Part Inventory Management
We’ve worked with thousands of distributors in our industry. These organizations distribute just about every type of part and product you can imagine. Despite the diversity, they come to us for solutions to solve very similar inventory planning and control problems:
- Inventory is too high for some products. Excess inventory and dead stock is tying up capital, decreasing turnovers and eroding profits.
- Inventory is not in tune with customer demand so they experience frequent stock-outs. They have high numbers of backorders, lost sales and dissatisfied customers.
- Unsure of what’s in inventory. What’s actually on the shelf rarely matches the on-hand quantity in the existing computer or manual systems in use.
- Unable to locate products in their warehouse. Many, know it’s in the warehouse somewhere, but not exactly where.
Solving these problems involves implementing both inventory planning and inventory control.
- Inventory planning allows a distributor to meet or exceed customer demands for products. Each product is constantly analyzed to meet demand, minimize inventory investment and maximize profit potential. Inventory planning is about when to order products, how much to order and the most effective sources for each item in each warehouse.
- Inventory control is managing the inventory already in your single or multi-warehouse locations. Inventory control is a system of automated workflow processes that tell you what products you have, how much of each item is on hand, what’s committed to a sale and what’s on order. These control processes are also about knowing where each product is located in a warehouse and storing products in a way that minimize the cost of fulfilling customer orders.
The AutoPower System unites inventory planning and inventory control to create what we call effective Inventory Management. As a result, distributors develop a systematic approach to managing what is typically their biggest capital asset. This proprietary optimization technology is “Profit by Intention” in action and combines all inventory activities related to inventory demand forecasting, replenishment and efficiently controlling currently stocked items.
Additionally, we’ve enhanced great inventory management with functions and abilities like:
- EDI Vendor Purchase Orders and Invoices
- EDI Advanced Shipping Notices
- Kitting (Made to Order and Made to Stock)
- Core Management
- Single and Multi-Branch Purchasing
And unique to AutoPower Customers free access to the:
We understand inventory is one of your major assets and represents a large capital investment. The advanced AutoPower “Profit by Intention” Inventory Management System will help plan and control inventory at a highly efficient level rewarding your company with:
- Customer Satisfaction – first and foremost is having the right stock and enough of it to satisfy your customer demands. Inventory Management is always characterized by the objective of satisfying customer needs while keeping inventory costs at a minimum.
- Working Capital – Your biggest capital investment is more than likely inventory. Any optimization that lowers your capital investment or working capital requirements, is cash that drops to your bottom line. This is cash that can be fruitfully directed to fuel your company’s growth initiatives.
- Profit – Look at your inventory today! Be a realist, step back and acknowledge your inventory is composed of two things: “stock” that sells and “stuff” that is everything else in your warehouse. You’re not making profits on the “stuff”. In fact, the “stuff” is eroding profits with carrying cost and poor warehouse utilization. Great Inventory Management will help you identify and liquidate the “stuff” and replace it with “stock” that is efficiently arranged to minimize the costs associated with filling customer orders. What’s not to like about more inventory turns that create more profit with better profit margins?
Inventory Management is cool because it’s a win-win thing to do. Your customers win by having the products they need when they need it. You win because you supply their needs and you have capital and profits to grow your business.
So don’t “Stuff” it, “Stock” it!