Inventory Planning Blog

The State of Inventory Planning - Chapter 5

Posted on Tue, Sep 25,[email protected]:00 AM

inventory planning, web based inventory planning, SaaS, Cloud, Valogix

Achievable Bottom Line Results

In our final installment of our series on The State of Inventory Planning, we explore the results of inventory planning and optimization solutions.  Companies that implement these solutions often find the results surprising. Many thought their old Excel spreadsheets were doing a fine job, only to discover a whole new world of information at their fingertips, allowing them to make informed decisions that really do affect the bottom line!

Typically, companies achieve a reduction in inventory by 20%-40% (and more!), reduced expediting and emergency shipments by 35%, improved productivity by reducing planning time by 60%, and controlled and reduced replenishment spending by 15%. Inventory solutions are more robust than Excel spreadsheets (and less prone to error), offer dynamic information and give the user visibility to not only actual inventory on the shelves, but that on the planning horizon. There are several areas of the business that are positively affected by inventory planning and optimization solutions.

Cost Reductions and Avoidance

• current and long term inventory investment
• physical space requirements – (rent, contents insurance, heat, light and power, etc.)
• emergency shipments
• expedited orders
• current, open replenishment orders
• future purchase quantities
• planning time
• service technician call-backs for on-site service repair calls
• manual processes
• mistakes and errors
• lost sales
• lost customers

inventory planning, web based inventory planning, Valogix

Increased Revenue Generation

• 1st time fill rates for new orders
• 1st time completion rates for service repair calls
• repeat sales
• cross-sell/up-sell
• employee satisfaction
• customer satisfaction
• asset utilization (ROA)

Improvement in Productivity

• employee utilization and effectiveness inventory planning, SaaS, Cloud, Valogix, SAP
• vendor relations
• first time fix rates for (service organizations)
• employee satisfaction
• inventory process reliability

If your SMB is still using clunky, out-of-date Excel spreadsheets and plug ins, what are you waiting for? You don't need to be an enterprise-level company to take advantage of enterprise-level technology.

Want to learn more? Contact Valogix today for your free inventory analysis to see how much you could be saving if you weren’t using those old spreadsheets. 

 

 

Tags: Inventory Planning, SAP, SaaS, NetSuite, IBM, web based inventory planning, Sage, Valogix