Procurement Overview

Buy from yourself first.

When possible, exhaust your own resources before turning to your vendors. Work to equalize inventory in a multi-store environment by generating transfers from stores that are stocked above their Model Stocks to stores that are below model quantity of a particular product. This allows you to balance resources within your organization and prevents you from ordering unnecessary stock and ending up with a surplus of inventory.

Automate the buying process to save time and reduce manual errors.

Define models and rules that set minimum and maximum desired on-hand inventory quantities to automatically generate purchase orders.

If you know you’re going to repeatedly purchase the same quantity of an item or items over a certain period of time, save time by making the process automatic. You’ll free up time to focus on other areas of your business. Just don’t get complacent; audit your inventory to make sure you’re not ending up with missed sales opportunities due to a shortage, or with a surplus and losing money on markdowns.

We recommend using the following within RICS to automate the buying process:

Product Models (Inventory :: Stock Maintenance :: Enter Product Models)

This provides buyers with a replenishment value to restock inventory to maintain consistent turns and easily maximize sales.

Noteworthy Terms:

Model Quantity

This number represents the ideal number of a certain SKU to keep in stock. If a given store has fewer than the Model Quantity on-hand (the store is 'below model') then the system will try to get more inventory for that SKU when the user runs an Auto PO or a Balancing Transfer.

Max Quantity

This is the maximum number of a certain SKU to keep in stock. If ordering or transferring products would cause the SKU to exceed this number of on-hand inventory, the system will not allocate any more of the product to this store

Re-Order Quantity

This number represents how many of a given SKU the store should order at a time. For example, if the Re-Order Quantity of a given SKU is 5, then the Generate Automatic Purchase Order function will always order the SKU in multiples of 5.

This quantity will also be used when calculating Balancing Transfers based on Models.

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