Multi-echelon inventory optimization vs inventory optimization

ToolsGroup

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. Now consider that by not optimizing your inventory from a global vantage point you may be creating, if not outright chaos, a much less efficient network than you could have. The basic approach to inventory optimization.

Five Reasons Why Are We Not Making Progress on Inventory Management

Supply Chain Shaman

At the session, we discussed why companies have not made more progress on inventory management. In the case of Apparel and Automotive industries there are slight improvements, but they have shifted inventories to suppliers. Days of Inventory Pre and Post-Recession. The technology teams, focusing on implementation and go-live dates, believes that inventory technologies and processes are equal to the challenge. IT View of the Current State of Inventory.

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Still managing your inventory with spreadsheets?

ToolsGroup

Most companies are still trying to use Excel to optimize their inventories. Supply Chain Insights’ 2018 Inventory Optimization Technologies Study suggests the number may be as high as 75%. So inventory optimization software is still “low hanging fruit” for those seeking higher levels of supply chain maturity and improved use of supply chain analytical tools. Much of inventory is a hedge against uncertainty.

Multi-echelon inventory optimization vs inventory optimization

ToolsGroup

Editor’s Note: Last year ToolsGroup became Microsoft’s partner for Multi-echelon Inventory Optimization (MEIO) in Industrial accounts. Microsoft and I collaborated on a blog introducing the basic concept of MEIO, comparing it with Inventory Optimization. Now consider that by not optimizing your inventory from a global vantage point you may be creating, if not outright chaos, a much less efficient network than you could have. The basic approach to inventory optimization.

Four ways Inventory Optimization can address tighter supply constraints

ToolsGroup

The Wall Street Journal recently advised “In the battle for economic supremacy, investors should quickly be realizing it’s increasingly about supply, not demand.” ( The Next Challenge for Global Growth: Keeping Up With Demand , April 24, 2018 ). When supplies get tight, inventory optimization can help focus production around the most critical products while reducing requirements for other items. Here are four ways inventory optimization can help alleviate constrained supply.

How to Measure Inventory Health

ToolsGroup

Financial executives measure inventory health with metrics like inventory turns because they view the firm from a financial viewpoint - such as how much working capital is being tied up. But from an operational supply chain planning perspective, turns is a crude metric because it doesn’t recognize the difference between “good” and “bad” inventory. Gartner delved into this issue in a recent report, Build the Capability for Inventory Health Assessment.

Segmenting Your Inventory by Gross Margin and Demand Variability

ToolsGroup

Gartner Research analyst Paul Lord has developed a thought-provoking approach (shown in the above diagram) for tailoring supply and inventory tactics to different inventory segments. Traditional ABC inventory models segment inventory into A, B and C categories based on annual consumption value. As we showed in a previous blog, it’s not the only way to segment your inventory, nor nearly the best. Lord calls this “situational inventory”.

Three Key Themes in the New Inventory Optimization Vendor Ranking

ToolsGroup

The 2018 Nucleus Research Inventory Optimization (IO) Value Matrix Report has just been released, and analyst Seth Lippincott identifies the latest technology trends, top inventory optimization solution providers, and the strengths and weaknesses of each vendor. The first theme is cutting planner workload by moving toward more automated and even autonomous inventory optimization. Click below for your copy of the full Inventory Optimization Value Matrix.

Top 10 Supply Chain Innovations of 2018

Material Handling and Logistics

After a year full of more scandals, indictments, political contentiousness, workplace violence, school shootings and natural disasters, maybe it’s time we all took a collective breath and focused on some of the positives that came out of 2018. We hope you enjoy this salute to the best of 2018, and we look forward to even more innovations in 2019. Top 10 Supply Chain Innovations of 2014 : hybrid DCs, 3-D prototypes, location-based inventory system, and more.

How manufacturers optimize their inventories

ToolsGroup

Editor’s Note: Microsoft’s Colin Masson, Global Industry Director of Manufacturing Solutions (that's him on the left), sat down with me to discuss how manufacturers optimize their inventories. Colin: How do inventory optimization (IO) and multi-echelon inventory optimization (MEIO) enable manufacturers to operate more efficiently? IO uses powerful analytics to generate the right inventories to meet demand, address demand volatility, and achieve targeted service levels.

Drone-Powered Digital Inventory

PINC

Even though 90% of inventory is stationary in the supply chain, according to industry experts, inventory accuracy at distribution centers, warehouses, and plants ranges from 89% to 99% *. That’s because most of the inventory management process is still a manual activity. innovation inventory robotics Logistics Viewpoints warehouse drones

Why probabilistic forecasting is better for inventory optimization

ToolsGroup

In this post we’ll explore how probabilistic forecasting not only creates better forecasts, but also improves inventory optimization by improving the stock levels at store and warehouse locations in your distribution network. To understand the relationship between probabilistic forecasting and inventory, view your supply chain as a dynamic system, subject to uncertainty and unpredictable change. which then provides better information from which to decide how much inventory to stock.

