You can’t manage what you don’t measure – the only way to keep on top of things is with focus.
The dashboard tab:
- Tracks service level and stock holding KPI, giving you unprecedented visibility into the health of your inventory
- Highlights the value of items that are in balance, stocked-out, potentially going to stock-out, have excess, have surplus orders, or are new
- Highlights data issues, which can be used to improve the quality of your data
You can navigate to the Dashboard tab by:
- Clicking on the Dashboard menu (red underline), which displays your default location
- Using the drop down (red square) on the Dashboard menu and clicking on the required location
Use the dropdown to view the dashboard in either days, weeks or months.
Once selected, you can set a location as your default location by clicking on the icon in the header. Now when you click on the word Dashboard in the menu, this location’s dashboard will display.
For All KPI
- The gold bar on the left is the start point or benchmark
- The blue bars show the previous 12 periods in days, weeks or months
- The red bar on the right is the value today
- The top value is today’s value and is clickable
- The second value is a target or a count of items that contribute to today’s value
Stock holding KPI
Your Actual stock value versus the Model stock value. Typically the model is less than the actual because:
- The actual stock value is computed as the current level of stock on hand, valued at cost
- The model stock value is the optimal stock holding and assumes that there is no excess stock and that every single item in every location is in perfect balance
Your goal: to bring the actual stock value as close to the model stock value as possible while increasing or maintaining the fill rate
Your Actual stock value is normally too high because of these items that are in Excess.
- Excess is defined as stock-on-hand above the maximum level for any stocked item
- Excess on non-stocked items is defined as the value of stock over-and-above any outstanding customer orders
Your goal: to continually reduce the excess stock value in the warehouse
Not only do you have Excess inventory, but you’re making the problem worse with these Surplus Orders.
- When these outstanding supplier orders are receipted into your warehouse, they will push the stock level into Excess
Your goal: to cancel, delay or reduce the order quantity on as many of these orders as possible
Service level KPI
When your customers come to purchase from you, you can only supply them with inventory 87.01% of the time. You’re targeting 94.75%.
- Fill rates for a location are computed by weighting each item’s actual/target fill rate by it’s future forecast value
- Target fill rate is a system input denoting the desired level of stock availability
Your goal: to bring the Achieved value as close to the Target value as possible while maintaining or reducing the stock holding value
The reason your Fill Rate is low is because of the items that are out of stock right now.
- The lost sales value, at cost, is accumulated until either the next order arrives or an order placed today can be received (whichever comes first)
Your goal: to get these items in stock as soon as possible, minimising the stock-out period
Not only is your Fill Rate low because you’re out of stock of items but it’s getting worse.
- These items are predicted to run out of stock before either the next order arrives or an order placed today can be received
Your goal: to bring orders forward or to place emergency orders now to get these items back in shape as soon as possible
Note: On any given day, an individual item is either in stock or out of stock – you are considered to be out of stock if your nett available stock (i.e. physical on hand stock less backorders) is zero or negative. If an item was out of stock for 3 days in a 30 day period, the fill rate on that item would be 90%.
Item status breakdown
A summary of the respective values from the KPI above, plus:
- OK items; the stock value, at cost, of each item where the physical stock on hand lies between the ideal minimum and maximum stock levels
- New items; the value of stock on hand + stock on order, at cost, for items that have no forecasted demand
Your goal: to increase the value of the OK status and decrease the value of the rest
Highlights issues with the data supplied from your ERP system.
- Keeping your ERP data maintained is difficult
- Planning replenishment requires accurate data for optimal order recommendations
- Data purity highlights data issues, giving you lists of items to review and correct
- With over 50 checks, NETSTOCK Basics will help you keep your inventory-related data accurate
Click on the overall score, in this case 95.05%, opens up the purity dashboard, which contains much more detail of specific data issues.
Your goal: to increase the data purity overall score
For each file, using the “Stock data” pane as an example:
- See the aspects of the file that has issues
- Drill-through to see the actual items for each issue
- Easily download the list of items to excel, for data maintenance tracking
Note: NETSTOCK Basics is like any system that depends on data to generate an output – the quality of the data input will determine the quality of the output. A regular review and maintenance of your ERP data will ensure optimum results and help towards optimum inventory optimization and replenishment.