Excess is cash on a shelf. Some of it can move to a location that needs it. Some of it has open POs that should be cut. This guide sizes your excess, finds transfer candidates, and flags open POs.
⏰ Time: about 15 minutes.
Before you start
Start a new chat on the Cue module.
Decide what counts as excess. This guide uses more than 12 months of supply on hand. Change it to fit your business.
Results cap at 500 rows. Work one location at a time.
Step 1: Size the problem
For each stockable, non-discontinued item-location, calculate months of supply as current on-hand quantity divided by average monthly usage over the last 12 complete months.
Excess quantity = on-hand quantity minus 12 months of usage. Excess value = excess quantity × unit cost. Treat item-locations with zero usage as fully excess.
Summarize total on-hand value and total excess value by location, highest excess first.
Start with the location carrying the most excess value.
Step 2: List the items
For [location], return a downloadable table of item-locations with excess value greater than 0, using the same rules. Include item code, item name, on-hand quantity, 12-month usage quantity, months of supply, excess value, current max, and recommended max. Sort by excess value, highest first. Cap the table at 500 rows and say whether there are more.
Where current max is well above recommended max, the item will keep coming back. Review it in Planning.
Step 3: Find transfer candidates
For the excess items at [location], which other locations have on-hand below current min or less than one month of supply? Return a downloadable table with item code, item name, destination location, destination on-hand, destination min, and the excess quantity available at [location].
Step 4: Flag open POs
For the excess item-locations at [location], list any open purchase orders. Include PO number, supplier, item code, open quantity, open value, and expected date. Sort by open value, highest first.
Open POs on excess items are the fastest money to save.
Tips
Seasonal items will look like excess off-season. Exclude them or ask for a shorter window: "using the last 3 complete months of usage."
Click any item to open it in Planning.
What happens next
Cue is read only. Create transfers and cancel or push POs in your ERP.