Wholesale Distribution Industry Solutions

Forward-Looking Order Schedule

Distributors can use the Forward-Looking Order Schedule within Demand Solutions inventory management software, Requirements Planning, to assess buying ahead of a price increase. With visibility into forecasted planned orders by supplier, item and location, distributors can increase margin by buying additional inventory at the lower cost, raising their price on schedule and earning the difference in margin as long as it is cost effective.

Margin Analysis

Margin analysis can provide insight into whether a forward-buy is a smart decision and if so, what quantities make sense. But it can be time-consuming if the supplier uses different units of measure. Demand Solutions demand planning software, Forecast Management, simplifies the margin analysis process for planners by generating a forecast in multiple units of measure including items, dollars, currency, cost, and margin. This allows planners to conduct either price or margin calculations ahead of a forward buy to identify cost savings. Demand Solutions provides visibility into the trade offs of the actual long-term costs versus the savings associated with the forward-buy.

Demand Forecasting to Avoid Excess Inventory

Excess inventory is a risk with any forward-buy opportunity. A solid, understandable forecast mitigates this risk and is the first step toward a successful forward-buy. Demand Solutions demand planning software provides the most accurate forecast possible by applying the best of its 24 algorithms to each item. Additionally, with Demand Solutions planners can incorporate their own business knowledge into the demand forecast. Combining statistical formulas and human insight ensures the best possible demand plan and lowers the possibility of excess inventory. Demand Solutions forecasting and requirements planning software can provide critical information such as inventory on hand and turn rates, which is imperative to the long-range impact of a forward-buy.

Visibility into Inventory Levels

When considering a forward-buy, the ability to easily see on-hand inventory at all stocking locations is critical. Any cost savings from a forward buy is lost if another distribution center already has excess stock of the same product or an appropriate substitution. Demand Solutions Requirements Planning allows planners to view on-hand inventory at multiple warehouses, along with available substitute items on one efficient screen.

Questions answered by Demand Solutions supply chain management software:

• If I have a cost increase in January, is it cost effective to forward- buy?
• If I forward-buy, will I be in an over-stock situation?
• Do other warehouses already have excess inventory of this item?