INVENTORY MANAGEMENT FOR SYSPRO

Items Classification

Syspro uses a Pareto analysis to classify their inventory; however, they base their classifications on 1 criterion only, which uses sales value to distinguish items. At NETSTOCK, we enhance inventory accuracy by using two criteria, the ABC for sales value and HML (high, medium, low) for sales velocity.

See the NETSTOCK classification matrix and how this enables you to prioritize your time and inventory dollars.

Forecasting new Items

New items are forecasted using a proxy method in Syspro, where the new item is judged on another item with the same or similar characteristics. To achieve a better seasonal forecast, NETSTOCK instead assigns the new item to a group of like for like items. This group would have an established seasonal forecast that we use to base the new item’s forecast.

Safety Stock

NETSTOCK achieves dynamic safety stock levels, which provides a far more accurate calculation. Safety stock is calculated on each item’s classification. If something changes to an item, for example, the supplier becomes unreliable, the supply risk will automatically escalate, and NETSTOCK will automatically increase the safety stock level. This ensures that you never have too much or too little in your safety stock buckets.

Top-Up Orders

When placing recommended orders, there is often space left in the container that should be topped up to make the shipping as cost-effective as possible. NETSTOCK scans your inventory and selects items that are close to needing replenishment. This makes sure that you top up with the right products instead of manually adding to your container based on gut feel instead of data insights.