Suppliers often push inventory to their customers, forcing them to order more. They impose minimum quantity, volume, cost, or weight on their orders. Retailers are forced to enter a balancing act between accurate demand forecasting and tough requirements of the suppliers.
ABM Inventory can relieve the situation with the help of its “Optimization” function. After entering the necessary order requirements, the system will automatically check order compliance with the criteria and make all necessary adjustments.
ABM Inventory is designed to cover all requirements suppliers can impose on the orders.
The criteria can be based on minimum order cost, weight, volume or quantity (referred to as “Optimization conditions”).
Depending on the criteria, the system can filter orders to be checked: by order (Schedule), by store/warehouse (Warehouse) or by supplier (Supplier). This means the system can group orders depending on criteria to process them accordingly.
Order processing can have two options:
- No-optimization, which checks the orders based on one dispatch conditions;
- Optimization, which can fill-up or reduce order, depending on the pre-set criteria.
If the first option is chosen, the system checks either one or a group of orders against compliance to a dispatch requirement (for example, a minimum order of 1000$). If the order cost is less than 1000$, for example, the order is not being dispatched. Being marked respectively, the order stays in New order section:
New orders. Dispatch conditions
In case, for instance, you have a transportation vehicle that can fit 250 kg, and order weight is 500 kg, but you need a separate invoice for each vehicle, you can automatically sort orders by weight/volume:
Orders sorting by transportation vehicle
Importantly, you do not have to manually set conditions for each supplier or warehouse. If you have corresponding conditions, requirements or sums, you can just add delivery schedules in Schedules tab, and these conditions will be applied to these deliveries:
If all conditions are set in advance, the system automatically processes the orders on a basis of daily data exchange. In case the settings are not customized beforehand, or you do not need permanent orders optimization, you can adjust the parameters manually in a new order tab:
Order editing. Manual optimization