“I told you not to order this!”
Why do we not have this product in stock – It’s our best seller?
Why is the stock sitting in East London, we need it here?
Why do we have so much in stock, it’s an obsolete item?
Have you ever heard, any of the above?
Of course you have. Hopefully a long time ago. These are the dreaded words that Procurement Managers hear in the company growing pains stage before they’ve managed to master their inventory levels.
Demand accuracy. Demand Distribution Requirements Planning.
Reordering stock using an Excel spreadsheet is time consuming and can be prone to error. Intellectual Property can become tied up in one person and one spreadsheet.
As the company grows, you would ideally want to optimise and automate inventory management and lower your stock holding costs.
Distribution Requirements Planning (DRP) automates procurement and stock management procedures. It leverages real-time data, forecasts where appropriate and replenishes inventory levels accordingly.
Dead Stock = Dead Loss
Key to any procurement automation project should be to identify and get rid of dead stock.
Companies don’t want to order more stock when their stock value is too high, but if they are holding the wrong stock, it is just an impediment to success.
Dead stock takes up warehouse space, increases handling costs and ties up cash.
Not holding the right stock leads to opportunity losses, decreases customer satisfaction and opens the doors to your competitors.
Realise your dreams
Procurement for multiple branches to ensure that the company has the right stock, in the right branch at the right price doesn’t have to be pipe dream.
Accurately and effectively managing your branches stock levels, starts with correct classification. Fast, medium, and slow movers are the basics.
Appropriate policies for new stock items, critical stock items, erratic items and dead stock help streamline the management of the ordering process.
Ordering of fast-moving stock should be automated and management should focus on those items that could land up as dead stock in the future.
Cost should only be a factor in relation to slow moving or erratic items.
Automation
Setting up DRP in Embrace ERP software is an easy and iterative process. Correctly configured, Embrace DRP should automate up to 90% of your reordering.
The other 10% is fine tuning to manage exceptions and create relevant stock policies. This means that you can finally go on leave and have the system do the work for you.
Regular demand, seasonality and erratic demand can also be managed with appropriate policies.
Embrace DRP factors in product sales, product demand, supplier lead times and policies enabled by the product’s classification. This ensures that companies never face stockouts or overstocking issues.
Now you achieve those Just in Time (J-I-T) delivery goals and improve your customer satisfaction.
Insight
Detailed reports provide insights into what stock is required where and why. Suggested orders are grouped to facilitate ordering and focus on products where stocking is potentially problematic.
Categories can be grouped to facilitate deeper analysis, including a simple ABC classification to identify where to focus attention.
Embrace DRP enables you to see your top sellers, by value and by quantity and identify which translate into the most profit or loss on your inventory.
By implementing Embrace DRP time and administration loads can be reduced by as much as 75% in some instances.
Less is more
If your company has plateaued in growth, it’s time to consider your next technology enabler.
Embrace Enterprise Resource Planning software is your end-to-end local ERP supplier.
The more that you can automate your business and free up time to focus on those areas that need your attention, the more your business will grow.
Whether it’s Distribution Requirements Planning (DRP), Manufacturing Requirements Planning (MRP), automated Warehouse Management Systems (WMS) or sales, rental, repair or distribution, ACS-Embrace has solutions for you.
ACS-Embrace is the only company with a 100% implementation success rate, easy to use software, local support and ready to enable your businesses next level of growth.
Call Brian Mallory now on: 011-275-2000 or email [email protected] for a discussion about your business needs, or click here.