Configure shipment consolidation policies

The shipment consolidation process that uses shipment consolidation policies allows for automated shipment consolidation during automated and manual release to the warehouse. After you turn on this feature, you must configure your initial policies. If no policies are configured, each sales line will generate a separate shipment that has a single load line.

The scenarios that are presented in this topic show how to set up default and custom shipment consolidation policies.

Turn on the Shipment consolidation policies feature

Important

In the first scenario that is described in this topic, you will first set up a warehouse so that it uses the earlier shipment consolidation feature. You will then make shipment consolidation policies available. In this way, you can experience how the upgrade scenario works. If you plan to use a demo data environment to go through the first scenario, don't turn on the feature before you do the scenario.

Before you can use the Shipment consolidation policies feature, you must turn it on in your system. Admins can use the feature management settings to check the status of the feature and turn it on. In the Feature management workspace, the feature is listed in the following way:

  • Module: Warehouse management
  • Feature name: Consolidate shipment

Make demo data available

Each scenario in this topic references values and records that are included in the standard demo data that is provided for Microsoft Dynamics 365 Supply Chain Management. If you want to use the values that are provided here as you do the exercises, be sure to work in an environment where the demo data is installed, and set the legal entity to USMF before you begin.

Scenario 1: Configure default shipment consolidation policies

There are two situations where you must configure the minimum number of default policies after you turn on the Shipment consolidation policies feature:

  • You're upgrading an environment that already contains data.
  • You're setting up a completely new environment.

Upgrade an environment where warehouses are already configured for cross-order consolidation

When you start this procedure, the Shipment consolidation policies feature should be turned off, to simulate an environment where the basic cross-order consolidation feature was already used. You will then use feature management to turn on the feature, so that you can learn how to set up shipment consolidation policies after the upgrade.

Follow these steps to set up default shipment consolidation policies in an environment where warehouses have already been configured for cross-order consolidation.

  1. Go to Warehouse management > Setup > Warehouse > Warehouses.

  2. In the list, find and open the desired warehouse record (for example, warehouse 24 in the USMF demo data).

  3. On the Action Pane, select Edit.

  4. On the Warehouse FastTab, set the Consolidate shipment at release to warehouse option to Yes.

  5. Repeat steps 2 through 4 for all other warehouses where consolidation is required.

  6. Close the page.

  7. Use feature management to turn on the Shipment consolidation policies feature. In the Feature management workspace, the feature is named Consolidate shipment.

  8. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies. You might have to refresh your browser to see the new Shipment consolidation policies menu item after you turn on the feature.

  9. On the Action Pane, select Create default setup to create the following policies:

    • A CrossOrder policy for the Sales orders policy type (provided that you have at least one warehouse that is set up to use the earlier consolidation feature)
    • A Default policy for the Sales orders policy type
    • A Default policy for the Transfer issue policy type
    • A CrossOrder policy for the Transfer issue policy type (provided you have at least one warehouse that is set up to use the earlier consolidation feature)

    Note

    • Both CrossOrder policies consider the same set of fields as the earlier logic, except for the field for the order number. (That field is used to consolidate lines into shipments, based on factors such as the warehouse, transportation mode of delivery, and address.)
    • Both Default policies consider the same set of fields as the earlier logic, including the field for the order number. (That field is used to consolidate lines into shipments, based on factors such as the order number, warehouse, transportation mode of delivery, and address.)
  10. Select the CrossOrder policy for the Sales orders policy type, and then, on the Action Pane, select Edit query.

  11. In the query editor dialog box, notice that warehouses where the Consolidate shipment at release to warehouse option is set to Yes are listed. Therefore, they are included in the query.

Create default policies for a new environment

Follow these steps to set up default shipment consolidation policies in a brand-new environment.

  1. Use feature management to turn on the Shipment consolidation policies feature, if you haven't already turned it on. In the Feature management workspace, the feature is named Consolidate shipment.

