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From stock centric to order controlled purchase process

Written by Marco Kastrop on . Posted in Exact Online

The Exact Online Trade solution is commercially available since April 19th and is attracting more customers every day. Our solution is currently mainly based on trading companies that keep stock levels (reorder level, maximum stock) as a strategy to deliver orders to customers. Main advantage of keeping stock levels in your warehouse is that as a company you are in control of your lead times and correctness of your deliveries. An example of how we support your business, is that you can insert a web part on your cockpit that indicates your service level (% on time deliveries) towards your customers (see below).

Other considerations for keeping stock levels as a strategy:

  • The costs involved of keeping stock (every euro invested in stock cannot be invested elsewhere)
  • Item turnover (item velocity, how often do you sell the product)
  • Purchase lead time (time span between placing a purchase order and goods receipt)
  • Risk of not selling (unsalable stock)

Our current development activities are focused to not only support the stock centric process but also to control purchasing based on demand (back to back orders). What this means in practice is that instead of keeping stock with the help of stock levels, you will purchase based on outstanding sales orders.  This however may apply to some items (with e.g. just in time delivery by the supplier) and for some items (e.g. with a high turnover ratio) you will remain the strategy to keep stock levels. Therefore at first you can set per item whether the item is ‘Order controlled’ (or otherwise is considered ‘Stock controlled’). The distinction between order and stock controlled will be of great help for the purchaser to determine for which sales order lines, purchase orders can be planned /generated.

I think that with this extension we will be even more relevant for our trade customers, supporting multiple logistic strategies.

Let me know what you think!

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Comments (2)

  • Jeffrey

    |

    Hi Marco,
    Is this Trade Solution also available for Exact Globe?
    Regards, Jeffrey

    Reply

  • Marco Kastrop

    |

    Hi Jeffrey,

    The logic implemented in Exact Globe is different from the one in Exact Online Trade, but yes also in Globe you can categorize your items into order and stock controlled items and purchase accordingly.

    Regards Marco

    Reply

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