What is your delivery date ?

Any sales representative at one point in time in his/her career has to answer that question, customers not only are interested in knowing the prices of your products but also the delivery date. This information is crucial and can influence seriously the possibility to close a deal. Keeping excessive stock to meet future demand can be expensive, especially now that supply of products exceeds demand. Netsuite has a specific functionality that helps companies to provide an immediate estimated delivery date – Available to Promise (ATP) -, regardless if the sale is online or offline. The available to promise feature allows sales personnel to access a projected stock balance of a specific product per each single location. Netsuite calculates the expected daily inbound and outbound of the item and create an underlying ‘virtual bucket’ in which the correct balance is calculated. By analyzing the day/s in which the stock is ‘Available’ sales rep can firmly promise a delivery date (provided that the customer confirms the order) for companies selling online the Availability to promise can be published. Netsuite calculates the ATP using 2 methods – Discrete ATP – Cumulative ATP with look ahead – these methods can be selected at item level. If you anticipate that your demand is historically in line with your supply then it is advisable to use the discrete method, if on the other side your sales quantities are always greater than the supply quantities, then it is advisable to use the cumulative in that it betters accounts for shortages that may occur in the future.