What if you as a distributor could give your customers a tool to tell them exactly how much cash they could remove from inventory based on that customer’s actual usage? This isn’t something ERP software can tell you because it doesn’t track on-hand quantities in customer stockrooms or service trucks. Neither does it track actual usage at the customers’ point-of-use.
But the eTurns TrackStock Automated Replenishment Apps track on-hand quantities and usage at the customer’s point-of-use, giving the distributor and their customer valuable data that they can use to know just how much inventory that customer needs on their shelves, and no more. Once the customer has used eTurns for at least 45 days to replenish their inventory, eTurns has enough data to calculate what optimum minimum and maximum settings should be.
The Min/Max Dashboard displays:
1) the optimum settings for each item
2) the resulting inventory value
3) how much cash can be saved
4) the current supply level of each item
By adjusting the slider bar on the dashboard, customers can learn the cash savings that would come from moving their current stock levels closer and closer to the calculated optimum amount of inventory.
Obviously, the one-time cash savings that come from optimizing and reducing the inventory level of each item is fantastic. But the savings don’t end there, because there are annual cash savings that come with carrying less inventory. Inventory carrying costs typically run between 25-55% of the inventory value, so the annual cash savings from lowers those costs ends up more than covering the cost of the eTurns TrackStock software.
And there is another way the eTurns TrackStock’s Min/Max Tuning Dashboard can save distributors and their customers money while more than paying for the cost of the software. We make it much less expensive for a distributor to provide consigned inventory management to their customers. What we are finding from talking to distributors who use eTurns is that our Min/Max Dashboard often lets them know they are stocking 3 times more inventory than they need in the customers' stockrooms. If the distributor can remove ⅔ of the inventory at one of their consigned customers (since eTurns helps them optimize all items), they can redeploy that investment to 2 other customers who deserve consignment. Therefore, for the same investment, the distributor can triple his customer coverage for consignment.
In summary, when distributors provide their customers with the value-added service of automated replenishment through the eTurns TrackStock Replenish or TrackStock Manage apps, they give them the powerful Min/Max Tuning Dashboard tool that uses a customer’s actual demand data to optimize their inventory and save cash, not only in the first year, but on an ongoing basis. There is nothing that builds loyalty like saving a customer money.
Want to learn more about TrackStock Min/Max Tuning? Click here.
Want a demo of Min/Max Tuning? Click here.