Did You Want Higher Service Levels with Lower Inventory Cost?
Forecasting your inventory demand is only the start, but how much do you need to spend to achieve higher service levels?
Approaches for determining inventory planning parameters such as lead times, safety stocks, reorder points, and order quantities are often based on rule of thumb approaches that might not account for demand patterns, supply and demand variability, and intermittent demand. Formal updates of these planning parameters tend to be manual and take weeks to complete. This results in infrequent updates that don’t account for continual changes in demand, lead times, and item importance.
The impact of changes to planning parameters on inventory metrics such as service levels, fill rates, turns, ordering, holding, and stock-out costs are not easily understood. This leaves companies unable to proactively shape their inventory policies to changing needs of the business and results in misallocated inventory, frequent emergency shipments, lost sales, and excess & obsolete inventory.
Intuendi inventory optimization delivers inventory policy decision support and the means to forecast and track the impact of your inventory planning policy. Our optimization engine benchmarks the predicted performance and costs associated with current inventory policy and identifies where you are over and understocked.
With Intuendi inventory optimization software you can modify planning parameters based on your business rules, service targets, and inventory budget or let Intuendi inventory optimization prescribe the right levels to optimise your investment in inventory.
When is the right time to start using Intuendi inventory optimization software, well can you answer the following questions?
1. Do you know what the most profitable balance is among customer service levels, budgets, and inventory cost?
2. Do you know how much inventory to hold where and over which time period?
3. Are you able to account for your supply chain variability when determining your time-phased safety stocks?
If not, then Intuendi inventory optimization software considers the demand, supply, constraints, and variability in your supply chain to optimise your inventory investment decisions. It enables you to provide higher service levels to your customers at a significantly lower cost, now who would not want that?