Skip to end of metadata
Go to start of metadata

You are viewing an old version of this page. View the current version.

Compare with Current View Page History

« Previous Version 54 Next »

Overview

A purchase run is used to determine what products need to be ordered and in what quantities. Readysell provides two basic ways to calculate this: by defining minimum and maximum stock levels for a product (Min Max), or by considering average weekly sales.

Getting Started

Reference

Buttons

Refer to Common Buttons.

ImageFieldDescription
Extract ProductsGenerate the lines for this purchase run
Add ProductAdd a product to the purchase run
Generate OrdersGenerate the purchase orders defined in this purchase run
Generate Email BatchGenerate an email batch to send orders for the purchases

Fields

FieldDescription
TypeThis is the transaction type for this purchase run (i.e: PURSUG (Purchase Suggested Order))
NumberThe unique number for the transaction of this Purchase Run
StatusThe status for this Purchase Run (e.g: open, posted etc)

Date

The date and time the purchase run was created
DescriptionThe description for reference of the purchase run
Purchase Run Type

Purchase run type is selected when a "Extract Products" occurs on a purchase run.

Suppliers Tab

Button

ImageFieldDescription
Delete
Extract Products
Change Supplier

Allow all products on a single purchase run to have their supplier set to one common supplier with a single button

Once a day. A purchase order run is created for the wholesale supplier. Their may be many suppliers on the purchase run. The user clicks a single button, selects the required supplier and all purchase order lines on the purchase run change supplier to the supplier that was entered.


FilterThere is a filter on the purchase run window which can show Order Required and Order Not Required and All. This filter is just above the lines to be ordered.
Change the filter to Order Not Required, the product should show in this list, the Message tab at the bottom of the screen will show why it doesn't want to order it, you can change the Qty field to read as the quantity you wish to order of this product.
FieldDescription
Site
Supplier
Value Ex Tax
Value Inc Tax
Min Order Value
Minimum Order Variance

Product
Qty
Unit
Unit Quantity On Hand
Price Ex
Value Ex
Value Inc
Lead Time

Item Details Tab

FieldDescription
Count of Weekly Sales
Qty of Weekly Shipments
Stock RequiredThis is the stock required for this item
Qty on Sales Back OrderThe qty on sales back order for this item
Qty on Purchase OrderThe qty on outstanding purchase orders for this item
Qty AllocatedThe quantity allocated for this item
Qty On HandThe quantity on hand for this item
Unit Qty on Hand
Qty AvailableThe quantity available for this item
Net Qty On HandThe net quantity on hand
Lead Time

Product Suppliers Tab

FieldDescription
Product
Supplier
Minimum Order Quantity
Is Primary
Supplier Product ID
Stock Level
Stock Level Updated
Cost Price Break 1-10This field shows the cost price break

Outstanding Sale Orders Tab

 Show me

FieldDescription
ProductProduct Id and Name
Qty OrderedThis field shows the quantity on an order
Qty AllocatedThis field shows the quantity allocated to an order
Qty Back OrderedThis field shows the quantity backordered on an order
Qty On ShipmentsThis field shows the quantity on shipments for an order 
Product UnitProduct unit 
Price Inc TaxThis field shows the price inc tax on an order 
Discount PercentThis field shows the discount %
Tax CodeThis field shows the product tax code
Value Inc Tax OrderedThis field shows the product value inc tax ordered 
Supply TypeProduct supply type
NoteProduct note
Backorder Date DueProduct backorder due date

General Tab
FieldDescription
Supplier Product ID
Min Order Qty (Each)
Default Buy Unit
Buy Ship Unit
Default Order Unit
Is Primary
Default Order Unit
Archived
Supplier
Cost Prices
FieldDescription
Cost Price 1- 10

Product Movements

FieldDescription
Date
Transaction Number
Location
Quantity
Card
Transaction Type

Sales Order Lines

FieldDescription
Product
Product Name
Unit Quantity Ordered
Unit Quantity Allocated
Unit Quantity Back Ordered
Unit Quantity On Shipments
Product Unit
Unit Quantity On Hand
Unit Price Inc Tax
Discount Percent
Tax Code
Tax Value Ordered
Value Inc Tax Ordered
Supply Type
Has Notes
Backorder Date Due