Supply Chain Predictions for 2018

Material Handling and Logistics

A look at the supply chain trends and technology that will come into play in 2018. These concerns will extend into 2018, as companies work on a regulatory standard – though nothing has emerged yet. Strong players in the market will emerge as platform providers to aggregate the IoT data and provide key insights into that data that drive better business decisions in 2018. 2018 will be about predicting the future, not just about understanding the present.

Still managing your inventory with spreadsheets?

ToolsGroup

Most companies are still trying to use Excel to optimize their inventories. Supply Chain Insights’ 2018 Inventory Optimization Technologies Study suggests the number may be as high as 75%. So inventory optimization software is still “low hanging fruit” for those seeking higher levels of supply chain maturity and improved use of supply chain analytical tools. Much of inventory is a hedge against uncertainty.

These Advanced Supply Chain Technologies will Solidify the Digital Supply Chain in 2018

Cerasis

The type and capabilities of supply chain technology is expanding, and technology will only grow more important in effective supply chain management in 2018. WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. According to Greg Kefer of Supply Chain Digital , blockchain technology will be another driving force in supply chain management throughout 2018.

Digital Inventory Management Key Battleground in Transformation of Brick-and-Mortar Retail

Cerasis

As e-commerce growth accelerates, shippers are working overtime to manage available inventory. It catalyzed brick-and-mortar retailers to offer online shopping opportunities, which require much more than manual inventory management practices. As a result, brick-and-mortar retail has become more focused on digital inventory management, a building block in the road to omnichannel supply chains , than in the past.

Your FMCG Supply Chain in 2018: 5 Problematic Predictions

Enchange Supply Chain Consultancy

FMCG S&OP Forecasting & Demand Planning Sales Inventory Management & Stock ControlChris Rea has finally found the correct turn off, a lot of people in Africa still don’t know its Christmas and the novelty Santa toilet seat cover is back in the box. Oh, and chocolate Easter eggs are in the shops 4 months in advance. Christmas and the New Year holidays are well and truly over, and the clock is already ticking down on the month of January.

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Lost Warehouse Inventory? What to Do and When to Write It Off

Cerasis

No one wants to think about lost warehouse inventory, and it can be organizationally frustrating to determine the best process to find, research, and rectify inventory discrepancies. One of the primary reasons a company implements a warehouse management system (WMS) is to know the exact location of their inventory; if the inventory is not there, one might think it is easy to just write that inventory off the books. Automate Inventory Control to Reduce Errors.

IoT Inspired Smart Warehouses Are Reinventing Inventory Management

Cerasis

The internet allows for unlimited scalability and boosted efficiency in warehouse inventory management. The so-called “smart warehouse” takes advantage of these defining factors by connecting systems to streamline inventory management and overall productivity. WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. Everything is connected to the internet, including consumer and industrial devices and systems.

2018 Gartner Supply Chain Top 25

River Logic

In the Supply Chain Top 25 ranking, Unilever retains its number one spot with a composite score based on six categories, like Gartner and peer opinions, inventory turns, revenue growth, and more. Gartner's release of its 14th annual Supply Chain Top 25 provides an inside view of the elite corporations and their advanced practices that make them the best in the world.

Retail Inventory Management Tips to Get The Most Out of Your Warehouse

Cerasis

The wrong retail inventory management strategy increases carrying costs and makes it impossible to stay competitive. Common obstacles encountered when it comes to effective inventory management include having poor visibility into fast-moving versus slow-moving product, extensive travel times between bin locations, and lost revenue due to poor labor productivity. WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018.

The Secret of Getting Ahead (Takeaways from Command Alkon ELEVATE 2018 Conference)

Talking Logistics

Therefore, it’s not surprising that the question at the forefront of the most recent Leadership Roundtable meeting (held last month at the Command Alkon ELEVATE 2018 conference ) was, How do we get started? By monitoring inventory levels in real time and forecasting material usage based on actual ready mix demand (using Command Alkon’s supplyConnect solution ), the hauler coordinates the cement replenishment process between the supplier and plant. What a difference a year makes.

Three New Ways Retailers Can Improve Inventory Performance

ToolsGroup

By using data to stock items with higher forecasted demand, they can reallocate cash that would normally be tied up in poorly performing inventory, avoid margin erosion from markdowns and dead stock, and increase overall on-shelf availability metrics. Yet paradoxically retailers front-load inventory to the store, under the belief that goods must be on the shelf to sell. The challenge is that once it's forward-deployed, it's not always cost effective to re-position inventory.

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Vendor-managed inventory and distribution planning in the food and beverage industry – here’s something to chew on

Kinaxis

Among the many supply chain initiatives taking place today, vendor-managed inventory (VMI) has become an increasingly effective process and business model to help organizations share risk and information between vendors and customers — while benefitting from lower stockouts, reduced uncertainty and lower costs. What is vendor-managed inventory? The benefits of the vendor-managed inventory process include: Enhanced visibility for vendor. Maintaining optimum inventory levels.

