Inventory Savings
| Module | Description of Business Issues | Startup | Corporate | Enterprise |
| AM | No Category of Inventory by Velocity/ABC Obsolete Inventory % loss for Interest for holding for 6 months % loss for Finally selling at 50% of Cost |
$ 265,000 | $ 477,000 | $ 742,000 |
| AM | No Sales Forecast Available Timely % loss of sale due under stock of needed Inventory |
$ 7,500 | $ 13,500 | $ 21,000 |
| AM | No Automatic PO’s for items on backorder % loss for Order Desk does not take orders for Out of Stock items |
$ 6,250 | $ 11,250 | $ 17,500 |
| AM | No protocol with Vendor of EDI, XML, etc. % loss for Vendors’ errors % loss for difficulty in tracking lead times, quality of products % loss for not getting volume price breaks |
$ 30,000 | $ 54,000 | $ 84,000 |
| AM | Increased Inventory Cost Paying too much for materials; not bidding to Vendors % loss for non consolidation of PO’s for buying power % loss for cannot isolate non-product cost to profitability analysis |
$ 100,000 | $ 135,000 | $ 140,000 |
| AM | Customer demand is forcing variation in product % loss due to difficulty in keeping track of how many SKU’s in inventory % loss due non increase in Inventory value % loss for cannot identify every process and BOM an item is used in |
$ 22,500 | $ 40,500 | $ 63,000 |
| AM | High Inventory Cost for Manual tracking and recording % loss for Manually tracking orders in Excel etc. % loss due manually updating inventory after manual orders are filled % loss due to inaccuracy in Inventory count and purchases |
$ 75,000 | $ 90,000 | $ 108,500 |
| AM | Difficulty in Managing Inventory Manually % loss for cannot track costs of Inventory in and out of the Warehouse % loss due to backorders can only be filled after manually replenished % loss due to inaccuracy in Inventory makes items out of stock often |
$ 50,000 | $ 90,000 | $ 140,000 |
| AM | Manual Entries lack information to optimize Purchasing Power % loss due to forecast are not based on history or sales projections % loss due to difficulty in keeping track of multi-site operations % loss due to not taking advantage of vendors drop-shipping directly to Customers % loss due high shipping cost due to poor forecasting or promotions |
$ 75,000 | $ 135,000 | $ 210,000 |
| AM | Manually Entered Inventory and Order Processing % loss of business for order desk not knowing special prices for best customers % loss due to Customers not giving part numbers and getting wrong items % loss business due to unable to offer substitutes for out of stock items % loss due to taking long time to process an order that Customer hangs up |
$ 112,500 | $ 135,000 | $ 192,500 |
| AM | Improper re-entry of returned merchandise % loss due to non timely entry of returned merchandise in inventory % loss for shipping and re-shipping |
$ 2,500 | $ 4,500 | $ 7,000 |
| LS | Manual entry of returned merchandise % loss for manually issuing credit memo or checks |
$ 18,750 | $ 33,750 | $ 52,500 |