Purchase Order Lines

FieldDescription
Product
Product Name
Unit Quantity Ordered
Unit Quantity On Order
Product Unit
Unit Quantity On Hand
Unit Price Inc Tax
Discount Percent
Value Ex Tax Ordered
Tax Value Ordered
Value Inc Tax Ordered
Has Notes
Date Due
Return Reason
Expected Supplier Product ID

Sales By Period

FieldDescription
Period
Product
Quantity
Value Ex Tax
Value Inc Tax
Original Cost Ex Tax
Cost Ex Tax
Discount Value
Margin
Margin Percent
Gross Profit Percent
Number of Sales
Average Sale Value Ex Tax
Last Year Value Ex Tax
Last Year Value Ex Tax Variance
Internet Sales Value Ex Tax
Last Year Internet Sales Value Ex Tax
Last Year Cost Ex Tax
Last Year Cost Ex Tax Variance
Last Year Cost Ex tax Variance Percent
Last Year Margin
Last Year Margin Variance
Last Year Margin Variance Percent
Last Year Gross Profit Percent
Last Year Gross Profit Percent Variance
Last Year Gross Profit Percent Variance Percent
Diff From Last Year Value Ex Tax
Diff From Last Year Value Ex Tax Percent
Sale Value Less Than Last Year
Sale Value Greater Than Last Year
Internet Sales Value Ex Tax Percent
Cost Ex Tax At Cody P1
Margin At Cost P1
Margin Percent At Cost P1
Gross Profit Percent At Cost P1
Last Year Cost Ex Tax Variance At Cost P1
Last Year Cost Ex Tax Variance Percent At Cost P1
Last Year Margin At Cost P1
Last Year Margin Variance At Cost P1
Last Year Margin Variance Percent At Cost P1
Last Year Gross Profit Percent At Cost P1
Last Year Gross Profit Percent Variance At Cost P1
Last Year Gross Profit Percent Variance Percent At Cost P1

Message tab

The amount of stock that will be reordered is equal to weeks of floor stock x the quantity of weekly shipments

 Show me



General Tab
FieldDescription
Site
Period
Value Ex Tax
Value Inc Tax

Purchase Orders

FieldDescription
Site
Transaction Number
Supplier
Value Inc Tax Ordered
Value Inc Tax On Order
Minimum Order Variance
Status
Product fields

Each product has a number of fields that govern how it behaves in a purchase run. These fields are set on the Products screen. The table below shows how each field is used in a purchase run, and the tab within the Products screen where each one is located.

FieldWhat it doesUsed inTab
Min Reorder Quantity

When the quantity on hand for any product reaches or falls below the value set in the field of 'Min Reorder Quantity', the system will automatically re-order the product in the next appropriate purchase run. 

Once the Minimum reorder quantity is reached = Maximum Reorder Qty -  Nett Quantity on hand .

Min MaxGeneral tab
Max Reorder QuantityWhen reordering this product, order enough stock until the Value in the Maximum Reorder. Maximum Reorder quantity - nett quantity on hand.Min MaxGeneral tab
Min Order Quantity

It is the minimum quantity which the supplier requires you to order in. EG min qty = 2 means if the product is purchased by each, you must buy at least 2. If the product is purchased by box or pack you must buy at least or 2 or by multiples of 2 from the.supplier. The system will always round up.

Formula = max reorder qty - net qty on hand / min order qty if the pack break is not in eaches eg max reorder = 100 net qty on hand = 10 min reorder qty = 20. purchase order run will order 100 - 10 = 90. Then the system will divide the 90 by the min order qty of 2 = 45 only if the buy unit is not in eaches or box of 1 etc .

Average Weekly Sales,
Min Max

Suppliers tab
Purchase OrderQuantity of stock that is currently on order on an outstanding purchase order.

