Friday, March 25, 2016

But we really really need it!!

How many of us have heard that phrase while shopping with our kids? You buy the product and it sits on the shelf and no one ever uses it.  Well at home it's only our monthly budgets that get affected, but as a distributor every time a salesman or an inventory manager tells you "We need it!!" , its costing you money.. 

One Solution to the problem... Using your Software Systems analytics tools to find those items and get rid of them. 

 Inventory Management – Explore the expanded purchasing capabilities incorporated into MDS. The objective is to identify the vendors and products in need of replenishment. The Inventory Management module attempts to minimize inventory investment while reducing stock outs and backorders.

The MDS Inventory Management System gives you the Inventory Analysis Tools to identify items that can be eliminated from inventory.  

"The analysis identifies all stock items that are contributing less than 1%, or 5%, or
whatever level you select of the sales.  You could get rid of all those items and risk
losing only 1% of the sales you experienced during the last 12 months.  A branch
manager might really want to argue this statement.  "We have to keep that stock
item to assure that we'll get the good stuff that Company X buys from us !"  No
problem.  Keep it.  Keep every one of the items someone can give a specific reason
for retaining.  But get rid of the rest.  The fact is, they are contributing nothing!
- In too many distributor's inventories, as much as 30% or 40% of the total investment
may be below the 100% sales line.  Zero turns per year.  No sales activity at all.
Obviously, these are the candidates for disposition.  Realistically, you should cut
more deeply.  "

Items below the 98% sales line ought to be dropped from stock as a

general rule. It's a simple rule but without the right analytical tools it may not be a one click easy report. 

Using our Dead Stock Export you can easily send these items off to a number of different industry Inventory Overstock Experts.. for example HIDA Overstock  - 

Turn your idle assets into cash by selling your overstock inventory 

For more information on TSH or MDS call The Systems House, Inc. at 1-800- MDS-5556. Or send a message to
Click here and tell us how we can help you with your business solutions.