When managing inventory with best before dates, it can make the world of difference to account for the expiration dates on each batch.
Users who deal with expiring stock and register the best before dates in their ERP system, have the option of adding this information into AGR.
How does stock expiry work in AGR
Stock expiry works in two ways
Order calculations take expiration dates into consideration.
Exception reporting - Prevent upcoming depreciation.
AGR calculates the estimated stock levels into the future
If the sales forecast is projected to be lower than the expiring batch stock levels can supply. It is likely to expire on the shelf.
With this information users can push sales, product placement, pricing, promote the products before the best before dates hit.
Stock expiry in order calculations
if any stock has already expired or is forecasted to expire within the order period, AGR will depreciate the expired stock and replenish accordingly. Ensuring right stock levels in the right quality.
Exception reporting
In Items and Reports there are three information columns available showing how much stock is forecasted to expire, at which date and the expected monetary value of the expiration that can be avoided if action is taken.
information columns:
Stock expiry - next date
Stock expiry - total quantity
Stock expiry - total value
Each column explained:
Next date = shows the next best before date that has stock which is expected to expire before it is sold/consumed. NB each product can have multiple stock batches with different best before dates.
Total quantity: the total stock quantity across batches that is expected to expire.
Total value: (Total quantity * cost price) the total stock quantity expected to expire multiplied with the cost price of the product.
Actions:
Avoiding depreciation is as much art as it is math. AGR will highlight where action is needed, i.e. which items have higher stock levels then the forecasted sales/consumption.
Tip: Use the Stock expiry columns as filters and save as a report and add the preventive stock expiry report to your dashboard for montoring
Items that have higher stock than demand will surface in the report. Use the information columns to sort on the highest upcoming expiration value, enabling you to take preventive action and avoid negative financial impact of stock depreciation.
B2B - Collaborate with sales, who can promote, give discount
B2C - product placement, run a promotion, set a discount