Average Weekly Sales,
Min Max

Quantities tab
Sale Back OrderQuantity of stock that is currently back ordered on an outstanding sale order.

Average Weekly Sales,
Min Max

Quantities tab
AllocatedQuantity of stock that is currently allocated to customers on an outstanding sale order.

Average Weekly Sales,
Min Max

Quantities tab

All quantities are in Eaches, regardless of the units that are defined for the product.

Purchase Run Set fields 

Each purchase run set has a number of fields that govern how products are selected to order. The table below gives a brief description of each field. A key feature of any practical automatic reorder system is to :

  • Focus on the great majority of products where the purchasing demand can be fairly accurately forecase. Typically such products have a steady demand profile. If you were to graph sales of those products over time. The demand would be significant and steady. Computers are good at estimating the purchase required quantities for those products.
  • Identify products that are too hard to forecast. The system should give up on purchasing those products. Those products are handled by the human knowledge of the purchasing office and by sales back orders.Typically such products :
    • May have very low demand. Where holding stock of the product is not justified. It might be better to back order the item.
    • May have a very lumpy demand profile. If you were to graph the sales of those products. There might be no demand for a long time. A big sale then no demand for another long period. Alternatively the sales may jump around wildly. With very small sales one week and huge sales the next. If the computer was to purchase such items, it may buy a lot of stock then you could get stuck with the stock when the lumpy demand drops back to a lower demand profile.

Readysell's average weekly sales reorder strategy has three fields that help identify products which are setup to be reordered. But should not be automatically reordered due to the unpredictability of demand. Those fields are 'Minimum Weekly Sales Count', 'Minimum Weekly Sales Quantity' and 'Average Weekly Sales Variance'. By adjusting those settings you can configure Readysell to take a more aggressive or more defensive purchasing strategy.


Readysell's suggested workflow for implementing automated purchasing is as follows :

  • Elect to use only the average weekly sales reordering strategy. Average weekly sales always uses the most current sales figures. So it is more up to date then the older style min/max reorder strategy.
  • Decide how often you are going to run automatic purchasing each day. Then Build a list on a spreadsheet of reordering strategy names by week of month, day of week and hour of day. For example Week1MondayMorning, Week2WednesdayMidday etc.
  • For each time you are going to run automated purchasing each month. Decide how aggressive you want to be in respect to purchase order quantities. For example, early in the month buffer up stock. Around the middle of the month reduce purchase order quantities. Until on the last afternoon of the month. Just purchase enough to cover sales back orders. Make this a shared document. Perhaps pin it on the wall next to your desk.
  • Create a set of purchase runs that implements the purchasing strategy defined on your spreadsheet.
  • Train an assistant to run each purchase run at the appropriate time each day. Then to tell the purchasing officer that the purchase runs are ready for review. This approach :
    •  frees up the purchasing officers time,
    • provides a backup person who is able to keep purchasing functioning reasonably when the purchasing officer is away sick or on holidays.



FieldWhat it doesDefault
Minimum Weekly Sales Count 

The product will only be ordered if the average number of sales per week is greater than or equal to this number.

Count of Weekly Sales = the average number of sales per week over the date range that contained at least one line with the product in it.

0.9
Minimum Weekly Sales Quantity

The product will only be ordered if the average quantity of products sold per week is greater than or equal to this number.

Quantity of Weekly Shipments = the average weekly each quantity of products shipped over the date range

0.5
Weeks of Floor Stock

Readysell multiplies the average quantity sold per week by this number to get the amount of stock required.

The amount of stock that will be reordered is equal to weeks of floor stock x the quantity of weekly shipments

5.0
Average Weekly Sales Variance Threshold

Readysell multiplies the average quantity sold per week by this number to get the acceptable sales variance. If a week's total sales differ from the average by more than this amount, that week's sales are excluded from the calculation.

This is particularly relevant for products where the quantity sold varies significantly in some weeks (such as seasonal stock).

2.0

If you want to ignore a particular field, you must set it to 0.


  • No labels