What Are We Trying to Accomplish?
As the demand from MRP changes, SourceDay provides a summary of move ins, move outs, and cancellations to allow strategic opportunities to protect revenue and optimize cash flow. The PO Exceptions Dashboard makes it easy to view the total value of move ins, move outs, and cancellations. The purpose of this article will break down what each of these within the total value view means.
Understanding the View
Move Ins (At-risk Revenue)
- Represents a change in demand.
- Requires PO receipt earlier than originally expected.
- Earlier receipt creates an opportunity to produce, ship, and invoice goods sooner to protect revenue.
Move Outs (Cash flow)
- Represents a change in demand.
- Requires PO receipts later than originally expected.
- Later receipt creates an opportunity to delay payments required and free-up working capital to optimize cash flow.
Cancellations (Excess Inventory and Working Capital)
- Parts that you no longer need.
- Cancellations create an opportunity to manage and prevent excess inventory to prevent tying up working capital and increase inventory carrying costs.
Keep Learning
- Overview - Getting Started with PO Exceptions
- Understanding the Total Value of Move Ins, Move Outs, and Cancellations
- Next Up → Understanding the Tabs and Statuses
- Understanding the Dashboard
- Understanding the Opportunity Cost
- Updating the Exception Message
- Searching, Filtering, and Exporting PO Exceptions