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Showing posts with the label Supply Chain Management Metrics

SCM Metrics II – ABC Analysis

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In my earlier post SCM Metrics I – back orders , I covered on how we can track back orders in Dynamics GP for efficient SCM. In this post, I’ll cover yet another powerful Analysis functionality, ABC Analysis available in Dynamics GP. ABC Analysis in Dynamics GP is easier to implement with several options available for us to choose from. Common categorization is A – 80%; B – 15%; C – 5%. ABC Analysis is in its simple form, a way to categorize or group the products. Most common method is to categorize items based on Annual Quantity usage. Dynamics GP ABC Analysis functionality not only provides to categorize items based on Annual Quantity Usage, it also gives other other methods to choose from. Usage quantity (the number of units consumed over a period of time) Usage value (usage quantity times unit cost) On-hand inventory value (on-hand quantity in the Items Quantity Maintenance window times unit cost) Unit cost (the current cost or s...

SCM Metrics – I: Back Orders

Some organizations would not just want to use Dynamics GP for their Financial Reporting purposes. They would also want the Dynamics GP to meet their Operational Reporting needs. Among those Operational reporting needs is the most important chunk, Supply Chain Management (SCM). Dynamics GP offers several reporting features to accomplish these needs. One such feature is Smartlist. I’d discuss several SCM metrics in my upcoming posts and I’ll discuss about Back Orders in this post.  Back orders : Back order can be defined as an unfulfilled customer order. Back orders are created when a SKU(s) whose current inventory level is insufficient to meet the demand. The more the back orders pile up over a period of time, be it in a manufacturing company or a Trading company, implicates that the company is not able to meet the demand on time with its current available inventory. Tracking backorders efficiently ensures an adequate supply of inventory in time equivalent to the current and futur...