Available to Sell (ATS)

What is Available to Sell (ATS)?

Available to Sell (ATS)

In the world of logistics, one important concept that plays a crucial role in managing inventory and meeting customer demands is "Available to Sell" or ATS. ATS refers to the total quantity of goods that are committed to the pipeline for a ship-to or selling location. It encompasses not only the current inventory available at a particular location but also includes any open purchase orders.

To understand ATS better, let's break down its components. First, we have the current inventory at a specific location. This refers to the quantity of goods that are physically present and ready to be sold or shipped. It includes items that are stored in warehouses, distribution centers, or retail stores. This inventory is crucial as it represents the immediate availability of products to fulfill customer orders.

However, ATS goes beyond just the current inventory. It also takes into account any open purchase orders. A purchase order is a document issued by a buyer to a supplier, indicating the intent to purchase a certain quantity of goods. When a purchase order is open, it means that the goods have been ordered but have not yet been received or added to the inventory. Including open purchase orders in the ATS calculation provides a more accurate representation of the total quantity of goods that will be available in the near future.

By considering both the current inventory and open purchase orders, businesses can have a better understanding of their true available stock. This information is vital for effective inventory management and planning. It allows companies to make informed decisions regarding production, purchasing, and customer order fulfillment.

For example, let's say a retail store has 100 units of a particular product in its inventory. However, they also have an open purchase order for an additional 200 units. In this case, the ATS for that product would be 300 units (100 units in inventory + 200 units in open purchase orders). This means that the store has 300 units available to sell to customers, considering both the current stock and the expected incoming stock.

Having an accurate ATS figure helps businesses avoid stockouts and backorders. Stockouts occur when a product is out of stock, leading to lost sales and dissatisfied customers. Backorders happen when customers place orders for products that are temporarily out of stock, resulting in delayed fulfillment. By knowing the ATS, businesses can proactively manage their inventory levels, reorder products in a timely manner, and ensure a smooth flow of goods to meet customer demands.

In conclusion, Available to Sell (ATS) is a crucial concept in logistics that represents the total quantity of goods committed to a specific selling location. It includes the current inventory available at the location as well as any open purchase orders. By accurately calculating the ATS, businesses can effectively manage their inventory, make informed decisions, and ensure timely order fulfillment, ultimately leading to customer satisfaction and business success.