Alternate Storage Location

Logic

  • Find the Oversold SKUs
  • Look for the SKUs with the same Plant, Material, Size with alternate Storage Location for any label where some Stock is available.

 

Data required

Sales

  • SKUs with Open Qty greater than the Stock available with some orders having Requested Delivery Date (RDD) in Past and some of them having in future.

Inventory

  • Stock (i.e, Unrestricted Stock less Allocated + Inpick) to be less than the Sales Open Qty for the SKUs that are to be substituted.
  • Alternate Storage Location with same Plant, Material, Size and have enough Stock to allocate sales order Open Qty and can substitute the oversold SKUs.
    • Some SKUs Alternate Storage Locations nearer to the Ship Location compared to the oversold one where logistics cost can be saved and the deduction in the timeline due to route change is within the RDD.
    • Some SKUs Alternate Storage Locations nearer to the Ship Location compared to the oversold one where logistics cost can be saved and without affecting MABD/RDD
    • Some SKUs Alternate Storage Locations that are farther away from the oversold one where there will be incremental cost for logistics and Incremental Timeline (due to route change) doesn’t impact MABD/RDD.
    • Some SKUs Alternate Storage Locations that are farther away from the oversold one where there will be incremental cost for logistics and but with and impact on MABD/RDD.
AlternateSLocSubstitution

The OpsVeda Outcome –

Gain 2% improvement in operating margin

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