Warehouse Ranking
| Document Version | v.2 |
|---|---|
| Document Last Updated | 5/29/2024 |
| Software Version Documented | v.9.9.2 |
Overview
The goal of this document is to explain how our Warehouse Ranking functionality works within the Savance Enterprise system. Warehouse Ranking allows a user to view how fast their inventory is selling by ranking how many times the item has been entered on an order. Warehouse Ranking in conjunction with Purchasing Rules will also allow buyers to have a streamlined approach when purchasing.
NOTE: The system uses a rolling 1 year to date formula to calculate hits and hit percentages (e.g. 7/8/2024-7/8/2025), and this is not configurable.
Warehouse Ranking
To view the Warehouse Ranking screen you can follow two paths. From your menu go to Purchasing > Warehouse Ranking, or you can select to view this screen from Purchasing > Purchasing Manager > Warehouse Ranking.
By default, we have configured 5 rank codes A (fastest selling item) - D (slowest-selling item) and X (has not been sold at all). You can add/edit or delete any of the Rank Code information, Warehouse location, and description. NOTE: If you have created a purchasing rule with a rank code, you will not be able to change the name of the code until you cancel the purchasing rule.
Creating Ranks & Rules
Using the same functionality as Purchasing Rules you can create or edit on how your inventory will be ranked based on your organization's needs.
First, you will want to Add a Rank or configure an existing.
To add a Rank, click on Add Rank
To configure the Group Type click the Add Group button. There are two types: Match All (AND) or Match Any (OR). As the name suggests, this determines whether all corresponding fields need to be matched or whether only one of them needs to be matched. So if you have a Match All (AND) group with 3 fields, all 3 fields must be met in order for the rule to apply. If you have a Match Any (OR) group with 3 fields, only 1 of all 3 fields must be met in order for the rule to apply. You may add a combination of AND and OR groups, and there is no limit to how many groups you can add to the rule.
The Field is the most important part of the criteria to determine what items will apply. These can be added by selecting a group and clicking Add Criteria. A list of all available fields are below, with a description of each:
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MFG Code: This is a manufacturer’s shortcode.
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Part Number: This is the name of a specific part number. Remember that you can also use "contains" to (for example) have all items that contain the text "ABC" apply to this rule.
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Description: This is the description for a part number.
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UPC Symbol: This is the UPC Symbol, which is defined during the creation of a Part Number.
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Discount Code: This is the discount code that is set in the Pricing section of the Item Manager.
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Velocity Code: This is the Velocity Code specified for the item in Item Manager > Warehouse > Classifications
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Product Type: This is the Product Type specified for the item in Item Manager > Warehouse > Classifications
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UNSPSC: This is the UNSPSC (United Nations Standard Products and Services Code) specified for the item in Item Manager > Warehouse > Classifications
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Category Code: This is the Category Code specified for the item in Item Manager > Warehouse > Classifications
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UD Classifications: These are the optional "User Defined" classifications or codes specified in Item Manager > Warehouse > Classifications.
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UD Costs: These are the "User Defined" costs specified in the Item Manager. By default these will be named "UD Cost 1", "UD Cost 2", etc; however, keep in mind that these can be renamed if necessary (so they would show up with a different name in this list in that case).
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Trade Cost: This is the trade cost that was either imported for this item or is specified in the Item Manager
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True Cost: This is the true cost that was either imported for this item or is specified in the Item Manager
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On Hand: This is the quantity of items on hand in the specified warehouse
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Value: This is the Mean Daily Usage * Cost / On Hand. So if you sell 10 of a $3 item per day with 6 currently in stock, then Value = 10*3/6 = $5.
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Hits: This is the number of times the item appears on the order.
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Stock: The status of the item meaning if you “stock” the item regularly
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Hits Percentage: The percentage value of how many times an item has been added to an order
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Days Of Inactivity: How many days has this item had no activity
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Location On Hand: Where the item is located.
Once you’ve created the groups and selected criteria for each one you will then need to change the Equality and
Value columns for each field. Example 1: You want to monitor a discontinued manufacturer’s line,
here is how my group values and criteria configuration will appear
So from my example above, I want to view all items with an on-hand quantity less than 5 from manufacturer DELTA.
**
Example 2:** You want to create a rank to monitor all fast-moving, high-dollar items. After you’ve created your rank.
