Standard Reports

• Daily-Urgent Order Required
• Daily-Reveiw Before Stock Out
• Daily-Move In
• Daily-Move Out
• Weekly-Fast Demand to Forecast this Month
• Weekly-Slow Demand to Forecast this Month
• Weekly-New Items with No Forecast
• Monthly-Recent High Demand
• Monthly-Recent Low Demand
• Monthly-Recent Negative Demand
• Monthly-High Forecast Uncertainty
• Monthly-High Forecast Uncertainty-Seasonal Items
• Analysis-Overstock Items
• Analysis-Days Cover On Hand Above 6 Months
• Analysis-MOQ Higher 6m FC
• Analysis-No Sales Past 6 Months
• Analysis-No Sales Past 12 Months
• Analysis-Closed Items with Stock
• Analysis-Closed Items with Open Purchase Order
• Analysis-Open to Closed
• Order Schedules-All Vendors
• Analysis-Items with Seasonality
• Analysis-ABC Overview
• Analysis-Master Data

One of the key benefits of AGR Dynamics is automating your supply chain processes. A pre-requisite for successful automation is good master data and well-set parameters. Assuming that the groundwork has been laid in demand planning and ordering schedules, the user should expect deviations as business is dynamic and demand will fluctuate.

A proactive way to catch this and stay on top is by applying the ’Manage by Exceptions’ reporting framework. A standard reporting package is included in your AGR setup, these are based on over 20 years of experience in managing the supply chain.

The goal is to highlight so the user can catch deviations before a stock out or overstock situation presents itself.

Like with any business model, it must be tailored to be business specific! Make sure you fine tune the filter parameters, so the reports show you only what truly requires your attention. The portfolio lists 24 reports, you may want to cherry-pick a few or use them all. If you quickly browse through this document looking only at the first lines, the user should quickly see which reports are of interest.

Depending on your company size consider how different departments may benefit from the reports. With our user management system, you can restrict access to the reports or keep them centralized.

The reports are grouped according to urgency and how often they should be reviewed: Daily, Weekly, Monthly, or Analysis.

This documentation takes you through a common way of working across all reports, and subsequently each report is structured in the following way:

1. What the report shows.
2. The goal of the report.
3. What filter parameters are used.
4. What are the action points for the user.
5. Ways of working with the report.

Common Ways of Working

Before studying the details of every report, you should know that there are a few common ways of working with reports. In this section we will explain in detail a few tips and tricks that will be beneficial for the user.

Reports Workspace

When a user opens Reports, all available reports will appear on the screen. By using the report’s Labels, Description and Visibility the user can segment and tailor the report overview.

To de-clutter the view, group by the level you feel comfortable with, e.g. by activity based or report owner.

Filters

Like with any business model, it must be tailored to be business specific!

When tailoring the reports to your business, start by looking at the filters on the right-hand side and consider the number of items that appear in each report. The total number of rows of each report, visible in the bottom left corner, is dependant on the filters. Every report should return a manageable workload, so for example, if a daily report such as “Urgent Order Required“ returns 3.000 item numbers the filters need to be readjusted to reduce the workload.

The default filter is on location type warhouse.

Group By

Users can group together one or more columns in reports, and thereby create a snapshot overview of the business. Forget Pivoting in Excel, you can drag and drop and re-arrange your data right here in our MBE reporting tool.

Creating a group-by overview requires the user to re-arrange columns and check if the numbers are correctly aggregated. Hover over the columns, click on the “hamburger” ( ), select “Value aggregation” and make sure the values are correctly aggregated. For example, a common mistake is to accidentally aggregate by “max”, which displays the highest value of them all, when average or sum would be more appropriate.

The reports in AGR are the heart of the system and offer a broad range of possibilities and can be used for analysing data, reviewing the past, getting oversight and creating orders. Within the reports are many different types of columns and filter types. Below is a list of all the standard columns, note that some of them may not be relevant to your company’s setup. Similarly, your company might have custom columns set up which are not listed here.

