As a result of HandiFox we now have standardized inventory across all locations, with the necessary insight and control into every purchase, enabling us to optimize our supply run rates, in turn saving budget. HandiFox has allowed us to move away from decentralized inventory management at a field level to a fully centralized system.
Philip Amato, Easy Mile Fitness (using HandiFox Online since 2019)
Just like Easy Mile Fitness, a lot of other HandiFox Online users are utilizing the system solely as a PO/replenishment management software and reaping their benefits. Here is a quick rundown of why they chose to automate replenishment and how HandiFox took center stage in that.
Why automate replenishment?
The reasons are quite self-explanatory. One of the major time-drains is a procurement department figuring out what, how much, and when to reorder. Aided by a system that connects the dots between inventory, sales, and purchasing data, the purchasing team is able to:
- Better inform their replenishment decisions
- Save time on manual data entry
- Manage finances more wisely
- Save warehouse space
- Avoid low stock and stockouts
- Optimize product allocation across warehouses
- Break down silos by becoming cohesive with other departments
How can HandiFox help?
1) HandiFox Online introduces a system of Reorder Points and Desired Quantity On Hand settings that do the trick of automating the entire purchasing/replenishment process.
Reorder Point is the minimum quantity that you would like to have in stock at all times. Items that are below their reorder points will be included on the next purchase order you generate with HandiFox (based on reorder points and desired levels).
Desired QOH is the quantity you want HandiFox to target when generating a replenishment purchase order.
Another two settings that are worth your attention are Case Size and Reorder Rounding.
Case Size comes in handy if your vendor supplies items only in batches of the defined quantity.
Reorder Rounding allows selecting whether to round up or down or to the nearest value when the item has a certain case size. For example, the case size for an item is 10, and your inventory lacks 3 items. If you chose to round down, then the replenished amount would be 0.
To fill these values for select or multiple items at once, go to Inventory->QOH Viewer->click on Reordering in the top right corner. Select an inventory site or click “All” to set up reordering for a group of items across all warehouses. Enter an item’s name in the search field and fill out the reordering data, so later on you can
- Keep track of low stock and replenish automatically
- Put bulk-packaged products on POs and be sure you purchase and receive stock in case packs
2) HandiFox Online allows creating a replenishment order from scratch or based on the pre-set Reorder Points and desired QOH.
Go to Purchases-> Automatic Replenishment
As you can see in the screenshot above, you can replenish based on 3 parameters:
- Sales rates for a chosen period. The goal of this algorithm is to make up for items sold during the chosen period and also ensure you have enough inventory to fulfill your current sales orders.
- Average sales rate per week. Average quantities sold weekly will be calculated for every item based on the data for the last N weeks, and added to the order, so that the replenishment is enough to last the set number of weeks
- Reorder Point & Desired QOH (see Point 1 in “How can HandiFox help?”)
Below you can see an example of the system’s replenishment suggestions on the items running low (based on their Reorder Points and Desired QOH settings). Mark the lines with items you want to put on a PO and Click Create 1 PO.
Alternatively, you can generate a replenishment order from scratch by going to Purchases -> Purchase transactions -> -> Purchase Order.
3) HandiFox Online can help you with allocation of incoming stock into designated bins.
Once incoming stock has been received into a warehouse, you can set up bin locations by going to Item list, selecting an item from the list, clicking on Edit, and filling out the Bin Location field. From this moment on, whenever you create a PO or Item Receipt with this item, the bin address will be guiding you through the warehouse rows and shelves.
4) Last but not least, HandiFox Online has an “Items to reorder” panel on the main dashboard with shortcuts to creating new replenishment orders.
With HandiFox Online, replenishment becomes data-driven and proactive at only $39/mo. Trial it now 14 days free.