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Tag: Inventory

Inventory and Order Processing

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The order desk is unaware of promotions or special discounts for customers. This has cost your business too many times, and customers get upset if they don’t get the best price. Customers don’t always know the part numbers to order. This happens often, and it is difficult and time consuming for you to determine what they want to order. Customers get frustrated, and the order desk sometimes orders the wrong item. As a result, customers get upset, and they think your company is difficult to do business with. The order desk takes orders for items that are out of stock…

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Inventory Control Issues

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You have too much inaccurate inventory and do not do physical cycle counts often enough. You have to shut down the warehouse and this costs too much. The delta between actual inventory is too high of a percentage, and the system says you have something that you don’t too often. This may be because of damaged items, theft, and/or internal usage. It is difficult to track items. You need to identify specific inventory by lot or serial numbers but you do not assign your own serial numbers. If you do, it is a manual process that takes too much time…

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Increased Inventory Cost

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You do not have the information necessary to forecast and meet demands. – You have to maintain excessive inventory because you cannot anticipate demand. Your inventory valuation has not increased enough this year, and it has not met your target dollar value. – Your sales and marketing departments do not run specials and promotions. They do not communicate the potential demand well enough to you. When large orders are quoted, their approach to communicating the probability of this becoming a sale is faulty. Your method of scheduling for orders on quotes is inefficient. – Your current approach to tracking lead…

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High Inventory Costs

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You manually track orders and may use a program such as Excel. It is difficult to deal with the issue of items being out of stock. You need to wait until the stock is replenished and manually enter the order at that time. You need to manually track inventory costs through a manual process. You cannot track costs of inventory in and out of the warehouse at different costs and cannot change cost methods. You have to wait until the order is filled and then manually update inventory. That gives an inaccurate picture of inventory levels. You have to manually…

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Difficulty Managing Inventory

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You need to manually track inventory costs through a manual process, but you cannot track costs of inventory in and out of the warehouse at different costs or change cost methods. It is difficult for you to track in other ways than individual items, such as grouping them together as lots or kits, or multiple configurations. You need to track by serial number and are unable to assign individual units of  measure. You have to wait until the order is filled and then manually update inventory. That gives an inaccurate picture of inventory levels. You have to manually provide updates/transactions…

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Inventory Costs

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Inventory Costs You lack the tools and information to optimize your purchasing. You cannot forecast far into the future. Your forecasts are not accurate. Unknown forecasts based on history or sales projections. Unknown seasonal inventory. Your vendors’ performance have decreased over the past year. You do not send bids to your vendors. Of multi site operations (if muti site) you do not operate hub & spoke. Do not have centralized purchasing. Do not have visibility into all locations. No items on orders. On PO’s you find yourself frequently transferring inventory between locations. Unknown impact it has on cost. Uncertain how…

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Right Stuff/Right Place/Right Time

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You encounter frequent stockouts and lack a clear procedure for dealing with back-ordered items. You cannot track lost sales and do not have stock overages or safety stock. You cannot tell what percentage of safety stock you carry, and you have too many obsolete items which cost you too much money. You have difficulty determining what is obsolete. You have to carry slow-moving items for priority customers. You do not categorize your inventory by velocity/ABC. Your approach to deciding what to purchase is faulty. You do not get sales forecasts, or if you do, they are not very accurate. You…

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