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STOCK / INVENTORY

Excellent stock management is the key to successful operation. Too much stock means lost investment opportunities, excess storage costs and reduced working capital. Too little stock creates low customer services, lost sales, too many back orders and ultimately fewer customers. SERENADE provides controls on all stock movements from point of order to sales and also the tools to analyse that part's performance to ensure that the stocking strategy is correct for each product.

Overview

The stock system is related to the Warehouse Pallet Tracking module so that it is possible to not only have items in picking slots but to know exactly what is on which pallet in which storage/picking slot in the warehouse for re-supply of those picking slots.

The stock system allows you to:

  • Maintain Stock item lines
  • Adjust stock quantities
  • Process stock checks
  • Maintain analysis and discounting groups
  • Maintain the locations and slots at which stock is held
  • List stock in a variety of sequences
  • Retain the Average, Standard, Last, FIFO and BOM costs of a part (by stocking location)
  • View details of a part including:
    • Holdings and Costs by Location
    • Movements of stock
    • Purchase orders outstanding
    • Sales Orders outstanding
    • Usage of the part
    • Etc.
  • Maintain the type of part
  • Retain details of serial or batch number and to whom they were sold.
Features
  • 16 or 30 character Part numbers
  • 8 character look-up code
  • Full search facility by a section of the part's number or description
  • Superseded parts
  • Alternate parts
  • Multiple stock locations (branches, warehouses or vans) for a part
  • Inter-location transfers
  • Up to 5 sale prices for a part to cater for different customer types
  • Maintenance of Average, Standard, Last, FIFO and BOM costs for a part.
  • Option to copy any cost or price +/- a percentage to another cost or price.
  • Analysis and sub-analysis groups for sales analysis and discount groups for sales discounting
  • Optionally a part may be FIFO, Batch, Serial, Rotable or Serial Tracked
  • Bulk or Rotating stock takes
  • Use of hand held scanner for stock takes
  • Full Audit Trails of stock movements showing Gross Margin
  • Stock movement transactions held for a variable number of periods (up to 80 years)
  • Demand analysis retained for 36 periods
  • Demand can be use to forecast likely sales for the next 12 periods
  • Stock shortage reports can product potential purchase orders and WIP jobs
  • Substantial number of standard reports available
  • Lost Sales recorded and used in demand analysis
The Stock system has three major components:
  • A descriptive list of stock items
  • Actual holdings at each location within your company's system.
  • All movements of stock and lost sales

The descriptive list holds the details that do not vary by location, and the holdings list has the details that vary, including costs. Thus each location may have its own costs and orders retained for it without the need to replicate the main stock descriptions.

Codes

You must assign each item:

  • A reference code of 16 or 30 characters, and
  • An 8 character look-up code.

These codes may be any combination of alphabetic and numeric characters with most specials characters available as well. The reference code is to be the Part Number, and must be unique, with no embedded spaces and must not start with "#" or "-".

Types of Stock

Each item has two codes associated with it that together indicate:

  • how its holdings are to be maintained, and
  • how the item is obtained.
Categories for holdings maintenance are:
  • Normal - usual stock items with holdings.
  • Non-Stocked - such as Labour and Freight items.
  • Kit sets - where a single sales item comprises a set of parts which are stocked separately (and can be sold separately) and need stock levels adjusted.
  • Parts List - where a sales part is replaced with a set of parts which are stocked and sold separately.
  • Made to Order - where a product is produced specifically for an order in a WIP job.
  • FIFO - First in, first out.
  • Numbered - where Serial or Batch numbers are retained to identify a specific part or groups of a part.
  • Tracked - as Numbered, but also records the details of sales of the part.
  • Rotables - as Tracked, but also records the details of RETURNS of the part.
Categories for item source include:
  • Assembled in house from components;
  • Purchased whole;
  • Labour;
  • Out-work;
  • On Consignment;
  • Second-hand.
  • Freight
  • Labour
Discount Groups and Analysis groups

Analysis groups are used in sales analysis and reporting to provide a logical breaking of parts into categories and to be able to provide totals by category.

Discount groups are used by the orders/invoicing system to arrive at discounts and rebates for items sold.

No Stock Holding, Quantities and Units

There can be sites/locations where stock holding levels are not required to be maintained. You may have some sites for which you want to be able to generate invoices, but whose holdings you do not want automatically maintained - for example, a remote site that distributes product that it receives as required from a central warehouse.

As well as this there can be charges for freight etc. that do not have a physical stock.

In both cases you indicate on the relevant record that there is to be no stock level maintained and the system will not do it.

There is another situation that SERENADE caters for and this is the ability to hold the details of a part by have it indicated as 'Unused'. This caters for the situation where a part is available on a suppliers product list but you do not stock it but require the details to be available if any of your customers ask for it. In this case the system will ignore these parts in virtually all of the system but if a sale or purchase order is placed for one the indication is changed to make the item a normal stock level maintained part.

Stock quantities are held to 4 decimal places but you may display only integers or as many decimal places as necessary on your despatch notes, invoices etc.

Stock quantity, Cost and Sales prices can be related to a unit factor. If for example you have a small item that is cheap you can give it (say) a price per 100 so that you can get greater accuracy with the sale price than 2 decimal places. In some industries (such as hardware) a price or cost per 100 is a standard feature.

Updating stock records

Records of stock levels can be updated by:

  • Other Serenade modules when they process a transaction that affects stock levels:
    • Purchase Orders
    • Sales Orders
    • WIP
    • Etc.
  • Stock check or adjustment programs.
Stock Check

The stock check facilities allow you to:

  • Do bulk stocktakes
  • Do rotating stocktakes
  • Prepare and organise the stocktake check sheets days before the actual stocktake

You do not have to stop despatching and invoicing or even stop receiving inwards goods if the stock check quantities have not been entered You do have to have processed all stock movements that occurred on or before the date of the stock check before entering the quantities found. The system records what the stock holding should have been at the close of business on the relevant day and calculates the difference between that and the quantity found

Superseded items

The system allows you to indicate that a part has been superseded when it will:

  • Require the new (or an existing) part number to be supplied
  • Rename/merge the part holdings and usage
  • Amend the part number on transactions.
  • Amend or delete Bills of Material for the part
Alternate/Additional Parts

You may specify up to 3 alternate parts for an item. This does not automatically set up links in the opposite direction as they might not be valid. For example, a mild steel bolt could have a stainless one as an alternate but the converse would not hold - mild steel would not have the rust resistance or the strength of the stainless steel.

You may also specify up to 7 additional parts that may be sold with the main part. This prompts the sales person to push for additional sales when taking the order and also reminds them that the item ordered may not come with everything the customer wants. For example if a customer buys a bolt he is likely to want some washers and a nut to go with it which are not necessarily included with the sale item.

 

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Serrata Systems & Software Limited
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