EDI2XML

27
Apr 2020
Inventory management and sales forecast using INVRPT, SLSRPT, and SLSFCT
(Last Updated On: April 27, 2020)

Effective management of the supply chain and stock, helps outperform competitors. A supplier company, where these processes are set at a high level, can save on inventory replenishment and increase sales.

Without accurate information about inventory levels, a company can stay with inaccurate stock in its warehouse, and obviously loose sales, time and profit.

In the world of electronic data interchange, these challenges can be easily overcome using the following EDI messages in both X12 and EDIFACT standards:

 

UN/EDIFACT Standard ANSI X12 Standard
INVRPT – Inventory Report EDI 846 Inventory Inquiry/Advice
SLSRPT – Sales Data Report EDI 852 Product Activity Data
SLSFCT – Sales Forecast EDI 830 Planning Schedule

 

The above messages are often used by distributors, 3PL-operators and retail chains.

UN/EDIFACT INVRPT message

INVRPT or Inventory Report, contains information related to stock of goods in a store or warehouse by the range of a particular supplier. The message may contain information about:

  • amount of open stock;
  • actual stock;
  • maximum and minimum reserved;
  • damaged stock;
  • receipt and withdrawal of goods for a certain period.

Besides, information on the quantity of the product can be detailed by different aggregation groups: parties, series, manufacturers, locations, expiration dates, etc.

Using INVRPT message information, suppliers can control their stock of raw materials and products in real-time, improve delivery route planning of goods to their customers, schedule replenishment of each of the warehouses and calculate the cost of delivery of goods.

INVRPT is also used to inform trading partners about the availability of goods, without any commitment to make a purchase. The buyer can request information to obtain up-to-date data on the remaining goods, or stock availability.

Companies can get additional savings by reducing cost and errors associated with manual data processing. INVRPT is transmitted and processed automatically.

Automatic stock replenishment

reordering using EDIFACT INVRPT-message

The difference between the maximum and minimum levels of stocks is a kind of safety margin. Using the INVRPT message, you can automatically generate the delivery of new batches of goods when the quantity of goods in the warehouse falls below the reordering point.

The interval between the reordering point and the minimum level of stock, generally depends on the time required to deliver the goods, as well as on the volume of turnover of products.

The presence of this interval prevents the occurrence of negative consequences when there is a demand for the goods, but the products are not available. Therefore, the renewal point should be slightly above the minimum margin.

On the other hand, when the company operates based on “Just-In-Time” logistic concepts, the margin between the reordering point and maximum intentionally decreases. This concept is based on the principles of lean manufacturing. In this case, stock is maintained at a minimum level, and the delivery of goods occurs quickly, exactly at a pre-defined time.


KEY TAKEAWAYS

The just-in-time (JIT) inventory system is a management strategy that minimizes inventory and increases efficiency.


SLSRPT and SLSFCT

SLSRPTSales Report contains information about the actual sales of goods in a particular store or warehouse. Commonly, the buyer sends this EDI transaction to the supplier.

The SLSRPT report usually indicates:

  • location of the outlet;
  • period of sales;
  • quantity of goods sold;
  • selling price;
  • Amount;
  • Refund amount, etc.

In retail, this type of EDI messages is used to evaluate the product line to see if the entire assortment is on sale, whether the required volume of promotional products and top-end products is supported.

The translation of such information into electronic form allows the supplier to automatically process the data and use it to optimize the production and marketing process, as well as for statistical purposes.

In conjunction with SLSRPT, another type of EDI message can be implemented – EDIFACT SLSFCT Sales Forecast. This message contains similar data, but as predictive for a certain period. Using SLSFCT, you can know the sales forecast for a specific product by place of sale, sales channels, prices, quantity, turnover, consignments, advertising activities, etc.

Accurate data on inventory and sales forecasting allows manufacturers to better control their production needs, and distributors to maintain the necessary stock of goods, taking into account the market situation, optimize the assortment due to relevance, and reduce transportation costs.

Sales Forecasted target stock

 UN/EDIFACT Message SLSFCT

The exchange of EDI transactions in these situations, helps maintain the actual inventory level as close as possible to the ideal model in which deliveries are frequent and delivery times are short.

The reordering point can change position at any time because it depends on the target inventory level.

The interval between the maximum and minimum is decreased, along with this, operating costs are reduced. The upper and lower boundaries of stocks are approaching the target level, because the supplier has accurate data on past and forecast sales through the use of SLSRPT and SLSFCT messages.

Connect UN/EDIFACT or EDI X12 with any trading partner anywhere in the world

The core of EDI2XML’s mission is the digital transformation of businesses of all sizes. For over 20 years, we have been continuously engaged in EDI integration projects between business partners, working both with global corporations and local small and mid-size businesses.

Our effective EDI services and solutions are designed for all kinds of verticals, including and not limited to manufacturing, transport, retail chains, distributions, financial organizations, telecoms, and many others.

Contact us today to get a free consultation and learn more about our solution offerings.


Related Posts:

What is EDIFACT? | UN / EDIFACT standard overview

Electronic Data Interchange: Key Information You Need to Know

What Are the Differences Between ANSI X12 and UN/EDIFACT