This document discusses inventory management software for wholesale distributors. It notes that inventory is the only asset that generates revenue and should be treated well. It then describes how manual purchasing without a system to track sales cycles can lead to overstocking or stocking out. The document promotes ProTrac software, which uses sales data to provide buying recommendations that consider minimum, maximum, and optimal inventory levels as well as safety stock and lead times. It claims ProTrac can help reduce excess inventory costs and replace outdated software.
3. INVENTORY FORECASTING
• Regardless of the
system used for
tracking inventory
EACH Item has its
own Sales Bell Curve
Sales
1. Are moving up
2. Have Flattened Out
3. Are in decline
4. Manual Purchasing
• Without a system to stand watch over the
sales cycles of thousands of items in our
warehouse, buyers have to:
Buy to replace what was just sold
• Even if the item is at the end of its sales cycle
Buy based on personal knowledge of what the
customer is buying
• Buyers have the buying knowledge of a 1000 or so items
Buy based on whatever the sales department
asks them to buy
• “My Biggest Customer says they will be buying
the A 100 so we had better STOCK UP”
5. Mandatory Inventory
Replenishment Information
To Replenish your warehouse ProTrac’s
Inventory system needs to know
Minimum units on the shelf
Maximum units on the shelf
Optimum units on the shelf
•For Thousands of inventory
items
6. Before making a buying
Recommendation
The ProTrac also knows
• The # OF UNITS ON HAND
• The # OF UNITS ON ORDER from Customers
• The # ON PURCHASE ORDERS to Vendors
For Thousands of items of inventory
7. ProTrac then reviews the following
information
• SHELF STOCK:
Needed to cover the number of unit’s sales
that will occur at any one time.
• SAFETY STOCK:
Serves as your reserve in case of dynamic
fluctuations
• LEAD TIME:
The time it takes for a product to arrive from the
vendor
8. Buying Recommendations
includes:
Comparing this quarter with the last quarter
Comparing this quarter with a date range from a
previous year or Holiday
Forecasting – If you have forecasting numbers
from a customer - Using a spreadsheet you can
auto load a weekly forecast numbers and ProTrac will
use those numbers as part of its replenishment
calculations
.
9. If your Inventory system has none of
these Characteristics
• Your inventory INCLUDES 20 - 25% in Excess Inventory
• This overstock caused by your software and the
“System Built around supporting that system”
will have you paying 18% carrying cost for this overage
• You are also paying the software company for Software
Support for our system and it is not worth the price that you are
paying
10. If a walk through your inventory
replenishment system - has you
buying based on a physical review
It is time to replace your current
software package with
software that will let you
replenish your inventory at a
rate that is commensurate with
your sales velocity
11. ProTrac For Wholesale Distributors
Is A New Beginning
For
Your Distributorship
Contact Mel Carney
800-711-7374
Professional Data Systems, Inc.