ABM Inventory has an automated order optimization which will prevent from ordering too much or ordering insufficient quantities. Order optimization function among other allows to set both minimal and maximum order threshold.

This function is very flexible and customizable, you can set your own limits for order cost, weight, or goods quantity. At the same time, you can adjust different options and conditions for a single supplier (for different order schedules and order distribution principles). There is also an option of order optimization towards higher or lower quantities, and an order restriction that can be activated if the order didn’t reach a particular cost/weight or volume.

If the system makes an insufficient order, and I will have to pay for this order delivery that is irrational and costly. How can the system solve this problem?

We have two options:

  1. You can set a minimal order cost/weight/quantity in pc. Only in case the order reaches one of these thresholds, it will be sent to the supplier. Otherwise the system will not send the order.
  2. You can set a threshold, and as soon as the system reaches it, the system will increase the order to the needed quantities/cost/weight. The system will increase the order by adding the top-selling goods, which do not have surplus.

Fo example, we have a Supplier 1. We want to send this supplier only the orders exceeding $5000. In case the order reached the threshold of 60% (which equals 3000$), but still does not reach the $5000 sum, the system will automatically add the best-selling products to this order and increase it.

If the order is too large, and does not fit our budget/logistics restrictions: the system can optimize the orders using the maximum order sum/weight/quantity. If the order will exceed this maximum, the system will decrease order to the needed sum by decreasing the quantity of goods or by deleting the slower-selling inventory, so that the order fits the threshold and contains the top-sellers.