Adopting Fit-to-Standard with the Slow/Non-Moving Materials App

Imagine you’re in a discussion with a customer who values the familiarity of an aging report they've used previously. Asked for I need a Ageing report with following parameter in the selection screen and output result. Instead of dismissing their requirement, you acknowledge their experience while explaining how SAP's fit-to-standard approach not only meets but exceeds their expectations.

Conversation with the Customer

Customer: "I need a custom aging report like the one I used at my previous company to track materials sitting in stock for over 90 days/120 days."

Your Response: "I understand the need for tracking ageing stock, but let me show you how the Slow/Non-Moving Materials App does this—and much more.

Instead of just showing how long items have been in stock, it tracks their consumption patterns and even highlights tied-up capital. For example, you can see that Material A has had no movement in 120 days, but you'll also learn how much of your capital is tied up and get actionable insights like transferring it to another plant or scrapping it if it’s obsolete.

Additionally, the app includes predictive analytics that anticipates future trends, helping you act before materials become slow-moving. All this is available without customization, ensuring your system remains clean, efficient, and upgrade-ready. Would you like a quick walkthrough to see how it meets your needs?"

a. Day with low Consumption - It is a dynamic field which you can put as per the requirement.

b. Inventory consumption Group - As per your requirement you can define the inventory consumption group additionally movement type can be included/excluded to monitor your specific consumption pattern. It can customized using manage your solution (CBC).

Output of the report

Transition from Aging Report to Proactive Insights

Illustrate Through a Practical Example

Scenario: A Customer Asks for a Custom Aging Report

The customer wants to identify materials in stock for over 90 days and asks for a custom aging report. Here's how you explain the standard app's value.

Example:

• Traditional Aging Report Request -

Material A has been in Plant 1001 for 120 days without movement.
Aging report highlights it as "old stock," but offers no further insights.        

• Using the Slow/Non-Moving Materials App:

Material A is flagged as non-moving (no consumption in 120 days).
The app displays:
Stock Value: $30,000 tied up.
Slow-Moving Indicator (SMI): 0% (indicating no consumption).
Consumption History: Visualized over the past year.        

• Actionable Insights:

The app suggests:
Scrapping Material A if obsolete.
Transferring stock to Plant 1002 where demand is higher.
Collaborating with sales to promote Material A.        

Predictive Advantage:

Explain how the app uses predictive analytics to anticipate trends:

• Instead of waiting for materials to stagnate, the app forecasts slow-moving items over the next three months.
• Example: Material B, with low consumption over the past 60 days, is projected to drop to an SMI of 5%. Proactive measures can be taken now.

Why Fit-to-Standard Is Superior

• Customization Risks: Custom aging reports add complexity, increase maintenance costs, and risk obsolescence during upgrades.
• Future-Proof Solution: The app is continuously enhanced by SAP, ensuring it stays aligned with industry needs and innovations.
• Efficiency: Built-in filters and predictive analytics eliminate the need for manual adjustments and additional development.

Tips : SAP offers another powerful tool called the "Dead Stock Analysis" Report, which serves a similar purpose to the Non-Moving Stock Materials App. This report specifically provides information on when a material was last consumed, enabling better cash flow planning. By leveraging this report alongside the Non-Moving Stock Materials App, you can address the customer's needs more effectively without requiring a custom aging report. Together, these tools offer comprehensive inventory management capabilities, eliminating the need for a separate aging report while ensuring actionable insights for better decision-making.