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Inventory Planning Blog
SAP Business One includes an MRP module for planning needs in a manufacturing environment. retailers and wholesale distributors also use the on-board functionality. Discover an affordable, seamlessly integrated inventory optimization solution to SAP Business One from Valogix.
Discover an affordable, seamlessly integrated inventory optimization solution to SAP Business One for small and midsize businesses. A solution that frees up your resources (including cash), reduces losses from obsolescence, and increases service levels. The tools you need to forecast, plan, and optimize inventory, manage your business more efficiently and meet the demands of customers and suppliers are powerful and affordable.
Cloud Applications Going Forward
Advances in technology have allowed previous concepts like Time-Sharing and Shared servers and services to become a reality. Cloud computing today has real meaning and positive impact for companies in a true global economy. The future is that more business applications for mobile computing will be available and virtual software appliances will be developed.
Danger Ahead! Inherent Challenges When you Need to Combine MRP & DRP Inventory Planning
WAYS TO IMPROVE REPLENISHMENT PLANNING
Intelligent replenishment inventory planning includes several components, of which forecasting is just one element. Complete, automated planning systems handle all behavior including low volume items as part of a total process. Advanced planning solutions also incorporate inventory optimization, which dramatically improve replenishment planning. Why? Because optimization considers the wild cards in planning. It considers how random the demand of an item is, i.e., standard deviation and service level objectives, and it does it for each item, at every location, leaving nothing to chance (no spreadsheet can do that!)
THREE COMMON SENSE APPROACHES TO INVENTORY PLANNING
How should a planner set the reorder point and reorder quantity (or order-up-to level) for thousands of items, perhaps at multiple locations? Due to the absence of an "intelligent‟ planning system, three commonly used approaches have been Brute Force Review, Economic Order Quantity, and Periods of Supply, usually done in spreadsheets.
What state is your business in?
Until recently Small and Mid-size Businesses (SMB) did not have affordable, easy to use software tools to help them effectively manage and balance their inventory investment. Software solutions that forecast, plan and optimize an inventory are found in widespread acceptance in large enterprise companies but these solutions can cost between hundreds of thousands to millions of dollars and are generally not affordable or usable by SMBs.
In the vast majority of SMBs, spreadsheets are the common tool in use. They are time-consuming to build and maintain, are usually static data repositories, and according to a prior study by a major consulting firm over 90% of them contain significant errors. But they do serve a purpose. Inventory-laden companies like manufacturers, wholesalers, retailers, and aftermarket service organizations often see that inventory is their largest asset. The cost of carrying excess and obsolete stock, as well as not having sufficient saleable inventory to meet demand is enormously high.
Spare parts have an important life cycle
The graphic below shows the important milestones in a part’s life cycle. These have an impact on inventory planning for each item. This section examines how those milestones impact parts planning.
Discover an affordable, seamlessly integrated inventory planning optimization solution to SAP Business One for small and midsize businesses. A solution that frees up your resources (including cash), reduces losses from obsolescence, and increases service levels. The tools you need to forecast, plan, and optimize inventory, manage your business more efficiently and meet the demands of customers and suppliers are powerful and affordable.
Tags: Inventory Planning, SAP, SAP Business One, inventory optimization, Forecasting Inventory, advanced inventory planning solutions, cloud computing, Demand Planning, replenishment planning, Wholesale Distribution, Supply Chain, Partner Awards, Valogix, inventory management
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
Join Valogix in Sydney Australia on May 19th & 20th for the first annual SAP Business One Solution Summit. The summit was coordinated by Mark Loveys of Enprise Solutions with the goal of bringing top-rated SAP solution providers together to offer a single location to meet with prospects and partners. There will be 11 software SAP Business One solutions providers in attendance.
We regularly publish case studies about our customers' success with our product, VALOGIX Inventory Planner. We espouse its benefits and know that every company that holds stock would perform more efficiently and productively if it used Valogix. But every once in a while, we do a story that astounds even us!
Most recently, they implemented VALOGIX to an existing customer who has been live on SAP for about a year. "Our customer, an importer of starch-based, biodegradable utensils, cups and other picnic wares, was at a point where they needed to add head count in order to keep up with their forecasting and replenishment processes. The manager travels extensively and was finding it a challenge to make good decisions because of lack of access to information," Davis adds. "She needed a system that gave her up to date information and was simple to understand. She needed a decision-making tool that provided her with information she knew she could trust."