# 🪵 TLC Epicor Eagle Min/Max Inventory Management Guide
*Prepared by Rob Lobster 🦞 — April 1, 2026*

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## Why This Matters

Inventory is the single biggest cash trap in a lumber yard. TLC has an interim target of $325K average inventory / $3,500 per SKU (pending Joey Young's input), and the Epicor Eagle system has built-in Min/Max tools that are underutilized. Getting this right directly improves:

- **Cash flow** — less dead inventory = more working capital
- **Turns** — faster turns = higher ROI on inventory dollars
- **Service level** — right stock, right time = fewer lost sales
- **Margins** — less clearance/markdown on slow movers

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## How Epicor Eagle Min/Max Works

### The Basics
- **Min (Reorder Point):** When on-hand quantity drops to this number, Eagle triggers a purchase suggestion
- **Max (Order-Up-To):** Eagle suggests ordering enough to bring stock up to this level
- **Order Quantity = Max - Current On-Hand**

### Example
- SKU: 2x4x8 SPF Stud
- Min: 200 units (when we hit 200, reorder)
- Max: 500 units (order enough to get back to 500)
- If on-hand is 180: Eagle suggests ordering 320 units

### Where to Set It
- **Eagle Menu:** Inventory → Inventory Maintenance → Min/Max tab
- Can be set per-item, per-location (critical for Tuckerton vs. Surf City)
- Can use Eagle's auto-calculate feature based on sales history

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## Recommended Min/Max Framework for TLC

### Tier 1: Core Lumber & Building Materials (60% of inventory $)
*High-volume, predictable demand — tight controls*

| Category | Min Formula | Max Formula | Review Cycle |
|----------|-----------|-----------|-------------|
| Framing lumber (2x4, 2x6, 2x8, 2x10) | 2 weeks average sales | 4 weeks average sales | Weekly |
| Sheathing (OSB, plywood) | 2 weeks | 4 weeks | Weekly |
| Treated lumber | 3 weeks (longer lead time) | 6 weeks | Bi-weekly |
| Roofing | 2 weeks | 3 weeks | Weekly |
| Concrete/masonry | 2 weeks | 4 weeks | Monthly |

### Tier 2: Hardware & Fasteners (20% of inventory $)
*Moderate volume, some seasonality*

| Category | Min Formula | Max Formula | Review Cycle |
|----------|-----------|-----------|-------------|
| Nails/screws (top 50 SKUs) | 3 weeks | 6 weeks | Monthly |
| Power tools | 1 unit or 2 weeks sales | 2 units or 4 weeks | Monthly |
| Hand tools | 2 weeks | 6 weeks | Quarterly |
| Adhesives/caulk | 3 weeks | 8 weeks | Quarterly |

### Tier 3: Paint (Benjamin Moore — 15% of inventory $)
*Co-op funded, seasonal peaks*

| Category | Min Formula | Max Formula | Review Cycle |
|----------|-----------|-----------|-------------|
| Top 20 colors | 3 weeks | 6 weeks | Monthly |
| Seasonal colors | Seasonal adjustment (2x in spring/summer) | Seasonal | Quarterly |
| Primers/stains | 2 weeks | 4 weeks | Monthly |
| Accessories (brushes, rollers) | 3 weeks | 8 weeks | Quarterly |

### Tier 4: Specialty & Seasonal (5% of inventory $)
*Pool chemicals, outdoor living, marine — high margin, seasonal*

| Category | Min Formula | Max Formula | Review Cycle |
|----------|-----------|-----------|-------------|
| Pool chemicals | Seasonal (Apr-Sep: 4 weeks, Oct-Mar: 0) | Seasonal (Apr-Sep: 8 weeks) | Monthly in season |
| Outdoor furniture (special order) | 0 (order to demand) | 0 | As needed |
| Marine supplies | 2 weeks in season | 4 weeks in season | Monthly |

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## Implementation Plan — 4 Phases

### Phase 1: Data Audit (Week 1-2)
**Owner: Joey Young + Paul Devaney**

1. Pull Eagle report: "Inventory Valuation by Department" for both locations
2. Identify top 100 SKUs by dollar volume (these are 80% of your cash)
3. Flag items with zero sales in 90+ days (dead stock candidates)
4. Check current Min/Max settings — many are likely set to 0 (manual ordering)

**Eagle Report Path:** Reports → Inventory → Inventory Analysis → Slow Moving Items

### Phase 2: Set Min/Max for Top 100 (Weeks 3-4)
**Owner: Joey Young (with Rob's support on calculations)**

1. Use Eagle's "Auto Calculate Min/Max" feature:
   - **Menu:** Inventory → Auto Min/Max Calculation
   - **Settings:** Based on last 12 months sales, adjusted for seasonality
   - **Lead Time:** Enter actual vendor lead times (critical for accuracy)
2. Review auto-calculated values — override where local knowledge says different
3. Set separate Min/Max for Tuckerton vs. Surf City (different demand patterns)

