StockM – intelligent supply chain solutions for your business
Why is it worth to choose StockM?
StockM features and benefits
- Improve inventory turnover by increasing cash flow and reducing “frozen” funds in the stocks.
- Manage stocks according to the actual consumption, automatically daily evaluating the necessary stock level for each SKU (stock-keeping-unit) in each storage place.
- Optimize the replenishment of necessary quanitities of goods.
- Reduce amount of discounts, sell-offs and write-offs which appears because of surplus.
- Increase the effectiveness of inventory management execution and control.
- To evaluate company’s inventory trends.
- To calculate daily stocks level.
- To evaluate actual fluctuation of sales and stocks replenishment.
- Timely inform consumers about lost sales and overstock of specific SKUs.
- Regularly create orders to replenish the stock level.
- To determine and compare fast mover SKUs, generating the highest profit, with slow mover SKUs, in all storage places.
- Daily work priorities, the tasks which should be carried out by each manager.
- The results of each manager’s inventory management and company’s performance’s.
- Goods which are the most worth to invest available funds.
- Supply reliability indicator by using DDP – Due Date Performance.
- The distribution of the stock in the central and regional warehouses of its own, and in its customers and suppliers as well.
How StockM works?
The StockM system calculates exactly amount of available goods, automates ordinary supply and inventory management functions, provides the necessary analytical information and tools for assortment management.
INSTALLING AND STARTING
Our specialists install the StockM system into the client server or in our storage/server. During the installing period, we consult senior management and provide staff training.
DAILY SYSTEM WORK/OPERATION
The StockM system takes data from your accounting system every morning and processes it. According to calculation results, the system forms:
- Orders, based on all received factors
- Assortment reports and recommendations
- Analytical information: reports, tables, graphs
- Warnings about data discrepancies, employees mistakes by completing tasks, late delivery and other deviations from the schedule
Users, that have an access to the StockM system, can adjust created orders, approve buffer change, send an order, change calculation parameters, add cards, and so on.
Customers can always consult with StockM specialists, ask questions about assortment management and solve problems.
Buffer and dynamic buffer management
StockM calculations are based on the Theory Of Constraint (TOC) mechanisms: "buffer" and "dynamic buffer management". This methodology is flexible enough and many different companies use it worldwide, from small shops to world-class corporations.
What is buffer reserve/buffer?
For each SKU (element of goods) at each storage point, a target stock level is calculated based on certain rules, sufficient to meet demand without creating overstock. This amount of inventory is called a buffer.
Consumption of goods (sale or movement) gives the signal to "supplement the buffer", i.e. you need to place your order according to the delivery schedule, but without delay.
Order quantity is calculated by using the buffer, according to formula:
i.e. according to the order, the total amount of goods in the system should be equal to the buffer level.
Buffer zones and colors
The size of the buffer is divided into 3 equal parts (zones) and is marked with colors: red, yellow, green. The zones indicate how critical is the balance of inventory. For example, if the amount of stock in the warehouse is less than 1/3 of the total buffer size, the system says "Level of goods inventory is in the red zone", which means that the stock level is decreasing. Color indexing of different SKU buffers allows to show inventories level in reports and tables more clearly and is commonly used in the StockM system.
Dynamic buffer management
Market situation is changing constantly: the demand either decreasing or increasing, supply conditions are changing, the level of suppliers reliability is changing. Thus, buffer size should be recalculated according to the relevant conditions/circumstances. If the balance of the product for a while is in the green zone (> 66% of the buffer) - the buffer should be reduced. If the product is in the red zone for too long (<33% of the buffer) - the buffer should be increased.
Practice shows that this principle allows to calculate the desired level of inventory exactly enough and to calculate orders.
The program is updated constantly, while working with each customer and updated features are also becoming available to other StockM users.
WORK WITH ORDERS
StockM uses a buffer to calculate the order size for each product at each storage point. Orders are formed according to suppliers' schedules and deadlines. If the main supplier does not have the required product, the order can be redirected to the alternative supplier.
If you need to supplement your order, the StockM system provides the best recommendations, based on sales statistics and other indicators. Alternative product groups and other options are also considered.
The system controls each sent order and informs about delays. When you receive a warning about product delay, you can make an immediate decision - for example, ordering the product from another supplier in order to avoid lost sales.
StockM system provides all the necessary graphs and report, according to selected intervals. The system analyzes existing overstock, shortages and makes recommendations on how to increase the turnover and profitability of invested funds. Reports allow to see the situation and understand the reasons of change.
StockM system evaluates suppliers, according to the timeliness and accuracy of order fulfillment, generates reports about the volume and turnover of specific supplier, accurately completed promotions and orders on time. This information simplifies negotiations with suppliers.
The system registers all deviations from the recommendations.
Calculate the real benefit, by using the StockM calculator
Register for free presentation!
We will present you our software and will tell more how StockM system can be useful for your company. We will answer to all your questions.