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Inventory optimization (SO99+ Inventory)

Inventory Optimization

For business-line managers who need to solve inventory problems fast:
Wrong Inventory Mix or Unacceptable Service Levels

Many inventory planning approaches aren’t well suited for companies with challenging distribution problems. As a result, you may not have an efficient inventory mix. Or perhaps you aren’t consistently hitting target service levels. So you want to get beyond simple ABC inventory analysis to improve your inventory/service trade-off. And you want best inventory practices without breaking the bank.

An Affordable, Cloud-based Approach

ToolsGroup’s Inventory Optimization service combines modern cloud-based technology with two decades of domain expertise to help you optimize service levels and inventories.

Inventory target setting delivered as a low-cost outsourced service liberates you from the expense, time and risks of implementing systems and processes on-premise. With our secure cloud-based portal, you simply upload data and retrieve inventory recommendations to your desktop. Item-Location level inventory targets, such as safety stocks and reorder points, are available for a low monthly fee.

Optimizing the Entire Item-Location Level Assortment

Unlike most inventory approaches, ToolsGroup’s advanced inventory modelling and optimization engine doesn’t just independently calculate inventory targets for each isolated item. It globally and simultaneously optimizes your entire assortment of Item-Locations. It reliably handles both fast and slow movers, even for very high service levels (up to 99+%).

• It can also handle multi-echelons, finding the most globally efficient balance between upstream and downstream inventory.

• It can perform service level optimization, replacing “one size fits all” service level targets with a mix of different service targets.

• And it can simultaneously optimize safety stocks and cycle stocks.

The Right Inventory for Target Service at the Lowest Cost

Whether delivered either as a low cost cloud-based inventory target setting service or via hosted or on-site software, this inventory modelling is highly automatic with extremely low cost of ownership. Yet it routinely generates million dollar ROIs via increased customer service levels, reduced stock-outs and improved inventory turns.

As part of an inventory optimization project or an S&OP improvement, our inventory mix optimization puts the right buffers in place to guarantee target service levels at the lowest cost. It enables you to deliver competitive and sustainable customer service levels with less inventory. It generates a quick ROI, typically 30-40% inventory improvements and/or service level increases of several per cent

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