Playbook - Replenishment Planning

Summary 

Once a demand forecast is in place, and the safety stock recommendations are in place, it is time to generate the replenishment plan.

GOAL: To plan replenishment such that your inventory stays at optimum levels for your service level targets and goals.

When the forecast and safety stock are accurate, the replenishment plan should be almost automatic!

This point cannot be emphasized enough:  When all the upstream inputs are correct, generating the replenishment plan can be automated, and in fact, auto ordering is a feature offered by StockIQ.

Configuration Guide

• Lead Times - Ensure lead times are correct or suggestion dates and quantities will be wrong.
  • Global Lead Time Settings
  • Lead Time Overrides
• Order Policies - Order Policy controls how / when your items are replenished.
  • Global Order Policy Settings
  • Default Order Policy
  • Order Policy Overrides
  • StockIQ Order Policy Settings
• Order Policy Settings
  • Set to allow StockIQ when no ERP Order Policy is present
• StockIQ Order Policy Settings
  • System Defaults are adequate, you can adjust if need be.
• Hub-Spokes Configured - Ensure StockIQ knows your Hub/Spoke Layout
  • How To: Set Up Hub/Spoke
  • Intersite Lead Times
• Order Intervals / Order Cycles - Set StockIQ up so that we are recommending orders on the frequency you want, via EOQ, Order Cycle, or Order Schedules.
  • How do I get StockIQ to order on the interval I want?
  • Order Cycle
  • Default Order Cycle Settings
  • Order Cycle Overrides
• EOQ Settings
  • You can start with just a simple 25% holding cost if necessary
• Supplier Minimums - configure your supplier minimums so that StockIQ is aware of order-level minimums or truckload sizes you must set.
  • Supplier Minimums
  • Supplier Item Minimums
  • Containers and Container Loading
• Projected Available Alert Settings
  • Enable Generate only for primary supplier checkbox.
  • Enable generation of below panic point and above projected excess
  • Set sensible Unit and value ($) limits for each portion that work for you.
• Late Order Alert Settings
  • Set the minimum number of days late for which you want to be alerted.

Process Guide

• Daily
  • Review Projected Stockouts screen. What is a Projected Stock Out Alert?
    • High Alerts - Place Orders where there is no order covering demand and causing Stockout
    • Medium Alerts - Expedite for orders where you are projected out of stock
    • Low Alerts - Expedite or Place Orders to keep you above Panic Point
  • Review Projected Excess Screen. What is a Projected Excess Alert?
    • Add the alert message, next order number, and next order date columns to make an Expedite Report
    • Delay, re-route, or cancel orders where you are projected excess
      • Add the alert message, next order number, and next order date columns to make an Expedite Report
  • Launch orders recommended in Place Orders screen
• Weekly
  • Alert: Review "Late Orders" Alert
    • Determine whether this is a clerical error or whether the PO is actually delayed.
    • If the PO is delayed, contact the vendor and determine why, and expedite if necessary
  • Alert: Review "Backorders" alert and expedite or contact customers as necessary
• Monthly
  • Check order policy settings and adjust if you have excess on slow moving items, and/or stockouts on faster items.
• Every Three Months
  • Review any Order Policy and remove where necessary
  • Review any Lead Time overrides and remove where necessary
  • Review any Safety Stock Overrides and remove where necessary

Red Flags

The following are red-flag indicators that all is not well with your configuration, meaning that either safety stock, forecasts, or some other parameters are not correctly configured.  For help with any of these, reach out to StockIQ.

• You have to make large or small modifications to a large percentage of order suggestions
• Distrust of the system's order recommendations.
• You have to add new items to the order that StockIQ did not recommend
• You ignore may recommendations StockIQ recommends for purchase
• No suspended projected available or late order alerts
• Large number of lead time and order cycle overrides
• Large number of Safety Stock overrides and/or not using SIQ Safety Stock values
• Days of Supply type safety stocks being used

If you are experiencing any of these, please contact StockIQ and we will help!

With our replenishment plan in place being managed, now we can start to work on our Supporting Processes Playbook to really refine our work and begin the cycle of continuous improvement.