  2. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  3. On the Action Pane, select Create default setup to create the following policies:

    • A Default policy for the Sales orders policy type
    • A Default policy for the Transfer issue policy type

    Note

    Both Default policies consider the same set of fields as the earlier logic, including the field for the order number. (That field is used to consolidate lines into shipments, based on factors such as the order number, warehouse, transportation mode of delivery, and address.)

Scenario 2: Configure custom shipment consolidation policies

This scenario shows how to set up custom shipment consolidation policies. Custom policies can support complex business requirements where shipment consolidation depends on several conditions. For each example policy later in this scenario, a short description of the business case is included. These example policies should be set up in a sequence that ensures a pyramid-like evaluation of the queries. (In other words, the policies that have the most conditions should be evaluated as having the highest priority.)

Turn on the feature and prepare master data for this scenario

Before you can go through the exercises in this scenario, you must turn on the feature and prepare the master data that is required to do the filtering, as described in the following subsections. (These prerequisites also apply to the scenarios listed in Example scenarios of how to use shipment consolidation policies.)

Turn on the feature and create the default policies

Use feature management to turn on the feature, if you haven't already turned it on, and create the default consolidation polices that are described in scenario 1.

Create two new product filter codes

  1. Go to Warehouse management > Setup > Product filters > Product filters, and add two product filters:

    • Product filter 1:

      • Filter code: Flammable
      • Filter title: Code 4
    • Product filter 2:

      • Filter code: Explosive
      • Filter title: Code 4
  2. Go to Product information management > Products > Released products.

  3. Open the product that has item number M9200. (The product that you select must be enabled for advanced warehouse [WMS] processes, and this product is pre-enabled for WMS processes in the USMF demo data.)

  4. On the Warehouse FastTab, set the Code 4 field to Flammable.

  5. Close the page.

  6. Open the product that has item number M9201. (This product is also pre-enabled for WMS processes in the in the USMF demo data.)

  7. On the Warehouse FastTab, set the Code 4 field to Explosive.

  8. Close the page.

Create a new transportation mode of delivery

  1. Go to Transportation management > Setup > Carriers > Mode.

  2. Create a transportation mode that will be used in consolidation queries, and name it Airways.

  3. Go to Transportation management > Setup > Carriers > Shipping carriers.

  4. Create a carrier that has the following settings:

    • Shipping carrier: Airways
    • Name: Airways
    • Mode: Airways
  5. On the Services FastTab for the new carrier, add a row that has the following settings:

    • Carrier service: Air
    • Transportation method: Air
  6. On the Action Pane, select Save.

    Note

    When you save the new carrier, the Mode of delivery field for the new row in the Services grid is automatically set to Airwa-Air. When you use the Airwa-Air mode of delivery for a sales order, the Airways transportation mode will be used for related shipments.

Create an order pool

  1. Go to Sales and marketing > Setup > Sales orders > Order pools.

  2. Create an order pool that will be used for the consolidation query. This order pool should have the following settings:

    • Pool: Enter an integer that isn't already used by any other pool.
    • Name: ShipCons
  3. Go to Sales and marketing > Customers > All customers.

  4. Open the customer that has account number US-003.

  5. On the Sales order defaults FastTab, set the Sales order pool field to the order pool that you just created.

  6. Close the page, and then repeat the steps 4 and 5 for the customer that has account number US-004.

Create example policy 1

In this example, you will create a Customer+Mode policy that can be used for the following business case:

  • The policy will query for a specific customer account (US-001) and a specific mode of delivery (Airwa-Air).
  • Consolidation with open shipments is turned off.
  • Consolidation is done per order ID. (In other words, there will be separate shipments per order, warehouse, and so on.)

Follow these steps to create the shipment consolidation policy for this business case.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. On the Action Pane, select New to create a policy that has the following settings:

    • Policy name: CustomerMode
    • Policy description: Customer account and mode of delivery
  4. Leave the Consolidate with open shipments option set to No.

