Supplier rules: minimums, free freight and transfers

A quantity that ignores the supplier is not an order. Narada applies each supplier’s rules after it works out what a part needs, so the suggestion is something you can actually place.

Rule	What Narada does	Where it comes from
Minimum order quantity	Lifts the quantity to the minimum	Your parts list, or the supplier’s card
Order multiple	Rounds up to the batch size the supplier sells in	Your parts list
Minimum order value	Checks each supplier’s whole order against it	Supplier card on Your Numbers
Free-freight line	Pulls forward lines due soon to reach it, within your cover limit	Supplier card on Your Numbers
A minimum that would overstock	Holds the line and shows what buying it anyway costs	Worked out per line
Spare stock at another branch	Suggests moving it before buying	Your stock counts
Order calendar	Orders that supplier on its own rhythm	Supplier card on Your Numbers
Late orders	Asks you whether they are still coming	Your purchase order files
Return window	Finds stock you can still send back for credit	Returns within (days) on the supplier card

Minimum order quantity and order multiple

First Narada works out how many a part needs. Then it lifts that number to the supplier’s minimum, and rounds up to the order multiple. Each branch gets its own purchase order, so if one part is needed at several branches, each branch’s line meets the supplier’s minimum on its own. If you type a quantity the supplier would refuse, Narada stops the save and tells you the quantity that would pass. If the supplier agreed to your number, confirm it and it goes through.

Example: three branches need 7, 4 and 9 of a filter. The supplier sells in boxes of 12 with a minimum of 24. Narada combines 20, lifts it to 24, and orders 2 boxes. Not three separate orders, each lifted to 24, which would be 72.

Pack size is printed on the purchase order, but it does not change the quantity. The order multiple does.

Minimum order value and free freight

Some suppliers want a minimum spend per order, or charge freight below a line. Narada checks each supplier’s order as a whole, on its card under Build by supplier.

If an order is short of the free-freight line or the minimum value, Narada looks for lines that will be needed soon anyway, and pulls them forward to close the gap. It never pulls forward a line that would take that part past When stock counts as too much on Your Numbers. It skips discontinued parts and parts without a price.

If the gap still cannot be closed, the card says so. On the Orders desk you choose: ask the supplier for a lower minimum (Narada drafts the email), order anyway and pay the fee, or wait.

When a minimum would leave you with too much

A minimum of 500 on a part that sells 10 a month is two years of stock. Narada does not quietly buy it. The line moves to Hold — overstock, and Show explains the choice:

The Minimum vs lost sales step shows how many a day the part must sell for the minimum to pay, next to the pace Narada plans on.
Where the part has a cost, it weighs the cost of holding the extra units against the margin you would lose by running out.

You decide. Tick the line to buy the minimum anyway, or leave it held. See What to Order.

Moving stock between branches first

Before Narada buys for one branch, it checks whether another branch has more than it needs.

When a supplier’s minimum is much bigger than one branch needs, this matters most. Say the west branch needs 49 boxes, the supplier sells only in 500s, and the central branch has 88 spare. Narada does not tell you to buy 500. The line reads Move 49 from CEN, under Transfer before you buy.

Narada does not move the stock. You do that in your ERP, then press Moved it. If the move cannot happen, press Can’t move, and Narada tries another branch or goes back to buying.

Transfer before you buy on What to Order also suggests a transfer when a part will run out before its next delivery and another branch can cover it.

Order calendars and order timing

Some suppliers are ordered on a fixed rhythm, for example every two weeks. Set that on the supplier’s card. Narada then sizes that supplier’s orders to last until the next order day.

For everyone else, How Narada times your orders on Your Numbers decides: on a set day each week, whenever a part needs it, or a rhythm per supplier worked out from your cost of placing an order. See Your Numbers.

Lead times

Narada plans on how long each supplier really takes, from your own receipts, once there are enough deliveries to measure. It also measures how much that time swings, and holds more spare stock for a supplier who swings a lot.

Until there are measured deliveries, Narada uses the lead time in your files. It then has no record of how much the supplier swings, so it adds no extra spare for late deliveries. Sending your receipt history fixes this. With no lead time on file at all, it assumes two weeks, and the line says so. See What sets your safety stock.

If you know a supplier’s lead time has changed, ask Ask Narada to change it. It shows you the effect first, and nothing changes until you confirm.

Late orders

Narada counts what is on its way, but it does not trust an order past its delivery date forever. Overdue orders are listed under Late orders on the Orders desk. Answer each one:

Still coming, with a new date. Narada counts it again.
Not coming. Narada stops counting it and buys as if it will not arrive.
Not sure. Narada drafts a chase email to the supplier.

Return windows

Many suppliers take stock back for credit within a window. Fill in Returns within (days) on each supplier’s card. Clear Stock then finds dead stock still inside that window, and drafts the return request. Found early, it is credit at cost. Found late, it is a clearance price.

What Narada does not use yet

Volume rebates. You can record whether suppliers pay them, but Narada does not use them yet.
Price breaks and announced price rises. Narada does not pre-buy ahead of a price increase. Adjust the order yourself.
Supplier allocation. If a supplier is rationing a part, Narada does not know. Adjust the order yourself.

How Narada works out what to order
Orders: the supplier decisions, one card per supplier.
What Narada doesn’t do yet