Basic Info

• Item id
• Item No
• Location
• Location No.
• Location Type
• Item Name

Details

• ABC
• Article no
• Closed
• Colour
• Description
• Item Group Level 1
• Item Group Level 2
• Item Group Level 3
• Original item no
• Primary vendor
• Responsible
• Sale price
• Size
• Style
• Volume
• Wastage days
• Weight

Replenishment

• Additional lead time
• Confidence factor
• Cost price
• Lead time
• Min order
• Order frequency
• Order from location
• Order multiple
• Primary route
• Layer qty
• Pallet qty

Stock

• Days cover committed
• Days cover on hand
• Days until stockout committed
• Maximum stock
• Minimum stock
• Date of next expected delivery
• Optimal stock
• Stock value
• Stock turnover
• Stock units
• Stockout expected for undelivered items
• Stockouts last 12 months
• Undelivered qty

Sale

• Avg sales last 12 months
• Cost value last 12 months
• First sale date
• Last sale date
• Sale qty last 12 months
• Sale qty last 3 months
• Sale qty last 6 months
• Sale qty last month
• Sale current month to date
• Sale value last 12 months
• Sale value last 3 months
• Sale value last 6 months
• Sale value last month

Forecast

• Forecasted demand order period
• Forecasted demand current month
• Forecasted demand next 30 days
• Forecasted demand current month to date
• Forecast next 30 days
• Forecast next 7 days
• Forecast for order period
• Forecast uncertainty
• MAPE
• MAPE Category
• Safety stock for order period
• Seasonality
• Skip forecast date

Below is a list that lists all the standard and non-standard filters within the AGR system.

Basic Info

• Item id
• Item No
• Location
• Item Name

Details

• ABC
• Article no
• Closed
• Colour
• Description
• Item Group Level 1
• Item Group Level 2
• Item Group Level 3
• Original item no
• Primary vendor
• Responsible
• Sale price
• Size
• Style
• Volume
• Wastage days
• Weight

Replenishment

• Additional lead time
• Confidence factor
• Cost price
• Lead time
• Min order
• Next order date
• Order frequency
• Order from location
• Order multiple
• Primary route
• Layer qty
• Pallet qty

Stocks

• Days cover committed
• Days cover on hand
• Days until stockout committed
• Maximum stock
• Minimum stock
• Stock value
• Stock units
• Stockouts last 12 months
• Undelivered qty

Sales

• Avg sales last 12 months
• First sale date
• Last sale date
• Sale qty last 12 months
• Sale qty last 3 months
• Sale qty last 6 months
• Sale qty last month
• Sale value last 12 months
• Sale value last 3 months
• Sale value last 6 months
• Sale value last month

Forecasts

• Forecast next 30 days
• Forecast next 7 days
• Forecast for order period
• Forecast uncertainty
• MAPE
• MAPE Category
• Safety stock for order period
• Skip forecast date

For further explanation on some of this information, see Appendix.

Advanced Filters

The advanced filter is a versatile tool that enables you to extract exactly the information you are looking for. They might seem intimidating at first due to their raw format, but fear not - the following table provides a few helpful tips that can be used to get the most out of them.

Advanced filters use SQL syntax, the table is not an exhaustive list of functions but does cover the most frequently used methods. You can absolutely use AGR’s reporting tool without ever using advanced filters, the standard reports that rely on them already have them prepopulated for your convenience.

A practical example of why you would need an advanced filter would be multiple item numbers in a report. Here you would do the following steps:

1. Select from Filters, an Advanced Filter.
2. From the drop-down, select Item Number, then this text will appear items.item_no
3. Then you simply add ‘in’ and the item numbers in this format (‘12345’, ‘12543’, ‘12987’, ‘12678’)

In the following table, you can find a few tips that can be used while creating advanced filters:

1.01 Daily - Urgent Order Required

This report shows items that are already or about to go out of stock.

Goal/Purpose: The goal is re-order the goods to avoid or minimize the stock out period.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR
2. Undelivered = 0. This excludes items that have are on order.
3. Forecasted demand is greater than 1 over the next 30 days. This excludes non-selling items from the report.
4. Advanced Filter: Days cover on hand is less than the supplier’s lead time, plus 3 days.
5. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action Points

• Start the day by opening the report and scroll through the items viewing the item card graph.
• Fast track: use the group by function (primary vendor) or (order by location), take a screenshot, run order proposals.
  • Open report 5.01 All vendors (to include all items from the suppliers, not only the urgently needed ones.
    • Filter on the suppliers that need ordering from (looking at your screenshot).
    • Tick the items you want to order, create an order proposal.

