Families and Groupings is an essential tool for any organization in a demand-driven environment allowing for the aggregated view, and manipulation, of both sales and forecasts and providing input to material requirements planning. SYSPRO Inventory Families and Groupings provides the tools to arrange ‘collections’ of stock-keeping units (SKUs) into families and groupings of similar items. These collections provide a high-level view of items from which sales forecasts can be produced and the quality of the forecast measured. A significant feature is the ability to group warehouses for purposes of forecasting at a regional or territory level for logistical or supply chain purposes. There is also the feature for forecasts to be generated at a brand level to facilitate a clearer marketing picture.
Within SYSPRO, Families and Groupings refers to the various collections of inventory items classified in a way that is meaningful to your business (e.g. you could classify a ‘filter’ as an OEM product, a spare, a paper filter, an oil filter, etc). The need for Families and Groupings arises from a business scenario where, owing to the number of stock codes or stock keeping units (SKUs) the forecasting of individual stock items would constitute an unmanageable workload. It also makes sense to ‘collect’ common stock codes into a family or group.
A family generally refers to a collection of SKUs where a hierarchy and a logical relationship exist between them. For example: Apple juice is packaged in 300ml, 500ml, 1L, 1.5L and 2L plastic bottles and would also be a member of the Pure Fruit Juice ‘family’. Families are best observed by examining an organization’s price list and are mostly used in the ‘outbound’ or sales view of the SKUs.
A group generally refers to a single level collection of SKUs that is used when arranging SKUs for storage or internal analysis. For example: the 300ml plastic bottle would be a member of the Plastic Packaging ‘group’ of SKUs. Groups are best observed by examining an organization’s logistics view and may be used to create ‘inbound’ (i.e. supplier) ‘home’ or ‘outbound’ views of collections of SKUs.
The benefits of Inventory Families and Groupings
- Forecasts at various levels in the family hierarchy (grandfather, father, child)
- Multi-level analysis of family performance over time
- Variety of forecasting algorithms, including a competition method which automatically selects the best algorithm for the collection
- Default algorithms at company or collection level
- Pareto (ABC) analysis for ranking items within each collection
- Analysis of sales value, gross profit, cost of sales, quantity sold or hits (invoice line occurrences) using Pareto capability
- Automatic real-time updates of collection history
- Configurable graphical output for improved visibility