Centralized Inventory Management for Parts

IntelliDealer includes options for centralized inventory management for parts. IntelliDealer can coordinate inventory-related activities which provides:

  • a work around for warehouse space limitations in some stores

  • management of logistical requirements

  • a method for taking advantage of bulk ordering discounts by pooling sales

There are three types of central inventory configurations, and a dealer may use all three types concurrently, but only one type per vendor. The type of configuration used depends on how each part profile is configured. The system is very simple to set-up. The key is deciding how each part or group of parts should be handled.

Be sure to read and understand this document before modifying configuration or placing an order.

Topics in this section are:

What is a Central Location?

A central location is a location designated as the primary one for a specific vendor. More than one location can be defined as a central location, but only one location should be defined as central for each vendor.

To define central locations, from anywhere in IntelliDealer, navigate to Product Support > Parts > Parts Ordering, click the Ordering Options link and select Stock Transfer/Central Inventory from the drop down list, then click the Central Location tab.

What is OFC and Reclass?

Order Formula Codes (OFC) are assigned to parts. The system uses OFCs to determine when the part should be reordered and the quantity of the part to reorder. Each part can be assigned its own code. You can manually specify an OFC to a part on the Parts Profile, Ordering Information tab. The system can also automatically assign an OFC based on criteria you configure on the OFC Reclass screen. The automatic process is called reclass, as the system has reclassified the OFC for the part.

See Order Formula Codes (OFC) Summary.

The Methods of Central Inventory

The methods of Central Inventory are:

Note:  Read each method carefully for the correct order of operations before making any changes to your configuration and before placing a order.

Method 1: Central Location Orders for All Locations

Tip:
Central location—orders parts for all locations
Non-central locations—parts Ordering information configured as OFC 5, Reclass unchecked

In method 1, parts are ordered for the central location only and stock is manually transferred to the other locations when they need it. The other locations do not stock or order any of the parts. This method is recommended for parts you never intend to order at the outlying location even if there is enough demand, or that you never intend to stock at the outlying location, such as oils and lubricants.

To set this up, on the parts profile Ordering Information tab, set the OFC to 5 (non-stocking part), and leave the Reclass box unselected. With these settings, IntelliDealer never recommends this part be ordered on a stock order for the location, and also does not reclass the OFC code during a stock order run. Instead, when there is a stock order run at the central location, the calculations for how much stock to order will include all sales from locations with this configuration for the part.

When the non-central locations have a need for a part, they can:

This configuration for the non-central locations also means that there will never be an automatic transfer created during the stock order run to transfer parts from the central to the non-central locations.

Because there is no reclass, you can run stock orders at any time for all locations.

Method 2: Central Location Orders for only some Locations

Tip:
Central location—orders parts for non-stocking locations
Non-central locations—for those that are non-stocking, parts Ordering information configured as OFC 5 or D, and Reclass is checked

Method 2 is used for parts that go up and down in sales. The system will determine if the part is to be centrally inventoried or kept at outlying locations based upon demand (or lack thereof).

To set this up for non-stocking locations, on the parts profile Ordering Information tab, set the OFC to 5 (non-stocking part) or D (do not order), and check Reclass. Then, on the OFC Reclass - Edit screen, configure the OFC reclass parameters so that when the non-central location has enough demand, the system will reclass the OFC code in that location to a stocking code during the stock order run and back to a non-stocking OFC code when demand decreases.

In this way, when a stock order is run for the central location, the parts order calculations will not include the sales from the non-central locations when the parts stocking codes are not equal to 5 or D. And when a stock order is run for the non-central location, if there is a parts need, the system will order parts from the central location or other locations (if they have surplus) or from the vendor. IntelliDealer automatically creates the parts transfer from central or other locations when required. Once the part is transferred, the location will take care of its own inventory needs as it is the stocking part. When the part is reclassed back to non-stocking, central location will take over the stocking needs again.

For this configuration, you must run stock orders for the non-central locations first, to reclass the OFC codes on the parts based on demand. Then you can run the stock order for the central location to accumulate all sales of non-stocking parts from the non-central locations.

Method 3: Central Location Orders for All Locations, with Reclass

Tip:
Central location—orders parts for all locations
Non-central locations—parts Ordering information configured with both Reclass and Central Order checked

Method 3 could be used for parts that can receive a discount when ordered in bulk. It is similar to the first method, except the non-central locations may stock parts, but they order those parts from the central location because the central location is ordering based on the sales of ALL locations.

To set this up, on the parts profile Ordering Information tab, check the Reclass box and the Central Order box. If Central Order is unchecked, ordering will occur as in the second method. The Central Order parameter tells the central location to accumulate sales from all locations, not just those configured with non-stocking OFC codes. All OFC reclassing, ordering and transferring is the same as for the second method.

The central location stock orders must be ordered and receipted first so that when the outlying location orders are run, they can pull the inventory from the central location. The central location has to change its stocking policy so that the central location has the parts on hand when the locations have a need. This may involve changing the lead time or other ordering criteria.

Revision: 2025.01