{"id":9172,"date":"2021-01-07T08:45:44","date_gmt":"2021-01-07T16:45:44","guid":{"rendered":"https:\/\/www.qad.com\/blog\/?p=9172"},"modified":"2021-01-07T08:47:21","modified_gmt":"2021-01-07T16:47:21","slug":"actionable-insights-inventory-expired-and-expiring","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2021\/01\/actionable-insights-inventory-expired-and-expiring","title":{"rendered":"Actionable Insights: Inventory Expired and Expiring"},"content":{"rendered":"

[vc_row][vc_column][vc_single_image image=”9173″ img_size=”full”][vc_column_text]In our previous <\/span><\/i>Actionable Insights blog<\/span><\/i><\/a>, we discussed the Revenue by Entity Action Center. Next, we will provide an overview of the Inventory Expired and Expiring Action Center as well as the associated key performance indicators (KPIs).<\/span><\/i><\/p>\n

When inventory has a shelf life, it\u2019s critical for the company to keep tabs on upcoming inventory approaching its expiration date. Unused inventory that expires can be a huge drain on a company\u2019s profitability, so expired inventory has a major impact on the bottom line. Not only is the original inventory investment lost when inventory expires, but the company must invest in replacement goods if it needs to have the inventory on hand to satisfy production or customer needs.<\/span><\/p>\n

Companies that use QAD Adaptive ERP have an advantage over other companies that must deal with the realities of <\/span>inventory shelf life<\/span><\/a> and expirations, because QAD Adaptive ERP has built-in capabilities to track and monitor upcoming expirations so the company can take action before the inventory becomes unusable. The Inventory Expired and Expiring Action Center is a valuable tool for tracking expirations, and users can select results by product family, specific items, or specific sites for all the visuals discussed below. This allows inventory planners, buyers, and managers to focus on the specific inventory or items each controls.<\/span><\/p>\n

KPIs on the Inventory Expired and Expiring Action Center<\/span><\/h2>\n

QAD Action Centers<\/span><\/a> provide analytics to help both managers and users monitor metrics and KPIs. KPI highlights for the Inventory Expired and Expiring Action Center include:<\/span><\/p>\n

Expired and Expiring Inventory at a Glance<\/span><\/h3>\n

This visual shows product line, site, item number and the value of expired quantities. It allows users to quickly see the inventory that has or will soon expire. With advance warning, the company may be able to use the inventory before it expires, but once the expiration date is reached or passed, the inventory becomes unusable. Since companies can\u2019t use or ship expired or expiring inventory, the items are not part of available inventory and must be replaced.\u00a0<\/span><\/p>\n

Analyzing items that are expired or expiring can enable the planner to adjust buying policies to limit the likelihood of future expired inventory, minimizing future losses. Early intervention can also prevent shortages if the event inventory expires and there isn\u2019t an adequate stock on hand to cover demand. While identifying the value of expired and expiring inventory is important, this visual\u2019s greatest value arises from the early warning that demand forecasts or buying policies are not in sync.<\/span><\/p>\n

Expired Inventory, Expired Value by Item Number<\/span><\/h3>\n

This visual is a bar graph that shows the expired inventory by item quantity and value. The item numbers are displayed along the y-axis and values are shown on the x-axis. This simplifies the task of keeping inventory current for the responsible planner. The improved visibility allows the user to have the inventory recertified or repurposed, or to scrap and replace it. As on the previous graph, the expired inventory can help to highlight items where the order policy or forecast may need to be changed to minimize future issues. Managers may also use it to help monitor the effectiveness of specific planners or sites when it comes to keeping inventory current or to plan for previously unforeseen inventory write-offs.<\/span><\/p>\n

Expiring in 30 Days, Expiring in 30 Days Value by Item Number<\/span><\/h3>\n

This graphic has a format similar to the Expired Inventory, Expired Value by Item Number visual, but it shows inventory that will be expiring in the near future rather than inventory that has already expired. With the increased visibility, the planner may be able to take action to \u201cshort-date\u201d and sell the item to minimize the loss, or to recertify the goods to prevent shortages or losses. Also as above, it highlights items where the forecast or ordering policy needs adjustment to better align usage patterns with available inventory.<\/span>[\/vc_column_text][vc_single_image image=”9174″ img_size=”full”][vc_column_text]<\/p>\n

The Importance of the Inventory Expired and Expiring Action Center<\/span><\/h2>\n

Inventory that expires and becomes unusable can be a drain on profitability and may even cause late shipments, potentially causing unhappy customers. Early visibility can help prevent customer dissatisfaction by providing an early warning so the team has time to rectify the situation by taking the appropriate action. Managers may also use the action center to evaluate the performance of product lines or sites, and to prepare for potential inventory write-downs. This early insight can enable action to prevent or minimize losses from expired or expiring inventory, and to make adjustments to prevent similar occurrences in the future.<\/span><\/p>\n

Few <\/span>ERP systems<\/span><\/a> take a proactive approach to expiring inventory, and they require custom queries or reports to see this sort of information. Lack of visibility can increase the damage to customer satisfaction, production schedules, on-time delivery performance and profitability of the company. By enabling fast action, <\/span>QAD Adaptive ERP<\/span><\/a> provides the necessary insight to allow inventory managers to minimize the risk and losses associated with expired or expiring inventory.<\/span><\/p>\n

Which KPIs and metrics are most important to your organization? Learn more about QAD\u2019s predefined and highly customizable <\/span><\/i>Action Centers<\/span><\/i><\/a> as well as best practices for each.<\/span><\/i>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"

[vc_row][vc_column][vc_single_image image=”9173″ img_size=”full”][vc_column_text]In our previous Actionable Insights blog, we discussed the Revenue by Entity Action Center. Next, we will provide an overview of the Inventory Expired and Expiring Action Center as well as the associated key performance indicators (KPIs). When inventory has a shelf life, it\u2019s critical for the company to keep tabs on upcoming […]<\/p>\n","protected":false},"author":90,"featured_media":9173,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[908,1196,773,472,1104,309,1486,1487,230,1488,172,264],"class_list":["post-9172","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-action-center","tag-adaptability","tag-adaptive-erp","tag-data-analysis","tag-insights","tag-inventory","tag-inventory-expired","tag-inventory-expiring","tag-inventory-management","tag-item-number","tag-kpis","tag-metrics"],"yoast_head":"\nActionable Insights: Inventory Expired and Expiring | QAD Blog<\/title>\n<meta name=\"description\" content=\"Overview of the Inventory Expired and Expiring Action Center and associated KPIs and analytics for monitoring metrics.\" 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