Way of Working

• When you open the report for the first time it’s good to evaluate the information columns, drag & drop, add, delete until the view suits your preferences. Don’t forget to save once you’re done.
• Overview: It’s always good to start by getting a snapshot overview of the report content.
  • Use the “group by function” where you simply drag & drop the column to the top left corner where it says: “Drag here to set row groups” , try out columns like Primary Vendor, Location, Responsible and Item Group.
  • Group as many columns as you see beneficial.

To get an overview: drag and drop a column to set a row group

Group by as many columns as you see beneficial - depending on the columns next to the report you can get the cost sum, item count etc.

• Limit your search results by enabling the column filter you will see filter options open for each column in the report. This is useful when working with the report for example to limit the search results to a certain item group, a responsible purchaser, a vendor.

• Prioritize on high runners: use columns like “cost value..” “sale value last 12 months” and sort in descending order by clicking the column header. If you have limited time to re-order then at least make sure to re-order the items that have the biggest impact on your revenue stream.

1.02 Daily - Review Before Stock Out

Goal/Purpose: Avoid stock out on your high runners/ most valuable items.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR
2. ABC = A. A-items represent 80% of your business (revenue/quantity/ profit, depending on your setup)
3. Undelivered = 0. This excludes items that have are on order.
4. Advanced Filter: Stock units are below 50% of the defined safety stock for the order period. (Order period = order frequency + supplier lead time)
5. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action points

• Start the day by opening the report and scroll through the items viewing the item card graph.
• Fast track: Use the group by function (primary vendor) or (order by location), take a screenshot, run order proposals.
  • Open report ‘5.01 All vendors’ (to include all items from the suppliers, not only the urgently needed ones.
    • Filter on the suppliers that need ordering from (looking at your screenshot).
    • Tick the items you want to order, create an order proposal.

Way of working (same as report 1.1)

• When you open the report for the first time it’s good to evaluate the information columns, drag & drop, add, delete until the view suits your preferences. Don’t forget to save once you’re done.

• Overview: It’s always good to start by getting a snapshot overview of the report content.

  • Use the ‘group by function’ where you simply drag & drop the column to the top left corner where it says: ‘Drag here to set row groups,’ try out columns like Primary Vendor, Location, Responsible and Item Group.
  • Group as many columns as you see beneficial.

• Limit your search results by enabling the column filter you will see filter options open for each column in the report. This is useful when working with the report for example to limit the search results to a certain item group, a responsible purchaser, a vendor.

• Prioritize on high runners: use columns like “cost value..” “sale value last 12 months” and sort in descending order by clicking the column header. If you have limited time to re-order then at least make sure to re-order the items that have the biggest impact on your revenue stream.

1.03 Daily - Move In

This report shows items that you have already ordered but will run out of, before the goods arrive.

Goal/Purpose: Avoid stock out, ask the supplier to expedite the PO.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter shows all open/active items in AGR
2. Advanced Filter: Days cover until stockout committed are less than days cover committed, see below image.
3. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action Points To elaborate on the advanced filter in the report

• Purchase order will arrive after a stock out has occurred: contact supplier and ask him to expedite the order, if potential sales value or impact of stock out outweighs the logistic cost of a rush order.
• Purchase order quantity wont cover the demand for the order period: issue another PO

Way of Working:

• Sort on highest value items first
• Use the group by function to get an overview on, for example, supplier level

Group by Primary Vendor

• Scroll through the items while viewing the item card graph and assess the status.
  • Below is an example of an item that will go into stockout in week 17, there is an undelivered purchase order that will arrive in week 19. Therefore this item shows up in the report, unless you take action, the item will be in stock out for a period of two weeks.

Item card show a pending stock out and PO that will arrive 2 weeks later.

1.04 Daily - Move Out

This report shows items that have an undelivered purchase order that will introduce an excess amount of stock.

Goal/Purpose: Avoid overstock, delay the incoming goods to protect your working capital.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. To include open/active items in AGR
2. Stock out expected before next delivery = 0. This filters out items that are expected to be out of stock out before the next PO arrives
3. Advanced Filter: Available stock + undelivered stock covers over 130% of the demand + safety stock for the order period (lead time + order frequency). The % level should be adjusted to what your company considers overstock.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action Points

1. Contact your supplier and ask him kindly to delay or cancel the PO, depending on the stock/demand situation.

Way of Working

• Prioritise by sorting on highest days cover committed, to start with the items that will create the most excess stock.
• Group by vendor to get an overview.
• Scroll through the items viewing the item card to assess the overstock coming in.
  • In the picture below, you can see an item that has three undelivered PO’s which, if not postponed, will introduce 18 months of stock coverage.

