Valid Sales History

[Chris]

I'm Ford parts running on a UCS 7000 system. The UCS software automatically creates sales history when a part is ordered through the SPO (Special Parts Order) system. UCS defends this practice under the term "Lost Sale".

In actuality there has been no lost sale, the transaction involved the ordering of a part, hopefully with a deposit.

Now comes the problem. Customer doesn't return to pick up his special order. After a period of time we move the part from the SPO area and place it in with our normal inventory. Another individual comes in and purchases the part. Now I have a false sales history of 2.

I've been discussing this with UCS for well over 6 years to no solution. Correct parts theory would assign the sales history when the part was issued NOT prior.

Any thoughts or suggestions?

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Chris Bledsoe
Pts Mgr
Pulliam Ford
Columbia, SC
sysop@clynx.com

[Chuck Hartle]

Hi Chris,

Read the response under "NS Syndrome". I finally got around to answering this for you.

Chuck Hartle'

[Bob Smith]

Hi Chris -

I'm on the ERA system so I cannot speak for UCS. I have no experience with that vendor.

But with the ERA system we can go into the sales history screen and modify the lost sale to correct it. Do you have a similar screen to make adjustments? Perhaps a screen that allows you to clear lost sales?

It's probably not what you're looking for but there must be a way around your problem that would allow you to make corrections.

[David S]

Chris:

I have the opportunity to spend this week in Houston learning about the UCS system. In response to the difficulties with SPO you mentioned I made it a point to try to gain an understanding of what the system is doing.

Most parts managers agree that if a customer inquires about a part but does not buy it because it is not on hand that a lost sale should be posted. The customer still needs the part, they just decided not to buy it from you. They will likely go to another dealer or the aftermarket to purchase this part. You are posting a lost sale to collect total demand data to assist you in the future to determine what parts to stock. Once you have enough demand on this part regardless if it is lost sales or actual sales you will decide to stock it. Do you agree?

If this is the case, then if a customer were to special order a part but never return to pick it up what is proper procedure in regard to posting a lost sale? The customer likely still needed the part. They very well could have purchased the part from a competitor. If you return the part to the manufacturer it is as if the part were never ordered, you didnt sell it, yet a customer has inquired about it. Wouldnt you still want a lost sale posted on this demand? With the exception of the work you have done to order the part, receive the part, and either place the part in inventory or return the part to the manufacturer this scenario is the same as the one represented in the above paragraph.

The UCS system does not create sales history when a part is ordered through SPO. There are no sales dollars posted, and on hand in inventory is not altered. SPO shows it on order till receipted then shows the actual SPO on hand and separately any quantities on hand in regular inventory. The only sale that is posted is a Lost Sale or a demand, not an actual sale. If your customer returns for the part you relieve the inventory in SPO, and the Lost Sale is converted to an actual sale. You still show 1 in the sales history.

Using your example, if the customer did not return, a Lost Sale is already noted. Later another customer requests the part and you sell it to them. You dont have a false sales history of 2, you have a lost sale for the customer that made and inquiry and a sale to the new customer for a total of 2 hits which is accurate. Now, to be the devils advocate, the one situation that would create a problem is if the customer whom originally ordered the part did not return to pick up the part for an extended period of time. You have removed the part from SPO and placed it in your regular inventory. Now the customer purchases the part and the system logs a demand on top of the lost sale. Now you do have a false sales history of 2 for the same customer on the same part. In the end though, how often will this happen and will it happen enough for you justify worrying about it. We cant spend 99% of our time dealing with 1% of the scenarios that our DMS systems are not designed to deal with.

Also, regarding the statement in NS Syndrome You are absolutely correct regarding our friends at Houston being proprietary. So much so that a parts manager in the UCS environment doesn't even have access to the screens necessary to modify days supply, phase-in or phase-out. Rational being that a parts manager should call in and speak with a professional at UCS.

You are able to modify days supply and the phase-in and phase-out. Check out screens 172-04 and 172-08. The terminology is different but you still have control. Also, you have the added ability in 155 to further fine tune your inventory by overriding the Level in 172-04 in the Lv field.

David S.