A fully integrated stock control system is the "hub" of a computerised order processing system. It provides sales staff with accurate on-line information as to the current stocking situation, to give customer service and to feed a purchasing system, so that the right products are purchased at the right time. Further analysis of stock information using standard reports and user generated enquiries can greatly assist stock management.

• FIFO Stock costs. A new FIFO level is established with each goods receipt. There is an opportunity to add freight costs, duty charges, inspection costs or other values or percentages at this time. MERCHANT may also be configured to reduce the FIFO cost by anticipated settlement discount or rebate.

• Multiple stocking units. Individual products may be configured as being stocked as units or tenths, hundredths or even thousandths of a unit. This precision, together with a range of buying and selling factors enables each product to be set up appropriately to assist in the buying and selling process, whilst maintaining accurate stock control.

• Integration with warehouse management. MERCHANT is integrated with a fully featured warehouse management system. This system assists automation of put-away and picking, either by means of radio data terminals (RDT's) on trolleys and fork lift trucks, or by paper-based alternatives.

• Stock transfers. This procedure allows the transfer of stock, including sized items, from one branch to another. The physical stock of the transferring branch is reduced and that of the receiving branch immediately increased. For this reason, suspense or transfer branches may be used to control stock "in transit" and to automate the goods receipt process.

• Stock-taking routines. Comprehensive stock-taking routines provide staff with the flexibility to select by product or location, for full stock checking. Hand held bar-code readers can be used to improve speed and accuracy of stock-take. A perpetual inventory can be performed by location (rack, aisle, bay), by supplier, by A/B/C classification, by cycle code or by last stock-take date, as required. Automatic replacement of current inventory values with the actual stock count can be selected. Alternatively, existing balances can be adjusted based on differences between stock count and the inventory quantity at the inception of the stock-take.

• Overstocks investigation. This report helps to identify where excessive stock cover exists compared to recent demand, indicating that the product needs to be promoted to sustain sales or possibly moved on to other branches, or sold off to create more space.

• Danger level report. This report is a control mechanism for buyers who need to trim stockholding costs to the minimum whilst preserving a high level of customer service. It also provides an active list for chasing outstanding purchase orders.

• Efficient goods receipt. The goods receipt function relates each delivery back to the original purchase order, and allows either the entry of the few lines that have been delivered or, by exception, the few lines that have not. Lines with "almost" delivered quantities may optionally be treated as "considered complete", thus avoiding subsequent purchase order maintenance.

• Quarantine handling. It may be necessary to place some items into "quarantine" stock, such that they are not received into full inventory until certain procedures are complete and certification received. Facilities to do this are available, and a reason for quarantining must be given for detailing on reports and enquiries.

• Traceability. MERCHANT maintains files to trace the source of despatched goods back to the original purchase order and supplier.

• Returns notes. Goods may be rejected and a returns note generated for control of the return of such goods. An appropriate debit note may also be raised automatically, for ease of dealing with subsequent clearing of invoices for payment.

• Rebates. The system can report on rebates due from suppliers, between defined dates. In special cases, goods may be booked in net of anticipated rebate, if required.

• Product movement enquiry. A complete record of inward and outward movements of stock at any branch is displayed giving a representation of an "electronic bin card". The reference and date are given, with the account number of the customer or supplier involved and the transaction quantity.

• Stock valuation enquiry. This routine calculates the total value of all stock at both selling and cost prices. The cost price valuation uses the FIFO cost multiplied by the stock quantity of the FIFO level. The enquiry will also age the stock into date bands defined at run time by the operator.

• Purchase order documentation. Purchase orders may be entered onto the system as required. Documentation can be produced on-line or in batch mode, with the optional facility to automatically transmit orders to suppliers by fax or EDI.

• Enquiries within purchase order entry. During purchase order generation, full enquiry facilities are available to assist the buyer. Information includes supplier's outstanding orders and history, product information, alternative suppliers, pricing and discounting information and the current stock information.

• Automatic suggested re-ordering. As an alternative to manually keying purchase orders, by using historical usage information, demand and stock details, MERCHANT can provide recommended re-ordering calculations based on user defined re-order algorithms. This process can be achieved on selected products, which may be supplier related or controlled by a buyer. A suggested buying list is produced, which is vetted by a buyer and adjusted where necessary. Having confirmed buying details in this way, automatic purchase order generation follows.

• Screen-based automatic re-ordering. Alternatively, the re-order selection may be offered directly on the screen, typically for a selected supplier. Products are displayed as a shopping list, with the recommended order quantity shown next to each line. The operator is given the opportunity to drill down behind each line to see demand patterns, before confirming or overriding quantities.

• Purchase order cloning. Where a regular purchase order profile is established, with potentially only minor changes to quantities each time, a standing order may be created, with subsequent automatic cloning and manual amendment whenever a new order is required.

• Branch preferred source. The preferred supplier for a product is taken as the first on the list of up to 10 alternative suppliers. However, if the MERCHANT user is multi-branch, then there may be some goods for whom no national supplier is suitable, especially for bulk goods. A different local preferred supplier can therefore be specified for each branch.

• Specialist buying. Buyers with specific expertise are often focused on particular product classes or suppliers. MERCHANT can help exploit that strength by maintaining lists for individual buyers.

• Re-order algorithms. The calculation that drives the re-order recommendation is implemented to meet specific needs of the users, since this element can be considered to be a competitive advantage. Several standard versions are also available representing models that have a proven service record in a wide variety of niches within the MERCHANT wholesale distribution industry.

• Imported products. Multi-currency purchasing based on currency price lists and exchange rate maintenance is supported. Receipt of goods will provide an automatic sterling conversion based on specified exchange rates at the time of processing.

• Supplier performance management. This sub-system enables the monitoring of supplier service levels. Statistics are calculated for purchase orders raised over a pre-defined period. Reports and enquiries compare orders with deliveries and performance against lead times.

© 2001, Electronic Data Processing PLC