Item that will have overstock if PO is not moved out.

2.01 Weekly - Fast Demand to Forecast this Month

This report shows items that have a sale spike in current month, 3x higher than forecast.

Goal/Purpose: Demand managment, Avoid stock out. Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter shows all open/active items in AGR
2. Primary route = 1 (this is the selected order route, to avoid duplications in case you have set up several suppliers per item in your ERP system)
3. Advanced Filter:
   • Actual sales are three times higher than forecasted in current month.
   • Lead time is 21 days or less.
   • Items first sales date is at least 3 months old ( to filter out new items).
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action points

• Review the report on weekly basis.
• Place purchase orders as needed to avoid stock outs.
• Adjust the forecast if needed.

Way of Working

• Sort on highest selling items, such as column ‘Sale to date Current month’
• Scroll through the items viewing the item card.
• Group by responsible if you work decentrally.
• Relatively new items are likely to pop up in this report where sales are picking up
• Adjusting the forecast: If the item recently had a stock out or a demand spike this will skew the forecast.
  • Stock out: edit the sales history and create adjusted sales.
  • Sale peak: edit the sales history and move the spike down to reflect average demand See item card image below where february spike has been lowered.

Edit Sales History

Item card with demand spike

Order more

• Look at stock units, days cover on hand, and the item card graph to assess if you need to order more.
• Open column filters and filter Days cover on hand to for example ’less than’ 20 days
  • This narrows your search result to items in need of ordering.
  • Now group by primary vendor to get an overview.
  • Sort descending on column ‘Sale to date in current months’

• This returns a prioritised list of vendors according to highest selling out of stock items.

When grouping: Make sure your number columns are ‘value aggregated’ on sum.

2.02 Weekly - Slow Demand to Forecast this Month

This report shows items that sold slower than what was forecasted for the current month.

Goal/Purpose: Demand management, Avoid overstock.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter shows all open/active items in AGR.
2. Stock Units are at least 1 piece, this excludes items that aren‘t selling due to out of stock situations.
3. Advanced Filter: Sale to date within current month is three times less than what was forecasted.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action points

• Review the report on a weekly basis.
• Assess the demand pattern and urgency of action.
• Influence sales, for example: item store location, price level, promotion.
• Look for stock out causing slow demand.

Way of working

• Overview
  • ‘Group by’ drag & drop the column to the top left corner where it says: “Drag here to set row groups,” try out columns like Primary Vendor, Location, Responsible and Item Group.
  • Group as many columns as you see beneficial.
• Items that need replenishment to boost demand
  • Sort on lowest stock units and look for items that might need replenishment
• Items with high stock value and an undelivered purchase order:
  • Filter on undelivered qty: ‘Greater than 0’
  • Sort on highest stock value
• This selection will prioritise items that you can prevent further overstock by delaying/cancelling undelivered purchase orders.

2.03 Weekly - New Items with No Forecast

This report shows new items that have no forecast.

Goal/Purpose: Lifecycle management / item phase in process. Secure that items will be ordered and allocated if needed. When new products are introduced, demand must be estimated, without the help of historical sales data.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter shows all open/active items in AGR.
2. Forecasted demand = 0
3. Advanced Filter: Item’s first sale date is within the last 3 months or have never sold.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action points

• Review the report on weekly basis to control the item phase in process.
• Create demand.
• Create purchase orders.

Way of working

• Make the first PO. Use column filters to see ratio of items with stock or with no stock.
  • Filter stock units = 0 or ‘Greater than = 0’
  • Watch the count in „Filtered in the bottom right corner.
  • ‘Total Rows’ (in the bottom right corner) displays the total results in a report, regardless of column filters. The filtered result shows the narrowed search results introduced by column filter values.
  • You may want to create PO‘s for items that have no stock, no undelivered PO.

• Create demand
  • Planner:
    • Create demand in the data series: Baseline plan.
    • On your preferred level, item, item group, location, etc.

