Inventory Replenishment
- Streamline Inventory Management through Demand Forecasting and Automated Procurement
The Inventory Replenishment module for Sage MAS 500 ERP provides two powerful unique competitive advantages to your organization. First, forecasting can help accurately predict what customers will buy, reducing inventory carrying costs of unwanted goods while ensuring customers that you can carry the items they demand. Second, automated procurement produces system-generated purchase orders and transfer orders to reduce labor costs and improve accuracy. Unparalleled cost calculations can minimize transaction and overhead costs by creating optimal orders for each vendor.
Knowing what to stock or build to meet your customers’ demands is one of the most critical decisions you can make in your business. Too much stock can result in lower margins, high inventory carrying costs, and excess damage as stock remains in-house too long. However, shortages can be even worse, as customers who can’t get an item in a reasonable time may call your competitors. Fortunately, Sage MAS 500 forecasting capabilities can help you meet this demand-planning challenge by providing flexible calculations that can be adjusted by warehouse, customer, season, product group, or every individual item. This provides maximum flexibility—and more importantly for your customers and your bottom line—accurate inventory planning.
When a forecast is formed, the Inventory Replenishment module automatically creates purchase orders, reducing human involvement and the related costs. Replenishment can also be used to automatically move stock between warehouse locations, a valuable feature for centralized hub-and-spoke distributors. Suggested orders are created for items that are required in the immediate future. However, Inventory Replenishment goes far beyond other automated procurement systems. Before a purchase order or transfer order is created, it also takes into account lead times for that vendor, the overhead costs of placing purchase orders to minimize costly low-volume orders, and whether it makes economic sense to purchase other products from the vendor at the same time.
Sage MAS 500 customers can use the Inventory Replenishment system or the Material Requirements Planning system to process replenishment orders. In short, Inventory Replenishment offers the strongest supply chain-centric forecasting and automated procurement tools available today.