Set the groups and criteria to the following.
So from this example, I want to view all items with a cost of over $1000 that has hits on an order
greater than 3 times.
Our system also comes with two predefined templates you can use to override the default ranks.
Hits Percentage Range and Hits Percentage Values. If you choose to override using these templates for any
of these default ranks the data will be replaced with the new values.
If you decide to “Process Ranks Now” please know this is an extensive task that typically runs after hours each day.
If you need to process the ranks before the daily update this can take up to an hour and may affect your
system's performance.
Viewing Rank Hits
Once the ranks have been processed you can view the items that fall within each rank. In the Warehouse Ranking screen select the number link under the ‘Number of Items’ column.
Next, you’ll be placed in the ‘Your Rank Name’ Rank Items with additional filters you can use to load a list of the items that apply.
After making your filter selection, select the ‘Load’ button. After the system completes the search your results will appear on this screen. NOTE: This page will not automatically load all results and you must select the ‘Load’ button. Depending on your filters this search can take a few minutes to populate.
Alternatively, you can view the Warehouse Rank while in the Item Manager > Warehouse Tab in the Inventory Control grid. As well as within Critical Purchasing.
Purchasing Rules using Whse Ranks
A warehouse rank can also be used when creating Purchasing Rules. To get started go to Purchasing > Purchasing Manager > Purchasing Rules
By default, we have preloaded two rules for you.
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Set item Inactive if days of inactivity are more than 180 days.
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Set item Active if days of inactivity is less than or equal to 180 days.
To create a new rule using warehouse ranks select ‘Add Rule’
You can select a single manufacturer to apply this rule to, or you can apply it to all. Next select ‘Add Group’
Just like creating rules within the Warehouse Ranking you will need to fill out your Group Type and Criteria using the Field, Equality, Value drop-downs. Example: You want to create a group of items for all manufacturers that have Warehouse Rank of A (being the fastest moving inventory items).
Next, I will want to add a rule setting(s) to this group. In the lower section select ‘Add Setting’
From the ‘Field’ drop-down choose a setting:
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Lead Days: The average number of days between placing an order and receiving the order from your vendor.
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Minimum Order Quantity: This is the minimum amount of an item that can be put on an order.
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Reorder Point: This is the level of inventory when an order should be made with vendors to bring your inventory back up. It is equal to Mean Daily Demand * Lead Time + Safety Stock. This allows you to order from your vendor enough days ahead of time so that you are never out of stock (but still never overstocked).
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Reorder Quantity: This is how much to order from your vendor when you reach the Reorder Point. This is equal to Mean Daily Demand * Lead Time.
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Target Fill Rate: This is the percentage of orders that are filled without a backorder. The industry standard is 98% fill rate, meaning 98% of the time you want to have something in stock. If this is too low, sales may be lost because your inventory is low and orders are not being quickly fulfilled. If this is too high, your stock may be too high.
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UD Classifications: These are the optional "User Defined" classifications or codes specified in Item Manager > Warehouse > Classifications.
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Velocity Code: This is the Velocity Code specified for the item in Item Manager > Warehouse > Classifications
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Product Type: This is the Product Type specified for the item in Item Manager > Warehouse > Classifications
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UNSPSC: This is the UNSPSC (United Nations Standard Products and Services Code) specified for the item in Item Manager > Warehouse > Classifications
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Category Code: This is the Category Code specified for the item in Item Manager > Warehouse > Classifications
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Stock: This is a "True" or "False" value, which determines whether the item is Stock or not.
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Active: If the product is flagged as an active item.
After you’ve selected a field you will next enter a value. Example: I want to automatically mark all Inventory Items within Warehouse Rank ‘A’, with Inactivity less than 60 days and automatically flag these as ‘Stocked’ items.
Just like Warehouse Ranks, Purchasing Rules run daily in the evening. If you need to process your purchasing rules now before the daily update this can take up to an hour and may affect your system's performance.
After you’ve completed configuring your rules, you can select the priority of the rules, especially if you have the same item(s) using multiple rules. Read over the Purchasing Rules documentation within the Savance knowledge base for more detailed instructions on how to use this feature.
This concludes how our Warehouse Ranking functionality works out of the box as well as how to configure these rules based on your organization's needs.