  5. On the Action Pane, select Save.

  6. On the Consolidation fields FastTab, in the Remaining fields list, select the row where the Field name field is set to Mode of delivery.

  7. Select the Add button Right arrow to move the field to the Selected fields list.

  8. On the Action Pane, select Edit query.

  9. In the query editor dialog box, on the Range tab, in the grid, find the row where the Field field is set to Customer account, and set the Criteria field for that row to US-001.

  10. Select Add to add a row that has the following settings to the grid:

    • Table: Order lines
    • Derived table: Order lines
    • Field: Mode of delivery
    • Criteria: Airwa-Air
  11. Select OK to close the dialog box.

Note

For this business case, order lines for customer US-001 that use the Airwa-Air mode of delivery won't be consolidated across orders. This policy is intended to be used first in a sequence, in cases where shipments for all other modes of delivery are consolidated for this customer.

Create example policy 2

In this example, you will create a Hazardous goods policy that can be used for the following business case:

  • The policy will query for a specific filter code (hazardous) and a specific mode of delivery (Airwa-Air).
  • Consolidation with open shipments is turned on.
  • Consolidation is done across orders. (In other words, there will be separate shipments per account, warehouse, and so on, but only within the item group that is specified in the query.)

Follow these steps to create the shipment consolidation policy for this business case.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. On the Action Pane, select New to create a policy that has the following settings:

    • Policy name: Item type
    • Policy description: Consolidate the same type of item across orders
  4. Set the Consolidate with open shipments option to Yes.

  5. On the Action Pane, select Save.

  6. On the Consolidation fields FastTab, in the Remaining fields list, select the row where the Field name field is set to Mode of delivery.

  7. Select the Add button Right arrow to move the field to the Selected fields list.

  8. On the Action Pane, select Edit query.

  9. In the query editor dialog box, on the Joins tab, expand and select Tables > Load details in the tree.

  10. Select Add table join.

  11. In the grid of relations that appears, find and select the row where the Relation field is set to Warehouse item number (Item number), and then select Select.

  12. On the Range tab, select Add to add a row that has the following settings to the grid:

    • Table: Warehouse item number
    • Derived table: Warehouse item number
    • Field: Code 4
    • Criteria: Flammable
  13. Select OK to close the dialog box.

Note

For this business case, all order lines where items have a specific filter code (that is, the filter code where the Code 4 field is set to Flammable) will be consolidated with other items of the same type across orders. If there is an open shipment for the same account, warehouse, and group of items, the new lines will be attached to it.

Create example policy 3

In this example, you will create a Customers' requirements policy that can be used for the following business case:

  • The policy will query for a specific customer account.
  • Consolidation with open shipments is turned on.
  • Consolidation is done across orders but is based on customer requisitions. (In other words, multiple orders will be grouped into shipments, based on the same customer requisition number and warehouse.)

Follow these steps to create the shipment consolidation policy for this business case.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. On the Action Pane, select New to create a policy that has the following settings:

    • Policy name: CustomerOrderNo
    • Policy description: Consolidate lines based on customer PO
  4. Set the Consolidate with open shipments option to Yes.

  5. On the Action Pane, select Save.

  6. On the Consolidation fields FastTab, in the Remaining fields list, select the row where the Field name field is set to Customer requisition.

  7. Select the Add button Right arrow to move the field to the Selected fields list.

  8. In the Remaining fields list, select the row where the Field name field is set to Mode of delivery.

  9. Select the Add button Right arrow to move the field to the Selected fields list.

  10. On the Action Pane, select Edit query.

  11. In the query editor dialog box, on the Range tab, find the row where the Field field is set to Customer account, and set the Criteria field for that row to US-001.

