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Mindcore experts: How to fight surplus stock in Microsoft Dynamics NAV

Distribution companies are often faced with the problem of excessive inventories and their need to reduce the stock. Sales professionals intentionally create the “buffer” stocks of certain groups of products, which can then turn into a surplus or become unmarketable. Here is one way of reducing these reserves by almost basic standard Microsoft Dynamics NAV means.

As you know, Microsoft Dynamics NAV from time immemorial had the functionality of product reservation. If you do not delve into the details, then it comes down to the fact that sales orders row (for each product) are associated with receipt of the goods. Products involved in the reservation for one order, are no longer available for other orders. Thus, all the inventory can be divided between sales orders and replenishment of reserves can only be made to cover the new demand. This is the strength of a standard functionality. But there is a downside.

Part of the sales orders are created in store for the future or to fulfill some promising inquiries from buyers. These orders can “hang” for a long time, blocking some of the reserves. Trust in the consciousness of managers and manual cancellation of reserves, unfortunately, is non-existent. A good way to deal with it is the periodic automatic cancellation of the reservation. However, the standard solution Microsoft Dynamics NAV does not have such means.

In this case, a slight modification comes to help. Modification consists of estrablishing a new field parameter “Validity Reserve”. It can help you to determine the number of days to keep the reserve for a specific order. After this period ends reserve is automatically removed from the order and the product is available for sale.

The period for keeping the reserve may depend on a number of criteria: the level of service specified for this particular group of clients (1 day, 3 days, a week); order status (open, released, paid); Manager status (beginner, trusted), etc. Removing the reserve status is accompanied by e-mailing the list of removed statuses to the responsible person.

This simple and unpretentious modification improves discipline in the use of stocks and at the same time ensures the declared level of customer service.

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