Advanced inventory planning and optimization solutions enhance the MRP process by automating inventory planning and replenishment. It automatically selects the best forecast algorithm for every item at every location and creates a rolling forecast of from 12 to 36 months. The solution then calculates an optimal stocking quantity for each item based on many critical variables like the lead time, order frequency, and target service level. Variability in demand is also considered along with other key factors ensuring the right amount of stock is available without creating an overstocked situation.
Inventory Planning Blog
Web-based demand planning and optimization products help companies reduce costs, increase productivity and offer a very quick ROI. In concert with a cloud-based ERP system like NetSuite, provides the users with an automated easy to use product. Planning and managing any inventory is a serious challenge and one that can be rewarding if done correctly and efficiently. Automation of the entire planning process from forecasting to replenishment to optimization and analytics is critical in order to keep up with the changes in demand and supply.
Happy New Year! 2012 brings the promise of improving global economies. Balancing short term resilience with longer term needs is what is needed now. Reducing costs, buying less, increasing productivity, improving cash flow is important, and to keep these inventory objectives balanced and in perspective you need an efficient way to optimize these important business demands. Improve your competitive advantages responsibly and efficiently with inventory planning optimization solutions. Waiting until its too late in your ordering cycles will invite your customers to investigate other opportunities, and that can happen by making the reduction of the wrong item at the wrong time.
If your company tends to reduce items with the highest investment because it creates a larger reduction faster, what it actually does is creates potential stock outs, higher backorders and increased expedited shipping – and, even more importantly, customer dis-satisfaction. We all know that when customers are unhappy they become former customers. Randomly cutting inventory has been proven time and time again to be the wrong strategy as does overstocking your inventory.
Tags: Inventory Planning, SAP Business One, cloud, inventory optimization, SaaS, Forecasting Inventory, advanced inventory planning solutions, replenishment planning, IBM, Wholesale Distribution, Supply Chain, manufacturing
In this Sunday's Schenectady Gazette, Dean Poeth wrote in his Op Ed piece entitled, It's Not Easy Going Lean: Manufacturers must cut waste and inefficiency to survice financial debacle, "For a small manufacturer, [lean manufacturing] is not an option, it is a business imperative." He likens the small manufacturer's fight to stay afloat to Rocky's championship fight strategy - simply stay on your feet and go the distance.