  12. Select OK to close the dialog box.

Note

For this business case, all order lines where sales orders have the same customer requisition number will be consolidated into one shipment, regardless of the sales order number. (The customer requisition number is used as the customer's purchase order [PO] number.) If there is an open shipment for the same account, warehouse, and customer requisition, the new lines will be attached to it. This policy can be used if the customer sends additional order lines that have the same PO number several times during a day and wants all the lines to be grouped into one shipment. (In other words, there will be one bill of lading and one packing slip.)

Create example policy 4

In this example, you will create a Customers allowing consolidation policy that can be used for the following business case:

  • The policy will query for a specific order pool to identify customers who accept consolidated shipments.

  • Consolidation with open shipments is turned off.

  • Consolidation is done across orders using the fields selected by default CrossOrder policy (to replicate the previous Consolidate shipment at release to warehouse check box).

  • You can override the rule on a sales order by selecting a different order pool.

Follow these steps to create the shipment consolidation policy for this business case.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. On the Action Pane, select New to create a policy that has the following settings:

    • Policy name: Order pool
    • Policy description: Consolidate across orders based on order pool
  4. Leave the Consolidate with open shipments option set to No.

  5. On the Action Pane, select Save.

  6. On the Consolidation fields FastTab, in the Remaining fields list, select the row where the Field name field is set to Mode of delivery.

  7. Select the Add button Right arrow to move the field to the Selected fields list.

  8. On the Action Pane, select Edit query.

  9. In the query editor dialog box, on the Range tab, select Add to add a row that has the following settings to the grid:

    • Table: Sales orders
    • Derived table: Sales orders
    • Field: Pool
    • Criteria: ShipCons
  10. Select OK to close the dialog box.

Note

For this business case, all order lines where sales orders belong to the same order pool will be consolidated into one shipment across sales orders for the same account, warehouse, and transportation mode of delivery. Instead of the order pool, you can use any other field to distinguish a group of customers and use the sales order header by default. You can use this approach if the customer, not the warehouse, is driving the need for consolidation. (In the earlier consolidation logic, the warehouse drove the need for consolidation.)

Create example policy 5

In this example, you will create a Warehouses allowing consolidation policy that can be used for the following business case:

  • The policy will query for a specific order pool to identify warehouses that can consolidate shipments.
  • Consolidation with open shipments is turned off.
  • Consolidation is done across orders using the fields selected by default CrossOrder policy (to replicate the previous Consolidate shipment at release to warehouse check box).

Typically, this business case can be addressed by using the default policies that you created in scenario 1. However, you can also manually create similar policies by following these steps.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. On the Action Pane, select New to create a policy that has the following settings:

    • Policy name: Cross-order
    • Policy description: Cross-order consolidation for specific warehouses
  4. Leave the Consolidate with open shipments option set to No.

  5. On the Action Pane, select Save.

  6. On the Consolidation fields FastTab, in the Remaining fields field, select the row where the Field name field is set to Mode of delivery.

  7. Select the Add button Right arrow to move the field to the Selected fields list.

  8. On the Action Pane, select Edit query.

  9. In the query editor dialog box, on the Range tab, find the row where the Field field is set to Warehouse, and set the Criteria field for that row to 61, 63.

  10. Select OK to close the dialog box.

Set the order

Now that you've created all your policies, you must establish the order that they will be applied in. To use a pyramid-like approach, where the policies that have the most conditions are evaluated as having the highest priority, follow these steps.

  1. Go to Warehouse management > Setup > Release to warehouse > Shipment consolidation policies.

  2. Set the Policy type field to Sales orders.

  3. Select each policy that is listed in the left column, and then use the Move up and Move down buttons on the Action Pane to arrange the policies in the following order:

    1. CustomerMode
    2. Item type
    3. CustomerOrderNo
    4. Order pool
    5. Cross-order
    6. Default

Example scenarios of how to use shipment consolidation policies

The following scenarios illustrate how you could use the shipment consolidation policies that you created while reading this topic. Each scenario walks you through a shipment consolidation process that uses shipment consolidation policies during automated or manual release to the warehouse:

Additional resources