There are 2 ways to create Product Purchase Orders in SalonTarget (ST). One method utilizes a “usage calculation” to determine Maximum target inventory levels and a secondary method utilizes a “fixed” inventory target level.
In the Company-POS Setup area of SalonTarget, there are 2 fields used in Purchase Order Generation, Target Max Stock Level in Days and Target Min Stock Level in Days.
Target Max Stock Level in Days – This field will determine the upper end of what a salon would want for stock levels. In other words, if the salon wants 5 weeks worth of product on the shelf at all times…the user would set this field to 35 (35 days = 5 weeks)
The advantage of using this method to determine an upper range is that you are letting actual usage (or sales) drive what products your salon is ultimately carrying on the shelf. In other words, your highest selling products would be stocked at higher levels than your slow movers.
This method utilizes the principle of 80/20 whereby 80% of your sales are driven by 20% of your items.
Target Min Stock Level in Days – This field is only used for “informational” purposes on actual purchase order. In other words, a theoretical “minimum” level can be seen by the user in terms of usage. Many salons find it helpful in knowing how many actual items sold in the last 2 weeks. If that is the case, the user would set this field to 14 (14 days = 2 weeks). This value DOES NOT impact the calculation of what the salon “should order”. It is just used for display.
Ordering Products Based on What Actually Sells (80/20)
In order to create Purchase Orders using this method, the user should set the Target Max Stock Level in Days to 35 Days and set the Target Min Stock Level in Days to 14 Days.
When the user generates the Purchase order, SalonTarget will determine how much of each item sold for the last 5 weeks (Max Target) and match that number up against the Quantity on hand. If the calculated Max Target exceeds the Quantity on-hand, SalonTarget will set the “Should Order” value to Max Target less Quantity on-hand. For Example: Max Target = 24, Quantity On hand = 5, Should Order will be set to 19.
Ordering Products Based on a Fixed Amount
Some salons find it easier to just set a “fixed” amount for each product and have the software simply match the fixed amount to the Quantity on hand to determine what to order. This is referred to as a Simple Order Point Method of product ordering.
If the user wishes to use this method, the user should set the Target Max Stock Level in Days to 1 Day and set the Target Min Stock Level in Days to 1 Day.
Then for each product in the system, the user would set a field called “Keep on Hand”. The “Keep on hand” field is located on the Modify Product or Add New Product pages of SalonTarget under Products.
When the user generates the Purchase order, SalonTarget will match that number “Keep on Hand” up against the Quantity on hand. If the “Keep on Hand” exceeds the Quantity on-hand, SalonTarget will set the “Should Order” value to “Keep on Hand” less Quantity on-hand.
For Example: Keep on Hand = 6, Quantity On hand = 3, Should Order will be set to 3.
With SalonTarget, the salon owner has two choices on how they want to order inventory for their salon.
This icon is used to send your purchase oder to your supplier. It can only work if you have and email address added to the supplier profile page. To add an email address Click on the Products icon and then the Suppliers tab and finally click Modify in the row of the supplier.
There are three email icons:
Green – PO email has been sent to supplier
Blue – PO email has not been sent to the supplier
Red – there is no email on account for this supplier