Multi Echelon Inventory Planning & Optimization

Customer benefits

  • Better alignment with Sales and Business Units on the revenue, margin, and inventory goals
  • Increased predictability of revenue, gross and operating margins
  • Less inventory excess and obsolescence reserves leading to Improved gross margins
  • Lower inventory balance leading to improved cash flows

Solution highlights

  • Multilevel Inventory Planning and Optimization
  • Total view of Inventory from Raw Materials to Finished goods across manufacturers, distribution centers and retail locations
  • Inventory carrying cost, Stock out cost vs. Service level trade off analysis
  • Cycle Inventory, Safety stock, time phased target inventory calculations
  • Inventory replenishment plan for DCs, Customer and Consignment hubs

Planning Levels

Material | Customers | Time in Weeks, Months, Quarters, Years

KPIs

Inventory Turnover | Inventory to Sales Ratio | Cycle Time | Inventory Quality Ratio | % Lost Sales | Inventory Carrying Cost as % of Inventory Value | Inventory obsolescence as a % of total inventory | Inventory value per $1,000 total revenue | Return on working capital

What-If Scenario Planning

  • Impact of Lead time variability to change in Cycle inventory and Safety stock
  • Impact of Service levels variability to change in Cycle inventory and Safety stock
  • Impact of Demand variability to change in Cycle inventory and Safety stock
  • Analyze Total Inventory costs for Brand Owner & Contract manufacturers at different service levels.
  • Safety Stock at different service levels and the Total Inventory
  • Cost of Inventory at different Service levels
  • Incremental Costs to achieve higher Service levels