Digital procurment

• The warehouse is overcrowded with goods, which creates bottlenecks in the warehouse.
• The shelves and aisles in the store are overcrowded with goods, making it difficult to buy.
• Not enough space to store goods in the warehouse and shops.
• Insufficient quantity of the item requested by the customer (OOS).
• Receipts of goods in stores take a long time and during the reception there are no sales, which leads to missed sales.
• Receipts of goods in stores are carried out several times a day due to the lack of space to store goods in the store, which causes high logistics costs.
• Problem with cash flow because because of the currency you have to pay the supplier and you have not sold the goods yet.
• You have “dead stock” in your warehouse and/or store, which causes additional logistics costs.
• It often happens that in the store and in the warehouse expiration dates.

• LVC SCM solves the problem of “bottlenecks” in stores and in the warehouse.
• LVC SCM solves the problem of lack of storage space in a warehouse or store.
• LVC SCM solves the problem of out-of-stock (OOS) and missed sales.
• LVC SCM frees up capital tied up in excess stocks and accelerates cash flow.
• LVC SCM solves the problem of overstocking in the warehouse and stores, as well
  as the problems of “bottlenecks” due to overcrowded warehouses and/or stores.
• LVC SCM automatically orders exactly the amount of goods that will be sold with an accurate forecast of over 90%.

• ABC is an analysis based on the Pareto rule that ranks and groups items based on demand and turnover.
• XYZ – an analysis that ranks items based on demand taking into account the variability of demand over a given period.
• VED – an analysis that ranks items based on their impact on business and groups them into three groups: Vital (V) items without which business would be endangered, Essential (E) items that are important for business and Desirable (D) items that are desirable but not necessary.

LVC SCM uses state-of-the-art statistical methods for demand forecasting such as regression analysis methods, machine learning, exponential smooting, Box Jenkinks…

Historical sales data are used as input data, and based on this, the software provides a forecast of how much demand there will be for each item in the target period. The accuracy of the forecast is more than 90%.

Based on the forecast, and taking into account the current stock level, protective stocks and lead time, the software determines the Reorder Point – how many pieces should be ordered for each item and when to order for each store, for each warehouse.

LVC SCM can automatically create a purchase order and send a purchase order for a specific item to the supplier through the EDI channel automatically without the involvement of a human factor.

LVC SCM can achieve API integration with any ERP software and exchange data by downloading data from the ERP software on realized sales and stock levels and sending to the ERP data on which item and in what quantity should be ordered from the supplier in order for the ERP software to create a purchase order for the supplier. All of this can be done fully automatically without the involvement of humans.

LVC SCM can establish a direct connection to the WMS software and take over the stock status from the WMS in real time.