• Connected items:
  • Similar items manually connected.
    • Item to item, i.e. iphone 11 to iphone 10
  • Item group profile
    • i.e. Raincoats women
  • Items with a “replacement items” in ERP system will be prepopulated in the connected item view.

• Manually
  • Open the item card Grid, create one sale point in the previous month, generate a statistical forecast in the system.
  • In retail; Create a purchase order and secure allocation to stores to trigger sales.

3.01 Monthly - Recent High Demand

This report shows items where last month sales is 3x higher than last 12 months average.

Goal: Demand management, replenish in time (a spike in demand can cause a stock-out).

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter shows all open/active items in AGR.
2. Primary Route = 1. This filters on the selected order route, to avoid duplications in case you have set up several suppliers per item in your ERP system.
3. Advanced Filter:
   • Item sale qty last month was 5 or more units.
   • Last month sale was three times higher than the average monthly sale last 12 months.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Review the report on a monthly basis.
• Analyse the demand pattern: a single demand spike or an upward trend in demand.
• Send out purchase orders as needed.

Way of working

• Filter zero on stock units and undelivered to prioritise on potentially the most urgent items.
  • Group on vendor
  • Create a PO if needed
  • To re-order use report ‘5.01 All vendors’ to include all items from supplier in PO
• Sort on highest ‘Sale qty Last Month’
  • Browse through the item numbers looking at the item card to assess if the forecast needs subjective adjustment.
• Temporary increase in demand, for example due to promotions
  • Edit sales history and drag the sales spike down if future demand is more likely to reflect demand prior to promotional activity.

Item card: sales spike due to promotion activity, create a higher forecast going forward than actual demand.

Item card: Monthly sales show a sales spike which calls for high safety stock levels.

Same Item card now in weeks: This view gives better transparency that sales are not steadily increasing but there was a sales spike which has evened out. Short term: order more frequently to maintain stock levels. Long term: there is no need for a higher safety stock level.

Item card: Seasonal product (easter eggs) that has less than 24 month sales history. Action: create a sales point in easter of 2018 so the forecasting engine can pick up seasonal pattern.

3.02 Monthly - Recent Low Demand

This report shows items where last month sale is less than one third of last years average.

Goal: Avoid overstock.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Items that had last month sales level that was less than one third, of last years monthly average sale.
3. Items sold more than 10 pieces last month.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Monthly review
• Look for items that need replenishment (low stock levels)
• Look for items with enough stock and declining demand
  • Evaluate the safety stock level (Confidence factor)
  • If an order is on the way try to postpone or cancel
• Evaluate if a boost in demand is applicable via promotion or discount
• Evaluate if the item should be discontinued and remaining stock sold on discount.

Way of working

• Open the item card
• Open column filters
• Items in stockout: You can‘t sell what you don‘t have.
  • No stock: Limit the report to ‘1’ in ‘Stock units’ this filter returns items that are likely to have low demand due to stock-out, it‘s good to run through the items viewing the item card.

Item Card: No stock but an order on the way (undelivered in dark blue)

• Add a zero filter in ‘Undelivered qty’ the search returns items that must be re-ordered, unless the plan is to discontinue the item.

Stock out and no order on the way

• Low demand and stock on hand
  • Sort on highest ´Stock value´to prioritise your work on items that have the biggest impact on your working capital (money tied in inventory).
  • Misc reasons can be for a recent low demand:
    • Seasonal item: check if there is 24 month sales data in place, the forecasting engine needs 2 years of historic sales to pick up seasonality. ( see example of sun screen below)

Item card showing a season item (sun screen)

Item card shows a product with reduced demand, an undelivered purchase order will introduce overstock situation. In this case, the supply will cover 2 years of demand.

• Demand has been stable, then there is a sales peak then a stock-out: in this case it is useful to edit sales history and drag the sales peak down and add a sales point during stockout. This lowers the needed safety stock level to meet demand swings.

Sales peaks that create high safety stock levels.

3.03 Monthly - Recent Negative Demand

This report shows items that customers are returning. Note: a special data transfer must be in place to see customer returns in AGR Dynamics.

Goal: See number of items that have higher returns last month than actual sales.

Filters: (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Returns higher than sales last month = Yes
3. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Investigate why customers are returning products.
  • Could be a quality issue, due to product handling at customer or a production issue at the supplier.
• Use as leverage for negotiations with supplier, number of returns as % of total sales.
• Overview of recalls
• Evaluate if the product should be discontinued from the product range.

