Too much stock
Stock gets old. It becomes unsaleable and obsolete
Too much money tied up, can’t introduce new lines
Not enough Space on the shelf for more profitable products
Not enough Stock
You lose business
Freight costs escalate
Customer Order Fulfilment reduces
Solution: Get your re-ordering right by constantly monitoring and adjusting your reorder levels
Seems like a mammoth task for 10-20,000 product lines ?
It’s easier than you think, and spending a little time on your data, will pay off handsomely.
Scenario: Filter down to some fast-moving products which have a medium lead time using Supplier, Group, Subgroup, brand and the category. (note that category can be generated by the software based on performance) Once you have your filters selected determine the “Averaging period”, this may be anything from 1 to 24 months. It scans the sales history of the product from the given period. Then choose the stock coverage… This range of products may take 2 weeks to deliver, so you may want to keep a minimum of 2 weeks in stock and a maximum of 4 weeks. This way if the stock hits the minimum level during the month you still have enough to last until the next delivery arrives, however if you’re doing a monthly order, you’ll probably want to get 4 weeks’ worth to reduce delivery charges. Now that your happy with the levels created save this Algorithm and give it a name so you can come back and tweak it as required. Now when you generate a reorder for that supplier the reorder levels for the products in this algorithm will be used.
This will save you hours of work, loads of cash and happier customers.
When ordering you have the option of
Below Min up to Min
Below Min up to Max
Below Max up to Max
Replace sales for a set date range e.g. last 7 days
Fill Customer Orders Only