HIMPACT Further Extends Functionality to Help Perishable Buyers
Managing Random Weight Items in HIMPACT
Random weight, also called catch weight, is easy to manage in HIMPACT. Since most random weight items use the Unit of Measure of Case for everything except for calculating the purchase price (because prices are quoted by the pound), most of the issues around these items are actually easily managed.
Overview
Catch weight items use two units of measure: an inventory unit and a catch weight unit. The inventory unit is the unit of measure in which the product is forecasted, received, housed, picked, and shipped. The catch weight unit is the unit by which these items are weighed and, most significantly, priced on the PO and later invoiced (from Vendor to Wholesaler and subsequently from Wholesaler to Retailer).
There are two options for managing random weight items in HIMPACT. For users who want to see and maintain the price per pound (lb.) in HIMPACT, they can interface the price per pound or easily update such pricing on the fly as well. HIMPACT has the average weight per case so the conversion of price per pound using the number of cases on the PO to get costing into a pro-forma PO is simple.
In HIMPACT, all that needs to happen to use this option is to set the Purchasing Price Unit of Measure to Weight.
At some point, before or at delivery, a final total weight per PO line is communicated from the vendor or calculated at receiving and the final costs on the PO are settled. When the final cost per line is interfaced back to HIMPACT with the PO receipt information, the PO sets a flag on the PO Line indicating the price is now finalized and it saves off the Original Effective Price as well.
In HIMPACT, all that needs to happen to use this option is to set the Purchasing Price Unit of Measure to Weight. In the case below, the Case weighs 12 pounds per case. The purchase price is $4 per pound so the Purchase price per case is $48.
The ability for perishable buyers to have the ability to simply enter today’s price per pound and have HIMPACT adjust on the fly is more natural and increases the easy of use of the system. To make this even simpler, the buyer has the option of entering the purchase price override in cost per pound or cost per case for random weight items.
Of course, HIMPACT will continue to support an average price per case, which is interfaced from the Host ERP and is used to calculate a pro-forma PO line cost. This approach has traditionally been used and was most common among our Grocery and Foodservice customers before support for random weight pricing was added to HIMPACT in Q4 of 2019.
To request additional training please contact Bryan Cox, Manager of On Boarding & Buyer Support at bryan@herlitzim.com.
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