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Adding some dates
06-09-2012, 07:54 PM, (This post was last modified: 06-09-2012, 07:58 PM by PakRicard.)
#10
RE: Adding some dates
(06-09-2012, 06:21 PM)phil Wrote: Why do you wish to record this? Perhaps I am missing some important business logic?

Hi Phil:

Business logic behind this is it is a simple way to control the life of the products.

Let's say we have 3 main stock categories (well, some more but for the sake of simplicity the example will work with 3):

a) TEST products. It contains all new products during the 1st part of their life. Its sales performance, quality issues, customer comments, etc are evaluated during this first stage on few selected locations or customer types. Could be seen as the "junior" stage. Products have been selected and ordered by the product managers, but we have no clue how will they perform.

b) ACTIVE products. It contains the majority of the products of the company. These are the already tested, we can order or produce in bigger quantity as the product was been already tested, etc. Could be seen as the "senior" stage. We expect them to behave in a certain sales performance and below average returns or problems.

c) BAD products. All products have a life span. So, when its sales performance becomes worst than before, or it becomes old fashioned or is cannibalizing any other products or any other business reason it is time for the company to get rid of it and not to be reordered never again.

To have the products structured in stock categories also allows to control the value of each stock easily via the balance sheet and see from the financial POV which how is the inventory categorized. .

Some of the most difficult questions in retail business are:
When is it time for a TEST product to become ACTIVE?
Or should we move it directly to BAD because was not a good choice of the product manager?
When is it time to retire an ACTIVE product into BAD and start to get rid of it?

To answer these questions we need to know for how long the product has been in its category.

So this field is the first stage needed for some "optimization stock" scripts as:

a) List of items that have been in Z category for more than X days with poor sales performance. Useful to move from TEST to BAD or to ACTIVE to BAD due to poor sales.

b) List of items that have been in Z category for more than X days with more than Y returns. Useful to move from TEST to BAD or to ACTIVE to BAD due to customer or technical complains.

c) List of items that have been in Z category for less than X days with good sales performance. Useful to move from TEST to ACTIVE due to good performance.

d) List of items in BAD category for more than 365 days. If it is a bad product and you still have it after a long period, it is probably better to destroy it, sell it as scrap material, reuse some components, etc than to keep it.

Well, as I said it will help to control the life cycle of products. In brick and mortar retail businesses, the optimization of shelf space and optimization of the stock is key top success.

Hope it is clearer now. Or is it any other way to do these kind of controls in webERP now without this new field?
Regards,
Pak Ricard
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Messages In This Thread
Adding some dates - by PakRicard - 06-06-2012, 05:42 PM
RE: Adding some dates - by opto - 06-07-2012, 07:56 AM
RE: Adding some dates - by PakRicard - 06-07-2012, 11:47 AM
RE: Adding some dates - by phil - 06-07-2012, 12:00 PM
RE: Adding some dates - by PakRicard - 06-07-2012, 05:22 PM
RE: Adding some dates - by phil - 06-07-2012, 06:26 PM
RE: Adding some dates - by PakRicard - 06-09-2012, 05:09 PM
RE: Adding some dates - by PakRicard - 06-08-2012, 10:40 AM
RE: Adding some dates - by phil - 06-09-2012, 06:21 PM
RE: Adding some dates - by PakRicard - 06-09-2012, 07:54 PM
RE: Adding some dates - by phil - 06-10-2012, 01:31 PM
RE: Adding some dates - by PakRicard - 06-10-2012, 02:22 PM
RE: Adding some dates - by Exsonqu_Qu - 06-10-2012, 08:42 PM
RE: Adding some dates - by phil - 06-11-2012, 07:35 AM
RE: Adding some dates - by PakRicard - 06-11-2012, 11:41 AM
RE: Adding some dates - by phil - 06-12-2012, 08:46 AM
RE: Adding some dates - by PakRicard - 06-12-2012, 12:05 PM
RE: Adding some dates - by Exsonqu_Qu - 06-13-2012, 01:27 PM
RE: Adding some dates - by PakRicard - 06-14-2012, 06:29 PM
RE: Adding some dates - by phil - 06-14-2012, 07:02 PM

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