Optimizing Inventory Is About Improving Service While Lowering Inventory. Wait, What?

ToolsGroup

Equally mystifying to people is the concept of inventory optimization. I explain to people that if they’re getting this process right, overall service levels should go up by 3-5% as overall inventory levels decrease by 15-30%. ABC was okay for managing inventory, but not optimizing it.

Meeting the meat demand

DELMIA Quintiq

But this begs the question: How do supermarkets and meat processors manage their supply, meet the demands put upon them and balance their inventories? Meat consumption is growing globally, and producers are working hard to meet increased consumer demand while maintaining sustainable and responsible practices in both livestock management and supply chain optimisation. or lamb chops (Australia Day!) – and have a sales forecast that meets SLAs and stock targets?

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Supply Chain Inventory Optimization – Beyond the Analytics

Cerasis

While analytics offer remarkable insights into supply chain inventory optimization, warehouse managers must still understand how the use of slotting optimization technology impacts other processes. With 7 percent of America’s gross domestic product (GDP) tied up in inventory, reports the 21 st Century Supply Chain Blog , your organization must go beyond the analytics and understand the broad impact of analytics in your company. Better Inventory Management Needs Complete Control.

Gaining Clarity on Inventory Effectiveness

Supply Chain Shaman

The impact of complexity on inventory is not quick. To help, today I want to share some of the insights from our recent Inventory Optimization study. Inventory management is a hot issue. Companies invest in project after project, yet inventory levels remain the same. In business there are many drivers of inventory, and the management of inventory levels requires discipline and a cross-functional focus. What Drives Inventory Effectiveness?

Automated Order Processing and Proactive Inventory Management

Speaker: Irina Rosca, Director of Supply Chain Operations, Helix

Organizations need to focus on demand driven supply planning, utilizing real time information on customer orders from all marketplaces (e-commence, Amazon - or other online retailers, and point of sale data from brick and mortar). Focusing on this information once per month during the S&OP meeting is too late for all business units to align. Companies should have seamless integration between order entry, inventory management, forecasting and supply planning models and purchase order status to sense risk, pull levers to mitigate potential risk, and communicate within and outside the organization. This is especially important for new product releases, in store programs or promotions (sales, end caps, PDQ. etc) or online promotions (company run or 3rd party). Depending on total supply chain lead time, not having real time visibility and analysis of this information can significantly affect sales and the bottom line.

Dropshipping Is Helping to Meet eCommerce Demands

Material Handling and Logistics

A new study from the Center for Supply Chain Research at Lehigh University shows that retailers are expanding their virtual inventory without incurring additional carrying and fulfillment costs by utilizing dropship programs

Inventory Can Be Scary

ToolsGroup

“Your inventory problem is scary because you’re selling out before you can make new items to meet demand”. Many retailers agree that inventory can be scary. Jill , Nike and H&M who missed sales projections, upset customers with out-of-stocks, and had to clear excess inventory through deep discounting. Inventory distortion” (the combined cost of out-of -stocks and overstocks) accounts for $1.1 For example, say you have $5,000,000 of inventory at cost on hand.

Five Inventory Optimization Secrets for Aftermarket Parts

ToolsGroup

It’s notoriously difficult to optimize inventory for aftermarket parts. Read on for our five inventory optimization secrets for aftermarket parts. Five Inventory Optimization Secrets for Aftermarket Parts. ABC inventory analysis and spreadsheets aren’t cutting it. .

Five Suggestions for Practical Inventory Management

Logility

The real problem, however, was inventory. The client had a warehouse full of old stock that had been sitting unwanted for years , and there wasn’t enough room to accommodate the inventory that they were selling. . Just get rid of the old s tock and create plenty of room for the inventory that sells , thereby eliminating the need to move to a larger, more expensive facility. What is the right inventory level for your business? .

Inventory Management

LeanCor

So that leaves us logisticians scratching our heads, how do we meet customer expectations when, at this point, they seem so unrealistic? Inventory management, network infrastructure, and labor deployment are all critical components necessary to meet this intense customer demand. Inventory Management Strategy. If we’re going to get inventory into consumer hands the same day they place the order, the inventory has to be 1) available and 2) less than 8 hours away.

