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PO Generator by Item
Automates replenishment Purchase Order process
The purpose of the Purchase Order Generator by Item (POGi) is to provide decision support and automation for stock replenishment, i.e. the purchase of stock to meet ‘safety stock’ requirements.
The POGi automates the bulk creation of Purchase Orders by Item, by Supplier. The POGi can be used to detect and report which Items are below their safety stock quantity (Reorder Level).
The POGi displays by Item and grouped by Supplier the aggregated and minimum quantity of Items that need to be ordered to restore safety stock levels. You can agree with or adjust the ‘Qty to Order’ result, and then generate the Purchase Orders.
The mechanism and the algorithm (calculation method) can be adapted to your specific inventory optimization requirements. We can create custom scripts to calculate and automate. Contact [email protected] for guidance.
Inventory optimization is a method of balancing capital investment constraints or objectives and service-level goals over a large assortment of stock-keeping units (SKUs) while taking demand and supply volatility into account.
Implemented effectively Inventory optimization can significantly increase the availability of your working capital, and reduce the amount of redundant stock.
The Purchase Order Generation by Item workflow has three stages:
- 1.Search and select the stock item(s) to be replenished
- 2.Adjustment of ‘Qty to Order’.
- 3.Auto-generation of Purchase Orders.
Purchasing>PO Generator by Item>+
On this screen, you can focus the search, by Item, by Site (WMS), by Supplier, and at ‘Reorder Level’. Use the ‘Advanced Search’ and ‘Extra Columns’ to further refine your search.
The results of your search are displayed as follows:
*These values are in the respective Supplier’s trading currency if derived from the preferred Supplier table. If they’re derived from the Item ‘Unit cost’ they are in the General Ledger base currency.
The search action returns the ‘Qty to Order’.
The Qty to Order is derived from:
Shortfall: The quantity of Items on Sales Orders that cannot be allocated because of insufficient stock.
Quantity of Items required to restore the Reorder Level to the preset balance.
Quantity of Items required to meet the Item MOQ.
Notice the search result returns the list of Items grouped by Supplier with a Totals rows which display the sums of the Amount(s) and the ‘Qty to Order’. If the MOV and MOQ fields on the Supplier master contain a value, it will be displayed in this row.
Agree with or adjust (edit)the ‘Qty to Order’ per Item.
Use the checkbox in the left-hand column of each row to select the Items for which you need to generate Purchase Orders. Click the Action ‘Generate POs’. The system will return the ‘Created Purchase Orders’ List.
The ‘Site’ on the created Purchase Orders will inherit from the Site set on your search. This will be where the Purchase Orders will be available for receiving.