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ManEx Case Solution
ManEx provides several tools to allow users to purge, prevent, and prepare for excess inventory.
REPORTS:
Standard reports will allow users to identify parts without an assigned BoM, parts that have had no transactions as of a given date, and parts allocated to closed jobs. If parts are allocated to a project in the purchasing process, then users can see all parts on hand at any given time purchased for that project. Additionally, users can create unlimited custom reports to better control excess inventory.
MODULES:
Project - This module allows users to allocate parts to a project, which not only controls how the parts are used, but also provides accurate and complete on-hand values for those parts and the project.
In-Plant Stores - This module is commonly used to manage excess inventory purchased by the customer that will be consumed at a later date. This allows visibility and accountability for the parts and keeps the inventory value off the books until they are used in production.
Quote - This module allows users to identify excess inventory in the quoting process. With this information, users can establish contracts with the customer to account for the excess value and reduce its impact on cash flow. It also provides visibility of existing part numbers and inventory so users can consume existing inventory before purchasing more.
Inventory Control - This module allows users to consolidate demand by managing one internal part number to multiple supplier, customer, and manufacturer part numbers. It facilitates part cross referencing to quickly identify other internal part numbers that may be used as an alternate. It allows users to calculate and track the EAU for a given part.
Import - This module identifies existing part numbers allowing users to decide if they want to consolidate demand, or keep them separate.
Forecast - This module allows users to systematically monitor and enforce demand fluctuations according to contract limits. When the user uploads the latest forecast, it will adjust existing demands by acceptable limits allowing for a more steady flow of material. Any changes outside of the agreed upon limits are identified and will require user intervention ensuring these changes do not go unnoticed.
ECO - This module allows users to document and track changes to an assembly. This way they can see when AVLs were added or removed and more fully investigate the impact of these changes on excess inventory. Users can also prepare a quote for the cost of the change within the module, keeping all information together, and helping to control excess inventory levels.
NE Company was able to quickly reduce on-hand excess inventory by returning a portion to the suppliers, using approved parts on other orders, selling parts through consignment, and selling a portion to the customer. They estimate that 27% of their on-hand inventory is still excess, but their steps to update system settings, consolidate demand, and monitor projected excess inventory levels should allow them to bring that down around 19% over the next six months. Management decided against writing off excess inventory, at this time, because a significant portion of the excess inventory is on the AVL for a job currently in quoting and for which they hope to get an order later this year.
They have also taken steps to manage excess inventory as it arises. They established contracts for excess inventory with their customers. They have the Project Module and In-Plant Stores Module operational allowing them to fully track inventory levels and values, and invoice as needed. NE Company also created a customer statement* that provides an overview for the total customer liability. By providing this statement to the customer each month, both parties understand total liability and responsibility at the component, assembly, invoice, and order levels.
*an example of this customer statement can be provided upon request.
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