Product Implementation Actions

  • Configure product master data (SKUs, attributes)
  • Set up sourcing and fulfillment rules
  • Define commits and inventory parameters
  • Coordinate with procurement and vendors
  • Update pricing and cost info
  • Train users and update documentation
  • Plan and execute UAT

17 & 18. UAT Responsibilities

Product Manager: Plan and coordinate UAT activities, prepare test scenarios, manage defect resolution.

Business Users: Execute test cases, verify outcomes, provide feedback and approval.

Clear communication and thorough testing ensure smooth production rollout.

19. Cross-Docking

Cross-docking is a fulfillment process where:

  • Goods are received and directly shipped without long-term storage
  • Reduces handling and storage costs
  • Speeds up order fulfillment
  • OMS manages timing and routing carefully

20. Dropship vs. Procurement Purchase Order

Dropship: Supplier ships directly to customer, retailer doesn’t handle inventory physically.

Procurement Purchase Order: Retailer buys and stocks inventory before sale.

Key difference: Dropship bypasses retailer’s inventory, POs build retailer’s inventory.

21. Replenishment Order

Replenishment order:

  • Automatically generated order to restock inventory
  • Sent from DC to stores or between DCs
  • Based on demand forecasting and thresholds
  • Ensures product availability and minimizes stockouts

22. Value-Added Service for Logo Printing

Logo printing as VAS includes:

  • Customization of products before shipping
  • Additional steps in fulfillment workflow
  • May affect lead times and costs
  • OMS tracks instructions and special SKUs if needed

23. DC-Only Shipping Configuration

DC-only shipping means:

  • Orders shipped only from distribution centers, not stores
  • Often used to centralize fulfillment
  • OMS configuration controls sourcing preferences
  • Improves inventory accuracy and shipping efficiency
© 2025 Blue Yonder OMS Guide by Suneetha

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