The best of the Q&A from our webinar with NETSTOCK
In December 2020 we held a webinar all about maintaining the highest standard of inventory management. Joined by the inventory experts from NETSTOCK, we explored the best approach to managing your stock levels to maximise profit and reduce stock-outs.
We have collated some frequently asked questions about NETSTOCK, taken from the webinar Q&A, but you can watch the full webinar if you want to learn more.
How does NETSTOCK display stock turnover rates?
All stock turn measures in NETSTOCK are shown in days. The software can show both stock turnover and days of future cover for that stock. It can also compare them against the ideal model so you can get the best representation of how your stock is performing. All stock timings right through the system are shown in days, from lead times to turnover, and this helps with consistency.
Can NETSTOCK track items with expiration dates?
Yes, the software is capable of monitoring and tracking items that will go out of date. This does require custom data sets (such as the expiry dates) to be entered in.
Can you create forecasts that are specific to your customers?
Yes, you can build customer forecasts inside the system. These can be adjusted, and the changes will flow through to the forecasts for the associated products so that they can be properly replenished.
Can you override the HML classifications?
NETSTOCK is quite customisable – so yes, it is possible to not only set the parameters for your HML (high, medium, and low) classifications, but to override them as well. You can also add in extra classifications for items, however this requires custom procedures to be created for you. You decide what inputs you would like to see and what percentages you would like to use, and while it is usually unnecessary to override your classifications, it can be done.
How are the high, medium, and low classified? Is that by cubic size or by quantity counts?
The HML is based on the velocity or movement of the product. If the product is selling a lot of units then it falls into high, a medium number of units into medium, and stock that sells very slowly will go into the low category.
How would changing over suppliers for a specific SKU work with respect to the forecasting in NETSTOCK?
There are two things to explore here; a forecast is what you expect to sell. So that should not be amended, nor have any impact if you change the vendor. What changing the vendor does have an impact on is the amount of inventory you need to hold and how you are going to replenish that because there are different lead times, or different stocking levels etc. If you change the vendor in either MYOB Exo or MYOB Advanced, it will automatically reflect through to NETSTOCK. NETSTOCK will pick up all the associated parameters related to safety stocks, the lead times etc, for that vendor and will automatically adjust the forecast in line with that. It is an automated process as soon as you change the vendor.
If I have multiple suppliers, how do I decide who to order the stock from?
Generally, it is always good to set a preferred vendor as the starting point. The reason for this is that when you are ordering from a vendor you need to take into account different factors like, reliability, lead times, cost, or quality. So, the amount of stock you need to hold needs to be different depending on your preferred vendor. NETSTOCK will record all the different vendors, so you can order from whichever vendor you like, but the system will always recommend the preferred vendor. The vendor for each order can be changed on the replenishment screen with the simple click of a button.
What is the process to connect NETSTOCK into MYOB Exo, and/or MYOB Advanced?
Pre-built integrations for both MYOB Enterprise systems exist, which expedites that connection process as well as automates the pushing and pulling of your data between the two pieces of software. To connect NETSTOCK to MYOB Exo, it is only a couple of hours work. MYOB Advanced requires a full day of work to connect to NETSTOCK and get the data flowing.
However, there is still more to be done following the integration. You would still need to clean the data, set up all of your inventory policies, and be trained in the system. NETSTOCK will assist with all of this as part of the implementation.
How do I get properly trained to use NETSTOCK?
Training is the biggest focus of the onboarding project. NETSTOCK have a whole learning management system with a set of pre-recorded videos, and e-learning tasks. There is also instructor led training that sits on top of that. There are numerous occasions for you to be taken through the software, and then regular interaction with you in the onboarding. NETSTOCK will show you how to forecast, set up inventory policy, and ordering together with you as part of the onboarding process. The main focus is to help you use the product effectively. There is not much technical training as the pre-built integrations will automate the more complex areas. However, if you need any customisations then there will be a bit of additional work to make sure you are properly knowledgeable there. Most of the onboarding process is spent on proper training and use of the product.
What is the ballpark pricing?
Unlike other SaaS products that charge a fixed monthly price per user, NETSTOCK’s pricing is based on your inventory value. There are two charges: one is an implementation cost to implement and train which is a fixed, one-off fee. Then there is an ongoing monthly subscription fee.
In the lower end the fee is around $330 per month, and about $3700 for the full implementation and training. The upper end is approximately a $10000 implementation fee and $1000 monthly.
That $330 per month is for unlimited users – so if you have 500 users on the software then that is the full cost. Also, what you should be aware of is that the monthly cost covers the support as well. The only time you pay extra, is if you want some customisations specific to your environment. If it is a standard implementation, then you will have support available you for as long as you continue to pay the monthly subscription. There’s online support, Zoom support, phone support, email support, and so forth.
What is the minimum level of inventory?
The base level starts at about $500K stock value. This offers great value for SMB’s between that $0 to $500,000 threshold to have a powerful tool to help their business grow. Between $0 and $10 million in inventory value covers the bulk of where typical NETSTOCK customers sit.
The pricing is dictated by a client's starting inventory value and from this point the value is irrelevant. The more a client has the more benefit they receive, and the larger companies often have a more complex environment.
Typically, you will see reduced inventory levels around 10% - 30% if excess stock is a pain point. Stock fill in rate is also expected to increase between 5% and 15%, ensuring you have the right stock levels to service your customers. The pricing is designed in a way that the more inventory you have the better value for money the system becomes.
- Tips to identify and reduce stock-outs
- Place orders quicker – tips for optimal order replenishments
- Tips to identify and reduce excess inventory
If you would like more information on how NETSTOCK can be used in your business, please send us an email or call 0800 436 774. If you would like to watch the full webinar, you can find it on our YouTube channel here.