Order Management offers you a consistent, powerful and prioritized method of allocating inventory to Sales Orders in an effort to maximize the most efficient and appropriate assignment of stock and/or receipt of stock for an Order's required shipment dates.
The benefits of using Order Management are listed below:
- Ability to time the customer's product requirements to the most appropriate arrival of Purchase Order receipts and in-transit arrivals.
- Reduction of existing stock that is locked for Future Orders or Orders with long lead times.
- Offers a method of prioritizing orders based on several criteria, including customer importance.
- Offers efficient utilization and allocation of existing stock to all Orders.
- Relieves stock from Orders where the customer has exceeded their credit limit and/or is delinquent, and gives the stock to more deserving Orders.
- Allows the option to set shipment thresholds that can optimize the fill rates for Orders without compromising customer's requirement and/or cancel dates.
- Ability to 'guarantee' product to an Order by linking the Order to a PO, In-transit or Stock.
- Warehouse capacity controls that allow for controlled printing of pick slips into the Warehouse.
Order Management offers control over inventory. In other words, inventory gets allocated to Sales Orders to maximize the ability to ship goods to customers thereby balancing current inventory with anticipated arrivals, customer priorities and promises made.
The Order Management process operates on a demand cycle (daily) that involves the following criteria:
- Prioritization of all Sales Orders from the 'most deserving' to the 'least deserving'.
- De-Allocation of Product from 'less deserving' Sales Orders through order prioritization and re-allocation to 'more deserving' Orders.
- Examination of these Sales Orders for optimal timing to determine allocation (current on hand inventory or futures).
- Allocation is based on inventory timing.
- Manual overrides to the automated allocation, with the ability to 'lock' inventory assignments until shipments are allowed.
- Warehouse capacity controls to better manage the orders in the Warehouse.
The following list defines the requirements that must be met in order for Order Management to work effectively at your site:
- Internal Stock and Back order Control are mandatory.
- A high degree of inventory accuracy is necessary.
- Up-to-date Purchasing information with reliable estimated arrival dates and quantities.
- Timely entry of Sales Orders.
- Consistent application of order filling policies throughout the organization.