How ABM Inventory Helps Choose the Best Supplier: A New Level of Procurement Automation in Retail 

Automated Supplier Selection in Retail: Why It Matters

For any retail business — especially in pharmacy and fresh categories — choosing the right supplier directly affects profitability and product availability on the shelves. A single SKU may have several suppliers, each offering different conditions: price, delivery terms, service level, and payment deferral.

Previously, managers often made decisions intuitively or manually compared dozens of spreadsheets.
This took time and created risks: some products arrived late, others were overpriced, and certain stores faced out-of-stock situations.

Now this process is automated.

How Automated Supplier Selection Works in ABM Inventory

A new tool for managing alternative suppliers has been introduced in the system (Supply → Alternative suppliers).
Users can:

• add a list of suppliers for each product or warehouse;
• activate the Use alternative suppliers option;
• define selection criteria: price, quality, lead time, service level, and availability;
• assign a weight to each criterion according to business priorities.

The system analyzes the data, calculates supplier ratings, and suggests the most advantageous option for ordering. Calculations can be performed both at the central warehouse level and for individual stores — particularly important for categories with local suppliers.

Automated Supplier Selection Based on Data

ABM Inventory takes into account all relevant factors — from pricing to financial conditions.
For example:

• Supplier A offers a lower price,
• Supplier B has a shorter lead time,
• Supplier C provides a longer payment deferral.

The system compares these parameters, assigns each supplier a total score, and automatically selects the one that ensures the best balance between cost, quality, and service.

Benefits of Automating Supplier Selection

The functionality is designed for categories where supply directly impacts business results — for example, pharmacy and fresh retail. In such segments, a delay or an error in choosing a supplier can lead to out-of-stock items, product waste, or lost customers.

For pharmacies:

• Optimized purchasing with multiple suppliers. The system automatically identifies the best partner for each SKU.
• Control of critical SKUs. Essential medicines remain consistently available.
• Local sourcing. Regional distributors can be easily incorporated into supply planning.
• Financial flexibility. The system considers not only prices but also payment deferrals, credit limits, and other financial terms.

For fresh retail:

• Automatic switching to an alternative supplier in case of delivery delays.
• Cooperation with local producers when the main supply channel is unavailable.
• Fewer write-offs — the system accounts for lead times and shelf life to avoid spoilage.
• Balanced supply decisions — by quality, timing, and availability.

Supplier Analytics and Transparent Procurement Control

ABM Inventory not only automates supplier selection but also provides comprehensive supplier analytics, including:

• performance comparison over different periods;
• adherence to delivery terms (SLA);
• price and lead-time dynamics;
• consistency of service levels.

This allows businesses to assess not just individual orders but also the long-term efficiency of supplier relationships.

How ABM Inventory Reduces Manual Work in Supplier Management

ABM Inventory takes over routine tasks — collecting data, comparing conditions, assessing risks — and turns them into actionable recommendations. Managers see the full picture and make decisions based on facts rather than assumptions.

For retail, this means:

• stable product availability;
• fewer losses due to shortages or delays;
• higher profit margins through smarter supplier choices.

Conclusion

The new supplier selection functionality is another step toward complete procurement automation in retail. ABM Inventory considers everything — from pricing and delivery terms to quality, service, and financial parameters. As a result, businesses gain flexibility, control, and transparency in every procurement decision.

Want to see how supplier selection automation works for your retail network?
Request a demo — we’ll show how ABM Inventory helps make accurate, data-driven decisions even in the most complex categories.