Vendor Managed Inventory (VMI) and ConsignmentDecember 6th, 2017
- How Can I use AdvancePro to manage stock across all customer locations?
- How can I use AdvancePro to bill my customers on a consignment basis.
APT University: Vendor Managed Inventory (VMI) and Consignment
Hello and welcome to AdvancePro University, Today we’ll focus on how to use our multi warehouse, and our customer order features together to provide vendor managed inventory and consignment services to your clients.
We will be taking any questions at the end so feel free to put them into the questions tab of your gotowebinar control panel, and if you want to learn more about AdvancePro we have over 60 past APTU episodes available on advanceprotech.com or on our youtube channel.
So when we talk about vendor managed inventory, we’re describing a relationship with your clients where you leave a certain amount of stock on their premises, and then every few days you send someone to their premises, to replace any sold goods, and to bill your client for the goods that have been taken.
So to do this, what you’ll do in AdvancePro, is set up a warehouse for each client-site you’ll be managing, we happen to have named our warehouses warehouse one and warehouse 2, but you can name them whatever you might like.
Now here in manage inventory, we’ll be able to see our stock across all warehouses, or the stock level in each location very easily. Next, we’ll be able to transfer our stock using the multiple transfer option. So this represents a visit from someone who needs to update the stock level at your client site, choose a direct transfer, which is instant. So for example your customer requires 4 of an item on site, but they’ve gone down to 1 unit on site, so you’ll go ahead and give them another 3.
Now you’ll have a record of all the recent transfers, and now we can go ahead and invoice the client for the items that they received,
So each client can have their stock pull by default from a distinct warehouse. Set up each customer you’re managing inventory for to pull from that customer’s warehouse. Now we’ll add the items from our transfer order to a sales order, and we’ll invoice without shipping – since the items have already been shipped, this will draw down their stock and create an invoice in one step, and it will push that invoice out to QuickBooks directly. You can then take payment on the invoice either from here in AdvancePro or from QuickBooks.
So this concludes our discussion of vendor managed inventory today.