Inventory optimization is the art of maintaining inventories at the right level to buffer the supply chain against peak demand and low supply – ensuring overall low inventory and high product availability. Stocks can be kept low when demand and supply are synchronized. Fluctuations in demand and supply can lead to stock-outs or excess inventory.
Maintaining balance
Good inventory optimization is a balancing act: optimize your inventory levels and improve your order-to-cash process...Show moreby reducing your inventory position while maintaining a high service level.
Cross-functional discipline
Inventory optimization is an intersection of many disciplines in your business. From Sales to R&D, or operations...Show more to procurement: inventory management optimization is a cross-functional matter where individual, at times conflicting, goals meet.
Holistic approach
Our inventory optimization solution takes all your individual goals into account in a holistic approach, such as ...Show more balancing costs, cash, service, and minimizing risks. Our easy-to-use-solution provides the expertise for measurable results – from day one.
Does it sound familiar?
There is too much cash bound in inventories, and I do not know where to start.
I am writing off large amounts of inventory every year.
Despite high inventory levels, my product availability is still too low.
Inventories delay the introduction of new product releases and may force me to offer my on-hand inventory at a discount.
I don’t know what the right inventory levels are and how to right-size them.
Benefits
Up to 45% reduction of inventory position
Up to 100% reduction of non-movers
Up to 40% reduction of write-offs
Up to 80% reduction of WIP inventory
Up to 60% reduction of C-parts and spare parts inventory
Up to 15% reduction of raw material inventory
How does it work?
With AIOinsights, we create the necessary transparency to unveil areas of improvement in your inventory. Our targeted inventory and master data analyses make end-to-end transparency possible, uncovering the root causes of non-optimal inventory levels.
With AIOintelligence, we evaluate improvement concepts using advanced algorithms to optimize inventory. With our fact-based classification of stock keeping units (SKU), you can set the right inventory parameters.
With AIOimpact, we initiate, execute, and monitor short- to long-term improvement measures that leverage a library packed with best practices, tracking implementation progress. For instance, running slow- and non-mover initiatives that are regularly adjusted to segment-specific parameters are all possible.
Our managed consulting services optimize your forecast-to-fulfill process. Initiate actionable measures to right-size your inventory, whether you need sustainable process optimization or quick results.
.png)
