The objective of "supply-demand balancing," is the single most important driver of supply chain management today: optimizing inventory levels is part of this. Evidence shows that companies who increased offshoring, also increased overall inventory levels.
Add to this fluctuation in transportation costs often mitigated by further increasing stocks to reduce logistics spend, and inventory can be over-estimated by as much as 50%.
As such many companies still swing between “eras” of high inventory and low inventories depending on business priorities; financial analysts are also concerned as they track companies and therefore it has also become a top concern for CEOs and CFOs.
Given all that, supply chain leaders must empower and tool their teams to regularly review safety stock levels and optimise policy parameters to provide the elasticity required and yield the quickest return.
OPTIMIZA Inventory Planner unlike traditional inventory re-ordering systems, builds a business specific inventory model that takes into account the unique supply, demand and flow characteristics of each product.
This model allows companies to:
- Scientifically determine what inventory is needed to achieve required service levels, given the existing flows and anticipated supply and demand fluctuations.
- Calculate and maintain the optimal safety stock and replenishment orders.
- Project future investment, procurement and warehousing requirements for their business.
It provides a level of usability and flexibility not available in ERP systems, and is exception based, meaning the user's attention is always focussed adding value in the shortest possible time.