Tutorials

FILLRATE100 helps making one decision: what to send to where and when.

SKU - stock keeping unit, is the term to refer to each specific product. And location is where the SKUs are stored. When we use one unit of an SKU, because we sold it or because we consumed it, we will call that consumption.

For each location, we need the list of SKUs that are going to be stored. FILLRATE100 will keep records for each SKU-Location.

We need to configure basic data for each SKU-Location. To do this, we prepare a spreadsheet with the relevant data and we upload it, as seen in this video:

 
 

If we have data to estimate consumption, we can use it. Otherwise, make your best estimation. Anyway buffers will be adjusted according to actual consumption (see Buffer Management).

The rule is that the buffer is the minimum amount that we would need to satisfy the maximum expected consumption within replenishment time.

Replenishment time is a combination between supply time and order lead time.

Supply time is the time from replenishment order and reception of goods.

Order lead time is the time between one replenishment order and the next.

Examples:

  • Supply time is three days and order lead time is one day. Replenishment time is three days.

  • Supply time is three days and order lead time is seven days. Replenishment time is seven days.

If there is data for daily consumption for the last 3 to 6 months, we can calculate the moving sum for days equal to replenishment time. The maximum of that series is our buffer.

The only input for daily updates that we need is On Hand and On Transit for each SKU-Location.
On Hand is the available stock at the location. Transit is the stock already commited to arrive to the location.
The description in the following video:
 
 

The daily operation with FILLRATE100 follows three steps:

  1. Buffer adjustments, if any.

  2. Upload of updated status: on hand and transit.

  3. Generation of replenishment orders.

The procedure is shown in the following video:

 
 

There are some parameters that the designated administrator in your organization can adjust to fit your particular needs:

  • Percentage of reds to consider Too Much Red - TMR within a replenishment time. The default is 60.

  • Percentage of greens to consider Too Much Green - TMG within a replenishment time. The default is 85.

  • Whether adjustments are automatically or manually accepted. Default is manual (not checked). When this parameter is set to automatic, you will never see any suggested changes, however the history of all changes will be recorded.

  • Number of days to keep history. Default is 360 days:

    • Color history: an automatic process records colors every 12 hours.

    • Buffer adjustments: an automatic process looks for suggestions every 24 hours.

    • Dashboard: an automatic process records data per location once everyday.