Smart Sourcing Stock Surplus 

Is your dealership sitting on valuable surplus inventory that is not moving using the standard Smart Sourcing logic?

The Smart Sourcing Stock Surplus application from FDC Solutions gives your dealership the power to strategically redefine "surplus" and utilize on-shelf inventory significantly better. This crucial application ensures that excess stocked material is automatically leveraged to fill backorders, driving down capital investment and boosting internal efficiency.

The Challenge: Wasted Inventory Capital

By default, Smart Sourcing logic is rigid, protecting stocked (S) parts and only considering parts marked as Temp (T) or Exhaust (E) as internal dealer surplus. This narrow definition often means perfectly good, overstocked inventory sits idle, while the system bypasses it to source a part from another store or, worse, from your supplier. This results in

• Higher overall inventory levels

• Customer dissatisfaction

• Slower inventory turnover

• Missed opportunities to improve On Time In Full (OTIF/OTIL) metrics

Our Solution: Expanded Definition of Surplus

The Surplus Percentage Enhancement allows you to bring your overstocked Stocked (S) items into the Smart Sourcing decision-making process, treating them as eligible surplus for backorder fulfillment.

Key Features for Intelligent Inventory Utilization

• Customizable Surplus Threshold. The system allows you to define a precise threshold: it protects MAX, plus a DEFINED PERCENTAGE of MAX. Any on-hand quantity above this calculated figure is automatically treated as surplus. For example, if a part has a MAX of 10 and you set the defined percentage at 20%, the system protects 12 (10 + 2). Any quantity above 12 is made available as internal surplus.

• Granular Policy Flexibility. Set how much stock above MAX to consider based on virtually any operational factor. The policy can be structured by store, commodity code, document type, part number, customer, and user.

Immediate Business Benefits (ROI)

Implementing the Smart Sourcing Stock Surplus application is a fundamental step toward inventory optimization.

• Drive Down Inventory. By proactively utilizing existing overstock, you reduce the need for external purchasing.

• Increase Turnover. Surplus stock moves faster, improving your inventory turnover rate.

• Improve Service Metrics. Filling more backorders internally leads to better OTIF/OTIL metrics, a win for both the dealership and the customer.