Getting Started Using Suggested Purchasing (SPOs)

Below are the steps for setting up and running Suggested Purchasing (SPOs) in Agility. 

*Please watch the "Understanding Suggested Purchasing in Agility webinar" available on the Wedge. Review our list of Common Purchasing Values and What They Mean(AR2079). You can also review Common SPO Troubleshooting Issues(AR2211) if you are currently using SPOs. 

1. Set your EOQ Parameters (Purchasing > EOQ Parameters).
1. Set the EOQ cost per purchase order line. Costs typically range between $4 and $8 (DMSI recommends using 6).
2. Set the EOQ inventory carrying cost factor. Costs typically range between .25 and .4 (DMSI recommends using .3).
3. For additional help doing these calculations, refer to the “How to Calculate your Cost Factors” article (AR1945).
2. Verify you have a Purchase Type flagged as Use as Default for Stock Suggested Purchase Orders. (Data Files > Supplier Information > Purchase Order Types)
3. Verify you have a Sale Type set to Yes for the Use in Reorder Calc’s field. (Data Files / Sales Order Settings / Sale Types)
4. Verify Purchasing Parameters are correct (System Admin > Module Controls > Purchasing Parameters)
1. Display 24 month usage
2. Limit trend percentage
3. % of EOQ in Surplus calculation
5. Assign a Location for usage adjustments in the Locations Maintenance screen by having the “Use for usage adjustments” box checked (Data Files > Item Information > Locations). This prevents any errors from popping up when updating 24 month usage.
6. Refer to the “Basic System Setup for Running SPOs” article (AR1946) for steps 2-5.
7. Assign ABCs (Data Files > Item Information > Misc Settings > ABC Classification). For help, review the How to set up and run ABC Classifications.
1. Set up Parameters first, then Calculate/Update ABCs.
2. DMSI recommends A=70, B=20, C=7 and D=3
3. Can be set for All items (do this at minimum), Product Group Major/Minor, Supplier and Buyer.
4. For additional help, refer to the “How to set up and run ABC Classifications” article (AR939).
8. Verify Item info is correct. (Data Files > Item Information > Items)
1. Branch Settings tab:
1. Stock
2. History Start Date
3. ABC
2. Reorder Info tab:
1. Do Order Calculations/Include in SPO’s
2. Minimum Reorder Point (optional)
3. Minimum Delivery Delay factor (optional)
9. Verify Item Supplier information is correct. (Data Files > Item Information > Items > Item Supplier icon). *These can be updated using our List of Reorder Info (AR2283) Cyberquery report available on the Wedge. Use the articles on the Wedge on how to download, run(AR2039), then make changes and import changes(AR2038) into Agility. 
1. Set your Primary Supplier as the supplier you will be using for SPOs.
2. Verify lead times are accurate. If not you can manually update or mass update by primary supplier.
1. (System Administration > Mass Update > Item Mass Update)
2. Change the mass Update Action to Update Item Supplier Records. Select the Supplier that you would like to update the lead days for. Choose All Records or a range of items, product groups or buyers.
3. Select the Field Name of Lead Time – Most Recent.
4. Choose the Numeric value that corresponds to the average lead time from the supplier.
5. Click Process.
6. Change the Field Name to Lead Time – 2^nd Recent. Repeat through 5^th Recent.
3. Verify the minimum package quantities are accurate (optional).
4. Verify the minimum order quantities are accurate (optional).
10. Refer to the “Basic Item Setup for Running SPOs” article (AR1939) for steps 8 and 9. Watch the SPOs Part 1: Basic System and Item Setup training video for steps 1-5 and 8-9. Watch the SPOs Part 2: ABCs and Usage training video for steps 7 and 11.
11. Verify 24 month usage is correct (Stock Status > View/Update Usage icon)
1. Can be manually updated.
2. Can be updated with a Usage Import.
12. Run Reorder Calculations (Purchasing > Reorder Calculations)
1. Forward calculation for seasonal items. Should be run last day of the month.
2. Backward calculation for non-season items. Should be run first day of the month.
3. Forward calculation with Trending. Should be run last day of the month.
4. Criteria can be saved and run via automated processing.
5. For additional help, refer to the “Setting up Reorder Calculations for Running SPOs” article (AR1950).
13. Run Suggested POs (Purchasing > Suggested POs)
1. Choose the branch or branches.
2. Choose your Supplier(s), Buyer(s) or Product Group(s).
3. Choose All Items or only Items below the Buy Point.
4. Choose if you want to calculate Surplus and corresponding branches.
5. Create SPOs.
14. Work your SPO
1. View Details for the supplier.
2. Review and make changes to items and quantities to be ordered.
3. When finished, exit and Create PO.
4. Write down examples of items that don’t look right, including items that aren’t showing up when they should be, items that are showing up and shouldn’t be and recommended buy quantities that look too low or too high.
5. Use the Excel Reorder Calculations Worksheet on the Wedge to work through questionable values.
6. Refer to the “Running SPOs” article (AR1951) for steps 13 and 14.
7. Watch the SPOs Part 3: Running SPOs and SPOs Part 4: Advanced SPOs training videos for steps 13 and 14.
8. If you use Surplus and Transfers, refer to AR1825-What is Surplus and How do I Review Surplus and Create Transfers.
9. Contact Agility Support with questions about any exceptions.