Frequently Asked Question
The Critical Inventory Report lists the items that need a buyer's attention now: stocked items that are out of stock or will run out before their next delivery, and purchase orders that are past due. Each row has a suggested action.
It opens with every critical item in your branches. To narrow it, use Current Data Filters: branches, Suppliers and Buyers (separate several with commas).
What makes an item critical
- Out of stock: a stocked item with no stock.
- Runs out before receipt: the stock will run out (the Good Till date) before the next purchase order is due in.
- Overdue PO: an open purchase order past its required date.
- An item you don't normally stock (reorder code N) is listed only when its PO is late or a customer backorder is waiting for it.
A stocked item has reorder code Y, S or K, or is a manufactured kit, with a reorder point or order quantity set. The Critical Because column says which of these apply.
Direct and non-direct suppliers
The supplier's Split Order Flag in Counterpoint decides where a branch's stock comes from:
- Direct (Y) and Split (S): the purchase order lines going to that branch.
- Non-direct (N or blank): bought and received by branch 01, then transferred. Branch 01 is measured against the whole company's demand, and the other branches count 01's stock and purchase orders as their supply. A branch that is out while 01 has stock shows Transfer from branch 01.
A purchase order line placed by one branch for another counts as a cross-dock line.
Options above the table
- Buyer ID from: whether the Buyer column and the Buyers filter use the supplier's Buyer SO or Buyer ST in Counterpoint.
- Take committed stock off on hand: on to start. Untick it to judge stock on hand alone; items critical only because of committed stock drop off the list.
Columns
| Column | What it shows |
|---|---|
| Branch / Supplier / Supplier Name / Direct/Split? / Buyer | Where the item is, who supplies it, how, and who buys it |
| Category / Part Number / Description / Rank | The item and its sales rank in the branch |
| Package Qty / Package | Purchasing pack |
| On Hand (Branch) / On Hand (Corp) / Committed | Stock in the branch, in the whole company, and committed to orders |
| Daily Use / Active Weeks / Last Sale Date | How fast it sells, and over how many weeks of sales |
| Days Available / Good Till | How long the stock lasts, and the date it runs out |
| PO Number / On Order / Order Date / Req'd Date / Days on Order | The next purchase order due in |
| Critical Ratio | How long the item will be out before the order arrives (see below) |
| 1 Month Spike / 3 Month Spike | Recent sales against normal |
| Overdue Status / Suggested Action | Where the order stands and what to do |
| Critical Since / Critical Because | When the item became critical, and why |
Click for detail
- On Hand (Corp): stock in each of your branches, with on order, daily use, active weeks and days available.
- On Order: every open purchase order line for the item: supplier, PO number, order quantity, quantity still to come, order date, estimated receipt, remarks and the branch that placed the order. An overdue date is shown in red. 0 (30 at 01) means nothing is coming to this branch, but branch 01 has 30 on order.
New items
Critical Since is the day the item became critical. A red New badge marks items that became critical in the latest update. The date stays the same while the item stays critical; if it recovers and later becomes critical again, it gets a new date.
How the figures are worked out
- Daily Use is the last 12 months' demand divided by the active weeks of six selling days. Active Weeks is Counterpoint's Weeks for Use (at most 52).
- Days Available is the stock divided by Daily Use, in selling days. Good Till is the date that stock runs out.
- Critical Ratio is (Req'd Date - Good Till) / 312. The higher it is, the longer the item will be out of stock before the order arrives. The table is sorted by it, highest first.
- 1 Month Spike is last month's sales against an average month; 3 Month Spike is the last three months against an average quarter. Both use full months. 1.00 is normal; 2.00 is double.
Suggested actions include expediting a purchase order, checking the supplier's delivery date, transferring from another branch or from branch 01, checking cross-dock availability, asking the supplier to bring an order forward, and placing a purchase order.
Items with no branch
Stock records and purchase order lines without a branch can't be judged, so they're left out. The Review info button under the table lists them; correct the branch in Counterpoint and they're picked up in the next update.
When it updates: the list is rebuilt each afternoon from the data Counterpoint sent the night before.
Filters: branches, suppliers and buyers.