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Sales Threshold by Warehouse

In this article, we will explore the Sales Threshold by Warehouse feature, available within the Replenishment module. This feature offers flexibility and control over how products are replenished based on sales probability, tailored to individual warehouse needs. 

Let’s dive into the details, comparing this new feature to the product-level sales threshold and explaining how to use it effectively.

Key Differences: Product-Level vs. Warehouse-Level Sales Thresholds

In the past, the only option was to set the Sales Threshold globally at product level. This global threshold applies the same probability of selling the item across all warehouses simultaneously, regardless of stock differences. For multi-warehouse customers, this approach may not always meet specific inventory needs.

Now, with the Sales Threshold by Warehouse feature, users can define sales thresholds at both product and warehouse levels. This means that even if the same product is stored in multiple warehouses, different distribution strategies can be applied to each warehouse.

It is not compulsory to establish a threshold by warehouse value for all products and all warehouses. Users will decide whether to configure or not (and when) a different value for a specific warehouse.

Example:

  • Global Threshold: A global value of 30% means that all warehouses use the same sales threshold.
  • Warehouse-Specific Thresholds: You can set specific values for individual warehouses. For example, a 5% threshold in Warehouse A will speed up stock reduction, while a 75% threshold in Warehouse B will protect stock, ensuring items are shipped only to the locations with higher demand.

If no specific threshold is set for a warehouse, the global threshold (30%) will apply.

How to Visualize the Sales Threshold by Warehouse in the platform

When accessing the Sales by Warehouse section on the platform, the default view lists all products, sorted by the total stock across warehouses. Each product is linked to multiple lines showing the available stock in different warehouses.

  • Global Threshold Column: Displays the mandatory product-level threshold, managed through the legacy Product Master page.
  • Warehouse Exceptions: If a warehouse-specific threshold is set, the platform shows a "WH exceptions" message under the global percentage. Clicking the arrow next to this reveals detailed exceptions, displaying the threshold for each warehouse and the corresponding stock.

Downloading Data:

You can download specific warehouse thresholds via the Download button. This action only applies to filtered results (e.g., by product category or warehouse). Note that global threshold percentages and warehouse stock are not downloadable.

Setting Up Sales Threshold by Warehouse

To configure this feature, follow these steps:

Data Upload:
  1. Go to Daily Data → Data Upload.
  2. Choose the Sales Threshold by Warehouse option in the dropdown menu.
  3. Upload a file containing the desired threshold values for each product and warehouse combination.

The template requires:

  • ProdReference: Product reference.
  • Sales_Threshold: A percentage between 1% and 99%.
  • WarehouseCode: The exact warehouse code as it appears in Nextail platform(this field is case-sensitive)

Modifying or Removing Thresholds by Warehouse:

To modify, upload a new file with updated values. 

To remove a specific threshold in a given warehouse, simply upload a blank cell for that product-warehouse combination.

RO File and Summary Page Integration

The Sales Threshold by Warehouse is reflected in both the RO file and the Summary page. The most granular threshold (whether it’s set at product or warehouse level) will be displayed in these views.

Example:

For a product with a global sales threshold of 30% and a warehouse-specific threshold of 40% (for A Warehouse), the Agr % column in the RO file will display 40%, as it’s the more granular value, and the same will appear on the Summary page.


Conclusion

The Sales Threshold by Warehouse feature offers enhanced flexibility for replenishment strategies across multiple warehouses.

It enables more precise stock management and better control over stock distribution based on the unique conditions of each warehouse. 

By configuring these thresholds, you can tailor your inventory strategies to align with business objectives while optimizing stock flow.

We hope this guide helps you master this powerful feature. Happy replenishing!