One of the most common questions our team get’s asked is “Why do we need EazyStock when we already have a stock and order management system?” so we’ve written this article to explain how EazyStock differs from your typical stock ordering system and what value it can bring to your business.
Most stock and order management systems are usually part of ERP or WMS software. They’re often an excellent way to track stock items and manage sales and purchase orders. However, despite improvements in their capabilities, there isn’t one with the ability to dynamically optimise inventory levels across your supply chain.
When we talk about ‘optimising inventory levels’ we’re referring to the concept of achieving high levels of stock availability with the lowest possible investment. Our post on ‘what is inventory optimisation‘ goes into further detail.
Some stock ordering systems include basic demand forecasting and stock planning functionality, but they often rely on manual data uploads to carry out any calculations.
For example, in the ERP Microsoft Dynamics NAV you can set values for reorder points and safety stock levels. But these all have to be entered manually, and will only get updated if you choose to do so, again, manually. This means you need to calculate the desired order quantities of each and every product in your portfolio, enter the values into the system, and then keep track and update them when something changes.
This might be manageable when you have a handful of products, but as your business and product portfolio grows, the snowball effect often kicks in.
Out of control inventory management can mean you’re soon faced with costly excess inventory that affects your bottom line, and no effective way to manage it. Or, in contrast, increasing out-of-stock incidents, which lead to unhappy customers and a damaged reputation.
You may have already experienced such issues, or are seeing tell-tale signs that you need to improve demand and inventory planning. Here’s how inventory optimisation software can help.
Every product has a life cycle, from the moment it’s introduced to the market, through to its maturity stage and into decline.
As products move through this life cycle their demand pattern changes, meaning some products will have stable demand, whilst for others it will be more erratic.
EazyStock tracks these changes and automatically adjusts the forecasting calculations accordingly. EazyStock not only classifies the products into nine different demand types, but also uses value of annual usage and number of picks. This means demand forecasting is very precise and feeds back into your stock ordering system for purchase orders to be raised.
Successful businesses need to have the right products in stock to meet customers’ delivery expectations. But at the same time they don’t want to over-invest in stock that could harm cashflow if it fails to move off the shelves.
EazyStock takes your target service levels and works back to tell you how much stock you need to carry and when to order it to achieve these levels. In short it helps you improve your stock availability.
How much would it cost to raise your service levels by 5%? What impact would that have on your company’s finances?
Many businesses find it difficult to predict the impact that improving stock availability could have on their cashflow. Or, in contrast, how cutting their stock investment could affect fulfilment.
With EazyStock’s live service level simulation you can make informed, strategic decisions regarding the service levels to your customers, removing any financial risk as you can test scenarios before actual implementation.
Working with multiple suppliers can be a challenge, but EazyStock makes it easier with functionality like dynamic lead times, order scheduling and order calendars, all of which keep track of production schedules, downtime and holidays.
EazyStock uses the same technology platform as our parent company Syncron, a system used by world-leading enterprises like Toyota, Mazda and Hitachi. The software includes advanced algorithms for demand trends, seasonality, dynamic safety stock calculations and more, and we invest heavily in R&D to make sure our tool is the most powerful on the market.
Typical stock ordering systems require you to check through every order line to make sure you don’t miss anything crucial. In comparison EazyStock will generate alerts so you can manage by exception. This means you get notified when you need to replenish, have demand outliers, or run the risk of a stock out. This makes life much easier, and you’ll get time to focus on more value-adding activities.
EazyStock’s KPI dashboard covers everything you need to track at both product and group level. This includes stock health analysis, service levels and stock turn.
EazyStock connects easily to your stock and order management system, working as a seamless extension. While your stock ordering system keeps track of your inventory, EazyStock makes sure that you have the optimal inventory in stock, automates replenishment and saves you time and money. Service levels typically go up and stock levels down, while purchasing and inventory managers get time for more value adding activities like innovation and strategy.
In today’s digitalised world, it’s not enough to have a rough inventory overview. As product ranges grow and customers demand faster deliveries, you need more precise forecasting to stay competitive. Many of the modern business systems are going back to focusing on their core functionality, whilst building out a network of ERP add ons, offering seamless integrations with best of breed tools. EazyStock is in the sweet spot for this and with our ready-made ERP integration connectors you can start optimising your inventory with a click.