Notifies when PO created for Item(s) considered potentially obsolete
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Overview | Samples | Variables | Alert Functionality | Best Practices & Tips | Related Alerts
Overview:
Looks at Purchase Orders for items considered at risk of becoming obsolete based on decreasing volume trends for the model associated with the item, per ID500. This indicates that you may be carrying more inventory than you should be, and therefore should you be ordering this item again.
Run Schedule: Every 30 minutes
Type of Output: Email
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Sample
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Variables
Variable W: Minimal On Hand Inventory Value to Consider (no decimals please)
Variable X: Line item Order Threshold (alert disregards items where line item cost (quantity * price) does not exceed this amount)
Variable Y: Maximum inventory turns (alert disregards items if you're turning the item more than Y times/year)
Variable 1: Option to only include items On Hand OR Available, default is set to On Hand
Variable Z: Branch Numbers to trigger on, separated by comma, or blank for all. Please note, even though the POs triggered on can be tied back to Branch, the actual data on approaching-obsolescence is company-wide and we won't be doing that at a branch level anytime soon.
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Alert Functionality
Even though the POs triggered on can be set to only report for specific Branch (set via VariableZ), the actual data on approaching obsoletion is company-wide and we will not be breaking this down to branch level.
It is a requirement that you are subscribed to and running alert ID500 in order for ID543 to provide any results. ID500 includes an On Demand SSRS Report, so you'd likely find it very helpful to use as well.
Explanation of Output Columns
The first five columns are self explanatory
Qty: Quantity of Items list on that purchase order
Price: Cost for Item on PO
Amount: Price x Quantity
CurrentInventory: Current OnHand Quantity across ALL Warehouse, ALL Branches.
Ordered+QOH: Quantity ordered on PO + Total Current OnHand Quantity across ALL Warehouse, ALL Branches.
Used6Mos: Quantity of this item used over last 6-completed months - does not include current month
ItemTrend: Indicates if inventory value for that Model/Item association is trending up (been adding more to stock) or down (been liquidating).
Options:
Down = Inventory Value is trending down (lowering stock)
Up = Inventory Value is trending up (increasing stock)
EstimatedTurns: Estimated turns over historical 12-months
Inventory turns are calculated using your inventory value against sales and service usage quantities. Inventory transfers , adjustments, etc are not used to calculate your turns score, only sales order and service call transactions are considered as usage.
Models: All Models this Item has been used on
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Best Practices & Tips
- Even though the POs triggered on can be set to only report for specific Branch (set via VariableZ), the actual data on approaching obsoletion is company-wide and we will not be breaking this down to branch level.
- When you receive this alert, the first thing you should do is check to see if the item can be transferred from another warehouse. If it can, then cancel the item on the PO. Also research to see if the items being ordered are restock items. If they are then it's possible the items min/max need to be updated. The clicks for this model are decreasing so the inventory stock has to also. Why pay for something that you may have to sell off the remainder of your stock anyway?
- The alert doesn't consider recent usage, it's looking at inventory level trends compared to clicks-on-contract trends at the model level, and letting you know of items where overall inventory levels for those models are already too high in comparison. You're always going to have outliers where current usage is running high because more of your MIF are hitting yield or PM thresholds, but the purpose of the alert is 'inventory levels high, use existing if you can find it.'
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Related Alerts
ID500 - Items in stock at risk of becoming Obsolete due to Model Population/Volume decrease (required for ID543)
ID806 - Inventory Turns On Demand SSRS Report
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