Automatic replenishment

Inventory management and procurement can eat up huge amounts on money, spent on salaries and personnel development. The larger the company becomes, the more people you need to manage the growing demands of your business.

Let’s face it: no one wants to hire dozens of people and spend the major part of revenues on wages. Instead, each retailer wants to have high sales, stable profits, and accurate inventory control, built on efficient and cost-saving business processes. That is why retailers are starting to reassess their inventory management practices and focus their attention on automated reordering and inventory replenishment.

Automated replenishment is probably the most crucial cycle of supply chain operations which is performed without any human input. Automated replenishment consists from order calculation, forming and sending the order(s) to the supplier(s).

ABM Inventory software has a mechanism that supports smooth replenishment process. This mechanism is being called “safety buffer” or “safety stock” keeping. Being a protective measure against supply fluctuations, safety buffer is an amount of inventory set for each SKU for all storage points.

ABM Inventory compares safety stock level to current demand rate, recalculates and updates it on a daily basis. To perform these calculations ABM Inventory uses one of the built-in inventory management techniques (DBM, MOXs, DFO, FRESH, CDA).

Depending on user settings safety stock update and recalculation may be automatically fulfilled, or may require additional confirmation or user approval.

Setting the automatic safety stock recalculation and update

Setting the automatic safety stock recalculation and update

If automatic buffer update is configured, and the additional settings (promotions, optimization) are customized, reordering and replenishment process does not require any human interference. Managers do not have to manually send the orders, instead - the system intelligently sends the orders to supplier/or client accounts via email or FTP-server. This process is being called “automatic order sending or automatic reordering” and it has customizable settings for each supply schedule.

Setting the automated order sending

Setting the automated order sending

As a result, managers no longer have to spend hours on routine tasks, such as manual order forming, control and calculation. You no longer need to hire new staff. Your personnel and inventory managers can improve their productivity and focus their attention on strategic development issues, or concentrate their efforts on pain points solving.

Product cycle, with an automated safety buffer calculation and reordering

Product cycle, with an automated safety buffer calculation and reordering

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