Efficient production benefits suppliers and their customers. The supplier’s costs are reduced and the customer’s inventory needs are met by receiving the right product at the right time.
The key for efficient production is the supplier knowing in advance what the customer will need. The 830 Planning Schedule, also referred to as a Planning Schedule/Material Release, is a method for electronically conveying important forecast information.
The 830 Planning Schedule is used by customers in three different ways:
- as a simple forecast
- as a forecast that includes the customer’s authorization to commit labor and materials to production
- as a forecast that includes the release of authorization for specific orders within the forecast
1. The simple forecast provides the supplier with the customer’s estimate of how much product will be needed and when it will be needed.
2. Adding authorization to commit labor and materials provides the supplier with the ability to commit to production but may not include specific delivery dates and will typically be supplemented with specific purchase orders. This type of planning schedule is similar to a blanket purchase order to which specific orders will be applied.
3. The planning schedule with release capability will usually include enough information that replaces the need for purchase orders. It will include the required quantities of items and the required range of dates that they should be sent.
All three methods require either a web-based EDI software solution or in-house EDI software and an EDI department.
Any of the three methods may be supplemented with an 862 shipping schedule. It is frequently used by manufactures in Just-In-Time communication with their suppliers. The 862 shipping schedule provides detailed shipping requirements and may update the information previously sent in the 830 planning schedule.
The 830 planning schedule is often found in manufacturing industries and is particularly common in the automotive supply chain. Retailers sometimes use it, especially with store branded items that suppliers are producing for the retailer.
Efficient Production and the 830 Planning Schedule Transaction by Steve Brewer