Inventory Optimization through EDI

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Inventory Optimization through EDI

This solution can work as a stand-alone module for Inventory Optimization or integrate with the broader Supply chain automation solution and streamline inventory processes. Whether the goods are stocked for sale(Retail, Manufacturing scenario) or Not-for-sale(Warehouse scenario) the solution can help aligning inventory workflows and providing visibility into stock. Main features of solution are:

  • Scan based Trading(SBT): The solution employs a Supplier driven model for managing remotely retailer’s warehouse or store shelves to the point-of-sale(POS).  Electronic Data Interchange(EDI) is used to sync information regarding:
    • Organizational Structure – 816 transactions store locations, addresses and relationships. Purchase ability and terms and conditions can be negotiated by retailers/manufacturers on behalf of their vendors/suppliers.
    • Optimized Price Sales Catalog – 832 allows requesting, furnishing and exchanging Items information; Catalog versioning is done; Units of measurement are defined.
    • Track Product Activity Data – 852 allows exchanging product stock keeping Unit(SKU) activity data. Description of items, Quantities sold quantities in-hand and on order, inventory levels and replenishment quantities, sales rates, sales forecasts are exchanged.
    • Standardized Receivings (Receiving Advice – 861): Retailers can issue shipping receipts to their Suppliers in Vendor managed inventory. Notices are issued for shipment damages, partial receiving. Received Shipments are labeled by vendor-order#, container, carton, pallet ID.
    • Standardized Billings (Purchase Order(PO) – 850 & Invoice – 810): Purchase Orders are sent and Invoices issued. Details about Shipping & Payments are set. Invoice numbers and date, item price & quantity are included. Discounts are offered.
    • Efficient Payments (Remittance Advice – 820): Payments can be made. Instructions regarding due and pending payments or Funds transfer can be sent to Banks, Insurance companies or individual suppliers.  Remittance advice can be sent directly or through a third party. 
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KEY BENEFITS

  • Avoid Overstock and Outages
  • Enhance Inventory Turn over rate
  • Reduce Holding Costs
  • Consignment Sales & Risk Sharing 
  • Optimize Cash Conversion Cycle(CCC)
  • Reduce Lead times, Reordering Costs, WIP,
  • Remote Customer BIN managemnent
  • Vendor managed inventory
  • Demand driven Inventory and Responsiveness
  • Reduce In-Process inventory
  • Just in Time (JIT) planning
  • Reduce Days in Inventoy(DII)
  • Decrease Days Sales Outstanding(DSO)
  • Increase Days Payables Outsatanding(DPO)
  • Lean stock levels and visibility 

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