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Don’t run out of Supply; use Demand Planning

Have you been in a tight spot with your boss and your customers because there aren’t enough Item SKUs to fill in your company’s demands? Do you always pray that the additional items on order would arrive on time? Or have you ordered way too much that there aren’t enough space on your warehouse to place your items? These are all the questions and situations caused by poor Inventory Management.

Inventory Management plays a vital role in a company’s success. This is referring to the process of supervising and controlling the stock items of a company. This process ensures the management that the company always has the needed materials and products on hand while keeping the cost as low as possible. Effective inventory management is the core of Supply Chain Management.

Planning your supply chain is a delicate process of trying to balance demand and supply, potentially across the globe, in a way that provides your company with the right combination of cost control, lead times and service level. We will help you utilize NetSuite’s advanced inventory management and demand planning techniques so you make the right decisions and increase your on time delivery metrics. Each location where you store inventory can be set up with unique parameters to deliver unprecedented control over your supply chain.

Threadgold will help you utilize the Demand Planning feature to help you solve your issues on Inventory Management. These are just some of the settings on your Inventory Management preferences that can help you and the people on your warehouse:

Default Lead Time : Lead time is the average number of days between ordering an item from a vendor and receiving it. This number of days lead time is used when auto-calculating the reorder point of an item if no lead time is specified in the item record.

Default Safety Stock : This is a measure of the buffer amount of an item you want to stock in anticipation of demand variations so that you do not run out. The safety stock amount you enter here defaults as the safety stock measure on new item records.

Default Preferred Stock Level : The quantity you want to have in stock after an order is received and is the ideal quantity to maintain in stock of an item. The ideal quantity is the amount you need to fulfill orders in a timely manner without either running out or overstocking. The amount you enter here determines the preferred stock level that defaults on new item records.

Order Analysis Interval : This is the number of past months sales you prefer to analyze to auto calculate historical demand. When you use Demand Planning, the order analysis interval field is greyed out on item records that use the Time Phased replenishment method. The order analysis interval is used when the seasonal demand for an item is not set.

Seasonal Analysis Interval : This is the number of months you prefer to analyze sales, for a period starting one year ago. This interval is used to auto calculate seasonal demand when the seasonal demand for an item is set.

Estimated Demand Change : This is the default percentage of demand change to augment the calculated demand amount.

Transactions to Consider : Determine which transactions are used to calculate inventory demand: Orders or Actual Sales.

The Demand Planning feature has a wide array of settings that can be used natively to ensure we have enough supplies for all the demands that are coming in for all your items where you set this feature to generate demand and supply plans. Threadgold could also help you customize this feature according to the nature of your business. Do you wish to have full control over the generated Demand Plans for your items because of certain factors that should have been considered by the system calculated quantities? We can do certainly help you out achieve full control of this feature! Don’t run out of supplies! Contact us now so we can assist you with the implementation of this amazing tool for your company.

Connect with us at hello@threadgoldconsulting.com or give us a call at +44 (0) 1273 805348.

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