Herlitz IM’s proven customer-centered methodology is based upon an operating philosophy that our customers readily embrace and that Anders Herlitz best summarized:

“You need to optimize and leverage inventory as an asset in order to meet your customer service and profitability goals.”

Buying decisions always require some degree of art and creative input for success, they also need to be based on a sound understanding of customer demand, vendor performance, and the ability to understand and optimize the economics of the products you sell.

Anders put together the “7 Steps of Buying” over thirty years ago as a roadmap for companies to more effectively manage their buying process and inventory. He has designed and developed several generations of systems to provide the best possible tools to automate this process.

HIMPACT leverages today’s technology to further automate this process and provides your buyers with a highly integrated workbench which allows them to proactively manage these steps, decreasing inventories and improving customers service, while lowering product and logistics costs.

Our training program and implementation methodology is highly structured; based on lessons learned in over 800 implementations. Some of the general rules are:

  • The Forecasting and Replenishment functions in your organization should be owned by the same person. Inventory and service are best served when one person owns both planning functions. This ensures that no distrust exists.
  • Decisions on each of the 7 Steps of Buying should be made separately. Those individual economic decisions will translate into better orders.
  • During implementation you need to empower your Project Manager. Provide him with the authority to talk to all stakeholders on the project: Buyers, Finance, C-levels, and IT.
  • Learning for most people is an Iterative Process. When training on HIMPACT, new buyers need to start slowly with a small group of vendors, learning new daily processes and gaining understanding from seeing the smarter buying decisions the system makes. Once they gain knowledge and confidence, they will be motivated to move forward and roll out additional vendors.
  • HIMPACT’s scientific approach will find Out-of-Stock SKUs inventory “holes” immediately; replenishing their stocks. Overstocked items take weeks or months to work down inventory to proper levels.
  • More buyer training drives better results. Your Team’s Capabilities are a corporate asset, making ongoing training a priority. Additions of new buyers, their learning styles, and the need for better understanding of advanced modules will create the need.

To find out more about our training and implementation click here.

To download the Carl Herlitz article on the Seven Steps of Buying click here.

7 Steps of Buying

The 7 Steps have been the basis for the training of over 5,000 buyers across the world.

  1. Demand Forecasting
  2. Lead-Time Forecasting
  3. Order Cycle Analysis
  4. Service Level Analysis
  5. Replenishment Analysis
  6. Special Order Analysis
  7. Order Validity Analysis