Reducing Transit Variances Losses using Sage 300 ERP

By | March 5, 2013

In Retail and Distribution Industry, Supply Chain Management always plays an important role. It may be material procurement or processing or distribution part; costs, time and quantity put a major influence on the margins and service quality. Identifying and sealing the spills in timely manner is very important.
Say for an example, there is a distribution network in a food service industry and you supply all your Stores/Outlets with processed food items from a Central Location (like a city wise Central Kitchen) against a requisition, there are chances of variance between the Quantity Requested, Quantity Transferred and Quantity Received at store. This variance can be due to reasons varying from production shortage, transfer loss, wastage or many more.
An effective way of tracking this type of issue using Sage 300 ERP (formerly known as Sage Accpac ERP) is to create IC Transit Transfers and Transit Receipts and then to do reporting to track the variances. Let us again take an example of a Retail chain, where a store asks for semi-finished goods to its central kitchen that processes and supplies the store within a day’s time lag.
Also Read:  Yield and Waste Management in Sage 300 ERP
For an instance, a store (Manhattan) requested for 100 KGs of Patty (for burger :)) to its Central Kitchen in New York. This request can be captured as I/C Transit Transfer entry in Sage 300 ERP, keeping Central Kitchen as the ‘From’ Location and Requesting Store (Manhattan) as ‘To’ location. The requested Quantity column can be filled as 100KGs. Entry can be saved for time being. Once the patty is prepared and dispatched from the Central Kitchen, dispatcher can mark the transfer as complete by entering the actual quantity being dispatched and posting the Transfer.
At the time of receipt of this material at store, store person can enter the actual quantity received at store to finally complete this transaction. Once all this data is in system it becomes very easy to take out a report giving variances for Requested to Transferred and Transferred to Received.
These kinds of variances can then help users to reduce inconsistencies in system by applying more stringent and robust processes, better supply chain network, trustworthy transporters and high shelf life products. This also reduces the loss originating from no sales due to low stock/zero stock, by helping users to better streamline procurement for lowering purchase costs and in effect increase margins.