purchasing and inventory control techniqueserpcustomer.epicor.com/downloads/wbt/f171.pdf · 2007....
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Purchasing and Inventory Control Techniques
Activant Stanpak
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This class is designed for…
Experienced users interested in taking full advantage of Stanpak’s Purchasing and Inventory Management capabilities
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This class will NOT cover…
Inventory processing and Purchasing procedures
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Managing Inventory
Using the best information and software available
Stanpak tools available to better manage your purchasing and inventory
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Where Do You Begin?
Become familiar with all of the programs available Explore all of the resources available to you and your purchasing teamPut procedures in place to optimize your return on your investmentLet Stanpak’s advanced purchasing forecasting software work for you!
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Establish Routine Maintenance Procedures
USE MIN/MAX Stock Calculation to your advantage
Run MIN/MAX with different parameters for your larger vendorsLet the system calculate your minimum re-order point numberRun your MIN/MAX program based on desired turnsDocument this information for each vendorRun program as part of month end
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Vendor # Min/Max Calc665715 14 daysADVANC 10 days201040 10 days3M 21 days
Establish Routine Maintenance Procedures
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Determine your vendors required lead time Include transportation time in this numberAdd that extra day for appointments for deliveryRun program ICL to change field #11 in IM for the entire line
Maintain VM (Vendor Master) field #59 with the lead time required
Due date in QFW or QE calculated based on this infoMake sure that your supplier understands your expectations, and that changes must be communicated to you
Establish a schedule for ordering your fastest moving lines
Communicate this information with your suppliers
Establish Routine Maintenance Procedures
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LSR - Low Stock Report
Buyer, All buyers, Vendor, All vendorsDisplays all items that have fallen below the minimum quantity or the reorder point
Determine when to place an order or review a lineUseful in alerting your buyers of a potential problem
Run several times during the day
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OT - Out List for Substitution
Depleted itemsSuggestions for substitution
if this information has been loaded in Field #10 in IM.
Alert you when an item stocked for a specific customer has been committed to another orderQuantities and due date for items currently on order from your supplier
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Large Order Report
Prints as part of program OR (Order Register)User-determined parameters
Includes all items which have been committed to customer and have fallen within these parameters
Identify unexpected hits that may deplete your inventory of an item
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ABC Inventory Tracking
Run IBC on a regular basis and at month end Determine the most important items, and dead or slow moving stock
Using the exclusion optionEliminate items that don’t belong in the calculationMake the percentage of sales much more meaningful
Machines, service department parts, downloaded lists of special order lines
Exclude items by vendor, category or Special Order Flag (second position of the buying code)
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QFW - Purchase Forecasting
Let the software work to your advantage!Display purchase order lines on screen in qic/mode style with sequence numbers
Select a line to view expanded detailUse filter option to view only item selected for purchaseYou can access all functions found in IQInsert changes in quantity ordered as neededRecalculating purchase order will take into account changes and adjust totals accordingly
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QFW – Generating Purchase Orders
Calculates the combination of items that will produce correct order size in cubes, weight, units, dollars or daysAssembles a worksheet that will automatically be converted to a Purchase OrderOption to round items based on tier or pallet quantitiesResult – balanced inventories that will maximize turns, fill rates, and improve customer satisfaction
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Item inquiry
IQ (item inquiry) features are now available from purchase screen
Maintenance ScreenPricing screenItem information screenOpen order by itemOpen back order by itemWho Buys (BC)Purchase HistoryTransaction listing
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Purchase Order Requirement Calculation
Purchase order requirements are based on Average salesInventory on handLead timeOrder size requirements of vendorMin/Max calculation
Safety factorDesired days of inventory turnsDesired days can also be set by vendor or by item
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Understanding Inventory Forecasting
Other calculations/factors used ABC item trackingReorder point Maximum levelDays-to-turnSafety factorSafety reserve stock
All of these are used to calculateReorder Quantity = Reorder point + maximum –quantity on hand – quantity on order
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Forecasting Inventory Requirements
Two steps to forecasting inventory requirementsUsing historical sales to calculate a usage number used to reliably predict future salesBuilding a purchase requirement based on
