Inventory Purchase Planning
Good inventory control is critical in ensuring an adequate level of stock is on hand for the amount of sales being generated. Having too much inventory (or the wrong type) during certain periods can slow your cash flow and reduce profits with too many markdowns. On the other hand, if you under buy and miss sales opportunities, then you are not making your potential profit
Business owners pay close attention to inventory as it makes up a large portion of the expense in the business. Inventory planning requires forecasting future needs to determine how much inventory should be on hand to meet consumer demand. The smart-it Purchase planning module does this with a high proportion of accuracy.
How can smart-it help you with your purchase planning?
The Purchase planning system in smart-it will suggest reorder quantities according to manual re-order levels or by calculating quantities based on previous sales over a pre-determined period using regression analysis to determine sales trends, while taking the suppliers lead time into account. There is a forecast accuracy indicator to show the reliability of the forecast. An added money saving feature is the ability for the user to select from multiple supplier price lists to order from the supplier with the best purchase price.
Client feedback on Purchase Planning:
‘486 stock items needed to be ordered. When I order these items from ‘Supplier A’, the price will be R2663745. When I order the same items from ‘Supplier B’, the price will be R2354759. But when I use the purchase planning function in smart-it, where I choose the cheapest supplier, the new purchase price drops to R2297442, a saving of R57317
For this to work effectively, you would need to import your supplier’s price lists and link your stock items to the respective suppliers. It is hard work, but it will pay off.
- smart-it saves time on inventory planning and control functions.
- smart-it allows you to focus more time on sales, increasing your company’s profitability.
Follow this link for how to use the purchasing planning in smart-it, or contact one of our consultants to assist you in managing your purchase planning on 087 802 2018