Why Add Inventory Optimisation to Intuendi?
Intuendi was built for demand planning and demand forecasting, so why did we feel the need to add inventory optimisation to Intuendi? So while people must rethink many of the old ways of doing business, some goals and basic realities remain the same, such as the need to make effective decisions about using your organisation’s assets, regardless if it is cash, warehouse space or inventory.
Today, companies – particularly start-ups – have fewer fixed assets. Staffs are smaller than before. Competition is fiercer, more constant and more global. Executives instantly turn to downsizing as a way to manage assets and save money, but this is not how to grow your company. For that, firms must find better, more effective ways of using their resources to significant effect. And that is why we are looking to inventory optimisation and not just inventory optimisation but all asset optimisation.
Inventory optimisation is the use of computer programs to analyse all the available information that relates to a decision. The inventory optimisation software then suggests the best decision based on this data and explains the reasons for that recommendation. Inventory optimisation is the most outstanding way to determine how to deploy your company’s assets effectively. It can offer more than just yes-or-no choices; in fact, firms apply it to very complicated decisions.
So why use optimisation and can it work for everything? Optimisation works well where similar decisions must be made again and again, like how most companies order inventory.
Optimisation also functions best:
- When a large number of variables or permutations enter into the relevant calculations.
- When the decision making involves quickly sorting an enormous number of facts.
- When inaccessible information is necessary.
- When a decision calls for combining probabilities (if A, then what happens? If A and B, then what?).
- When emotions are not part of the decision.
- When the situation does not call for protracted discussion and negotiation – that is, when compromise cannot be optimised.
- When the decision-making process requires continuous processing or monitoring.
- And finally when mathematics can model the decision… hence why we see optimisation as the future for any company.
If you want to see how optimisation can work for your company, request a free trial of Intuendi today.