Necessary Inputs for STOCK

To perform well, STOCK needs input from the primary information system. In this section, we describe the crucial inputs for each area of the system.

STOCK Input Database Interface (SIDI)

This section is devoted to individual areas of data only from users’ point of view.

Precise requirements and necessary settings are parts of modules STOCK Input Database Interface (SIDI) and then also of other specific modules. These settings and configurations are included in the implementation project.

The Core of the system STOCK

The core of the system are sections Stock categorization and Forecasting non-promotional sales. For these two sections to work properly, we need the following information:

  • Product list and category list: A list of all products, including their unique IDs and their position in the product hierarchy tree. The product hierarchy is very important for sales forecast: it is assumed that the products in the same category have similar sales attributes.
  • Warehouse list: In case you have several warehouses, it is necessary to list (and number) all of them. If there is a hierarchy among the warehouses (central warehouse, cross-dock, branch) and/or there is a hierarchy among branches – all of it needs to be specified.
  • Product – Warehouse combination: For each stock keeping unit (SKU), we need its position in a given warehouse, its current stock on hand and currently valid prices (both sale and stock prices). For a combination of product – warehouse, it is possible to record a set of additional data relating to their management (item to order, mandatory item, etc.) and the item’s life cycle (new item, sell-out).
  • Warehouse transactions
    • We differentiate warehouse transactions according to the purpose of implementation:
      • If the purpose of the implementation is sales forecast, a list of sales transactions is sufficient.
      • If the objective is – apart from sales forecast – also to evaluate the (customer) service level, or the entire supply management, all warehouse transactions (all and any kind of movement of the stock) are needed.
    • The following information is needed for warehouse transactions:
      • Product ID and Warehouse ID;
      • date of an actual movement in the warehouse: we need a precise date of the warehouse operation, we do not need billing data;
      • the quantity of the product measured in basic measurement units for the given item;
      • price: if the operation is a sale, then sale price is needed; if the operation is a purchase, then purchase price is needed; for all operations, we also need the current stock price;
  • List of customers: We need a list of all the customers including their unique IDs, so that we can identify the customer within the list of warehouse transactions.

Supply management

Customer orders: Orders already completed by the customer. The orders apply both to:

  • the past: the customer ordered a product, but the product has not been delivered yet; therefore, the current stock on hand must decrease accordingly;
  • the future: the customer reported that within a certain date, he/she orders a certain quantity of a product – hence, we can count with it.

Open purchase order: A list of products that has been ordered and are on their way. This information is rather important – we don’t want to order the product again (completing the same order).

Supply management towards suppliers needs the following information:

  • Combination product / warehouse / supplier: Each and every combination determines that the product must be delivered to the given warehouse from the given supplier. This combination needs to be supplemented by the following attributes:

    • Lead time (could be calculated from the past orders)
    • Ordering cycle
    • Minimum order quantity and sets
    • Possible ordering and delivery days

To manage supplies among warehouses, the following information is needed:

  • Combination product / central store / branch: Each and every combination determines that the branch orders from the central warehouse. The central warehouse must keep sufficient stock on hand. Order attributes are the same as for suppliers.

Supply management for production – when a product is produced, i.e. a product A is made from one or more raw materials – we need the following information:

  • Bill of materials (BOM): The list of materials the final product is a product of; we also need to know how long before the final production must the raw material be available. Hence, we need:

    • ID of raw material
    • Product ID
    • The quantity of the raw material(s) needed to produce one product (specific consumption)
    • Production lead time (i.e. how long does it take to produce a product)

  • Production attributes (of a product): They are similar to attributes needed for suppliers and distribution. It is necessary to keep information especially about:

    • Production cycle
    • Minimum production quantity and set
    • Possible production days

Analysis of promotions and forecast of promotion sales

To forecast the outcome of promotions, we need the following additional data:

  • A list of all promotions – both those that have already taken place (for analysis of sales) and the future ones (to forecast sales). Promotions must display an attribute product / warehouse / promotion. Furthermore, the most important attributes of the promotions (that we need) are:
    • Promotion ID / Product ID / Warehouse ID
    • Promotion Name
    • The date of the promotion (from – to)
    • Promotion type
    • Promotion attributes (flyers, secondary location)
    • Sales prices (the normal sale price of the product vs. the promotion sale price)
    • Purchase price (the normal purchase price of the product vs. the promotion purchase price)
  • Stock transactions: To help an automated evaluation of the promotion’s effects, it is useful to link a sale to a promotion within a stock transaction.