The Exact Online Trade solution from Exact Software combines the currently available stock centric process with the newly developed order controlled purchase process.
Currently, the Exact Online Trade solution is based on trading companies that keep stock levels (reorder level, maximum stock) as a strategy to deliver orders to customers.
A primary advantage of the stock centric process wherein stock levels are maintained in the company warehouse is that the company is in control of lead times and accuracy of deliveries.
But there are other considerations for keeping stock levels as a strategy including costs involved in keeping stock, item turnover, purchase lead time and risk of not selling (unsaleable stock).
The Exact Online Trade solution has been further developed to not only support the stock centric process but also to control purchasing based on demand (back to back orders).
In other words, instead of keeping stock with the help of stock levels, the company will purchase based on outstanding sales orders. However, this process may only apply to some items; for instance, with just in time delivery by the supplier, while for other items with a high turnover ratio, the company may retain the stock centric strategy.
The distinction between order and stock controlled will be of great help for the purchaser to determine which sales order lines need purchase orders to be planned or generated.
This new development in the Online Trade solution will be even more relevant for Exact’s trade customers by supporting multiple logistic strategies.
Exact Software is a leading information technology company serving a range of industries with business software solutions.