To guarantee results from our system, all customers will provide accurate data from their system
2. Proper supplier organization process is followed
To help generate the best suggestions our system needs the definite characteristics of the vendor and products. This includes: verifying data, bracket levels, setting order cycles, and any other variable. Suppliers should be reviewed and reorganized every year.
3. All ‘New’ products are assigned an average by a Buyer
When products come over on from the ERP they are assigned the status of ‘New’ and K3S will not suggest a quantity to order. It takes the Buyer giving a starting average before K3S will begin its suggestions.
4. 6% adjustment or less of suggested orders by units or by dollars
Our system creates its suggestions based on the verified data from the customer system and the proper supplier organization. Adjusting these suggestions past 6% will reduce accuracy and results.
5. 100% completion of PE Checks 1-5 as soon as possible
Forecasting systems will have aberrations and results that will be outside the bounds of our strict tolerances. The system requires you to review the select few of these to make any adjustments needed. The more business days away from the start of the period a Buyer waits to address the PEs means K3S will not be able to give as accurate suggestions.
6. Reconfirm all order cycles every 6 months
Order Cycles, the pattern of ordering where the system finds the most economic point of ordering based on carrying, header, and labor costs, can evolve in as little as 6 months. These cycles should be reconfirmed by the Buyer to assure we are still on the right pattern.
7. Buyers participate in K3S Spring/Fall Cleaning event
To ensure proper setup of all products and vendors in the system buyers will need to run a collection of batches semi-annually to clean out all obsolete products and seasonal profiles. We refer to this as the K3S Spring/Fall Cleaning event.
8. Monthly PREP Event review with all Buyers and management
No matter how good a buying system is, if the users are not properly trained and supported the system will not produce the results a company desires. Our monthly PREP Event is used to help reinforce best practices and proper understanding of buying.
9. All due orders placed before noon
Accurate timely suggestions created by a buying system lose their advantage if they are placed to vendors past the moment they stop processing orders for that day. The earlier suggestions are approved during the day, the stronger the results will be from a customers vendors.
10. Holding vendor’s accountable for service level
Tracking your vendor’s service level is crucial for proper inventory. 100% lean and accurate suggestions will not be effective if the vendor cannot produce proper fulfillment for your orders.
Article last revised on December 5, 2017