Ensuring your business has enough stock on hand is a juggling act. Most businesses store inventory to ensure they have enough to meet a surge in customer demand. However, they run the risk of tying up capital in excess inventory.
A better solution is to focus on reducing the lead time in your supply chain. Understanding lead times allow you to quickly respond to dynamic market changes, lessen the impact of quality issues and more.
Being able to make informed decisions when ordering stock can take away most of the pressure to get forecasting right. Unleashed has recently released a few new enhancements that you can use to perfect your inventory control.
Set Product Delivery Dates on Purchase Orders
A greater understanding of what makes up your lead times helps keep your product and selling processes streamlined. In Unleashed, you’ll be able to view and edit the expected delivery date for each line item on a Purchase Order. With this, you’ll be able to run reports that show the actual date that certain products will be arriving into your warehouse so you can make more informed supplier and production decisions.
Joanne orders a chair, couch, nails and dining chairs for her business. The supplier tells her that the expected delivery date for those products will be on the 24th of August. However, the chair will take a little longer, and will be delivered by the 25th of August.
In Unleashed, Joanne will see both the expected delivery date for her order and the individual line items. By default, each line item will have the expected delivery date but you can edit a line item’s delivery date. In this case, Joanne will change the delivery date of the pens from 24th to 25th August.
Lead Times for Suppliers
There are various ways to identify a great supplier, one way is to compare projected lead times and the actual on-time delivery rates. If they differ drastically, it could be a sign that you might need to review your supplier.
Better manage which suppliers to choose for your product purchases by recording standard lead times against each. With Unleashed, you can record a lead time for suppliers and products to predict the delivery date of your purchases.
Article by Melanie Chan in collaboration with our team of Unleashed Software inventory and business specialists. Melanie has been writing about inventory management for the past three years. When not writing about inventory management, you can find her eating her way through Auckland.