3.04 Monthly - High Forecast Uncertainty

This is one of the most important reports, it shows items with high forecast uncertainty which will introduce purchase order proposals that are likely to be over 400% off.

Goal: Demand management, review inaccurate demand forecasts and prevent high safety stock level.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Forecast Uncertainty = 400 or more. This includes items that have over 400% forecast deviation between actual sales and the demand forecast.
3. Seasonality = 0. This excludes items that have a seasonal sale pattern.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Look for high safety stock levels, consider cost of keeping them vs the cost of a potential stock out. Correct the safety stock level via editing sales history or adjusting the confidence factor.
• If recent demand pattern has changed, the forecast calculation period can be adjusted by using the field “Skip forecast to date,” enter the start date you want the forecast calculation to build on.

Way of working

Evaluate safety stock level

• Sort descending on safety stock (highest first)
• View the item card
  • Look for items with an unreasonable safety stock level compared to expected sales.

• Evaluate the confidence level, see item card image below: Confidence level is 99% and see corresponding safety stock in the blue dotted line.

Item card shows a product with a high safety stock level.

• Another way to reduce safety stock is to look for a sales peak, click on edit sales history drag the sales peak down to reflect average demand. It’s good for transparancy to write a comment.

Item card shows a product with a sufficient amount of safety stock (the dotted blue line), Sale peaks have been adjusted

3.05 Monthly - High Forecast Uncertainty - Seasonal Items

This report highlights items with a highly uncertain demand forecast. Like report 3.7, this is one of the most important reports to review. A regular review of this report will increase the accuracy of purchased quantity resulting in more accurate stock levels.

Goal: Demand management, prevent high safety stock levels

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Forecast Uncertainty = 400 or more. This includes items that have over 400% forecast deviation between actual sales and the demand forecast.
3. Seasonality ranges from 1 - 2. This includes items with a seasonal demand pattern.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• New items, edit sales history and add one sales points in the previous month.
• Look for high safety stock levels, either edit sales history by lowering sales peaks or adjust the confidence factor.
• Be careful adjusting the time period that the forecast is based on, “Skip forecast to date” as seasonal items need a minimum of 24 months sales data to pick up seasonal trends.

Way of working

• Start by adjusting the item card time period to 24 month sales history and 12 month demand forecast.

Item card shows an item with seasonal sale pattern.

Item card shows a seasonal item with overstock out of season period. The goal is to have the right amount of stock for each season.

4.01 Analysis - Overstock Items

This report shows items with more than double the demand for the order period.

Goal: Manage overstocked items

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR
2. Stock value is over 1.000, This filters out some C-items that have low holding cost, depending on the currency this figure should be tailored to fit your business.
3. Advanced Filter
   • Items first sales date is at least 3 months old Or Items have a first sale date, this filter excludes new items.
   • Stock units are more than double the demand for the order perod (supplier lead time + order frequency).
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Reduce stock: lower order sizes and order frequency.
• Clear stock: run a promotion or put items on discount.
• Check with supplier if possible to return some stock and recieve credit.
• Analyse the root cause of the overstock.
  • Is the sales history data reflecting forecast going forward or should these items be subjectively planned as well.
  • Are users adjusting the order proposal frequently?

Way of working

• See the total rows that the report returns, adjust the stock value filter until you get a manageble number of items in the report.
• Sort on highest stock value.
• View the item card to see the stock and demand pattern.

Item card shows a product with 16 month of stock cover, where the order period is 15 days: order frequency = 14 days and supplier lead time =0.

Item card shows a product with 8 month stock cover. The system is set for order frequency of 30 days and supplier lead time of 5 days.

4.02 Analysis - Days Cover on Hand above 6 Months

This report shows overstocked items where active sales items have over 6 months stock cover.

Goal: Supply management, review and take action to correct order parameters/schedules as needed.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Forecasted demand next 30 days is 1 or more. This filter excludes inactive sales items
3. Advanced Filter:
   • First sales date is more than 3 months ago OR there is a first sale date. This is to exclude new items that have never sold.
   • Days cover on hand is more than 6 months
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• If the items are at risk of obsolesence put them on promotion or discount.
• If there is an undelivered purchase order, try to delay delivery or cancel the order.
• Look for preventive ways to avoid overstock.