This is Not Your Father’s Inventory Optimization

Logility

The first commercially available single-echelon inventory optimization solution was introduced in the 90s and the first commercially available multi-echelon inventory optimization solution was introduced in the early 2000s. These first solutions were mostly used for periodic review and optimization of inventory carrying parameters. Companies would adjust their inventory parameters on an annual or semi-annual basis. Inventory Optimization

[PODCAST] Why Digital Tools to Optimize Inventory Management Allows Supply Chain Execs to Stay More Strategic at Every Link in the Supply Chain

Cerasis

On today’s episode, we welcome Margaret Bendis, US Marketing Specialist for a company called EazyStock a cloud-based software-as-a-solution (SaaS) that optimizes inventory management. How sound inventory management improves the supply chain, and what are the adverse impacts to the supply chain due to poor inventory management. What is the future of digitization as it relates to inventory management. Inventory Management Logistics Podcast Supply Chain

Blockchain in Supply Chain: 2 Ethereum-Based Projects That Demonstrate How Blockchain Can Improve Supply Chains

Cerasis

WHITE PAPER] The Top Supply Chain Trends that Will Impact Supply Chain Management in 2018. It is designed to dramatically decrease the time required for any entity to convert assets, such as accounts receivable, real estate, inventory, equipment, and commodities into cash. Supply chains are messy. Blockchain in Supply Chain Can Help. A manufacturer in China doesn’t read the specs on an order. A supplier in Mexico mixes up two similar parts.

How to Measure Inventory Effectiveness

Arkieva

I discussed some of the possible pitfalls when using inventory turnover as a measurement for effective inventory management. In this post, I’ll describe a simple technique for measuring inventory effectiveness. How to Measure Inventory Effectiveness. How to Measure Inventory Effectiveness was first posted on March 6, 2018 at 7:24 am. ©2017

Top 25 Supply Chains of 2018

Material Handling and Logistics

Our look at the Top 25 (plus 4) Supply Chains of 2018 examines how the best companies in the world excel at managing their global supply chains. So in 2018, McDonald’s joins Apple, Procter & Gamble and Amazon on a separate “Masters” list, as one of the “best-of-the-best.”. Enabling collaborative sales, inventory and operations planning are part of the company’s goals, as it seeks to more closely connect with its customers and supply base.

Inventory Management in Service Logistics Industry

Talking Logistics

What is Inventory Management? For Manufacturing it’s about carrying zero or minimum inventory. For Logistics the focus is on high inventory turns. Inventory Management is about having a right balance of expectations from different functions of the supply chain. Inventory Management is a function that should always be in sync with your supply chain strategy and in turn depends on your overall business strategy. What does it mean for inventory?

Supply Chain Logistics in 2018: How They Keep the Lights on in Las Vegas

Cerasis

The Top Logistics Trends that Will Impact Logistics Management in 2018. This includes inventory, maintenance schedules, individual gambling tables, staff effectiveness and so on. The post Supply Chain Logistics in 2018: How They Keep the Lights on in Las Vegas appeared first on Transportation Management Company | Cerasis.

Inventory Optimisation for Greater Inventory Control

Unleashed

The biggest challenge of inventory control is getting the balance right, to meet the challenge of matching supply volumes to customer demand and with any good enterprise or activity, it usually pays to start with the basics. Inventory optimisation basics. Unique, short and unmistakable numbers for inventory items. An accurate beginning counts of all inventory stock. Software to track inventory activity in real time. Robust inventory control policies.

Patient-centric networks at the heart of pharmaceutical supply chain management: Lessons from LogiPharma Europe 2018

Kinaxis

by Dr. Madhav Durbha With the Alps as a backdrop, LogiPharma Europe 2018 proved to be both energizing and thought provoking. In early April I attended the LogiPharma Europe 2018 conference in Montreux, Switzerland, an event that attracted more than 800 attendees, including practitioners and executives from pharma and medical device industries, along with software vendors and many service providers. Kinaxis (@Kinaxis) April 10, 2018.

Medicine's Inventory Nightmare

Elementum

However, many hospitals and medical institutions struggle to provide adequate care due to inventory issues resulting from a dependence on outdated and inefficient supply chain management systems. These figures can be attributed to the fact that inventory management poses a particularly challenging task in the healthcare industry, where inventory needs constantly fluctuate, requiring meticulous tracking methods. medical supplies healthcare inventory management

E-Commerce Continues to Add Focus on Omnichannel Supply Chain Strategies: Projections for 2018 Demand Continuous Improvement

Cerasis

As 2018 progresses, Warehouse Managers need to understand the risk of not going omnichannel, why demand is increasing, and a few tips to meet such demands. Demand for E-Commerce and Integration of Supply Chains Will Continue to Dominate 2018 As explained by Derek O’Carroll of Multichannel Merchant , some driving forces behind the demand for omnichannel supply chains include: The creation of social storefronts.