A staggering 90 percent of the typical wholesaler's "dead stock"—inventory that hasn't sold in a year— comes from items that were purchased despite having low or no sales activity. Thrive's newest patent-pending digital inventory technology prevents this accumulation of dead stock by up to 90 percent, without the need for expensive and risky software implementation.
MARIETTA, Ga., May 5, 2022 /PRNewswire-PRWeb/ -- Thrive Technologies, the leading provider of digital inventory technologies to wholesale distribution companies, is proud to announce the launch of Thermostock™. Thrive's newest patent-pending digital inventory technology prevents the accumulation of dead stock by up to 90 percent, improving inventory turns, increasing profitability, and ultimately freeing up warehouse and branch space—all without requiring an expensive and risky software implementation.
Analyzing the data from hundreds of wholesalers over the last few years, Thrive discovered that a staggering 90 percent of the typical wholesaler's "dead stock" (inventory that hasn't sold in a year) came from items that were purchased although they had low or no sales activity. Additionally, Thrive discovered that between 50 and 90 percent of a wholesaler's items sell 10 or fewer times per year.
"Items that only have three sales in the last year, for example, don't have enough sales history for a forecasting system to measure or predict future demand accurately which is a primary reason for either lost sales or for unnecessary inventory to be acquired," said Thrive CEO Rick Morris. "So, we had to come up with a better way to help our clients solve this huge unaddressed problem."
Thermostock works by analyzing millions of sales transactions to identify low-volume sales items, looking at characteristics such as recent sales, supplier characteristics, pack sizes, SKU replacements, branch storage capacity, type of customer, sales type, cost, and the ability to return products to a vendor. Those factors are used to calculate the optimal Minimum/Maximum for an item, and send it back to the client's Enterprise Resource Planning (ERP) system. Thrive is also building machine learning and artificial intelligence to further improve the recommended inventory levels. Thrive interfaces directly with the existing ERP system which makes the process completely non-disruptive for buyers, who continue to cut purchase orders from their ERP system as usual.
"Dead and obsolete stock is an unresolved issue for almost every company with inventory," said Morris. "For example, wholesalers' business models require them to stock tens of thousands of low selling items that only constitute 20 percent of revenues. Since buyers have limited time, they understandably invest their time in the high-volume SKUs that generate significant revenue for their companies. The buyers don't have time to analyze thousands of low-volume SKUs and existing buying systems are not able to manage these items since they have unpredictable sales. This results in a bad combination of lost sales and purchases of inventory that is not selling. Thermostock optimally and dynamically manages those low-volume items, buying items that are currently selling and not buying items that are not. This increases sales and prevents unjustified inventory purchases which end up becoming dead stock."
Additional information about Thrive Technologies, including its entire portfolio of proven supply chain technologies, can be found online at https://www.thrivetech.com.
About Thrive Technologies
Thrive Technologies is committed to solving supply chain issues for wholesalers without requiring expensive risky software implementations. Thrive provides digital inventory buying technologies that reduce lost sales by at least 50 percent and prevent up to 90% of the accumulation of dead stock for wholesale distributors, master distributors, and retailers. Thrive supports all ERP systems, regardless of platform (Windows Server, Linux, iSeries, etc.) including Epicor Eclipse, Prophet21, Infor SXe, JD Edwards, Oracle, Microsoft, Netsuite and homegrown systems.
For more information, please visit Thrive Technologies at http://www.thrivetech.com or follow them on LinkedIn, Facebook or Twitter.
Media Contact
Melissa Gray, Melissa Gray Public Relations, Inc., 1 8456643092, [email protected]
SOURCE Thrive Technologies
Share this article