Is lack of inventory accuracy and bogus back order ETA dates, costing you lost extended warranty sales

If you are working with extended warranty providers and your sales are starting to go to other parts distributors you need to take a honest look at yourself. You may or may not know that warranty providers are scoring your performance near real time, weekly, or even monthly. The more back orders and bogus back order ETA dates you provide the lower your score and orders start to go other distributors with the highest scores.

Lets start with inventory. Inventory management is nothing new, as it dates as far back as the first stores or businesses selling products. Back then they could keep inventory written on stone, or paper with the use of a abacus to add and subtract from inventory. The use of computer software to manage inventory is no different. Software allows you automate the process up to millions and millions of inventory transactions per day, which can no longer be done with a manual process or abacus. Most inventory management software does a great job adding and subtracting inventory real time.

If the inventory management software is managing the inventory transactions, so why is there a lack of inventory accuracy ? The problem is simple, lack of solid, timely, and accurate inventory business process and procedures. This could be things like receiving inventory on a PO then stocking the part bins hours later. Placing parts in the wrong bins without a verification process. Processing returns that are broke or used and should not be returned to stock. The reasons can go on and on. Managing inventory is not any different then your bank managing your balance in your checking account. This is one things banks do very well along with real time ATM transactions. It starts with solid processes and procedures. You can work with DRK Resources Tech to review and develop solid, best practice inventory management processes and procedures which leads to accurate inventory.

Giving a bogus back order ETA date by taking the order date and adding 2 weeks to suffice the warranty provider is no longer a working option. This leads to canceled orders that will go other parts suppliers and lowers your overall performance score. The answers is to work with your part manufacturers to get real time back order ETA’s by means of web services. DRK Resources Tech can work with you and your development team to build out ETA web services to any of your parts manufactures and parts suppliers.