Inventory Optimization

Supply chain excellence is largely determined by how supply, production, and distribution network is configured and managed, where it positions its inventory, and what inventory stocking strategies have been implemented. Inventory optimization is the discipline of continuously managing inventory policies to optimize supply chain performance against business objectives, changing market conditions, risks, and supply chain constraints. These policies include what inventories to carry, where, in what form, and how much across the procurement, manufacturing, and distribution network.

Key capabilities of Inventory Optimization solution can include:

  • Tracking and analysis of transaction, customer buying patterns, and inventory performance
  • Multi-dimensional ABC segmentation by demand patterns and volumes, service criticality, product structure and life cycles, lead times, competitive positioning, or custom attributes
  • Best inventory policy determination for each SKU at each location it will be stocked
  • Multi-stage inventory and postponement optimization
  • Easy composition and analysis of "what-if" scenarios
  • Actual performance monitoring for continuous learning and process improvement
  • Rapid integration through services-based architecture
  • Rich and easily extensible library of packaged metrics, KPIs, and reports

Benefits of Inventory Optimization solution can include:

  • Reduced inventory levels, expediting, and overall logistics costs
  • Increased service-level performance and customer satisfaction
  • Improved asset utilization and inventory turns
  • Improved inventory performance
  • Improved product availability while reducing carrying costs, risks, and cash-to-cash cycles

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