Supply chain inventory optimization – Beyond the analytics

Kinaxis

But the sheer complexity of supply chain networks, and the impact design decisions have on operational performance, makes supply chain inventory management aligning inventory investments with on-time customer delivery and margins a major challenge. The equivalent of 7% of America’s GDP is tied up in inventory, and accounts receivable and payable. Implementing inventory optimization. The challenges of inventory optimization can be immense.

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%. These companies struggle to meet service level requirements while respecting financial impacts, and have almost no chance to do it optimally. Much of inventory is a hedge against uncertainty. If you could predict your demand exactly you wouldn’t likely need as much inventory.

The Future of Inventory Management

Kinaxis

by Andrew Dunbar This post concludes my inventory management blog series. Throughout this series I’ve proposed an elevated role for the inventory manager that challenges the assumption that an inventory manager is a victim of his colleagues’ business decisions and plays only a limited role in formulating inventory results. Inventory management is not a stand-alone business process that occurs after other processes are complete. General News Inventory managemen

11 Inventory Management Best Practices

Supply Chain Game Changer

Featuring Our 10 Best Inventory Management Articles! Inventory Management Best Practices article originally published by, and permission to publish here provided by, Dave Joseph at veridian.info. Supply chain leaders are continuously looking for ways to improve inventory management, and the role of technology in the supply chain offers significant advantages. Use ABC Analysis to Categorize Your Inventory. Recognize the Relationship Between Sales and Inventory.

What is Inventory Forecasting?

EMERGE App

What is Inventory Forecasting? Wait, what has this got to do with inventory forecasting? The Goldilocks Principle of having something that is not too hot and not too cold has been used for everything from the search for habitable Earth-like planets to inventory management, and of course, the perfect porridge temperature. I’ll show you that inventory forecasting is not some dark art that is mastered by a few consultants. So, what exactly is inventory turnover?

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.

Inventory Management Requires More than a WMS

DSI

A supply chain director for a large global manufacturing organization recently told our team, “We have invested heavily in successfully managing inventory and are utilizing our warehouse management system [WMS] to drive our digital transformation efforts and optimize our supply chain.”

Healthcare Purchasing and Inventory Management Meets Invoicing Automation | Hybrent Announces Partnership Integration with Sage Intacct

Hybrent

Hybrent’s complete supply chain suite including eProcurement, Inventory Management, Invoicing Integrations, and Reporting functions streamline the procure-to-pay process for healthcare organizations. . The status quo processes of purchasing, inventory management, and invoicing review is manual, wasteful, and still leaves organizations asking “Am I paying too much?”.

Four ways Inventory Optimization can address tighter supply constraints

ToolsGroup

When supplies get tight, inventory optimization can help focus production around the most critical products while reducing requirements for other items. Multi-Echelon Inventory Optimization (MEIO) looks at the end-to-end supply chain to enable users to make more informed decisions about the location, amount and type of inventory. Inventory (both finished goods and materials) can then be allocated to more critical demand. Inventory OptimizationAs the (U.S.)

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.

Inventory Management’s Crucial Role in the Supply Chain

Kuebix

What is Inventory Management and Why is it Important? Inventory management refers to the process of ordering, storing and using a company’s goods or materials. Successfully managing inventory allows businesses to meet the demand level of their consumers with an appropriate amount of supply. Ineffective management can result in excess inventory which runs the risk […].

Inventory Metrics: From Insight to Action

Kinaxis

by Andrew Dunbar Over the last several weeks, this blog series on Inventory Management has explored the objectives and roles of inventory managers and outlined several of the improvement levers available to them. This post will discuss some of the metrics and analysis tools that an inventory manager needs to identify risk and opportunities and to make intelligent decisions to optimize the performance of their inventory.

Five Things You Need to Know about Inventory Optimization in the Digital Age

ToolsGroup

With all the buzz around digital transformation, someone peering in from outside supply chain may assume most businesses have already digitized essential tasks like inventory planning. It’s about learning to transition from long-held inventory systems and processes, having new conversations across logistics and sales, and the shifting role of supply chain planners. This article will share five things you need to know about optimizing inventory in the digital age.