Item card shows a new pattern in stockpiling.

Item card shows a product with roughly a year’s supply cover and a purchase plan to replenish within a month.

Item card shows a product with regular and recurring sale pattern that used to have monthly stock replenishment and turnover rate of 10-12. Now the product is overstocked with a turnover rate of 1.

4.03 Analysis - MOQ Higher 6m FC

This report shows potentially overstocked items where the suppliers minimum order quantity creates 6 months of stock.

Goal: Highlight items that will inevitably cause an overstock and reduce your overall inventory turnover rate.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Forecasted demand next 30 days is greater than 1. This excludes inactive items from the report.
3. MOQ in days is greater than 180. This includes items that have a supplier setup that introduces a minimum of 6 month stock keeping.
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Contact the supplier, re-negotiate a more appropriate order quantity.
• Find an alternative source of supply with a moq that fits your business.

4.04 Analysis - No Sales Past 6 Months

This report shows items that have not sold in 6 months.

Goal: Lifecycle management: Decline phase.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Sale Qty. Last 6 months is less than 0.
3. Seasonality = 0. This excludes items with a seasonal demand pattern
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Analyse why the item is not selling.
  • If item was a high runner, then identify whether this is a temporary demand stop or if there is a replacement item in the shops.
• Evaluate if the items should be closed and stock cleared.

4.05 Analysis - No Sales Past 12 Months

This report shows items that have not sold in 12 months

Goal: Lifecycle managment, decline phase: manage your non-selling items.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Sale Qty. Last 12 months is is less than 0.
3. Advanced Filter: Excludes new items
   • First sale date is more than a month ago OR there is a first sale date
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Analyse why the items aren‘t selling.
• See if you can impact demand (relocate product in the shops, run a promotion)
• If the item should be discontinued from product range, close the item, clear the stock.

4.06 Analysis - Closed Items with Stock

This report shows items that are closed in the ERP system but have stock count.

Goal: Manage your item base, clear the stock of closed items.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Stock units are greater than 1.
3. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Put stock on sale (disocount)
• Transfer stock to an alternative item number
• Write off stock

Way of working

• Group by location, add column: stock value = view stock value on closed item numbers.
• If you have limited time, then sort by highest stock value.
  • View top 10 item numbers
  • View item numbers that represent 80% of stock value
• Look at last sale date. Evaluate if items should be truly be closed.
• Evaluate if stock should be transferred, or if they are automatically counted out until new alternative/replacement item takes over.

4.07 Analysis - Closed Items with Open Purchase Order

This report shows items that are closed in the ERP system but have an open PO.

Goal: Item base management: Close open purchase orders on closed item numbers.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Undelivered is greater than 1, this means there is at least one piece on order from the supplier.
3. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Make sure item numbers should be closed.
• If the purchase order is received then simply close it, you might need to check with finance.
• If the purchase order has not been received, check if it is in process at your supplier and see if you can cancel it and close the PO.
• If you can not cancel the PO, then you might need to re-open the item number so you will be able to receive it, consider putting the order volume straight to discount in store or simply write it off and re-close the item.

4.08 Analysis - Open to Closed

This report shows non active sales Items that have not sold in 12 months and have no stock.

Goal: Lifecycle management.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Stock units = 0
3. Sale qty last 12 months = 0
4. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Analyse if the items should be closed.

Way of working

• Use the group by function, use column ‘Responsible’ (if the work should be delegated)
• Sort by last sale date, you might find items that have never sold.
• Open item card and run through the items.

5.01 Order Schedules - All Vendors

This report shows all open vendors.

Goal: A single report that has multiple purposes, one would be to make rush orders from selected suppliers. You could utilize the report to do spend analysis, or value analysis, like top 10 suppliers

Filters (Remember to tailor these to fit your business)

1. Item numbers are open (closed = 0)
2. Location = Warehouse

Action plan

• Use the order schedule group for all your order schedule reports.
• Use this report as a base, add filters and click “save as” and add reports to your order schedule.
• Ad hoc ordering
• Supply base analysis

Way of working

• Group by function creates overview
  • ABC: shows most valuable items
  • Primary vendor: depending on the columns you choose, for example ‘Sale Value Last 12 Months’ you get an overview of the most valuable supplier relationships.

