Automating Material Requests

Automating Material Requests

Introduction

Running out of stock can disrupt operations, while overstocking ties up capital. iVendNext solves this challenge with automated Material Requests (MRs) based on reorder levels, ensuring optimal inventory levels. This guide explains how to configure reorder levels, automate procurement, and prevent stockouts efficiently.



1. Why Automate Material Requests?

Manual stock monitoring is time-consuming and prone to errors. Automating MRs offers:
✔ Prevents Stockouts – Alerts when inventory falls below safety levels.
✔ Saves Time – Eliminates manual purchase requests.
✔ Improves Accuracy – Reduces human errors in calculations.
✔ Optimizes Inventory – Maintains ideal stock levels without excess.



2. Understanding Reorder Levels in iVendNext

Key Terms

  • Reorder Level: Minimum stock threshold triggering an MR.

  • Reorder Quantity: Amount to reorder when stock hits the reorder level.

  • Warehouse-Wise Levels: Set different reorder rules per warehouse.


How It Works

When stock ≤ Reorder Level → System auto-generates a Material Request for the Reorder Quantity.



3. Step-by-Step Setup of Reorder Levels

Step 1: Enable Auto-Creation of MRs

  1. Go to Stock > Setup > Stock Settings.

  2. Enable "Auto-create Material Requests for Reorder".

  3. Save.



Step 2: Define Reorder Levels in Item Master

  1. Open the Item Master (Home > Stock > Items).

  2. Select an item and navigate to the "Reorder" section.

  3. Enter:

    • Reorder Level (e.g., 50 units)

    • Reorder Quantity (e.g., 100 units)

    • Warehouse-wise Levels (if applicable)

  4. Set MR Purpose: Choose Purchase or Transfer (if sourcing from another warehouse).

  5. Save.


Step 3: Configure Alerts for Purchase Managers

  • Ensure Purchase Managers receive email notifications for auto-created MRs.

  • Alerts include:

    • Item details

    • Reorder quantity

    • Suggested supplier (if linked)



4. Testing and Troubleshooting

Test the Automation

  1. Reduce stock manually below the reorder level.

  2. Check Material Request List for auto-generated MRs.


Common Errors & Fixes

Error

Solution

"Fiscal Year not found"

Verify fiscal year settings in Accounts > Fiscal Year.

"No default supplier set"

Link a supplier in the Item Master.

"Warehouse not specified"

Assign warehouses in Item Reorder settings.




5. Advanced: Dynamic Reorder Rules

For businesses with fluctuating demand:


  • Seasonal Adjustments: Temporarily increase reorder levels for peak seasons.

  • Bulk Imports: Update reorder levels via CSV for multiple items.

  • Project-Based Procurement: Link MRs to Production Plans or Sales Orders.



6. Best Practices for Reorder Automation

✅ Regularly Review Levels – Adjust based on sales trends.
✅ Use Warehouse-Specific Rules – Account for regional demand variations.
✅ Monitor Alerts – Ensure Purchase Managers act on auto-MRs promptly.
✅ Integrate with RFQs – Auto-generate Request for Quotations from MRs for cost efficiency.



Conclusion

Automating Material Requests via reorder levels in iVendNext streamlines procurement, minimizes stockouts, and optimizes inventory investment. By following this guide, businesses can ensure seamless replenishment while reducing manual intervention.



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