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As we explore the concept of “Available to Promise” (ATP) in this article, you’ll learn how this game-changing strategy in supply chain management can optimize your inventory and maximize profit. We will delve into the intricacies of ATP, contrasting it with safety stock, explaining how it’s calculated, and outlining ways to successfully implement it in your operations.<\/p>\n
Key Takeaways:<\/strong><\/p>\n What led to the downfall of Kmart<\/a>, the rise of Walmart, and brought the iconic Ralph Lauren brand to its knees<\/a>?<\/p>\n Poor inventory management.<\/p>\n <\/p>\n Inventory management<\/a> is tricky for any business. Most companies fear losing customers if they fail to have an item in stock. You may even be tempted to over-stock to \u201cbe prepared\u201d for any size order. But storing too much inventory can eat into your profits.<\/p>\n How can you maintain a balance between keeping your customers happy and getting the most profit out of your product?<\/p>\n Enter Available to Promise, or ATP.<\/p>\n Our ultimate guide to available to promise covers the following topics:<\/p>\n <\/p>\n BONUS:<\/strong> Before you read further on ATP, download our Warehouse Management Software Whitepaper to see how Logiwa uses real-time tracking to help customers get up to 100% inventory accuracy and improve forecasting.<\/a><\/p>\n ATP allows businesses to keep the minimum amount of a given product within their warehouses so that they use their inventory space efficiently. It uses data to match supply as close to demand as possible so that your customers never experience \u201cbackorder<\/a>\u201d status.<\/p>\n If you\u2019re looking for a way to increase both profit and customer satisfaction<\/a>, available to promise is the ideal way to get ahead of the curve and do stock replenishment<\/a> in the most effective way.<\/p>\n While available to promise inventory might sound complicated, it\u2019s actually simpler than you think. Available to Promise is an essential piece for managing your supply chain.<\/p>\n Available to promise is the projected amount of inventory you have left available to sell, not including allocated inventory. It allows businesses to control distribution to their customers and predict inventory.<\/p>\n Push-based ATP predicts demand based by including forecasting<\/a>. This calculation takes into account the anticipated demand in order to predict how much needs to be ordered.<\/p>\n\n
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What is Available to Promise (ATP)?<\/h2>\n
Push-Based ATP<\/h3>\n