Optimizing Inventory Management in Sage MAS 90 MAS 200
Performance excellence is a process rather than an end result, requiring a business to continuously examine and refine standard operating procedures across the organization. In this post, we focus on the powerful capabilities of the Inventory Management module of Sage ERP MAS 90 and 200 (soon is becoming Sage 100 ERP).
Balance Supply And Demand
The key to reducing costs while maximizing productivity is maintaining a lean inventory. This means having the right products available when customers need them while minimizing the expense of overstocking. To achieve this, you need to get a tight grip on your inventory at every stage of the supply chain, from procurement through production to shipping.
Effective inventory management requires detailed analysis of what to order, when to order it, and where to stock it. Not to mention tracking physical inventory, returns, and detailed information on the items you carry. As your organization gets better at managing inventory, you gain a true competitive advantage. With tighter control of costs, you will find yourself in a position to offer lower prices or faster shipping.
Smart Part Numbers
The Sage ERP MAS 90 Inventory Management module helps you keep inventory organized with intelligent item numbers. Using up to 30 alphanumeric characters, you can embed meaningful information in smart part numbers such as UPCs, a vendor’s number, recycling codes, and special handling requirements information. Pricing, cost, stock, and order information can be tracked for an unlimited number of locations for each item. The inventory status of each item, such as available for sale, not in stock, overstocked, oversold, on hand, on order, committed to sale/production are tracked by location as well.
Extensive reporting capabilities provide the insights you need to optimize stock levels. You easily can monitor the activity, status, valuation, turnover, and month-to-month sales history of any inventory item. Profit analysis of each item and a month-by-month comparison of past pricing, and sales equip you with the big-picture insight into which items to carry and which to discontinue.
To help your staff stay on top of important metrics and to keep stocking levels precisely where you want them, we recommend scheduling alerts using Business Alerts or Sage Knowledgesync.
Leverage The Power Of The Purchase Order Module
When the Inventory Management module is integrated with the Purchase Order module, you can configure key items to be ordered automatically. When your on-hand quantity falls below a specified minimum level, Sage ERP MAS 90 will automatically generate a purchase order according to your specifications to the correct vendor to ensure that you never run out of key items. You can set up price schedules for specific vendors, product lines, or inventory items based on the standard cost or a specified discount method.
Measure Your Results
How do you know if your efforts to achieve a leaner inventory are working? Key metrics within your software can tell you. These include the average age of inventory, the average total value of inventory, and the percentage of total inventory value residing in inactive items.
The Reorder Report lists stock on hand that has reached a specified reorder point. The reorder point is unique to each item at each location. The suggested reorder quantity can be based upon an economic order quantity, maximum stock quantity, or reorder point.
Inventory Turns is another important metric; it compares the cost of sales to the average inventory value, generally over a year’s time. You can use the Inventory Turnover Report to evaluate year-to-date inventory turnover. Analyzing high and low turnover items can help determine which items are overstocked or have a low turnover rate, and which are under stocked or have a high turnover rate. This information enables you to adjust sale pricing and reordering strategies.
The Sales Recap by Product Line report in Sales Order shows sales by product line for the fiscal/calendar year and period/month, with an option to print warehouse sales detail for each product line. The information provided helps you to analyze product sales.
Another way that Sage ERP MAS 90 helps you to optimize profitability is through the flexible pricing features. Pricing promotions allow you to effectively market the products you want to move through inventory to maximize your profitability. Reporting tools within the module give you the insight you need to determine which products you should promote.
Detailed price schedules based on customer price levels and the quantity sold can be created for each item. Prices can be calculated as a discount on the standard price or as a markup of the standard cost and can be calculated based on standard cost, average cost, LIFO, FIFO, and lot/serial methods. Sales promotions and customer contract pricing also can be established. You can set up pricing based on cost plus a percentage or amount. You can assign a series of markup or discount price levels for each item.
Count On Sage ERP MAS 90 (Sage 100) Inventory Management
With easily accessible information, you can make better business decisions about what merchandise to stock and how to price it. Analyzing your inventory history gives you the flexibility to plan special pricing to be more competitive. Taking the time to analyze the information provided by the Inventory Management module can help you formulate new or improved purchasing policies, sales policies, pricing methods, and even enhance customer service.
Are you taking full advantage of the reports and metrics available to manage your inventory effectively?
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