Lost sales reduction by 30-60%

Decrease in overstock level by 35-60%

Profit and ROI increase

The aim of the system is to provide continuous goods availability in required quantity at the right place and in due time; reduce the surplus level (over-stocks) due to decrease in out-of-stocks, consequently mitigating lost sales; release current assets.

Benefits of the system

ABM Cloud stock management — is a comprehensive solution for inventory management in supply chains and final points of sale. It is designed to automatically calculate the required stock level for each SKU (stock-keeping-unit) every day at each stock location in accordance with the actual demand fluctuations.

Owing to ABM Cloud stock management, high level of goods availability with optimum inventories is provided!

  • Advanced algorithm

    Unique algorithm that calculates daily replenishment according to Theory of Constraints methodology.

  • Cloud (SaaS)

    Does not require purchase, installation and support. It is compatible with any accounting or ERP system. Fast payback period.

  • Optimization

    Improvement of all work processes with orders, inventories, assortment, suppliers.

ABM Cloud stock management beneficially differs from other systems because here the inventory management is based not on the illusive forecast, but on the actual consumer demand, which is very dynamic. It is successfully used in retail, distribution, production.

Functionality of the system

Inventory automation in ABM Cloud stock management allows to monitor sales dynamics, lost sales, inventories and their surplus throughout the whole company, each warehouse, store and supplier. A simple and precise system of reports is implicated in ABM Cloud stock management. Reports are brought out compactly, allowing to estimate a general picture and, if necessary, to go deep in more detail. More than 40 reports are intended to complete specific tasks.

Automatic replenishment and automatic order placing (auto order)

  • Daily automatic buffer determination according to changes in real consumption of each SKU on each point of storage.
  • Every day the actual sales are analyzed automatically on each SKU, available surplus and shortage on each point of storage are estimated, specific delivery conditions are taken into account. Based on these data the system creates supplier orders.
  •  Management of promotional actions and seasons.

Operating control 

  • Lack of TOP mover items signals about insufficient key items stock generating the main turnover (to 80%) and risk of lost sales. The manager takes preventive measures for alignment of ensuring storage with item of a point.
  • Report on order execution accuracy by suppliers contains information on how many items were ordered and what quantity was actually supplied.

Assortment management and analysis

  • Financial performance indicators are provided which allow to reveal and easily compare fast moving SKU with slow moving, and also immovable SKU. Goods are ranged on profitability, turnover.
  • Convenient mechanism of products withdrawal from assortment.

Evaluation of Supplier Reliability

  • Consolidated information on supplier turnover, his top line items, lost sales, surplus, inventories and turnover, indicator dynamics and a resultant indicator of supplier reliability.

Comprehensive analytics

  • Dynamics of inventories in the company. Every week the system automatically calculates effectiveness of inventory management in general and at each point of storage. How the situation changes and what influences these changes.
  • Lost sales analysis. Out-of-stock analysis in each point of storage and their influence on financial results of the company.
  • Dynamics of excess stocks. The detailed report on overstock level.
  • Reports reflect tendencies during the last 6 and 52 weeks, and also detailed reports with highlighted line items that created the greatest lost sales and surplus last week.
  • Dashboard with key system indicators

    Dashboard with key system indicators

  • Buffer stock status

    Buffer stock status

  • Dynamics of overstock inventory level and lost sales

    Dynamics of overstock inventory level and lost sales

  • An example of replenishment calculation for each SKU in each point of storage in ABM Cloud stock management system

  • Dynamics of promotional and seasonal goods operations

  • Report on supplier reliability

    Report on supplier reliability

Results and effects

As a result of the system utilization, the company obtains such effects:

  • Reducing lost sales by 30-60%. Due to high goods availability level, lost sales are minimized, customer loyalty increases.
  • Decrease in overstock level by 35-60%. Release of money frozen in surplus stocks. Decrease in need for borrowed resources.
  • Losses minimization. Reduction of losses that appear as a result of write-offs and sales. Storage costs and goods movement between warehouses decrease. The company’s financial performance improvement.
  • Supplier reliability level increases with accumulation of statistics and reports on supplier reliability, which shows which supplier and how often delivers goods with delay, therefore creating the wrong quantity. It allows to work only with the most effective ones.
  • Rational use of warehouse capacities.
  • Economically feasible assortment management.

ABM Cloud stock management is a cloud-based solution, works according to the SaaS scheme (Software as a Service), so the Customer does not incur additional expenses connected with installation of excess equipment (like server, etc.) and system support. The system is implemented and successfully works in large retail chains, distribution and production companies in the CIS countries and Europe.