At a minimum, you should consider having Average Sales and Weeks/Months of Supply available for your team. In this day of Just in Time (JIT) inventory, several factors need to align in order to keep your inventory as lean as possible and the associated costs minimized. These include: How accurate are your Forecast and Item Coverage (Min/Max) numbers? If there are any deviations in these figures, then your ability to purchase efficiently is impaired. Either that or you are spending hours adjusting the forecast and manipulating the Min/Max levels each month.
By calculating Average Sales and Weeks/Months of Supply for items on a purchase order, the buyers can quickly compare the suggested purchase quantity and validate the purchase prior to it being placed.
Keep in mind that each buyer group may wish these values calculated differently. In many instances, ‘weeks’ of supply is the standard, but to another buyer or group, ‘months’ of supply is the norm. Same thing applies to the Average Sales. You need the flexibility to calculate Average Sales in a manner that best meets the buyer’s needs. Average Sales over a 6 week horizon can vary wildly from a 6 month perspective.
Arbela Technologies has extensive experience enhancing the Dynamics AX purchasing process. Contact us to discuss your needs, today.