Lost Sales Tracking. MaddenCo Inc. Revised October, Copyright 2015 by MaddenCo, Inc All rights reserved.

Transcription

1 Lost Sales Tracking MaddenCo Inc. Revised October, 2015 Copyright 2015 by MaddenCo, Inc All rights reserved.

2 Please understand that MaddenCo has expended substantial sums in developing and maintaining its software, systems and related materials, and as a result, it has and will continue to have substantial proprietary interest and valuable trade secrets therein. Also understand that MaddenCo's software, systems, related materials and the "ideas" represented by software, as well as the physical materials, are valuable trade secrets and are strictly confidential material, and important, and that its confidentiality gravely affects the successful conduct of the business of MaddenCo. 2

3 Table of Contents INTRODUCTION... 5 INPUT OF A STOCK LOST SALE (ITEMS YOU INVENTORY)... 6 INPUT OF A NON-STOCK LOST SALE (ITEMS YOU DO NOT INVENTORY)... 7 LOST SALE INPUT FOR OUTSIDE PURCHASES... 9 INQUIRING AND REVIEWING LOST SALES Stock Lost Sales Set to include in demand when generating POs and min & max NON-STOCK LOST SALES PURGE REPORTS

4 4

5 Introduction With your product min and max set perfect and P.O.s generating automatically every night, your inventory is nearly managing itself. But something is missing. Min and max were calculated based on historical sales and you can t sell what you don t have, so if you never had it to sell, you ll never show you needed it. Tracking lost sales has always presented a number of difficult problems. The first problem is getting your employees to record lost sales. Fortunately, this is not a computer problem, but a management problem. As you will see we have some tools that will help to manage this problem. Another problem, is interpreting the lost sales data. For example, I want a set of ultra high-performance tires capable of being driven occasionally in snow. Oh, and the rear tires I want to be plus size, but I don t want to change rims and of course to want to match the circumference front and rear of the OE tires. I know what I want, brand, size, and model. I just need to find them. So not knowing you run MaddenCo software, and therefore can tell me availability at all stores, I call each of your stores and ask for the tires I want. Each store diligently records that they could have sold me a set of tires if only they had them. They were high margin tires. You now show lost sales for these unusual tires at all stores. If we allow the computer to interpret this scenario, the results would probably be you would order a set for each store. Also, note, we have now added the ability to track Non-Stocking Lost Sales, lost sales of items you don t even inventory (Items not in your product file). 5

6 Input of a Stock Lost Sale (Items you inventory) Lost Sale option is available from Product Inquiry, if control record LSTSLSYN is set to Y. The above panel is displayed to input lost sale information. Input a quantity and a message about the lost sale. The customer number will come from Point of Sale or Order Entry but can be changed. The input of the reason for the lost sale will be mandatory if control record LSRESNMD is set to Y. Valid reason codes are contained in control records LSRESONx, where x is replaced with a reason code. Use the Find function for a list. 6

7 Input of a Non-Stock Lost Sale (items you do not inventory) Non-Stock Lost Sales Input is available from any Product Inquiry and from Outside Purchase panel of Point of Sale or Order Entry, if control record LSTSLSYN is set to Y. Use the Add Non-Stock Lost Sale function to record a lost sale. 7

8 The above panel is displayed to input lost sale information. Input a quantity and a message about the lost sale. The customer number will come from Point of Sale or Order Entry, but can be changed. Notice input fields for Size, Class, Vendor, and Type are available. This data comes from the product file when adding a Stock Lost Sale. Since Non-Stock Lost Sales do not have an associated product in the product file, this data must be input. It is very important data that should be captured. Size, Class, Vendor, and Type will come from Product inquiry, if available. The Size, Class, Vendor, Type, and Reason for the lost sale will be mandatory and must be valid, if control records LSSIZEMD, LSCLASMD, LSVENDMD, LSTYPEMD, and LSRESNMD are set to Y. Valid reason codes are contained in control records LSRESONx, where x is replaced with the reason code. The Find function is available for the Size, Class, Vendor, Type, and Reason Code fields. Many valid Sizes, Classes, Vendors, and Types are most likely already available in your system. To make effective use of Lost Sales Tracking, you will need to set up Vendor and Type codes for products you do not stock. See control records VENDxxx, VNDTYPYN, and PRDTYxxx or VTxxxyyy. The size entry field is formatted for width, ratio and diameter entry if control record LSSIZEFM is set to Y. 8

9 Lost Sale input for Outside Purchases The Outside Purchase panel has the ability to add Non-Stock Lost Sales. When creating an outside purchase for an item you stock, the sales should be recorded as the item you stock, even though it was purchased from an outside source. This will include the sale as demand for this product in all inventory reports and calculations. Do not add this sale to demand twice by creating a lost sales record. Also, the panel for a Non-Stock Lost Sale will be presented when you sell a product with its "requiring outside purchase" flag set to L. This is for clients not using outside purchases and wanting to track sales of non-stock tires. 9

10 If, however, a generic outside purchase item number is used to record the sale, a Lost Sale Record can be created without doubling your demand for an item. If control record LSMNOPMN is set to Y, the Nonstock Lost Sales panel will automatically be presented when an outside purchase is done for a product flagged as requiring an outside purchase. 10

11 Inquiring and Reviewing Lost Sales Stock Lost Sales The Lost Sales Inquiry, above, allows for show only of un-reviewed or set to affect demand transactions. The display option will show who created the Lost Sale record with date, time and workstation as well who reviewed the record. Set to include in demand when generating POs and min & max Each stock lost sale record can be flagged as reviewed and whether or not to consider the lost sale quantity as demand for the product when generating new minimum and maximum and when generating Purchase Orders by sales. Lost sales records can be set back to a not reviewed status. Also, you must have your ACCESS control record set to allow you to review Lost Sales records for the Add to Demand options to be available. 11

12 Non-Stock Lost Sales A second Inquiry and review option is available for Non-Stock Lost Sales. It is quite similar to the Stock Lost Sales Inquiry. It has all the same options and functions, however, Non-Stock Lost Sales set as include as demand are not included in any ordering calculation or listed on any report other than the Lost Sales Report. Since Non-Stock products do not exist in your product file, the include in demand options are informational only! 12

13 Purge How long should you keep Lost Sales Records? You can enter the number of days to keep lost sales counted as demand in control record KEEPLSDM. For lost sales not counted as demand, enter the number of days to keep in control record KEEPLSND. During the Daily Update, lost sales that are older than the number of days in the control keys will be removed. Entries that have not been reviewed will not be purged. 13

14 Reports Stock Lost Sales can be printed as a column on the Ten Column Product report. Two options are available, print all lost sales records and/or print only lost sales set to effect demand. Stock Lost Sales, set to be included in demand, are also included in the Inventory Status Report and the 7/30/60 Day Order Report. A Lost Sales Report is available to list all lost sales. This is the only report where Non-Stock Lost Sales are listed. Selects are available for Review Status, Stock/Non-Stock, date range, as well as class, vendor, type and size. 14

15 Other Control Records Set LOELSTSL to Y to allow input of lost sales from Limited Order Entry. This control record can be set by user, workstation, store, and/or system wide. Set LSMNOPMN to Y to automatically present the Non-stock Lost Sales when an outside purchase is done for a product flagged as requiring an outside purchase. See the Advanced Point of Sales document for more information. 15