Supply Chain

Inventory Management

You are responsible for large inventory holdings. You need to strike a balance between holding enough inventory to meet service level requirements, while not holding too much as to tie up capital or incur unnecessary costs.

Specifically, you need to keep enough inventory to ensure the timely fulfillment of orders to:

  • Avoid delays which can put a sale or project at risk
  • Maintain your reputation as a reliable supplier
  • Not incur additional costs to expedite delivery

But, you also need to minimise the amount of inventory you hold to:

  • Minimise the capital tied up in inventory
  • Not incur additional cost for extra warehouse space
  • Avoid excess inventory that loses value due to perishability or obsolescence

One challenge is the variability in demand with the usual day to day peaks and troughs overlaid with trends from seasonal variations. Another challenge is the reality that supplier lead times are not always adhered to which causes uncertainty as to when restocking will occur. Finally, the sheer quantity of the SKUs that you keep makes a detailed review of re-order points and re-order quantities either very time consuming or impractical.

Now there is a solution that runs on Daitum’s optimisation platform that helps you overcome these challenges. This solution gives you access to the power of computational prescriptive analytics with a simple and rapid implementation that does not make any demands on your existing IT systems and solutions. The steps are:

  • Upload data on the SKUs you wish to stock, the current holding and their minimum order quantities
  • Upload historical data on demand
  • Upload historical data on supplier deliver performance
  • Set the stock availability KPI, e.g. available 95% of times
  • Optionally, set the maximum reorder frequency, e.g. no more than monthly

In a matter of minutes, the Daitum optimisation platform will identify the optimum amount of inventory to order so that your stock level ensures compliance with your service level requirements while minimising capital tied up in inventory.

We can tailor the solution to your requirements, e.g. volume discounts, multiple locations, limit on reliance on a single vendor, preferencing suppliers, or minimising the number of vendors.

CASE STUDY     Inventory Case Study

BUSINESS PROBLEM

You are responsible for large inventory holdings. You need to strike a balance between holding enough inventory to meet service level requirements, while not holding too much as to tie up capital or incur unnecessary costs.

Specifically, you need to keep enough inventory to ensure the timely fulfillment of orders to:

  • Avoid delays which can put a sale or project at risk
  • Maintain your reputation as a reliable supplier
  • Not incur additional costs to expedite delivery

But, you also need to minimise the amount of inventory you hold to:

  • Minimise the capital tied up in inventory
  • Not incur additional cost for extra warehouse space
  • Avoid excess inventory that loses value due to perishability or obsolescence

One challenge is the variability in demand with the usual day to day peaks and troughs overlaid with trends from seasonal variations. Another challenge is the reality that supplier lead times are not always adhered to which causes uncertainty as to when restocking will occur. Finally, the sheer quantity of the SKUs that you keep makes a detailed review of re-order points and re-order quantities either very time consuming or impractical.

Now there is a solution that runs on Daitum’s optimisation platform that helps you overcome these challenges. This solution gives you access to the power of computational prescriptive analytics with a simple and rapid implementation that does not make any demands on your existing IT systems and solutions. The steps are:

  • Upload data on the SKUs you wish to stock, the current holding and their minimum order quantities
  • Upload historical data on demand
  • Upload historical data on supplier deliver performance
  • Set the stock availability KPI, e.g. available 95% of times
  • Optionally, set the maximum reorder frequency, e.g. no more than monthly

In a matter of minutes, the Daitum optimisation platform will identify the optimum amount of inventory to order so that your stock level ensures compliance with your service level requirements while minimising capital tied up in inventory.

We can tailor the solution to your requirements, e.g. volume discounts, multiple locations, limit on reliance on a single vendor, preferencing suppliers, or minimising the number of vendors.

CASE STUDY     Inventory Case Study

BUSINESS PROBLEM

You are responsible for large inventory holdings. You need to strike a balance between holding enough inventory to meet service level requirements, while not holding too much as to tie up capital or incur unnecessary costs.

Specifically, you need to keep enough inventory to ensure the timely fulfillment of orders to:

  • Avoid delays which can put a sale or project at risk
  • Maintain your reputation as a reliable supplier
  • Not incur additional costs to expedite delivery

But, you also need to minimise the amount of inventory you hold to:

  • Minimise the capital tied up in inventory
  • Not incur additional cost for extra warehouse space
  • Avoid excess inventory that loses value due to perishability or obsolescence

One challenge is the variability in demand with the usual day to day peaks and troughs overlaid with trends from seasonal variations. Another challenge is the reality that supplier lead times are not always adhered to which causes uncertainty as to when restocking will occur. Finally, the sheer quantity of the SKUs that you keep makes a detailed review of re-order points and re-order quantities either very time consuming or impractical.

Now there is a solution that runs on Daitum’s optimisation platform that helps you overcome these challenges. This solution gives you access to the power of computational prescriptive analytics with a simple and rapid implementation that does not make any demands on your existing IT systems and solutions. The steps are:

  • Upload data on the SKUs you wish to stock, the current holding and their minimum order quantities
  • Upload historical data on demand
  • Upload historical data on supplier deliver performance
  • Set the stock availability KPI, e.g. available 95% of times
  • Optionally, set the maximum reorder frequency, e.g. no more than monthly

In a matter of minutes, the Daitum optimisation platform will identify the optimum amount of inventory to order so that your stock level ensures compliance with your service level requirements while minimising capital tied up in inventory.

We can tailor the solution to your requirements, e.g. volume discounts, multiple locations, limit on reliance on a single vendor, preferencing suppliers, or minimising the number of vendors.

CASE STUDY     Inventory Case Study

SUPPLY CHAIN : INVENTORY MANAGEMENT
SUPPLY CHAIN : INVENTORY MANAGEMENT
SUPPLY CHAIN : INVENTORY MANAGEMENT
SUPPLY CHAIN : INVENTORY MANAGEMENT
SUPPLY CHAIN : INVENTORY MANAGEMENT
  • Easily adjust optimisation KPIs
  • Configure to your business rules
  • Override any optimiser decision
  • Explore and compare different “what-if” scenarios
  • Visibility of constraints and metrics
  • Integrate with existing ERP systems
  • Reduced inventory costs
  • Increased compliance with business rules
  • Faster analysis of options
  • Evidence based decisions
  • Democratised access to optimisation
  • Reduce key person risk
  • Consistent, high quality rosters

FEATURES

  • Easily adjust optimisation KPIs
  • Configure to your business rules
  • Override any optimiser decision
  • Explore and compare different “what-if” scenarios
  • Visibility of constraints and metrics
  • Integrate with existing ERP systems

BENEFITS

  • Reduced inventory costs
  • Increased compliance with business rules
  • Faster analysis of options
  • Evidence based decisions
  • Democratised access to optimisation
  • Reduce key person risk
  • Consistent, high quality rosters

FEATURES

  • Easily adjust optimisation KPIs
  • Configure to your business rules
  • Override any optimiser decision
  • Explore and compare different “what-if” scenarios
  • Visibility of constraints and metrics
  • Integrate with existing ERP systems

BENEFITS

  • Reduced inventory costs
  • Increased compliance with business rules
  • Faster analysis of options
  • Evidence based decisions
  • Democratised access to optimisation
  • Reduce key person risk
  • Consistent, high quality rosters