Available-to-Promise: Improve Delivery Reliability in Distribution

Reliable customer commitments depend on more than knowing what is currently in stock. For mid-market distributors, an effective available-to-promise (ATP) discipline connects inventory accuracy, procurement, warehouse operations, sales, and finance to improve delivery reliability while protecting margins.

Key Insights Include:

• Reliable inventory data is the foundation of ATP: Accurate stock quantities, product status, locations, units of measure, and lot and serial information give sales teams a trustworthy basis for making delivery commitments. 
• Future supply also shapes what can be promised: Effective ATP considers not only inventory on hand, but also expected incoming supply supported by sales forecasts, supplier lead times, and confirmed purchase orders.
• Warehouse execution turns commitments into deliveries: Advanced warehouse management, barcode scanning, order fulfillment, and route management help ensure that commitments made at order entry can actually be fulfilled.
• Profitability must remain part of the equation: Connecting service levels with margin data helps distributors determine where to hold safety stock, when to offer longer lead times, and when faster delivery is worth the additional cost.
• Customer-facing availability requires reliable internal processes: Before making product availability visible through self-service or e-commerce tools, distributors need confidence in the underlying data and processes. Tracking orders against the original promised delivery date can also reveal gaps in the ATP process.

   

  
  Measure Before You Promise
  Available-to-promise starts with inventory data you can trust. Our guide for wholesale distributors helps you assess whether your inventory control system is up to the task, and where to start if it isn't.
  
  Download the guide

This article is a summarized and adapted version of the original article by Radhika Ojha, Content Director at SAPinsider. Read the full piece: From Inventory Accuracy to Customer Promise: Building an Available-to-Promise Discipline in the Midmarket on SAPinsider.