Life in general is pretty routine. That’s one of the reasons why forecasting and replenishment software, like Sage Inventory Advisor, exists because manufacturers usually can wind their watches by previous years’ activities.
If your company manufactures mittens, you will see an uptick in productivity during the cold season and slowdowns during the summer. If your company manufactures wire grates for grills (hello Nashville Wire Products), you’ll see an uptick in business during the summer for those products and perhaps some increased activity around Christmas.
But what about the unexpected? Every once in a while, a manufacturer may have to deal with a weather event that may force the shutdown of their operations. However, 2020 brought the unexpected center stage. A two-day stop for a hurricane is a blip compared to the supply chain issues the massive shutdowns companies had to endure for months on end.
Netstock introduces ‘ignore button’ for Sage Inventory Advisor
From our presentation “Business Systems 101,” we mentioned the more sophisticated your business becomes, the more accountability you need from your business system. With accountability comes the inability to just ignore, change, or delete items in your software like you could when the founder was just using numbers on a spreadsheet.
But what happens when there comes a time when you really do need to ignore a drastic shift in your productivity? The folks at Netstock realized this may be a necessity when it comes to forecasting a company’s inventory.
This past year, Netstock introduced a way to ignore massive outliers in a company’s stock history. This can have benefits in numerous ways for manufacturers to keep their stock levels optimized, even when the unexpected throws a wrench into the works.
With the lockdowns of 2020, many manufacturers had a heck of a time trying to keep up with demand from people hoarding necessary supplies. As the calendar changed to 2021, the issues then became supply chain issues due to low employment numbers in critical businesses like truck driving.
When things finally settle down to normal, manufacturers who use Sage Inventory Advisor can now set those anomalies to be ignored so they don’t provide false data to everyday business. On the flip side, those anomalies can be reintroduced if those conditions return.
While forcing an adjustment in inventory forecasting may seem to be a drastic measure, it really provides a more accurate picture of what “normal” is for a company’s forecast – and even what is “abnormal.”