5.02 Analysis - Items with Seasonality

This report shows all items with seasonal demand.

Goal: Available report for misc purposes, identify items with seasonal sale pattern.

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Seasonality ranges from 1 to 2, this includes items with a seasonal demand pattern.
3. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

5.03 Analysis - ABC Overview

This report shows all warehouse items and their: ABC classification; sales value; qantity sold last 12 months; stock units; days on hand; and optimal stock.

Goal: A high level overview of the (80/15/5) ABC classification, where you can see which items return 80% of your turnover. ABC classification is a management tool to help prioritise work and define customer service levels according to the business impact of items, vendors, location or customers.

ABC inventory classification systems are widely used by business firms to streamline the organization and management of inventories consisting of large numbers of distinct items, referred to as stock-keeping units (SKUs). Usually, the structure and implementation of such systems are based on guidelines, or rules of thumb (Martin, 2007. Journal of Management Mathematics.)

Filters (Remember to tailor these to fit your business)

1. Closed = 0. This filter includes all open/active items in AGR.
2. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

In AGR we recommend setting the confidence factor in line with ABC classification to secure that the items that have the biggest impact on revenue have the highest service level, while the majority of item numbers that only return 5% of your turnover have a lower service level. This secures your your safety stock is put in the right places to achieve item availability and maximize sales.

Action plan

• High level overview: vendors, item groups that have the biggest impact on business.
• Analyze customer service level: confidence level impact on safety stock and cost.
• Use as follow up after applying the ABC analyzer tool.

Way of working

• High level overview, Group by ABC:
  • Get an overview of value, quantity and item count in each classification
    • Start by grouping the ABC column and then simply drag and drop sale value 6 sale qty columns, see the below picture.

• Next image groups two columns: ABC and Primary Vendor, expand on A – classificaiton and a list of your top vendor is ready.

• Now turn the grouping aorund: 1st on Primary vendor and 2nd on ABC, this classifies the product portfolio within each vendor into ABC items.
  • Sort on highest value to see your top vendors first.
  • This is useful to see which items are most valuable.
  • In the screenshot below, the top vendor has 57 items that return 80% of the sales while 422 items return 5% of the vendor related turnover.

• Avoid excessive safety stock
  • Add the Confidence factor and MAPE columns to the view and look out for high confidence factor and a high average MAPE.
    • (MAPE = mean average percentage error)
    • In red in the below image: A items have an average MAPE of 256 = demand fluctuates 256% from average demand.
    • To deep dive, and locate big error items, simply expand the > A grouping
  • The goal here is to lower the confidence factor of an expensive item with lumpy demand, enabling a reduction in the safety stock, which in turn allows for a reduction in inventory investment, which produces competitive advantage.

• Evaluate on a high level if the ratio is healthy between:
  • Annual sale value vs current stock value, in green.
  • Annual sale quantity vs current stock keeping units, in orange.
  • Forecasted demand for Order Period vs Safety stock, in blue.

ABC to improve Inventory Turnover defined as the number of times per year a company will sell the average inventory (with both sales and inventory valued at cost).

• Add columns: ‚days cover on hand‘ to your report and ‚value aggregate on average‘ to reflect the stock keeping level on each class of items.
• Increase the order frequency of A- items and consider lowering it on C-items.
• This will offset A-items higher inventory holding costs, C-items ordering & logistic cost, and effective overall inventory cost management will be obtained.

5.04 Analysis - Master Data

Goal: Master data management: Overview on MD completeness, identify sectors of data in need of data enrichment.

Columns

1. Item No.
2. Item Name
3. Primary Vendor
4. Lead Time
5. Confidence Factor (safety stock)
6. Min Order
7. Order Multiple
8. Cost Price
9. Sale Price
10. Weight
11. ABC

Filters

1. Closed = 0. This filter includes all open/active items in AGR
2. Location type = Warehouse. This focuses the report on vendor purchases and excludes shop replenishment needs.

Action plan

• Identify items in need of master data enrichment
• Assess effectiveness of internal master data input processes

Way of working

• The columns define the master data focus, add or delete columns, drag and drop and save your preferred view.
• When assessing Master data completeness a quick browse of columns by sorting in ascending and descending order will highlight gaps in data.
• Group columns to get an overview