### Phase 3: Expand to Full Catalog (Months 2-3)
**Owner: Paul/Edwin with spot checks by Joe**

1. Extend Min/Max to next 500 SKUs
2. Set all remaining items to a default Min of 1 (so Eagle at least flags when you're at zero)
3. Enable Eagle's "Suggested Purchase Orders" feature:
   - **Menu:** Purchasing → Suggested Orders → Create from Min/Max
   - This auto-generates POs when items hit Min — saves hours of manual ordering

### Phase 4: Seasonal Adjustments + Ongoing (Quarterly)
**Owner: Joe + whoever owns inventory long-term**

1. Before March: Increase Min/Max for seasonal items (paint, outdoor, pool) by 50-100%
2. After August: Reduce back to base levels
3. Monthly: Review Eagle's "Overstock Report" — anything above Max for 30+ days = markdown candidate
4. Quarterly: Review dead stock, adjust Min/Max based on actual sales vs. projections

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## Key Epicor Eagle Reports to Run Monthly

1. **Inventory Turn Rate by Department** — Target: 8-12x for lumber, 4-6x for hardware
2. **Days of Supply** — How many days of sales each item covers at current stock
3. **Suggested Purchase Orders** — Auto-generated from Min/Max; review weekly
4. **Slow Moving Items** — Zero sales in 90+ days; action: markdown, return to vendor, or dispose
5. **Stock-Out Report** — Items at zero or below Min; reveals where you're losing sales
6. **Gross Margin by Item** — Combine with turn rate for true ROI per SKU

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## The $325K Inventory Target

Joey Young's interim target: average inventory of $325,000 / ~$3,500 per active SKU.

### How Min/Max Helps Hit This Target
- Without Min/Max: Ordering is gut-feel → inventory creeps up → cash gets trapped
- With Min/Max: Eagle controls the ceiling (Max) → inventory stays in range
- **Set the total Max across all SKUs to approximately $350K** (gives 8% buffer above target)
- Review monthly: if total inventory exceeds $360K, tighten Max values

### Quick Math on Improvement
- If TLC currently holds $400K in inventory and turns it 8x/year → $3.2M COGS supported
- At $325K with same turns → frees up **$75K in working capital**
- At 10x turns (better Min/Max management): same $325K supports $3.25M COGS
- That $75K freed up = no interest cost, available for other investment

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## Dead Stock Action Plan

Based on typical lumber yard patterns, expect to find:
- **5-10% of SKUs** with zero sales in 90+ days
- **Specialty/one-off items** ordered for specific jobs that never sold through
- **Discontinued paint colors** still sitting on shelves
- **Seasonal items** from last year that should've been cleared

### What to Do
1. **Return to vendor** — best option, full credit (check vendor policies)
2. **Clearance rack** — 30-50% off, displayed prominently
3. **Bundle deals** — pair slow movers with fast movers
4. **Donate** — get the tax deduction and the shelf space back
5. **Dispose** — last resort, but better than paying carrying costs forever

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## Connecting to TLC's Bigger Picture

- **Customer Concentration Risk:** Top contractors expect items in stock. Stock-outs = they go to Home Depot. Min/Max prevents this.
- **Surf City vs. Tuckerton:** Different product mixes — beach/residential vs. contractor-heavy. Must have separate Min/Max per location.
- **Seasonal Opportunity (March-August):** The residential window is when margins are highest. Having the right paint colors, deck materials, and outdoor items IN STOCK during this window is worth 2-3 margin points.
- **Surfbox Integration:** As Surfbox grows, inventory of packing supplies, locks, padlocks could be tracked through the same Eagle system.

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## Joe's Action Items

1. **Share this with Joey Young and Paul Devaney** — get their buy-in on the phased approach
2. **Ask Joey:** What's the current Min/Max coverage? How many SKUs have settings vs. manual ordering?
3. **Request from Amanda:** Does the Epicor support contract include Min/Max training? If not, Epicor offers webinars.
4. **Set a deadline:** Phase 1 (data audit) complete by April 30. Phase 2 (top 100 SKUs) by May 31.
5. **Monthly review:** Add "Inventory Turns Report" to the monthly management meeting agenda.

This is a 1% improvement that compounds. Better inventory management = better cash flow = better margins = stronger business. It's not sexy, but it's where the money hides. 🦞