Running 24/7 to Meet Medical Industry Demands

IQMS

Through proactive business continuity planning, real-time monitoring, and its DELMIAworks manufacturing ERP system, Eldon James is running production 24/7 to meet its medical industry customers’ increased demand in the wake of COVID-19. It enables the company to track real-time raw material and finished good inventory and have traceability back to the lot and batch of raw materials of finished product.

Meeting Demand During the Holidays

Elementum

As spending on the holidays continues to grow , retailers and logistics operators have to take special measures to meet the demand. With so many opportunities for customers to shop, the biggest problem brands encounter is predicting and meeting customer demand. Check inventory and monitor consumer reports to predict which products are going to be in demand. 2017 has been an exciting year for the tech industry and holiday shoppers alike. According to a recent study, 34.6%

Metrics that Matter: Inventory Effectiveness

QAD

The effective use of a manufacturer’s inventory investment is an important determinant of the company’s success. Excess and obsolete inventory is a drain on resources, as is excessive safety stock. Managing an Inventory Investment. Inventory effectiveness measures the process that delivers the right part to the right place at the right time, while minimizing investment and meeting customer requirements. Best Practices for Inventory Effectiveness.

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%. These companies struggle to meet service level requirements while respecting financial impacts, and have almost no chance to do it optimally. Much of inventory is a hedge against uncertainty. If you could predict your demand exactly you wouldn’t likely need as much inventory.

Inventory Optimization 101 – Smart & Effective Inventory Management

ThroughPut

What is Inventory Optimization? Inventory Optimization is defined as a method of balancing the manufacturers’ capital investment constraints and goals along with the defined service-level goals over a large assortment of stock-keeping units (SKUs) while considering all demand and supply volatility situations. It includes the practice of having the right levels of inventory to meet your target service levels while keeping a minimum amount of capital locked for inventory.

Inventory Optimization 101 – Smart & Effective Inventory Management

ThroughPut

What is Inventory Optimization? Inventory Optimization is defined as a method of balancing the manufacturers’ capital investment constraints and goals along with the defined service-level goals over a large assortment of stock-keeping units (SKUs) while considering all demand and supply volatility situations. It includes the practice of having the right levels of inventory to meet your target service levels while keeping a minimum amount of capital locked for inventory.

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.

Four Things You Probably Didn’t Know About Inventory Planning and Sustainability

ToolsGroup

I think it’s time we started spreading the good news: when you harness demand and inventory planning to slash unnecessary expenses and improve service to customers, you also reduce waste and support sustainability. Having the right inventory in the right location brings a variety of waste-reduction benefits. The place to start for a more efficient inventory stocking strategy is better understanding your demand so you can precisely predict how much goods you need, where and when.

SanDisk’s Story of Customer Segmentation Strategies Using Inventory Postponement

Supply Chain Shaman

Instead, in the SanDisk journey , they adjusted the speed of response to their customer segments, and actively designing inventory postponement strategies. As I sat with the team, and discussed the future of supply chain, they impressed me with their by their use of planning tools and their process diligence on building inventory strategies to enable a customer-segmented supply chain. Platitude: a flat, dull, or trite remark, especially one uttered as if it were fresh or profound.

The Many Types of Inventory Management Technology

Cerasis

There are diverse types of inventory management technology and systems, designed to properly sort, control and act upon information with a company’s inventory. As explained by Kenneth Hamlett of the Houston Chronicle , the two dominant types of inventory management technologies include manual and automated systems. But, there are additional levels of inventory management in between. The basic and most limited type of inventory management system is a manual system.

5 Tips to Improve Omnichannel Inventory Management

Unleashed

That includes the importance of robust inventory management to retail. Ensuring you don’t fail at order fulfilment begins with understanding your inventory and supply chain. In an increasingly complex eCommerce world, keeping track of inventory is tricky. Many brands are turning to omnichannel inventory management to meet the challenge. We’re going to share five tips to help you make omnichannel inventory work for you. Now imagine the company’s inventory.

Five Types of Inventory Optimization You Should Know

ToolsGroup

Inventory configuration is usually the predominant issue in most manufacturing environments. Inventory policy is usually the predominant issue in most distribution environments. Here are five types of inventory optimization that you should be aware of if you are considering an optimization solution. Inventory Configuration addresses the issue of in what form should I hold my inventory; as raw material, finished goods, or something in between?