Determining the Velocity Code

Warehouse managers and inventory supervisors use the Dynamic Item Velocity Calculation feature of Sterling Warehouse Management System to intelligently determine the velocity codes of items.

Sterling Warehouse Management System arrives at the velocity codes for items using the following:

• Historical Data-Analysis of Prior Outbound Shipments

  Dynamic Item Velocity Calculation involves the analysis of outbound shipments. Historical data such as the number of outbound shipments, number of outbound shipment lines, number of units, number of cases, and number of pallets shipped for an item, for a specific period of time, is used to determine how fast an item has moved for that period of time.

  Note: Set the value of the yfs.VelocityCode.AnalysisLevel property as yfs.yfs.VelocityCode.AnalysisLevel in customer_overrides.properties file to decide on the criteria to determine the dynamic velocity. The value of the yfs.yfs.VelocityCode.AnalysisLevel property can be set to NoOfUnits, NoOfShipmentLines, NoOfShipments, NoOfPallets, or NoOfCases.

  For example, if you want to predict the velocity for items based on the number of shipments shipped in a specific period of time, set yfs.yfs.VelocityCode.AnalysisLevel= NoOfShipmentLines in the customer_overrides.properties file.

  The default value of the yfs.yfs.VelocityCode.AnalysisLevel property is NoOfUnits.

• Forecast Data

  The velocity codes of the items can also be determined based on the number of orders or shipments predicted for the current season. Sterling Warehouse Management System enables you to load the forecasted data using the Item Statistics Data Loader service.

• Suggesting Cutoff Percentages

  Based on historical or forecast data, the velocity codes of the items can be determined based on the percentage share of each item that is part of the total number of units of items shipped. The items are arranged in descending order of their percentage share and a cumulative percentage share of each item is calculated. The pattern of cumulative item percentages is observed and a cutoff percentage is suggested based on this data. Each cutoff percentage corresponds to a velocity code for the items. The items are grouped as fast-, medium-, or slow-moving items based on the cutoff percentage range in which their cumulative percentage falls.

  The warehouse manager or inventory supervisor can override the suggested cutoff percentages and accordingly update the item velocity codes.

• Slotting

  The Sterling Warehouse Management System provides the ability to integrate with external slotting engines to re-slot active areas based on the velocity codes of the items taking the historical data into consideration.