RockySoft

How to Maintain a 100% Order Fill Rate and Reduce Inventory by 25%

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Distributors have the challenging task of balancing inventory control against customer needs.  Too much inventory diverts cash away from other business areas and too little can put customer relationships at risk.  We here at RockySoft are dedicated to helping distributors find the right balance with the right mix of technology.

An enterprise resource planning (ERP) solution, such as Microsoft Dynamics® ERP, can be a great start to controlling inventory, as well as improving customer service.  This comprehensive solution offers management capabilities for all of your core business operations from the front office to the back warehouse.  One of our clients took inventory control one step further with inventory management solutions.  As a leading distributor of safety-related products with a product line of well over 7,500 products, our client had a lot of inventory to manage, balanced by a long customer list and ever-changing customer demands.

They chose to use Microsoft Dynamics ERP and RockySoft technology to maintain an ambitious 100% order fill rate, while reducing certain inventory items by 25%.  By using our inventory management modules, our client created projection scenarios to plan procurement activities.  The procurement team was able to use three years of historical sales data, match it against customer buying habits, and active customer orders to determine what inventory to order, in what quantities, and when.  They were also able to modify forecasts, taking into account seasonal situations or other trends, to further fine-tune procurement activities.

Controlling inventory and the associated costs is one thing, but improving customer service is another.  Our client set high fulfillment rate goals, which requires a constant eye on inventory and a near lightning-fast reflex to be able to respond when inventory drops too low.  Customers come to rely on a company’s ability to provide quick turnaround, without back-orders or discontinued items.  With the right mix of technology, our client not only satisfies their current customers, but is also able to satisfy those companies who are dissatisfied with other distributors.

The right mix of technology can turn inventory control to your competitive advantage, as it did with our client.  Read the full client success story here to learn more and contact us if you have additional questions: http://www.rockysoft.com/info-request.

 

By Jeffrey Porter with RockySoft, Microsoft Dynamics software provider for demand planning

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