Follow

ID500 - At-Risk Items for Becoming Obsolete Overview & Sample:

This process monitors total clicks by model per month and contrasts it with Inventory Value carried for those same months. It uses this trend information to advise you where you are carrying more inventory value than the current clicks-per-month warrant and suggests the dollar amount by which you should consider lowering your carried inventory. 

Overview | Samples | Variables | Alert Functionality | OnDemand Report Filters | Best Practices & Tips |  Related Alerts

Click to Subscribe 

Overview

Overview

Tired of writing off inventory, frustrated that you have been maintaining high stock levels for models that are now discontinued? This process monitors total clicks by model per month and contrasts it with Inventory Value carried for those same months. It uses this trend information to advise you where you are carrying more inventory value than the current clicks-per-month warrant and suggests the dollar amount by which you should consider lowering your carried inventory. 

This alert is designed to give you visibility into the life-cycle of models in the field in relation to your inventory on parts and supplies for that item. By comparing the trend of contracted pages-per-month against the trend of inventory-on-hand you are given a visual (graph) and numerical representation of how closely these two trends match.

The alert accounts for parts that are used by multiple models by assigning percentages based on overall historical use, so if (for instance) a part is used by three models, each model gets a percentage of the value assigned to its total. In a perfect world you would use your last parts for a model on the last service call for the last piece of equipment in the field, and ship your last toner three weeks before the last machine is scrapped. The goal of this alert is to make sure that you’re moving in the right direction to make this happen. More specifically, the goal is to advise you when you’re not doing that well enough. Once the alert has shown you an at-risk model, then run the SSRS report to focus on that specific model.

 

Run Schedule: 5th of the Month

Type of Output: Email/on-demand report

 

*  *  *

Sample

Sample

**Ranks in order with the highest at-risk model at the top

ID500_graphs.jpg

1st Graph - Model Volume by Month Definitions:

Copies per month - # of copies billed on a contract (red bars)

Inventory value per month - $ value of inventory carried (per month) for this model, as a percentage of total if the item(s) used by other models (green line)

2nd Graph - Inventory Usage per Month Definitions:

Inventory Usage per Month - $ value of parts/supplies used for this model per month.

 

 

*  *  *

Variables

Variables

ID500_Variables.jpg

Variable W: Minimum inventory dollars in excess to trigger the alert. Default value is 500. No decimals please.

 

 

*  *  *

 

Alert Functionality

Alert Functionality

 1.  This alert uses (primarily) data drawn from your background tables, it is accurate only through the end of the previous calendar month.

2.  Must have been on eAuto at least 12 months in order for this alert to find data. Alert will run in 12+, 24+ or 36+ month mode depending on what it finds. (Less than twelve months and nothing happens.)

3.  Alert logic compares clicks billed on the contract against inventory levels supporting those models generating the clicks.  Models are removed from the report as soon as clicks drop to zero and the inventory which supported those clicks is liquidated.

4. Includes SSRS Report to run on-demand as needed by model (it is accurate only through the end of the previous calendar month).

Run this report for specified range of models as needed. **Please note, the Model filter has a select ALL option. This should work identically for most clients, but for those of you with lots of models in eAuto, you could see the report fail due to overload of data. If this happens, please select fewer models to improve performance. 

SSRS Report provides detail information by model showing you which parts are used on this model. It provides detailed information on availability, location and usage. It also advises where items are being used by more than one model.

3.PNG

Detail Info Definitions:

"Also Used by" AND "Model Distribution Value" : If an item is used by more than one model, this alert calculates what percentage of total parts usage should be attributed to each model for reporting purposes. The Inventory Value and Inventory Usage data takes into account only the percentage of items used by that model.

 

*  *  *

 

OnDemand Report Filters

OnDemand Report Filters

1.PNG

Model: Use to select the specific models you'd like to view on the report. Leave blank for all models that meet the minimum excess inventory dollars.

Minimum Excess Inventory dollars: Minimum excess dollars in inventory for the report to show a model.

Show Details: True to show details, False to not show details.

*  *  *

 

Best Practices & Tips

Best Practices & Tips

1)      Subscribe to ID543. It will send an alert to your purchasing dept if they order a part considered "at-risk" so they can make sure there is no existing inventory onhand to use.

2)      Adjust your automated ordering process, specifically your Min/Max levels if you’re using auto-replenishment. The detailed report will show you quantities on-hand and usage trends. Make sure you’re not keeping too much of anything on-hand based on current and expected needs. This is an art and not a science, but if an item is ‘at-risk’ consider whether you can lower your minimum stock on-hand. In extreme cases (towards the end of a model’s lifecycle), consider the cost of moving this/these parts onto an order-on-demand program, keeping only emergency stock in inventory.

3)      Optimize your inventory placement. The detailed report will show you usage information by warehouse for items, so you can see where you’re using the item from most frequently and where you’re not using it from at all. Make sure your inventory is handy so that the people who might need it can get to it easily (as opposed to asking someone to order another one).  

 4)      Follow this link to see where to find SSRS reports and security needed to run them.

 

*  *  *

Related Alerts

Related Alerts

ID543 - Alert when items that ID500 has flagged as potentially obsolete are ordered on a PO

 

*  *  * 

 

              

 

Was this article helpful?
0 out of 0 found this helpful
Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.
Powered by Zendesk