Usage numberInventory on handLead time Order size requirements of the vendor
Accurate forecasts depend on having an dependable average sales per day calculation
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Forecasting Sales by Item
Using sales history to forecast purchase requirements varies depending on the pattern of salesSelect the appropriate month to use in this calculation based on sales patterns
Steady usage, take 12 months usage Shorter periods for items with changing usageMore volatile items may need to be weighted
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Weighting Patterns
Use weighting patterns to select the months to use in calculating average sales
Weighting pattern flag is set in IM, field 126Weighting pattern will default to 12 months sales for any item not setSet weighting pattern for seasonal items or any items with changing sales activity
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Setting Weighting Patterns
In IM, enter a ? in the fieldThe system displays all of the patterns you have set up Select the one that is appropriate for the item
For seasonal items Putting the most weight on those months calculates your needs based on those months
For fast changing itemsUse a weighting pattern that would put an emphasis on the most current months
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Trending Seasonal Items
We have provided you with a tool for trending your average for seasonal activity
Sales trend is calculated by comparing the last two month sales to the prior two month sales a year agoTrending should be used specifically for seasonal items that do not look at current periods for forecastingThere is default trending flag associated with each weighting patternTrending flags can be overridden and locked by dateIf no trend is used, MMC will calculate automatically
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Smoothing
An average calculated from 12 months of sales a few months of unusual sales activity may throw off our averageSystem deals with these by using smoothing
Set smoothing flag (field 128 in IM) to “Y”In calculating the average, the system excludes months with
Sales activity more than 5% higher than the next highest
More than 5% lower than next lowest months
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Additional tools for unusual activity
In IM, fields 142 through 154 allow you to manually
Identify months to ignoreFlag a month of unusual usage for identification purposes – not currently used in calculationsEnter an override quantity in a particular month of unusual sales activity Enter override quantities to allow your average to be calculated base on new, higher usage
Useful if you have lost or gained a large piece of business
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Demo screen
See how forecasting numbers are generatedAllows instant re-calculation of monthly and Min/Max after you change variablesAllows you to see how changing variables will effect the forecasting of an item
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Inventory Control
Archive Purged Purchase ordersProgram QX allows access to purged purchase orders. Run program QF on a regular basis to minimize the amount of detail in cost deviation reports, QT (item on order) etc…
Auto entry of items from Open to BuySelect one item or all items to include in purchase order entry. QM now will also all entry of items from Open to Buy
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Inventory Control
Special Order ItemsOpen to BuyProgram IAGE
Provides a report by vendor of all items in stockItems aged 30/60/90/120 days from date of purchasePurchase order numberQuantity purchasedAges the inventory
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Additional Reporting
ITER – Turn and Earn reportMeasure the productivity and profitability of your vendors and itemsDetermine a minimum turn and earn ratio
TIP! If an item falls below this level either increase the ratio by increasing the profit margin
or consider making it a special order item
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INXS – ITEM EXCESS STOCK REPORTLists items that are over the expected days of turn
Items with available inventory greater than the maximum stocking quantity
Buyer, Vendor All or selected buyers, All or selected vendors
Sorted and totaledBuyerVendorDollar value of overstock
More Management Tools
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New Inventory Tools
IUURUnusual usage report
ISURSporadic usage report
VLTA Vendor lead time audit
IMUUMonths with unusual usage report
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ISFR – Item Stock For Report
Tracking items stocked for a salesman and customer
In IM, set stocking information in fields 122, 123, 124 and 125Items stocked with quantity, extended value, sales and marginsPrinted by salesman with a new page for each salesmanRun by purchasing and reviewed with the salesperson, and sales management
Prevent new items from becoming dead items
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Cost Change Program
Automates the process of vendor price increasesAllows you to set up the increases in advance
New prices will become effective on the date specified
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Summary
Inventory and Purchasing Tips/TricksGet the most R.O.I. out of your Stanpak application!
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For More Information…
Visit Activant on the web: www.activant.comView Educational Services course offeringsBrowse DocumentationSearch the Solutions databaseSubmit a Support case
E-mail Consulting Services consult-sales@activant.com
E-mail Professional Services Salespss@activant.com
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