>> What do we understand under automated disposition?
Our software takes over routine order processes´ disposition and supports the official in charge by specifically displaying cases with need for action. That way the booker is able to concentrate on decision-relevant and strategic tasks like supplier and assortment management.
Therefore the disposition system uses – put in a simple way – the gross demand calculated by the sales and forecast module and runs through a stock-range analysis. During the cover calculation open customer orders, supplier orders, packaging units and replenishment times are considered. Based on demand or sales fluctuations, seasonal behavior and economic importance of an article the dynamic security distance is determined. The economic order quantity, ideal order rhythm and point of order are also calculated automatically and besides order and storage costs numerous other parameters are taken into account.
Sounds complex? Don´t be afraid: Every calculation takes place completely automatic and self-learning in the background! The booker uses the following instruments on a daily basis:
- A planning and disposition cockpit displays any user his working stock at a glance
- The integrated early warning system alerts at initiate shortfalls, excess stock and other critical cases (“Management-by-exception”)
- Order proposals are classified, e.g. product group or supplier
- Rearrangement proposals or shift instructions are automatically created and displayed
- A padding function allows a last fine-tuning of the order quantity, e.g. rounding up to the container volume, graduated prices and other rounding sizes, and also controls the economics of the process
- The rolling stock controlling provides key figures, evaluations and excess stock lists on every level
Therefore order proposals are sent to the leading enterprise resources planning system completely optimized and without any further editing necessary. We took care of a smooth link to any ERP-system like SAP, MS Dynamics, IBM etc.: Learn more about integration.
>> Coverage bill
Current and future stocks and the correlating supply readiness for a certain selling item (item variant) is calculated and displayed with the help of the coverage bill.
The coverage bill considers the following factors among other things:
- Stock preview from sales planning and forecast
- Available stock
- Open orders
- Replenishment lead time
- Delivery reliability
- Supplier holidays
- Service level
- Dynamic security stock
>> Stock range analysis and ordering point determination
The foundation for the stock range analysis is the calculation of the net demand during a certain timer period. Based on this data a (chronological) current stock range is determined. Based on several factors, e.g. sales fluctuations, a dynamic security stock is calculated in addition to the consideration.
Additional features of MPD:
- Early warning system to avoid stock-outs and supply shortages
- Order and shifting proposals
>> order quantity optimization
Based on diverse parameters MPD automatically calculates the economically ideal order quantity. In the process the following factors are taken into consideration:
- Minimum order quantity/value
- Ordering costs
- Storage maintenance costs
- Padding sizes
The benefits on the scope of functions and built of MPD are in general:
- No reactionary approach, instead: observation of the future
- Consideration of seasonal of fluctuations
- Recognition of seasonal and regional Trends
- Mathematical algorithms instead of simple averaging methods
- Therefore significantly improved planning accuracy
- Integrated replenishment
- Definition of service degree and deliverability (incl. consideration of failures like supplier holidays)
- Stock management by abc-criteria or margin
- Early warning system, to-do lists: bookers don´t have to search for trends or tasks and receives them instead
- Automatized routine processes
- Controlling for inventory systems and disposition. Transparency by selection on all levels (location, client, article group, single articles, supplier, distribution channel, booker, … )
- Simulation of actions with effects on stock