Are you buying material that no one needs?

Optimizing Material Purchasing in Epicor: Avoiding Obsolete Inventory

Identifying the Problem:

One of the primary indicators of purchasing unnecessary materials lies within the purchase orders (POs) suggestions generated in the Epicor system. These PO suggestions might be triggered even when there is no corresponding demand. This error might occur if part of the master data is inputted incorrectly. Such occurrences can result in inflated inventory levels, tie up capital, and add unnecessary costs to your operations.

Understanding the Root Cause:

The presence of POs for materials with no demand in Epicor points to a misalignment between the system and your business’s actual requirements. Several factors can contribute to this issue, including inaccurate forecasting, external inventory management outside Epicor, manual entry errors, or inefficient inventory management.

Strategies for Optimization:
Review and Optimize Demand Forecasting:

Please closely examine your demand forecasting methods and evaluate their accuracy. Consider implementing advanced forecasting techniques, leveraging historical data, market trends, and customer insights to enhance your demand prediction capabilities. Please regularly update and refine your forecasting models to ensure they align with current market dynamics.

Conduct Regular Inventory Audits:

Perform cycle counting of your inventory to identify redundant or slow-moving items. Create a detailed inventory aging dashboard showing a detailed inventory analysis, enabling you to pinpoint the materials not aligned with current demand. Remove obsolete items from your inventory to avoid unnecessary purchases.

Integrate Real-Time Data:

Please ensure your Epicor system is seamlessly integrated with real-time data sources. By incorporating accurate and up-to-date information, you can minimize the risk of purchasing materials that lack demand.

Implement Automated Replenishment Processes:

You can leverage Epicor’s automation capabilities to ensure you can use your replenishment processes. This includes setting up accurate automated triggers based on actual demand and adjusting reorder points and lead times. This can minimize manual errors and prevent unnecessary purchases.

Foster Collaboration and Communication:

Create dashboards and alerts that bridge gaps between different departments, allowing smoother communication. This is key to fostering transparent cross-department data between sales, production, and purchasing. This will ensure that purchasing decisions align with real-time demand information and that people avoid buying materials nobody needs.


Efficient material purchasing is essential for maintaining a lean and profitable supply chain. In the context of Epicor, it is vital to address the issue of purchasing materials without a demand. You can streamline purchasing processes and prevent unnecessary inventory accumulation by identifying the root causes, optimizing demand forecasting, leveraging real-time data, implementing automation, and fostering collaboration. Remember, by aligning your Epicor system with your business’s requirements, you can save costs, improve operational efficiency, and enhance customer satisfaction.